WT/DS574/1  
G/L/1289  
S/L/420  
8 January  2019 
(19-0084) Page: 1/4 
 Original:  Spanish  
 
  
UNITED STATES – MEASURES RELATING TO TRADE IN GOODS AND SERVICES  
REQUEST FOR CONSULTATIONS BY VENEZUELA  
The following communication, dated 2 8 December  2018, from the delegation of the 
Bolivarian  Republic of Venezuela to the delegation of the United States, is circulated to the Dispute 
Settlement Body in accordance with Article 4.4 of the DSU.  
 
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Upon instructions from  the authorities of the Bolivarian Republic of Venezue la, a request is hereby 
made for consultations with the Government of the United States of America ("United States") 
pursuant to Article 4 of the WTO Understanding on Rules and Procedures Governing the Settlement 
of Disputes ("DSU"), Article XXIII of the G eneral Agreement on Tariffs and Trade 1994 ("GATT 1994") 
and Article  XXIII of the General Agreement on Trade in Service s ("GATS "), with respect to certain 
measures imposed by the United States in relation  to trade in goods and services . These measures 
apply exclusively to trade with the Bolivarian Republic of Venezuela . 
 
Pursuant to Article 4.4 of the DSU , the reasons for this request, including identification of the 
measures at issue and an indication of the legal basis for the complaint, are given  below. 
 
The United States has imposed certain coercive trade -restrictive measures  on the 
Bolivarian  Republic  of Venezuela in the context of attempts to isolate Venezuela economically . The 
Government of the Bolivarian Republic of Venezuela refers inter alia  to those trade -restrictive 
measures  under which, through the United States Executive B ranch, persons are put on the Specially 
Designated Nationals and Blocked Persons List ("SDN List"), the United States  blacklist . The 
regulatory framework encompassing  the unilateral coercive trade -restrictive measures  imposed by 
the United States on the Bolivarian Republic of Venezuela includes, but is not limited to, the 
following : 
 
Statutes : 
 
(a) Venezuela Defense of Human Rights and Civil Society Act of 2014 ("VDHR A"); 
 
(b) International Emergency Economic Powers Act ("IEEPA") , 50 U.S.C. §§ 1701 -1706; and 
 
(c) National Emergencies Act  ("NEA"), 50 U.S.C. §§ 1601 -1651.1 
 
Regulations : 
 
(d) 31 CFR Part  591 – Venezuela Sanctions Regulations ("VSR "). 
 
                                                
1 The NEA is not discussed any further in this section. The NEA is a federal US law, adopted in 1976, 
that seeks to stop the practice of open -ended national emergency declarations and to rebalance the power of 
the Legislative Branch with regard to national emergencies. It meets these objectives, for instance, by allowing 
an emergency to be terminated by a joint resolution of Congress or to be automatically terminated where not 
expressly renewed.  WT/DS574/1 • G/L/1289 • S/L/420  
- 2 - 
  Executive Orders2: 
 
(e) Executive Order  13692 Blocking Property and Suspending Entry of Certain Persons 
Contributing to the Situation in Venezuela ( 9 March  2015); 
 
(f) Executive Order  13808 Imposing Additional Sanctions with Respect to the Situation in 
Venezuela (2 4 August  2017); 
 
(g) Executive Order  13827 Taking Additional Steps to Address the Situation in Venezuela 
(19 March  2018);  
 
(h) Executive Order  13835 Prohibiting Certain Additional Transactions with Respect to Venezuela 
(21 May 2018); and 
 
(i) Executive Order  13850 Blocking Property of Additional Per sons Contributing to the Situation 
in Venezuela  (1 November  2018).  
 
This regulatory framework provides for : 
 
(i) inclusion on blacklists ; 
 
(ii) coercive trade -restrictive measures  concerning  the sovereign debt market ; and 
 
(iii) coercive  trade -restrictive measures concerning  digital currency . 
 
As explained in this document, the unilateral coercive trade -restrictive measures  imposed by the 
United States on the Bolivarian Republic of Venezuela violate its obligations under Articles I:1, II:1, 
III:4, V:2, X:3, XI:1 and  XIII:1 of the GATT 1994 . The coercive trade -restrictive measures  also 
violate the United States' commitments under Articles II:1, XVI:2 and XVII: 1 of the GATS . 
 
1. Discriminatory measures with respect to goods of Venezuela n origin . 
 
Adopted pursuant to  the VDHRA, the IEEPA, Executive Order 13692 and  the VSR, in violation 
of: 
 
(i) Article I: 1 of the  GATT 1994, because they accord  products of Venezuela n origin 
treatment less favourable than that accorded  to products from WTO M ember countries 
that are not subject to the coercive and trade -restrictive measures . More specifically, 
in comparison to goods from  WTO M ember countries not subject to the coercive 
trade -restrictive measures , Venezuelan goo ds face , as a result of these measures,  a 
greater regulatory burden in terms of conditions governing importation , as well as 
restrictions on who can perform this import function , and unfair market opportunities 
once importation has taken  place. All of this denies V enezuelan goods  the equality o f 
opportunities guaranteed by Article I:1 of the  GATT;  
 
(ii) Article III:4 of the GATT 1994 , because they accord  products of Venezuelan origin 
treatment less favourable than that accorded  to products of US origin . In comparison 
to products of US origin, products of Venezuelan origin face greater regulatory burdens 
and unfair market opportunities as a result of these coercive trade -restrictive 
measures ; 
 
(iii) Article V:2 of the  GATT 1994, because they require the detention and seizure of certain 
goods transiting through the territory of the United States to another WTO  Member 
country ; and 
 
                                                
2 Executive Orders are instructions given to the Executive Bran ch by the President of the United States. 
In the context of the coercive trade -restrictive measures, the President, in these Executive Orders, typically 
orders the Secretary of the Treasury, in consultation with the Secretary of State, to block the propert y of 
persons in certain categories that are specified by the President in the Executi ve Order (i.e. those on the 
SDN list). WT/DS574/1 • G/L/1289 • S/L/420  
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  (iv) Article XI:1 of the  GATT 1994, because  they operate as specific prohibitions on 
importation and exportation between the United States and the 
Bolivarian  Republic  of Venezuela,  and constitute prohibited quantitative restrictions on 
the importation of produc ts of the territory of a Member  and on the exportation of 
products destined for the territory o f another Member . 
 
Even if the coercive trade -restrictive measures imp osed on the 
Bolivarian  Republic  of Venezuela by the United States were not prohibited as 
quantitative restrictions , they would violate Article XIII:1 of the  GATT 1994 , inasmuch 
as like products of third -country WTO Members are not subject to equivalent 
prohibitions . 
 
2. Discriminatory measures with respect to  Venezuelan gold , established in Executive 
Order  13850.  
 
Discriminatory coercive trade -restrictive measures  relating to gold from the 
Bolivarian  Republic  of Venezuela, as  established in Executive Order  13850 , prohibit trade i n 
Venezuelan gold in the United  States and by United States persons . The measures in question appear 
to be inconsistent with the United States'  obligations under various provisions of the GATT 1994, in 
particular, but not limited to , the following : 
 
(v) Article I:1 of the  GATT 1994, because they allow for the acquisition of  Venezuelan gold 
with treatment less favoura ble than  that accorded  to gold for  WTO Members not 
subject to the coercive trade -restrictive measures ; 
 
(vi) Article II:1 (a) and  (b) of the GATT  1994, because they accord the commerce of 
Venezuela treatment less favourable than that p rovided for in the appropriate P art of 
the United States' Schedule of Concessions ; 
 
(vii) Article  III:4 of the  GATT 1994, because the United States does not  accord Venezuelan 
gold treatment no less favourable than that accorded t o like products from the 
United  States ; 
 
(viii)  Article X:3(a) of the  GATT 1994, because the United States has not administered laws, 
regulations, decisions and rulings in relation to the me asures in question in a uniform, 
impartial and reasonable manner ; and 
 
(ix) Article XI:1 of the  GATT 1994, because , through the m easures in question, the 
United  States has instituted a prohibition and, therefore, restrictions other than duties, 
taxes or other charges, on the importation of products from the territory of the 
Bolivarian Republic of Venezuela . 
 
3. Discriminatory coercive trade -restrictive measures with respect to the liquidity of the 
Venezuelan debt, adopted pursuant to  Executive Orders 13808, 13827 and 13835.  
 
(x) Given that the United States has undertaken to liberalize the financial servic es sector 
in its S chedule , it cannot maintain or adopt the measures described in 
Article  XVI:2 (a)–(f) of the GATS with respect to financial services, unless  it has 
reserved the  right to do so in its Schedule . Even if the United States , in its S chedule, 
appears to have reserved the right to adopt such measures in certain modes of supply, 
it has not reserved the right to adopt such measures in all modes of supply . Since the 
coercive trade -restrictive measures of the United States constitute  prohibited 
measures under Article  XVI:2(a) and  (b) in all modes of supply, they violate 
Article  XVI:2 of the GATS . 
 
4. Discriminatory coercive trade -restrictive measures with respect to  transactions in 
Venezuelan digital currency , adopted pursuant to  Executive Orders 13808, 13827 and  
13835 . 
 
(xi) The coercive trade -restrictive measures of the United States to which  Venezuelan 
financial services and financial service suppliers  are subject , under which  suppliers  
receive treatment less favourable than that accorded to like services and service WT/DS574/1 • G/L/1289 • S/L/420  
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  suppliers  of WTO Member States not subject to the measures, are in violation of 
Article  II:1 of the GATS . Furthermore, inasmuch as digital currencies  originating in the 
United  States are not subject to the same prohibitions as Venezuelan digital 
currencies, the United States is accord ing less favourable treatment to Venezuelan 
financial services and service suppliers than to like domestic financial serv ices and 
service suppliers , in violation of Article XVII: 1 of the GATS . 
 
5. Discriminatory coercive measures restricting  trade with respect to certain Venezuelan 
persons and prohibiting  the provision of services by and the receiving of services from these 
persons, as adopted pursuant to the VDHR A, the IEEPA  and the VSR, violate Article II:1 o f 
the GATS inasmuch as they accord less favourable treatment to Venezuelan services  and 
service suppliers . 
 
This request for consultations also refers to any modification, replacement or amendment of the 
measures identified above, and any subsequent closely  connected measures . 
 
The above -mentioned measures appear to nullify or impair the bene fits accruing to the 
Bolivarian  Republic of Venezuela directly or indirectly under the cited agreements . 
 
In addition to, and irrespective of , the multiple violations of WTO obligations identified above , the 
Bolivarian Republic of Venezuela considers that, as a result of  the application of the measures in 
question, the attainment of the objectives of the GATT 1994 is being impeded within the meaning 
of Article  XXIII:1 (b) of the  GATT 1994 . Furthermore, the measures in question appear to nullify or 
impair the benefits that the Bolivarian Republic of Venezuela could reasonably have expected to 
accrue to it under the United States' specific commitments under the GAT S within the meaning of 
Article  XXIII: 3 of the GATS . 
 
The Bolivarian Republic of  Venezuela reserves the right to raise additional factual issues  and legal 
claims under other provisions of the covered agreements  in relation to the matters mentioned above 
during the course of  the consultations and in any future request for the establishment of a panel in 
these proceedings . The Bolivarian Republic of Venezuela looks forward to receiving a reply from the 
United States to this request , with a view to  setting a mutually convenient  date for consultations . 
 
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