WT/DS551/R  
 
11 July 2019 
(19-4561) Page: 1/5 
  Original: English  
 
  
UNITED STATES – CERT AIN MEASURES ON STEE L AND ALUMINIUM 
PRODUCTS  
REPORT OF THE PANEL  
 
 
  WT/DS551/R  
 
- 2 - 
 
   TABLE OF CONTENTS  
1   COMPLAINT BY MEX ICO ................................ ................................ .................  3 
2   PANEL ESTABLISHM ENT AND COMPOSITION  ................................ .................  3 
3   NOTIFICATION OF MUTUALLY AGREED SOLU TION  ................................ .........  5 
  WT/DS551/R  
 
- 3 - 
 
  1  COMPLAINT BY MEXICO  
1.1.  On 5 June 2018, Mexico  requested consultations with the United States pursuant to  Articles 1 
and 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) , 
Article XXII:1 of the General Agreement on Tariffs and Trade 1994 (GATT 1994) , and Article 14 of 
the Agreement on Safeguards  with respect to certain measures by the United States to adjust 
imports of steel and aluminium, including applying  an additional ad valorem customs duty on imports 
of certain  steel and alumin ium products , and exempting certain selected WTO Membe rs from the 
measures.1 
1.2.  Mexico  alleged that , as from 1 June 2018, the  United States imposed a n additional customs  
duty of 25% on imports of certain steel products and a n additional customs duty of 10% on certain 
alumin ium products from Mexico , while exempting and/or establishing quotas for imports from 
Argentina, Australia , Brazil , and South Korea . According to Mexico , the measures identified in its 
request for consultations , separately or together, appear ed to be inconsistent with the United States' 
obligations under Articles  I:1, II:1(a) and (b), X:3(a), XI:1, XIX:1 (a), and XIX:2  of the GATT 1994 , 
Articles 2.1,  2.2, 3.1, 4.1, 4.2, 5.1, 7, 9, 11.1(a)  and (b), 12.1, 12.2, 12.3 , and 12.5 of the 
Agreement on Safeguards , and Article  XVI:4 of the Marrakesh Agreement Establishing the World 
Trade Organization (WTO  Agreement).  
1.3.  In addition, Mexico  considered that Section 232 of the Trade Expansion Act of 1962 , as 
amended (19 U.S.C. § 1862),  including its regulations , could be inco nsistent "as such" with the  
provisions  cited in paragraph 1.2 above. Mexico also alleged that this measure constituted  a general 
rule of prospective application  likely to continue being applied in  future in a manner inconsistent 
with the United States' obl igations under the WTO covered agreements.  Mexico further considered 
that the measures at issue could not be justified under Article XXI(b) of the GATT 1994 since, inter 
alia, they required the United States to take account of economic welfare and other factors not 
necessary for the protection of its essential security interests.   
1.4.  Consultations were held on 20 July 2018.  
2  PANEL ESTABLISHMENT AND COMPOSITION  
2.1.  On 18 October 2018, Mexico  requested the establishment of a panel pursuant to  Articles 4 and 
6 of the DSU, Article XXIII of the GATT 1994 , and Article 14 of the Agreement on Safeguards.2  
2.2.  In its request for  the establishment of a panel, Mexico  identified the measures at issue as those 
through which the United States had adjusted imports of steel and aluminium products , includ ing 
but not limited to : 
a. Additional tariffs of 25% and 10% on imports of steel and aluminium products respectively, 
as well as the exclusion of certain WTO Membe rs from these tariffs as established through  
the following series of legal instruments , operating separately or collectively:  
i. "Proclamation 9704 of March 8, 2018 Adjusting Imports of Aluminum  Into the United 
States", Fed. Reg. Vol. 83, No. 51, 11619 -11624, 15 March 2018, including the Annex 
thereto;  
ii. "Proclamation 9705 of March 8, 2018 Adjusting Imports of Steel into the United 
States", Fed. Reg. Vol. 83, No. 51, 11625 -11630, 15 March 2018, in cluding the Annex 
thereto;  
iii. "Proclamation 9710 of March 22, 2018 Adjusting Imports of Aluminum Into the United 
States", Fed. Reg. Vol. 83, No. 60, 13355 -13359, 28 March 2018;  
iv. "Proclamation 9711 of March 22, 2018 Adjusting Imports of Steel into the United 
States", Fed. Reg. Vol. 83, No. 60, 13361 -13365, 28 March 2018;  
                                                
1 Request for consultations by Mexico, WT/DS55 1/1 and WT/DS551/1 /Corr.1 . 
2 Request for the establishment of a panel by  Mexico, WT/DS55 1/11. WT/DS551/R  
 
- 4 - 
 
  v. "Proclamation 9739 of April 30, 2018 Adjusting Imports of Aluminum Into the United 
States", Fed. Reg. Vol. 83, No. 88, 20677 -20682, 7 May 2018, including the Annex 
thereto;  
vi. "Proclamation 974 0 of April 30, 2018 Adjusting Imports of Steel into the United 
States", Fed. Reg. Vol. 83, No. 88, 20683 -20705, 7 May 2018, including the Annex 
thereto;  
vii. "Proclamation 9758 of May 31, 2018 Adjusting Imports of Aluminum Into the United 
States", Fed. Reg. Vo l. 83, No. 108, 25849 -25855, 5 June 2018, including the Annex 
thereto;  
viii. "Proclamation 9759 of May 31, 2018 Adjusting Imports of Steel into the United States", 
Fed. Reg. Vol. 83, No. 108, 25857 -25877, 5 June 2018, including the Annex thereto;  
ix. US Department  of Commerce, "The Effect of Imports of Steel on the National Security", 
11 January 2018;  
x. US Department of Commerce, "The Effect of Imports of Aluminum on the National 
Security", 17 January 2018;  
b. "Section 232 of Trade Expansion Act of 1962 ", codified in T itle 19, United States Code § 
1862;  
c. Code of Federal Regulations, Title 15, Section 705, "Effect of Imported Articles on the 
National Security" ; and  
d. any additional measures that amend, supersede, update or replace  the measures at issue .  
2.3.  Mexico  considered  that the measures at issue  constitute safeguard measures which , separately 
or together, appeared  to be inconsistent with the United States' obligations under Articles 2.1, 2.2, 
3.1, 4.1, 4.2, 5.1, 7.1 , 7.4, 8.1,  9.1, 11.1(a)  and (b), 12.1, 12.2, 12.3, and 12.5 of the Agreement 
on Safeguards and Articles I:1, II:1(a) and (b), XI:1, XIX:1(a), and XIX:2 of the GATT 1994.  Mexico 
also alleged that violations appeared to nullify or impair the benefits accruing to it und er the cited 
provisions.  
2.4.  At its meeting on 21 November 2018, the Dispute Settlement Body (DSB) established a panel 
pursuant to Mexico 's request in document WT/DS55 1/11, in accordance with Article  6 of the DSU.3 
2.5.  The Panel's terms of reference are the follow ing: 
To examine, in the light of the relevant provisions of the covered agreements cited by 
the parties to the dispute, the matter referred to the DSB by Mexico in document 
WT/DS551/11 and to make such findings as will assist the DSB in making the 
recommen dations or in giving the rulings provided for in those agreements .4 
2.6.  On 7 January 2019 , Mexico  requested the Director -General to determine the composition of 
the Panel, pursuant to Article 8.7 of the DSU . On 25 January 2019, the Director -General accordingly 
composed the Panel as follows:  
Chairperson:  Mr Elbio Rosselli  
 
Members:   Mr Esteban B. Conejos, Jr  
Mr Rodrigo Valenzuela   
  
2.7.  The Kingdom of Bahrain; Brazil; Canada, China; Colombia; Egypt ; the European Union; 
Guatemala;  Honduras ; Hong Kong, China; Iceland; India; Indonesia; Japan; Kazakhstan; Malaysia;  
New Zealand; Norway; Qatar; the Russian Federation; the Kingdom of Saudi Arabia; Singapore; 
                                                
3 DSB, Minutes of the meeting held on  21 November 2018 , WT/DSB/M/421.  
4 Constitution note of the Panel, WT /DS55 1/12. WT/DS551/R  
 
- 5 - 
 
  South Africa; Switzerland; Chinese Taipei; Thailand; Turkey; Ukraine ; and the Bolivarian Republic 
of Venezuela reserved their rights to participate in the Panel proceedings as third parties.  
3  NOTIFICATION OF MUTUALLY AGREED SOLU TION  
3.1.  By a letter dated 2 8 May 2019, pursuant to Article 3.6 of the DSU, the parties notified the  DSB 
that they had reached a mutually agreed solution . This  was circulated as document WT/DS55 1/13 
on 3 June  2019. On 28 May 2019, the parties jointly wrote to the Panel advising it of their mutually 
agreed solution and "recall[ing] that Article 12.7 of th e [DSU] provides that '[w]here a settlement 
of the matter among the parties to the dispute has been found, the report of the panel shall be 
confined to a brief description of the case and to reporting that a solution has been reached '". 
3.2.    The Panel takes note of the mutually agreed solution between the parties to the dispute and 
of Article 3.7 of the DSU, which provides that "[t]he aim of the dispute settlement mechanism is to 
secure a positive solution to a dispute. A solution mutually a cceptable to the parties to a dispute and 
consistent with the covered agreements is clearly to be preferred. " 
3.3.  The Panel also takes note of Article 12.7 of the DSU, which provides that "[w]here a settlement 
of the matter among the parties to the dispute has  been found, the report of the panel shall be 
confined to a brief description of the case and to reporting that a solution has been reached. " 
Accordingly, the Panel concludes its work by reporting that a mutually agreed solution to this dispute 
has been re ached between the parties.  
 
__________