WT/DS461/16  
10 February  2017 
(17-0847) Page: 1/2 
 Original:  Spanish  
 
  COLOMBIA – MEASURES RELATING TO THE IMPORTATION  
OF TEXTILES, APPAREL AND FOOTWEAR  
RECOURSE TO ARTICLE 22.2 OF THE DSU BY PANAMA  
The following communication, dated 9 February  2017, from the delegation of Panama to 
the Chairperson of the Dispute Settlement B ody, is circulated pursuant to Article 22.2 of the DSU.  
 
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Pursuant to Article 22.2 of the Understanding on Rules and Procedures Governing the Settlement 
of Disputes (DSU), Panama requests authorization from the Dispute Settlement Body (DSB ) to 
suspend the application to Colombia of concessions or other obli gations in the amount 
of US$210,000,000  (two hundred  and ten  million  United States dollars) . This level of suspension is 
equivalent to the level of nullification or impairment of benefits  accruing to Panama, resulting from 
Colombia's failure, as of 22 January  2017, to bring its measure into conformity with WTO law, in 
particular with the General Agreement on Tar iffs and Trade 1994 (GATT 1994), and its failure 
otherwise to comply with the r ecommendations and rulings of the DSB in Colombia – Measures 
Relating to the Importation of Textiles, Apparel and Footwear . 
 
Failure by Colombia to comply with the recommendations and rulings of the DSB  
On 25 September  2013, the DSB established a panel at the request of Panama to examine the 
compound tariff imposed by Colombia on imports of textile and footwear products . In examining 
this matter, both the P anel and the Appellate Body found that the measure violated  the GATT . 
On 22 June 2016, the DSB adopted  the report of the Panel, as modified by the Appellate Body, 
recommending that Colombia bring the measure at issue into conformity with the GATT 
(WT/DS461/AB/R, paragraph 6.12 ; WT/DS461/R, paragraph 8.10) . A WTO-appointed arbitrator 
subsequently determined  that the "reasonable period of time" fo r Colombia to implement 
the DSB recommendations and rulings would expire on 2 2 January  2017. 
 
On 2 November  2016, Colombia adopted two decrees that affect the tariff and customs regime for 
the importation of textiles  and footwear . In Panama's view, however, these legislative acts, far 
from bringing the measure into conformity with Colombia's WTO obligation s, perpetuate the 
nullification and impairment of benefits accruing to Panama d irectly or indirectly under 
the GATT 1994.  
 
Recourse by Panama to Article 22.2 of the DSU  
Article 22.1 of the DSU provides that "full implementation" of the recommendations and rulings of 
the DSB is the preferred conclusion to a dispute . In the event that implementation is not achieved 
within the established "reasonable period of time", the parties to a dispute may attempt to 
negotiate mutually acceptable compensation, or the prevailing  party may be authorized by 
the DSB to suspend concessions and obligations . Article 22.2 of the DSB provide s that if no 
satisfactory compensation has been agreed within 20 days after the date of expiry of the 
"reasonable period of time", a prevailing party may request authorization from the DSB to suspend 
the application of concessions and obligations to th e party that has failed to implement 
the DSB recommendations and rulings . Article 22.6 requires the DSB to gra nt such authorization 
within 30  days of the expiry of that period, unless there is consensus to reject the request.  
 WT/DS461/16  
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  Colombia's failure to bring its m easure into conformity with its WTO obligation s by complying with 
the recommendations and rulings of the DSB in this matter results in a loss for Panama 
of US$210 ,000,000  (two hundred  and ten  million  United States dollars) worth of exports of textile 
and f ootwear products . In accordance with the schedule established in Article 22.2 of the DSU, 
Panama requests authorization from the DSB, at its meeting of 2 0 February  2017, to suspend the 
application to Colombia of concessions or other obligations covering tr ade in the amount 
of US$210 ,000,000  (two hundred  and ten  million  United States dollars).  
 
In considering what concessions or other obligations to suspend, Panama applied the principles 
and procedures set forth in Article 22.3 of the DSU, and makes this req uest pursuant 
to Article  22.3(c ). The request is based on the fact that for Panama, the suspension of concessions 
or other obligations only with respect to the  goods sector would be problematic . In Panama's view, 
a measure of this kind would affect sensiti ve sectors of the Panamanian economy that need 
Colombian imports, including the energy, agriculture, health and construction sectors, which 
account for a considerable share of Panama's gross domestic product.  
 
Considering that the circumstances are suffici ently serious, and that it is not practicable or 
effective to suspend concessions or other obligations with respect to the goods sector  only, 
Panama request s authorization by the DSB to suspend concessions or other obligations under the 
Multilateral Agreem ents on Trade in Goods, the General Agreement on Trade in Services, and the 
Agreement on Trade -Related Aspects of Intellectual Property Rights.  
 
As required by Article 22.4 of the DSU, the level of suspension prop osed is equivalent on an 
annual  basis to th e nullification or impairment of benefits accruing to Panama, resulting from 
Colombia's failure to comply with the DSB's recommendations and rulings.  
 
Panama asks that this request for authorization to suspend concessions or other obligations be 
included i n the agenda of the meeting scheduled for 2 0 February  2017. 
 
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