EUROPEAN UNION – MEASURES AFFECTING TARIFF CONCESSIONS ON CERTAIN POULTRY MEAT PRODUCTS REQUEST FOR CONSULTATIONS BY CHINA
Document: REQUEST FOR CONSULTATIONS BY
Date: 17 April 2015
Document codes: WT/DS492/1; G/L/1113
Complainant: China
Respondent: EU
Third parties: Brazil, Russia, U.S., Argentina, Canada, India, Thailand
Dispute stage: Mutually Agreed Solution
Agreements cited: Art. XXVIII, XIII, XIII:2, II:1, II:2, I:1  GATT 1994

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 XXVIII 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

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 tariff 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

(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 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 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

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

(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

Annex1: Summary Chart of the EU's Modification 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