UNITED STATES – MEASURES RELATING TO TRADE IN GOODS AND SERVICES REQUEST FOR THE ESTABLISHMENT OF A PANEL BY VENEZUELA
Document: REQUEST FOR THE ESTABLISHMENT OF A PANEL
Date: 15 March 2019
Document codes: WT/DS574/2
Complainant: Venezuela
Respondent: U.S.
Dispute stage: Panel
Agreements cited: Art. I:1, II:1, III:4, V:2, X:3, XI:1, XIII:1  GATT 1994Art. II:1, XVI:2, XVII:1  Services (GATS)Art. X:3(a)  GATT 1994Art. XXIII:3  Services (GATS)

UNITED STATES – MEASURES RELATING TO TRADE IN GOODS AND SERVICES
REQUEST FOR THE ESTABLISHMENT OF A PANEL BY VENEZUELA
The following communication, dated 14 March 2019, from the delegation of Venezuela to the
Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.

On 28 December 2018, the Government of the Bolivarian Republic of Venezuela requested
consultations with the Government of the United States pursuant to Article 4 of the
WTO Understanding on Rules and Procedures Governing the Settlement of Disputes ("DSU"),
Article XXIII of the General Agreement on Tariffs and Trade 1994 ("GATT 1994") and Article XXIII
of the General Agreement on Trade in Services ("GATS") . T his request was circulated to
WTO Members on 8 January 2019 as document , "United States – Measures relating to
trade in goods and services".

On 25 February 2019, the United States informed the Government of the Bolivarian Republic of
Venezuela that it refused to enter into consultations with the Government of the Bolivarian Republic
of Venezuela.

The Government of the Bolivarian Republic of Venezuela therefore requests that a panel be
established in accordance with Article 6 of the DSU and Article XXIII:2 of the GATT 1994 . T he
Government of the Bolivarian Republic of Venezuela intends to put f orward suggestions regarding
the information that should be sought under this procedure once the panel is established.

The measures that are the subject of this request are certain coercive and trade -restrictive
measures, (i) consisting of inclusion on blacklists; and in relation to (ii) the sovereign debt market;
and (iii) digital currency, imposed by the United States on the Bolivarian Republic of Venezuela in
an attempt to isolate it economically. The measures include the following:

Statutes:

(a) Venezuela Defense of Human Rights and Civil Society Act of 2014 ("VDHRA");

(b) International Emergency Economic Powers Act ("IEEPA"), 50 U.S.C §§ 1701-1706; and

(c) National Emergencies Act ("NEA"), 50 U.S.C. §§ 1601-1651.

Regulations:

(d) 31 CFR Part 591 – Venezuela Sanctions Regulations ("VSR").

Executive Orders:

(e) Executive Order 13692 Blocking Property and Suspending Entry of Certain Persons
Contributing to the Situation in Venezuela (8 March 2015);

(f) Executive Order 13808 Imposing Additional Sanctions with Respect to the Situation in
Venezuela (24 August 2017);

(g) Executive Order 13827 Taking Additional Steps to Address the Situation in Venezuela
(19 March 2018);

(h) Executive Order 13835 Prohibiting Certain Additional Transactions with Respect to
Venezuela (21 May 2018);

(i) Executive Order 13850 Blocking Property of Additional Persons Contributing to the
Situation in Venezuela (1 November 2018); and

(j) Executive Order 13857 Taking Additional Steps to Address the National Emergency with
Respect to Venezuela (25 January 2019).

The measures, and any amendment thereto, are inconsistent with the United States' obligations
under Articles I:1, II:1, III:4, V:2, X:3, XI:1 and XIII:1 of the GATT 1994, and violate the
United States' commitments under Articles II:1, XVI:2 and XVII:1 of the GATS.

The statutes, regulations and administrative procedures of the United States, and any modification
thereof, as listed above, are inconsistent as such with these provisions.

1. Discriminatory measures with respect to goods of Venezuelan origin . Adopted pursuant to the
VDHRA, the IEEPA, Executive Order 13692 and the VSR, in violation of:
i. Article I:1 of the GATT 1994, because they accord to products of Venezuelan origin
treatment less favourable than that accorded to products of WTO Member countries that
are not subject to the coercive and trade -restrictive measures . More specifically, in
comparison to products of WTO Member countries not subject to the coercive
trade-restrictive measures, Venezuelan products face, on account of these measures, a
greater regulatory burden in terms of conditions governing importation, as well as
restrictions on who can perform this import function, and unfair market opportunities
once importation has taken place . All of this deni es Venezuelan goods the equality of
opportunities guaranteed by Article I:1 of the GATT;

ii. Article III:4 of the GATT 1994, because they accord to products of Venezuelan origin
treatment less favourable than that accorded to products of US origin . In comparison
to products of US origin, products of Venezuelan origin face greater regulatory burdens
and unfair market opportunities as a result of these coercive trade-restrictive measures;

iii. Article V:2 of the GATT 1994, because they require the detention and seizure of certain
goods transiting through the territory of the United States to another WTO Member
country; and

iv. Article XI:1 of the GATT 1994, because they operate as specific prohibitions on
importation and exportation between the United States and the Bol ivarian Republic of
Venezuela, and constitute prohibited quantitative restrictions on the importation of
products of the territory of a Member and on the exportation of products destined for
the territory of another Member . I n addition, even if the coerciv e trade -restrictive
measures imposed by the United States on the Bolivarian Republic of Venezuela were
not prohibited as quantitative restrictions, they would violate Article XIII:1 of the
GATT 1994, inasmuch as like products of third -country WTO Members are not subject
to equivalent prohibitions.

2. Discriminatory measures with respect to Venezuelan gold, established in Executive Order 13850.
The discriminatory coercive and trade-restrictive measures relating to gold from the
Bolivarian Republic of Venezuela , as established in Executive Order 13850, prohibit trade in
Venezuelan gold in the United States and by United States persons . The measures in question are
inconsistent with the United States' obligations under various provisions of the GATT 1994, in
particular, but not limited to, the following:

v. Article I:1 of the GATT 1994, because they allow for the acquisition of Venezuelan gold
with treatment less favourable than that accorded to gold for WTO Members not subject
to the coercive trade-restrictive measures;

vi. Article II:1(a) and (b) of the GATT 1994, because they accord to the commerce of
Venezuela treatment less favourable than that provided for in the relevant Part of the
United States Schedule of Concessions;
vii. Article III:4 of the GATT 1994, because the United States does not accord Venezuelan
gold treatment no less favourable than that accorded to like products from the
United States;

viii. Article X:3(a) of the GATT 1994, because the United States has not administered laws,
regulations, decisions and rulings in relation to the measures in question in a uniform,
impartial and reasonable manner; and

ix. Article XI:1 of the GATT 1994, because, through the measures in question, the
United States has instituted a prohibition and, therefore, restrictions other than duties,
taxes or other charges, on the importation of products of the territory of the
Bolivarian Republic of Venezuela.

3. Discriminatory coercive measures with respect to the liquidity of the Venezuelan debt, adopted
pursuant to Executive Orders 13808, 13827 and 13835.
x. Given that the United States has undertaken to liberalize the financial services sector in
its Schedule, it cannot maintain or adopt the measures described in Article XVI:2(a)-(f)
of the GATS with respect to financial services, unless it has reserved the right to do so
in its Schedule. Even if the United States, in its Schedule, appears to have reserved the
right to adopt such measures in certain modes of supply, it has not reserved the right
to adopt such measures in all modes of supply. Given that the coercive trade-restrictive
measures of the United States constitute prohibited measures under Article XVI:2(a)
and (b) in all modes of supply, they violate Article XVI:2 of the GATS.

4. Discriminatory coercive measures with respect to transactions in Venezuelan digital currency,
adopted pursuant to Executive Orders 13808, 13827 and 13835.
xi. The coercive measures of the United States to which Venezuelan financial services and
financial service suppliers a re subject, under which suppliers receive less favourable
treatment than that accorded to like services and service supplier s of WTO Member
States not subject to the measures, are in violation of Article II:1 of the GATS .
Furthermore, inasmuch as digital c urrencies originating in the United States are not
subject to the same prohibitions as Venezuelan digital currencies, the United States
accords less favourable treatment to Venezuelan financial services and service suppliers
than to like domestic financial services and service suppliers, in violation of
Article XVII:1 of the GATS.

5. The discriminatory coercive measures restricting trade with respect to certain Venezuelan
persons and prohibiting the provision of services by these persons and the receipt of su ch
services, as adopted pursuant to the VDHRA, the IEEPA and the VSR, violate Article II:1 of the
GATS inasmuch as they accord less favourable treatment to Venezuelan services and service
suppliers.
The above-mentioned measures at issue in this dispute app ear to nullify or impair the benefits
accruing to the Bolivarian Republic of Venezuela (1) directly or indirectly under the agreements cited,
and (2) under the United States' specific commitments under the GATS within the meaning of
Article XXIII:3 of the GATS.

In addition to, and irrespective of, the multiple violations of WTO obligations identified above, the
Bolivarian Republic of Venezuela considers that, as a result of the application of the measures in
question, the attainment of the objectives of the GATT 1994 is being impeded within the meaning
of Article XXIII:1(b) of the GATT 1994.

The Bolivarian Republic of Venezuela requests that a panel be established with standard terms of
reference, in accordance with Article 7 of the DSU.

The Bolivarian Republic of Venezuela asks that this request for the establishment of a panel be
placed on the agenda for the next meeting of the Dispute Settlement Body, scheduled for
26 March 2019.