WT/DS492/1  
G/L/1113  
 
17 April 2015  
(15-2070)  Page: 1/6  
  Original: English  
 
 EUROPEAN UNION – MEASURES AFFECTING TARIFF CONCESSIONS  
ON CERTAIN POULTRY MEAT PRODUCTS 
REQUEST FOR CONSULTATIONS BY CHINA 
The following communication, dated 8 April 2015, from the delegation of China to the delegation of 
the European Union and to the Chairperson of the Dispute Settlement Body, is circulated in 
accordance with Article 4.4 of the DSU. 
_______________ 
  My authorities have instructed me to request consultations with the European Union (the "EU") 
pursuant to Articles 1 and 4 of the Understanding on Rules and Procedures Governing the 
Settlement of Disputes  (the "DSU"), and Article XXIII:1 of the General Agreement on Tariffs and 
Trade 1994 (the "GATT 1994") with respect to the EU measures identified below that affect 
imports of certain poultry meat products from China. The Government of the People’s Republic of 
China considers these measures to be inconsistent with the obligations of the EU under the relevant provisions of the WTO Agreements. 
These measures are the result of two EU requests  to modify the EU tariff concessions on certain 
poultry meat products under Article XXV III of the GATT 1994 in 2006 and in 2009, i.e.: 
(i) The first negotiation was requested 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, i.e., subheadings 0210 99 39, 1602 31 and 1602 32 19 (the “2007 
Modification Package” hereinafter). 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.  
The EU subsequently reached an agreement with Brazil and Thailand on 23 November 2006 and 6 December 2006, respectively, on the basis of tariff rate quotas almost 
entirely reserved for Brazil and / or Thailand and out-of-quota bound rates significantly 
in excess of the pre-modification bound rates. 
(ii) The second negotiation was requested by the EU on 11 June 2009 through a notification 
to the WTO Members of its intention to modify its tariff concessions on eight tariff 
subheadings, i.e., 1602 20 10, 1602 32 11, 1602 32 30, 1602 32 90, 1602 39 21, 1602 
39 29, 1602 39 40 and 1602 39 80 (the “2012 Modification Package” hereinafter).
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 the 
products covered by these subheadings. The EU subsequently entered into an agreement with Thailand and Brazil on 18 June 2012 with Thailand and on 26 June 
2012, respectively, on the basis of tariff rate quotas that again are almost entirely or 
even entirely reserved for Brazil and / or Thailand and out-of-quota rates significantly in excess of the pre-modification bound rates.
2  
                                               
1 Tariff subheadings 1602 39 40 and 1602 39 80 were combined in 2012 to create a new tariff 
subheading 1602 39 85. 
2 No change was made to the existing tariff rate for tariff subheading 1602 20 10. WT/DS492/1 • G/L/1113 
 
- 2 - 
 
  On 17 December 2012 the EU notified the 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).  
Annex 1 is a chart that summarizes the tariff rate changes pursuant to the 2007 and the 2012 
Modification packages. 
The reference period for the determination of the ta riff rate quotas was a period (i.e., from 2003 to 
2005 for the 2007 Modification Package and from 2006 to 2008 for the 2012 Modification Package) 
when the importation of poultry meat from China was restricted in the EU. The EU concluded that 
China did not have a principal or substantial supplyi ng interest during the reference period on any 
of the subheadings involved, and did not negotiate or consult with China. 
The above referenced modifications of the EU’s tariff concessions and the institution of the tariff 
rate quotas as part of the modification pa ckages are implemented through the following 
instruments: 
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 
General Agreement on Tariffs and Trade 1994 (GATT 1994), amending and 
supplementing Annex I to Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff.3 
(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.4 
(iii) Commission Regulation (EC) No 1549/2007 of 20 December 2007 amending Regulation 
(EC) No 616/2007 opening and providing for the administration of certain Community 
tariff quotas in the sector of poultry meat originating in Brazil, Thailand and other third countries.5 
B. For the 2012 Modification Package 
(i) Regulation (EU) No 1218/2012 of the Europe an 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
6 
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 Union 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 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.
7 
(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.
8 
                                               
3 O.J. No L 138, 30 May 2007, p. 1. 
4 O.J. No L 142, 5 June 2007, p. 3. 
5 O.J. No L 337, 21 December 2007, p. 75. 
6 O.J. No L 351, 20 December 2012, p. 36. 
7 O.J. No L 351, 20 December 2012, p. 47. 
8 O.J. No L 352, 21 December 2012, p. 16. WT/DS492/1 • G/L/1113 
 
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  (iii) Commission Implementing Regulation (E8) No 302/2013 of 27 March 2013 amending 
Regulation (EC) No 616/2007 opening an d providing for the administration of 
Community tariff quota in the sector of poultry meat originating in Brazil, Thailand and other countries.
9  
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 2013.10  
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. 
The above measures appear 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 conjunction with Ad Article XXVIII, 
paragraph 4, and with the Understanding on the Interpretation of Article XXVIII, as the 
EU failed to negotiate or consult with all the WTO Members having a principal or 
substantial supplying interest or that could have had such an interest in the absence of a discriminatory quantitative restriction. 
(ii) The tariff rates and the tariff rate quotas negotiated and then implemented by the EU in 
the measures identified above are inconsistent with Article XXVIII:2 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 tariff rate quotas alloca ted by the EU to two of the WTO Members 
violate GATT 1994 Article XIII by diminish ing for the other WTO Members the market 
access commitments which the EU undertook to maintain on a non-discriminatory basis. 
(iv) The allocation of all or the vast majority of the tariff rate quotas to two of the WTO 
Members 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 tariff rate quotas to two of the WTO 
Members is inconsistent with the chapeau of GATT 1994 Article XIII:2, which requires 
the allocation of a tariff rate quota to approach as closely as possible the shares that the WTO Members might be expected to obtain. 
(vi) The allocation of all or the vast majority of the tariff rate quotas to two of the WTO 
Members is inconsistent with GATT 1994 Article XIII:2, including its chapeau, and Article XIII:4, which require the allocation of a si gnificant share to the “others” category. 
(vii) The allocation of all or the vast majority of tariff rate quotas to two of the WTO Members 
is inconsistent with GATT 1994 Article XIII:2(d) which requires a Member instituting country-specific TRQs to either seek agreement with all WTO Members having a substantial interest in supplying the product concerned, or allot to such Members shares 
based upon the proportions supplied by them during a previous representative period, 
due account being taken of any special fact ors which may have affected or may be 
affecting the trade in the product. 
(viii)  The tariff rates and the tariff rates quotas the EU negotiated and then implemented 
under Article XXVIII and paragraph 7 of the Procedures for Negotiations under Article 
                                               
9 O.J. No L 90, 28 March 2013, p. 86. 
10 O.J. No 56, 28 February 2013, p. 2. WT/DS492/1 • G/L/1113 
 
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  XXVIII are ineffectual to replace the EU’s obligations under the unmodified Schedule 
because they are inconsistent with GATT 1994 Articles XIII and XXVIII:2. 
(ix) The tariff rates and the tariff rate quotas 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 conjunction with Ad Article XXVIII, 
paragraph 4, and with the Understanding on the Interpretation of Article XXVIII, as the 
EU failed to negotiate or consult with all the WTO Members having a principal or substantial supplying interest or that could have had such an interest in the absence of a 
discriminatory quantitative restriction. 
(ii) The tariff rates and the tariff rate quotas negotiated and then implemented by the EU in 
the measures identified above are inconsistent with Article XXVIII:2 because they fail 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 tariff rate quotas alloca ted by the EU to two of the WTO Members 
violate GATT 1994 Article XIII by diminish ing for the other WTO Members the market 
access commitments which the EU undertook to maintain on a non-discriminatory basis. 
(iv) The allocation of all or the vast majority of tariff rate quotas to two of the WTO Members 
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 tariff rate quotas to two of the WTO Members 
is inconsistent with the chapeau of GATT 1994 Article XIII:2, because the allocation of 
the tariff rate quotas do not approach as closely as possible the shares which the WTO 
Members might be expected to obtain. 
(vi) The allocation of all or the vast majority of the tariff rate quotas to two of the WTO 
Members is inconsistent with GATT 1994 Article XIII:2, including its chapeau, and 
Article XIII:4, which require the allocation of a significant share to the “others” category. 
(vii) The allocation of all or the vast majority of tariff rate quotas to two of the WTO Members 
is inconsistent with GATT 1994 Article XIII:2(d) which requires a Member instituting 
country-specific TRQs to either seek agreement with all WTO Members having a 
substantial interest in supplying the product concerned, or allot to such Members shares based upon the proportions supplied by them during a previous representative period, 
due account being taken of any special fact ors which may have affected or may be 
affecting the trade in the product. 
(viii)  The EU’s refusal to enter into consultation with China is inconsistent with GATT 1994 
Article XIII:4, which requires a Member instituting a country-specific tariff rate quota to 
consult promptly, upon the request of any other Member having a substantial interest in 
supplying the product concerned, regarding the need for an adjustment of the allocation of the tariff rate quotas or the base period selected, or for a reappraisal of the special 
factors involved. 
(ix) The tariff rates and the tariff rates quotas the EU negotiated and then implemented 
under Article XXVIII and paragraph 7 of the Procedures for Negotiations under 
Article XXVIII are ineffectual to replace the EU’s obligations under the unmodified 
Schedule because they are inconsistent with GATT 1994 Articles XIII, and XXVIII:2. WT/DS492/1 • G/L/1113 
 
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  (x) In the absence of notification for certification, notification of the date on which the 
changes to the goods Schedule come into forc e to the WTO Secretariat, and notification 
of the draft modification to the goods Sche dule, 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. 
(xi) The absence of a proper notification for certif ication of the modified Schedule and of the 
certification following 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 goods Schedule. 
(xii) The EU acted inconsistently 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 also nullify or impair the benefi ts accruing to China directly or indirectly under 
the cited agreements. 
China reserves its right to raise additional factual and legal claims and matters during the course 
of these consultations and in any future request for panel proceedings. 
China looks forward to receiving a reply from the EU to the present request and to fixing a 
mutually convenient date and venue for consultations. 
 
_______________ 
  
  WT/DS492/1 • G/L/1113  
 
- 6 - Annex1: Summary Chart of the EU's Mo dification of its Tariff Concessions on Certain Poultry Meat Products 
 
A B C D E F G H I J L M N O P Q 
  HTS Code Description Post 
Modification 
Bound Rate/ 
Applicable 
Rate 
(EUR/MT) Average 
EU Import 
Price 2013 
(Euro/MT)  2013 EU 
Imports   
(Euro)  2013 EU 
Imports 
(MT) Ad Valorem 
Equivalent of 
the Post 
Modification 
Bound Rate 
Based on 
2013 Average 
Import Unit 
Price Pre-
Modification 
Bound Rate 
% 
(ad valorem)  % 
Change 
of Bound 
Rate 
 (H-I)/I TRQ 
(MT) In Quota 
Tariff Rate TRQ 
Allocated 
to Brazil 
(MT) TRQ 
Allocated 
to 
Thailand 
(MT) Effective 
Date Implementing 
Instruments 2007 Modification  
0210 99 39  Salted poultrymeat  1,300 2,323 527,429,237 227,067 55.97% 15.40% 263.42% 264,245  15.40% 1708  92610  31/05/2007 Council Regulation 
(EC) No 580/2007 
1602 31  Prepared turkeymeat 1,024 3,093 212,362,477 68,665 33.11% 8.50% 289.53% 103,896  8.50% 923  - 31/05/2007 Council Regulation 
(EC) No 580/2007 
1602 32 19  Cooked chickenmeat  1,024 3,415 792,641,385 232,133 29.99% 10.90% 175.13% 250,953  8.00% 79477  160033  31/05/2007 Council Regulation 
(EC) No 580/2007 2012 Modification 1602 3211 Processed chicken meat, 
uncooked, containing 57 % or 
more by weight of poultry meat or 
offal more by weight of poultry 
meat or offal  2,765 2,770 30,889,107 11,150 99.81% 10.90% 815.70% 16,140  630 
EUR/tonne 
(equivalent 
to an 
ad valorem 
rate of 
22.74%)  15800 - 01/03/2013 REGULATION (EU) 
No 1218/2012 
1602 3230  Processed chicken meat, 
containing 25 % or more but less 
than 57 % by weight of poultry 
meat or offal 2,765 1,931 128,111,812 66,344 143.19% 10.90% 1213.66% 79,705  10.90% 62905 14000 01/03/2013 REGULATION (EU) 
No 1218/2012 
1602 3290 Processed chicken meat, 
containing less than 25 % by 
weight of poultry meat or offal 2,765 3,350 6,223,264 1,858 82.54% 10.90% 657.27% 2,865  10.90% 295 2100 01/03/2013 REGULATION (EU) 
No 1218/2012 
1602 3921 Processed duck, geese, guinea 
fowl meat, uncooked, containing 
57 % or more by weight of poultry 
meat or offal 2,765 957 1,914 2 288.92% 10.90% 2550.68% 10  630 
EUR/tonne 
(equivalent 
to an 
ad valorem 
rate of 
32.91%)  - 10 01/03/2013 REGULATION (EU) 
No 1218/2012 
1602 3929 Processed duck, geese, guinea 
fowl meat, cooked, containing 
57 % or more by weight of poultry 
meat or offal 2,765 5,413 84,320,371 15,578 51.08% 10.90% 368.65% 13,720   10,9 %  - 13500 01/03/2013 REGULATION (EU) 
No 1218/2012 
1602 3985 Processed duck, geese, guinea 
fowl meat, containing 25 % or 
more but less than 57 % by weight 
of poultry meat or offal 2,765 4,524 4,877,255 1,078 61.13% 10.90% 460.78% 748  10,9 % - 600 01/03/2013 REGULATION (EU) 
No 1218/2012 
1602 3985 Processed duck, geese, guinea 
fowl meat, containing less than 
25 % by weight of poultry meat or 
offal 460.78% 725  10,9 % - 600 01/03/2013 REGULATION (EU) 
No 1218/2012 
 
__________