TURKEY – MEASURES AFFECTING THE IMPORTATION OF RICE
Document: Request for the Establishment of a Panel by the United States
Date: 7 February 2006
Document codes: WT/DS334/4
Complainant: U.S.
Respondent: Turkey
Third parties: Argentina, Australia, China, Egypt, EU, South Korea, Pakistan, Thailand
Dispute stage: Panel
Agreements cited: Art. XI:1, X:1, X:2, III:4, X:3(a)  GATT 1994Art. 4.2  AgricultureArt. 1.4, 3.3, 3.5(e), 3.5(f), 3.5(b), 3.5(d), 3.5(g), 3.5(h), 1.2, 1.3, 1.5, 1.6, 3.2, 3.5(a), 5.1, 5.2, 5.3, 5.4  Import LicensingArt. 2.1, Annex 1  Trade-Related Investment Measures (TRIMs)

TURKEY – MEASURES AFFECTING THE IMPORTATION OF RICE

Request for the Establishment of a Panel by the United States

 The following communication, dated 6 February 2006, from the delegation of the
United States to the Chairman of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of
the DSU.

 On 2 November 2005, the United States request ed consultations with the Government of
Turkey pursuant to Articles 1 and 4 of the Understanding on Rules and Procedures Governing the
Settlement of Disputes ("DSU"), Article XXII of the General Agreement on Tariffs and Trade 1994
("GATT 1994"), Article 6 of the Agreement on Import Licensing Procedures ("Import Licensing
Agreement"), Article 8 of the Agreement on Trade-Related Investment Measures ("TRIMs
Agreement"), and Article 19 of the Agreement on Agriculture ("Agriculture Agreement") with respect
to Turkey's import restrictions on rice from the Un ited States. The United States and Turkey held
consultations on 1 December 2005. Unfortunately, those consultations did not resolve the dispute.

 Therefore, the United States respectfully requests, pursuant to Article 6 of the DSU, Article 6
of the Import Licensing Agreement, Article 8 of the TRIMs Agreement, and Article 19 of the
Agriculture Agreement, that the Dispute Settlement Body ("DSB") est ablish a panel to examine this
matter.

 Turkey maintains a number of restrictions on th e importation of rice. Under its import regime
for rice, Turkey requires an import license to import rice. Turkey operates tariff-rate quotas ("TRQs")
for rice imports requiring that, in order to import speci fied quantities of rice at reduced tariff levels,
importers must purchase specified quantities of dom estic rice, including from the Turkish Grain
Board ("TMO"), Turkish producers, or producer ass ociations ("domestic purchase requirements"). In
addition, Turkey denies or fails to grant licenses to import rice at or below the bound rate of duty
without domestic purchase, including at the over-quota rate of duty.

 The United States understands that the means through which Turkey has maintained this
restrictive import regime include:

• Decree No. 96/7794 related to the General Ass essment of the Regime Regarding Technical
Regulations and Standardization for Fo reign Trade (Official Gazette, No. 22541,
1 February 1996, Repeated);

• Decision of the board of ministers: Decree No. 2004/7135 related to the implementation of a
tariff quota for certain types of paddy rice and rice types imports (Official Gazette,
No. 25439, 20 April 2004);

• A notification related to implementation of ta riff quotas for certain types of paddy and rice
imports, from the Foreign Trade Undersec retariat (Official Gazette, No. 25445,
27 April 2004);

• Decision of the board of ministers: Decree No. 2004/7333 related to the management of quota
and tariff contingent on import (Official Gazette, No. 25473, 26 May 2004);

• Decision of the board of ministers: Decree No. 2004/7756 related to the implementation of a
tariff contingent on the import of certain paddy rice and rice types (Official Gazette,
No. 25566, 27 August 2004);

• A notification about the implementation of a tari ff contingent on the import of certain paddy
rice and rice types, from the Foreign Trade Undersecretariat (Official Gazette, No. 25577,
8 September 2004);

• A communiqué on Standardization in Foreign Trade, Communiqué No. 2005/05 (Official
Gazette, No. 25687, 31 December 2004);

• A notification about the amendment of the notif ication related to the implementation of a
tariff contingent on the import of certain paddy rice and rice types, from the Foreign Trade
Undersecretariat (Official Gazette, No. 25767, 26 March 2005);

• A notification about the amendment of the notif ication related to the implementation of a
tariff contingent (customs duty) on the import of certain paddy rice and rice types, from the
Foreign Trade Undersecretariat (Official Gazette, No. 25812, 11 May 2005);

• Decision of the board of ministers: Decree No. 2005/9315 related to the implementation of a
tariff contingent on the import of certain types of paddy rice and rice types (Official Gazette,
No. 25935, 13 September 2005);

• A notification related to the implementation of a tariff contingent on the import of certain
paddy rice and rice types, from the Foreign Trade Undersecretariat (Official Gazette,
No. 25943, 21 September 2005);

• "Letters of Acceptance," including Letter of Acceptance 964 (10 September 2003), Letter of
Acceptance 107 (23 January 2004), Letter of Acceptance 905 (28 June 2004), and Letter of
Acceptance 1795 (30 December 2004), in which the Minister of Agriculture accepts
recommendations from the General Directorate of Protection and Control of the Ministry of
Agriculture and Rural Affairs to delay the star t date for the period in which import licenses
may be granted; and

• any amendments or extensions to these measures, and any related or implementing measures.

 The United States considers that these measures are inconsistent with Turkey's obligations
under provisions of the GATT 1994, the Import Licensing Agreement, the TRIMs Agreement, and the
Agriculture Agreement, specifically:

Denial of, or failure to grant, import licenses to import rice at or below the bound rate of duty

(1) Article XI:1 of the GATT 1994 because Turkey's denial of, or failure to grant, import licenses
for rice at or below the bound rate of duty c onstitutes a prohibition or restriction on imports
other than in the form of duties, taxes, or other charges;

(2) Article 4.2 of the Agriculture Agreement becau se Turkey's denial of, or failure to grant,
import licenses for rice at or below the bound ra te of duty are "measures of the kind which
have been required to be converted into ordi nary customs duties," such as quantitative import
restrictions, discretionary import licensing, and non-tariff measures maintained through a
state-trading enterprise, which Members may not resort to or maintain under that Agreement;

(3) Articles 1.4(a) and (b) of the Import Licen sing Agreement and Articles X:1 and X:2 of the
GATT 1994 because Turkey has not published its denial of, or failure to grant, import
licenses at or below the bound rate of duty and, thus, has neither provided an opportunity for
governments and traders to become acquainted with it nor has it provided Members with the
opportunity to provide written comments and to discuss those comments upon request;

(4) Articles 3.3 and 3.5(e) and (f) of the Import Licensing Agreement because Turkey does not
approve requests for import licenses at or be low the bound rate of duty; does not publish
sufficient information for other Members and tr aders to know that import licenses will not be
approved; does not specify a time frame within which import license applications that are
submitted will be approved or rejected; does no t provide applicants with the reasons for
rejection; and does not provide a process for appeal or review in the event of rejection;

Domestic purchase requirements and administration of TRQs for reduced duty imports of rice

(5) Article 2.1 and paragraph 1( a) of Annex 1 of the TRIMs Agreement because Turkey imposes
domestic purchase requirements;

(6) Article III:4 of the GATT 1994 because Tu rkey accords imported rice less favorable
treatment than domestic rice through the imposition of domestic purchase requirements
"affecting [its] internal sale, offering for sale, purchase, transportation, distribution, or use";

(7) Article XI:1 of the GATT 1994 because Turk ey's domestic purchase requirements constitute
restrictions on imports other than in the form of duties, taxes, or other charges;

(8) Article 4.2 of the Agriculture Agreemen t because the domestic purchase requirements are
"measures of the kind which have been requi red to be converted into ordinary customs
duties," such as quantitative import restrictions, discretionary import licensing, and non-tariff
measures maintained through a state-trading ente rprise, which Members may not resort to or
maintain under that Agreement;

(9) Articles 1.4(a) and (b) and 3.5(b) and (d) of the Import Licensing Agreement and Articles X:1
and X:2 of the GATT 1994 because Turkey does not publish the correct amount of the TRQs
to be applied; does not always publish the TRQs to be applied, or changes to the TRQs,
within the time periods specified in Artic le 1.4 and in such a manner as to enable
governments and traders to become acquainted with them; and does not provide Members
with the opportunity to provide written comments and to discuss those comments upon
request;

(10) Article 3.5(g) of the Import Licensing Agreement because the periods of import license
validity under the TRQs are not of reasonable duration and are so short as to preclude
imports;

(11) Article 3.5(h) of the Import Licensing Agre ement because Turkey administers its TRQs in
such a way as to discourage the full utilization of quotas;

Other Claims Relating to Turkey's Import Regime

(12) Article XI:1 of the GATT 1994 because Turkey's domestic purchase requirements, in
conjunction with its denial of, or failure to grant, import licenses for rice at or below the
bound rate of duty, constitute restrictions on imports other than in the form of duties, taxes, or
other charges;

(13) Article 4.2 of the Agricu lture Agreement because Turkey's domestic purchase requirements,
in conjunction with its denial of, or failure to grant, import licenses for rice at or below the
bound rate of duty, are "measures of the kind whic h have been required to be converted into
ordinary customs duties," such as quantitativ e import restrictions, discretionary import
licensing, and non-tariff measures maintained through a state-trading enterprise, which
Members may not resort to or maintain under that Agreement;

(14) Articles X:3(a) and (b) of the GATT 1994 because Turkey does not administer its import
regime in a "uniform, impartial and reasonabl e manner" and does not maintain tribunals or
procedures for promptly reviewing and correc ting administrative actions relating to the
importation of rice under Turkey's import regime;

(15) Article 1.2 of the Import Licensing Agre ement because the measures Turkey utilizes to
implement its import licensing regime are not in conformity with the relevant provisions of
the GATT 1994;

(16) Article 1.3 of the Import Licensing Agreement because Turkey's import licensing regime is
not administered in a fair and equitable manner;

(17) Article 1.5 of the Import Licensing Agreem ent because Turkey requires information and
documentation upon application that are not strictly necessary for the proper functioning of its
import licensing regime;

(18) Article 1.6 of the Import Licensing Agre ement because applicants are not provided a
reasonable period of time for submitting applications and because applicants have to approach
more than one administrative body in connection with their applications;

(19) Article 3.2 of the Import Licensing Agreement because Turkey's non-automatic import
licensing regime has trade-distortive or trade-restrictive effects on imports and is more
administratively burdensome than absolutely necessary;

(20) Article 3.5(a) of the Import Licensing Agreem ent because Turkey has failed to provide, upon
the request of the United States, all relevant information concerning the administration of
Turkey's import licensing regime and the import licenses granted over a recent period; and

(21) Articles 5.1, 5.2, 5.3, and 5.4 of the Im port Licensing Agreement because Turkey has failed to
notify its import licensing regime for rice.

 Turkey's measures also appear to nullify or impair the benefits accruing to the United
States directly or indirectly under the cited agreements.

 Accordingly, the United States requests that a Panel be established w ith standard terms of
reference as set out in Article 7.1 of the DSU.