WT/DS492/2  
 
9 June 2015  
(15-3013)  Page: 1/6  
  Original: English  
 
 EUROPEAN UNION – MEASURES AFFECTING TARIFF CONCESSIONS  
ON CERTAIN POULTRY MEAT PRODUCTS 
REQUEST FOR THE ESTABLISHM ENT OF A PANEL BY CHINA 
The following communication, dated 8 June 2015, from  the delegation of China to the Chairperson 
of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.  
_______________ 
  On 8 April 2015 the People's Republic of China ("China") requested consultations with the 
European Union ("EU") pursuant to Articles 1 and 4 of the Understanding on Rules and Procedures 
Governing the Settlement of Disputes  ("DSU") and Article XXIII:1 of the General Agreement on 
Tariffs and Trade 1994 ("GATT 1994") with respect to  the measures of the EU that affect imports 
of certain poultry meat products from China. Consultations were held on 26 May 2015 with a view 
to reaching a mutually satisfactory solution. Those consultations, unfortunately, did not resolve the dispute. 
As a result, my authorities have instructed me to request the establishment of a panel pursuant to 
Articles 4.7 and 6 of the DSU and Article XXIII of the GATT 1994 with respect to the measures of 
the EU identified below that affect imports of  certain poultry meat products from China. 
I. MEASURES AT ISSUE  
The measures are the result of two EU requests to modify the EU tariff concessions on certain 
poultry meat products under Article XXVIII of the GATT 1994 in 2006 and in 2009 and the refusal by the EU to modify the Tariff Rate Quotas ("TRQs") upon China's request.  Specifically: 
(i) The first request was made by the EU on 7 June 2006  through a notification to the WTO 
Members of its intention to modify its tariff concessions for three tariff subheadings – that is, subheadings 0210 99 39, 1602 31 and 1602 32 19 (hereinafter the "2007 
Modification Package"
1). The EU undertook modification negotiations under GATT 1994 
Article XXVIII with Thailand and Brazil, which it considered to have a principal or substantial supplying interest in products covered by these subheadings, while it refused to recognize China's claim of substantial interest. The EU subsequently reached an 
agreement with Brazil and Thailand on 23 November 2006 and 6 December 2006, 
respectively, on the basis of TRQs almost entirely reserved for Brazil and/or Thailand, and out-of-quota bound rates significantly in excess of the pre-modification bound rates. 
The modification was implemented in 2007. 
On 27 May 2009, the EU notified WTO Members that it had concluded its negotiations 
under GATT 1994 Article XXVIII in relation to the products at issue, and attached the 
results of its negotiations with this communication (G/SECRET/25/ADD.1).  
(ii) The second request was made by the EU on 11 June 2009 through a notification to WTO 
Members of its intention to modify its tariff concessions on eight tariff subheadings – that is, 1602 20 10, 1602 32 11, 1602 32 30, 1602 32 90, 1602 39 21, 1602 39 29, 
                                               
1 The terms "2007 Modification Package" here and, subsequently, "2012 Modification Package" use the 
year of implementation to refer to the modifications. WT/DS492/2 
 
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  1602 39 40 and 1602 39 80 (hereinafter the "2012 Modification Package").2 The EU 
undertook modification negotiations under GATT 1994 Article XXVIII with Thailand and Brazil, which it considered to have a principal or substantial supplying interest in the products covered by these subheadings, whil e it refused to recognize China's claim of 
principal supplying interest. The EU subsequently entered into an agreement with 
Thailand and Brazil on 18 June 2012 and 26 June 2012, respectively, on the basis of TRQs that again are almost entirely (or in some cases entirely) reserved for Brazil 
and/or Thailand, and out-of-quota tariff rates significantly in excess of the pre-
modification bound rates.
3 This modification was implemented in 2012 and became 
effective from March 1, 2013.  
On 17 December 2012, the EU notified WTO Members that it had concluded its 
negotiations under GATT 1994 Article XXVIII in relation to the products at issue, and 
attached the results of its negotiations with this communication (G/SECRET/32/ADD 1).  
On 19 December 2013, China further requested the EU to enter into consultation 
pursuant to Article XIII.4 of the GATT 1994 referring to China's substantial supplying 
interest in several of the tariff items as evidence by more recent statistics of imports from China. During consultations on 19 May 2014, the EU refused to consider the 
amendment of the TRQs.   
The above-referenced modifications of the EU's tariff concessions and the institution of the TRQs 
as part of the modification packages are im plemented through the following instruments and 
decision:  
A. For The 2007 Modification Package 
(i) Council Regulation (EC) No 580/2007 of 29 May 2007 concerning the implementation 
of agreements in the form of Agreed Minutes between the European Community and 
Brazil, and between the European Community  and Thailand pursuant to Article XXVIII 
of the GATT 1994, amending and supplemen ting Annex I to Regulation (EEC) 
No 2658/87 on the tariff and statistical nomenclature and on the Common Customs 
Tariff.
4 
(ii) Commission Regulation (EC) No 616/2007 of 4 June 2007 opening and providing for 
the administration of Community tariff quotas in the sector of poultry meat originating in Brazil, Thailand and other third countries.
5 
(iii) Commission Regulation (EC) No 1549/2007 of 20 December 2007 amending 
Regulation (EC) No 616/2007 opening and pr oviding for the administration of certain 
Community tariff quotas in the sector of poultry meat originating in Brazil, Thailand 
and other third countries.6 
B. For The 2012 Modification Package (i) Regulation (EU) No 1218/2012 of the Euro pean Parliament and of the Council of 12 
December 2012 amending and supplementing Annex I to Council Regulation (EEC) No 
2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff
7 which was adopted after the adoption of Council Decision 2012/792/EU of 6 
December 2012 approving the conclusion of the Agreement in the form of an 
Exchange of Letters between the European Un ion and Brazil pursuant to Article XXVIII 
of the General Agreement on Tariffs and Trade (GATT) 1994 relating to the modification of concessions with respect to processed poultry meat provided for in the 
EU Schedule annexed to GATT 1994, and of the Agreement in the form of an 
                                               
2 Tariff subheadings 1602 39 40 and 1602 39 80 were combined in 2012 to create a new tariff 
subheading 1602 39 85. 
3 No change was made to the existing tariff rate for tariff subheading 1602 20 10. 
4 O.J. No L 138, 30 May 2007, p. 1. 
5 O.J. No L 142, 5 June 2007, p. 3. 
6 O.J. No L 337, 21 December 2007, p. 75. 
7 O.J. No L 351, 20 December 2012, p. 36. WT/DS492/2 
 
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  Exchange of Letters between the European Union and Thailand pursuant to 
Article XXVIII of the General Agreement on Tariffs and Trade (GATT) 1994 relating to 
the modification of concessions with respect to processed poultry meat provided for in the EU Schedule annexed to GATT 1994.
8 
(ii) Commission Regulation (EU) No 1246/2012 of 19 December 2012 amending 
Regulation (EC) No 616/2007 opening and providing for the administration of Community tariff quotas in the sector of poultry meat originating in Brazil, Thailand 
and other third countries and derogating from that Regulation for 2012-2013.
9 
(iii) Commission Implementing Regulation (EU) No 302/2013 of 27 March 2013 amending 
Regulation (EC) No 616/2007 opening and providing for the administration of Community tariff quota in the sector of poultr y meat originating in Brazil, Thailand and 
other countries.
10  
Whilst this Commission Regulation entered into force on 31 March 2013, a notice 
published on 28 February 2013 indicated that the agreements between the EU and 
Brazil on the one hand, and the EU and Thailand on the other hand, entered into force 
on 1 March 2013.11 
(iv)  Refusal by the EU in consultations held on 19 May 2014 under Article XIII of 
GATT 1994 to adjust the TRQs on the basis of recent import statistics establishing 
China's substantial supplying interests as had been requested by letter of Ambassador Yu of 19 December 2013. 
In addition to the measures cited in the above paragraphs, this request also covers any 
amendments, supplements, extensions, replacement measures, renewal measures, related 
measures, or implementing measures. 
II. LEGAL BASIS FOR THE COMPLAINT  
The above measures appear to be inconsistent with  the EU's obligations under Articles I, II, XIII 
and XXVIII of the GATT 1994: 
A. Claims With Respect To The 2007 Modification Package 
(i) The modification negotiation initiated by the EU in 2006 is inconsistent with 
Article XXVIII:1 of the GATT 1994, read in co njunction with Ad Article XXVIII and with 
the Understanding on the Interpretation of Ar ticle XXVIII, as the EU failed to negotiate 
or consult with all the WTO Members having a principal supplying interest or a 
substantial interest, or that could have had such an interest in the absence of a 
discriminatory quantitative restriction. 
(ii) The tariff rates and the TRQs negotiated  and then implemented by the EU in the 
measures identified above are inconsistent with Article XXVIII:2, read in conjunction 
with the Understanding on the Interpretation of Article XXVIII and in particular Paragraph 6 thereof, because they failed to maintain a general level of reciprocal and 
mutually advantageous concessions not less favorable to trade than that existing prior 
to the modification. 
(iii) The country-specific TRQs allocated by the EU to two of the WTO Members and then 
implemented by the EU in the measures identified above violate GATT 1994 Article 
XIII by diminishing for the other WTO Members the market access commitments that 
the EU undertook to maintain on a non-discriminatory basis. 
(iv) The allocation of all or the vast majority of the TRQs to two of the WTO Members 
                                               
8 O.J. No L 351, 20 December 2012, p. 47. 
9 O.J. No L 352, 21 December 2012, p. 16. 
10 O.J. No L 90, 28 March 2013, p. 86. 
11 O.J. No 56, 28 February 2013, p. 2. WT/DS492/2 
 
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  implemented by the EU in the measures iden tified above, is inconsistent with GATT 
1994 Article XIII:1 because the importation of the like product from the WTO Members is not similarly prohibited or restricted as a result. 
(v) The allocation of all or the vast majority  of the TRQs to two of the WTO Members as 
implemented by the EU in the measures id entified above is inconsistent with the 
chapeau of GATT 1994 Article XIII:2 read in  conjunction with the Understanding on 
the Interpretation of Article XXVIII and in particular Paragraph 6 thereof, which 
requires the allocation of a TRQ to approach as closely as possible the shares that the 
WTO Members might be expected to obtain in the absence of the TRQs. 
(vi) The allocation of all or the vast majori ty of the TRQs to two of the WTO Members as 
implemented by the EU in the measures identified above is inconsistent with GATT 
1994 Article XIII:2(d) because the EU failed to seek agreement with all WTO Members 
having a substantial interest in supplying the product concerned, nor did it allot to such Members shares based upon the propor tions supplied by them during a previous 
representative period, due account being taken of any special factors which affected 
the trade in the product. 
(vii) The allocation of all or the vast majori ty of the TRQs to two of the WTO Members as 
implemented by the EU in the measures identified above is inconsistent with GATT 
1994 Article XIII:2, including its chapeau, read in conjunction with  Article XIII:4, which confirms that the base period must be selected and special factors must be taken into account such as to allot to Members a TRQ that approaches as closely as 
possible the shares that they might be expected to obtain in the absence of the TRQs.  
(viii) The EU violated GATT 1994 Article II:1 by  adopting tariff rates that exceeded the 
bound tariff rates in its Schedule for the three tariff subheadings at issue, as the tariff 
rates and the TRQs which the EU negotiated and then implemented under Article 
XXVIII in 2007 are inconsistent with GATT 1994 Articles XIII and XXVIII:2, and are, 
therefore, ineffectual to replace the bound rates in its Schedules preceding its 
implementation of the 2007 Modification Package.  
(ix) In the absence of notification for certification, notification of the date on which the 
changes to the goods schedule come into force to the WTO Secretariat, and notification of the draft modification to its Schedule, the EU acted inconsistently with 
the procedures set forth in paragraph 7 of the Procedures for Negotiations under 
Article XXVIII and paragraph 1 of the Procedures for Modification and Rectification of Schedules and Tariff Concessions. The absence of a notification for certification of the 
modified schedule and of the certification foll owing notification and the other violations 
mentioned herein, results in the EU having acted inconsistently with GATT 1994 Articles II:1 and II:2 by affording imports of  poultry meat from China less favorable 
treatment than that provided for in its Schedule. 
(x) The tariff rates and the TRQs negotiated  and then implemented by the EU in the 
measures identified above are inconsistent with GATT 1994 Article I:1 which requires that any advantage, favor, privilege or immunity granted by any WTO Member to any 
product originating in any other country shall be accorded immediately and 
unconditionally to the like product originating in the territories of all other WTO Members.  
 B. Claims With Respect To The 2012 Modification Package 
(i) The modification negotiation initiated by the EU in 2009 is inconsistent with Article 
XXVIII:1 of the GATT 1994, read in conjuncti on with Ad Article XXVIII, and with the 
Understanding on the Interpretation of Articl e XXVIII, as the EU failed to negotiate or 
consult with all the WTO Members having a principal supplying interest or a WT/DS492/2 
 
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  substantial interest or that could have had such an interest in the absence of a 
discriminatory quantitative restriction.12 
(ii) The tariff rates and the TRQs negotiated  and then implemented by the EU in the 
measures identified above are inconsistent with Article XXVIII:2, read in conjunction 
with the Understanding on the Interpretation of Article XXVIII and in particular 
Paragraph 6 thereof, because they fail to ma intain a general level of reciprocal and 
mutually advantageous concessions not less favorable to trade than that existing prior 
to the modification. 
(iii) The country-specific TRQs allocated by the EU to two of the WTO Members as 
implemented in the measures and decision mentioned above13 violate GATT 1994 
Article XIII by diminishing for the other WTO Members the market access 
commitments that the EU undertook to maintain on a non-discriminatory basis. 
(iv) The allocation of all or the vast majori ty of the TRQs to two of the WTO Members as 
implemented in the measures and decision mentioned above14 is inconsistent with 
GATT 1994 Article XIII:1 as the importation of the like product of all the WTO 
Members is not similarly prohibited or restricted as a result. 
(v) The allocation of all or the vast majority  of the TRQs to two of the WTO Members as 
implemented in the measures and decision mentioned above15 is inconsistent with the 
chapeau of GATT 1994 Article XIII:2 read in  conjunction with the Understanding on 
the Interpretation of Article XXVIII and in particular Paragraph 6 thereof, because the allocation of the TRQs do not approach as closely as possible the shares that the WTO 
Members might be expected to obtain in the absence of the TRQs. 
(vi) The allocation of all or the vast majori ty of the TRQs to two of the WTO Members as 
implemented by the EU in the measures and decisions identified above is inconsistent 
with GATT 1994 Article XIII:2(d) because the EU failed to seek agreement with all 
WTO Members having a substantial interest in supplying the product concerned, nor did it allot to such Members shares base d upon the proportions supplied by them 
during a previous representative period, due account being taken of any special 
factors which may have affected or may be affecting the trade in the product. 
(vii) The allocation of all or the vast majori ty of the TRQs to two of the WTO Members as 
implemented by the EU in the measures identified above is inconsistent with GATT 
1994 Article XIII:2, including its chapeau, read in conjunction with Article XIII:4, 
which confirms that the base period for the determination of the TRQs must be selected and special factors must be taken into account so as to allot to Members a 
TRQ that approaches as closely as possible the shares that they might be expected to 
obtain in the absence of the TRQs. 
(viii) The EU's refusal in consultations with China on 19 May 2014 to consider an adjustment 
of the allocation of the TRQs based on a chan ge in the base period or a reappraisal of 
the special factors involved is inconsistent with GATT 1994 Article XIII:4. 
(ix) The EU violated GATT 1994 Article II:1 by adopting tariff rates that exceeded the 
bound tariff rates in its Schedule for the tariff subheadings at issue, as the tariff rates 
and the TRQs which the EU negotiated an d then implemented under Article XXVIII in 
2013 are inconsistent with GATT 1994 Articl es XIII and XXVIII:2, and are, therefore, 
                                               
12 The EU refused to change the TRQs  and its allocation mentioned in (i i) above so as to reflect China’s 
recent shares of importation into the EU. In  letters dated 1 June 2012 and 12 October 2012 addressed by EU Ambassador Pangratis to Ambassador Yi of China in re sponse to letters from Ambassador Yi dated 9 May 2012 
and 2 October 2012, respectively, the EU refused China’s request to enter into consultations under Article XXVIII of the GATT 1994 on the grounds that China had become the biggest supplier in a certain number of poultry products based on EU statistical data for the period from 2009 – 2011 
13 See Section I.B(iv)  fo r the referred decision. 
14 Ibid. 
15 Ibid. WT/DS492/2 
 
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  ineffectual to replace the EU's bound rates in its Schedules preceding its 
implementation of the 2012 Modification Package.  
(x)  In the absence of notification for certific ation, notification of the date on which the 
changes to the goods schedule come into force to the WTO Secretariat, and 
notification of the draft modification to its Schedule, the EU acted inconsistently with 
the procedures set forth in paragraph 7 of the Procedures for Negotiations under Article XXVIII and paragraph 1 of the Procedures for Modification and Rectification of 
Schedules and Tariff Concessions. The absence of a notification for certification of the 
modified schedule and of the certification foll owing notification and the other violations 
mentioned herein, results in the EU having acted inconsistently with GATT 1994 Articles II:1 and II:2 by affording imports of  poultry meat from China less favorable 
treatment than that provided for in its Schedule.  
(xi)  The tariff rates and the TRQs negotiat ed and then implemented by the EU in the 
measures identified above are inconsistent with GATT 1994 Article I:1 which requires 
that any advantage, favor, privilege or immunity granted by any WTO Member to any 
product originating in any other country shall be accorded immediately and unconditionally to the like product originating in the territories of all other WTO 
Members. 
The EU's measures and decision also nullify or impair the benefits accruing to China directly or 
indirectly under the cited agreements. 
III. REQUEST FOR ESTABLISHMENT OF PANEL  
In the light of the above China requests purs uant to Articles 4.7 and 6 of the DSU, and 
Article XXIII of the GATT 1994, that the Disput e Settlement Body ("DSB") establish a panel to 
examine the matter, with the standard terms of reference, as set forth in Article 7.1 of the DSU. 
China requests that this request be placed on the agenda of the DSB meeting to be held on 19  
 
 
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