EUROPEAN COMMUNITIES - DUTIES ON IMPORTS OF CEREALS
Document: Original: English EUROPEAN COMMUNITIES - DUTIES ON IMPORTS OF CEREALS Request for the Establishment of a Panel by Canada
Date: 15 September 1995
Document codes: WT/DS9/2
Complainant: Canada
Respondent: EU
Dispute stage: Panel
Agreements cited: Art. 1  Customs valuationArt. II, VII  GATT 1994

EUROPEAN COMMUNITIES - DUTIES ON IMPORTS OF CEREALS
Request for the Establishment of a Panel by Canada
The following communication, dated 14 September 1995, from the Permanent Mission of Canada
to the Chairman of the Dispute Settlement Body is circulated at the request of that delegation.
On 30 June 1995 the Government of Canada requested consultations with the Commission of
the European Communities regarding certain regulations of the European Communities concerning
cereals. In accordance with Article 4 of the Understanding on Rules and Procedures Governing the
Settlement of Disputes ("DSU"), that request was notified to the Dispute Settlement Body ("DSB"),
the Council for Trade in Goods, the Committee on Customs Valuation, the Committee on Agriculture,
and the Committee on Market Access. The request was circulated to Members of the on 10 July 1995 (). On 5 July 1995, the Commission of the European
Communities accepted the Government of Canada's request.
The Government of Canada requested consultations with a view to gaining the full benefit of
the European Communities' concession with respect to certain cereals, contained in a headnote to the
European Communities' Schedule annexed to the Marrakesh Protocol to the General Agreement on
Tariffs and Trade 1994:
"The Community undertakes in respect of cereals falling within the heading
- ex 1001 wheat
- 1002 rye
- 1003 barley
- ex 1005 maize, except hybrid seed, and
- ex 1007 sorghum, except hybrids for sowing
to apply a duty at a level and in a manner so that the duty-paid import price for such cereals
will not be greater than the effective intervention price (or in event of a modification of the
current system, the effective support price) increased by 55%.
The duty applied shall in no case exceed the duty established according to this schedule."
Regulations of the European Communities concerning cereals ("EC Cereals Regulations"), including
CouncilRegulation (EEC) No.1766/92,CouncilRegulation (EC) No.3290/94,andCouncilRegulation
(EC) NO. 1502/95, impose a duty on wheat imports based on representative prices. As a result of
usingrepresentative prices rather thantransaction values, the duty-paidimport price for Canadian wheat
will be greater than the effective intervention price increased by 55% whenever the transaction value
is greater than the representative price.

Canada and the European Communities held consultations in Geneva on 18 July 1995 with
a view to reaching a satisfactory resolution of the matter. Unfortunately, the consultations failed to
settle the dispute and further consultations are not likely to resolve the matter.
Pursuant to Article XXIII of the General Agreement on Tariffs and Trade 1994, Article 19
of the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994,
and Articles 4 and 6 of the DSU, Canada hereby requests that a panel be established at the next meeting
of the DSB scheduled for 27 September 1995.
Canada requests that the Panel consider and find that the EC Cereals Regulations are:
a) inconsistent with Articles II and VII of the General Agreement on Tariffs and Trade
1994;
b) inconsistent with Article 1 of the Agreement on Implementation of Article VII of the
General Agreement on Tariffs and Trade 1994; and
c) nullifying and impairing the benefits accruing to Canada pursuant to the Agreement
Establishing the World Trade Organization.
Canada requests that the Panel be established with the standard terms of reference as set out
in Article 7 of the DSU. Canada further requests that this request for the establishment of a Panel
be inscribed on the agenda of the meeting of the DSB on 27 September 1995.