Source: http://www.sice.oas.org/DISPUTE/wto/tract01e.asp
Timestamp: 2019-04-19 05:14:24+00:00

Document:
The report of the Panel on United States  Sections 301-310 of the Trade Act of 1974 is being circulated to all Members, pursuant to the DSU. The report is being circulated as an unrestricted document from 22 December 1999 pursuant to the Procedures for the Circulation and Derestriction of WTO Documents (WT/L/160/Rev.1). Members are reminded that in accordance with the DSU only parties to the dispute may appeal a panel report. An appeal shall be limited to issues of law covered in the Panel report and legal interpretations developed by the Panel. There shall be no ex parte communications with the Panel or Appellate Body concerning matters under consideration by the Panel or Appellate Body.
Note by the Secretariat : This Panel Report shall be adopted by the Dispute Settlement Body (DSB) within 60 days after the date of its circulation unless a party to the dispute decides to appeal or the DSB decides by consensus not to adopt the report. If the Panel Report is appealed to the Appellate Body, it shall not be considered for adoption by the DSB until after the completion of the appeal. Information on the current status of the Panel Report is available from the WTO Secretariat.
Arguments specific to "Security and Predictability"
in the light of [the treaty's] object and purpose"
1.1 This proceeding has been initiated by a complaining party, the European Communities.
1.2 On 25 November 1998, the European Communities requested consultations with the United States under Article XXII:1 of the General Agreement on Tariffs and Trade 1994 ("GATT 1994") and Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Dispute ("DSU") with regard to Title III, chapter 1 (Sections 301-310) of the United States Trade Act of 1974, as amended (19 U.S.C., paragraphs 2411-2420)(WT/DS152/1). The United States agreed to the request. Dominica Republic, Panama, Guatemala, Mexico, Jamaica, Honduras, Japan, and Ecuador requested, in communications dated 7 December 1998 (WT/DS152/2), 4 December 1998 (WT/DS152/3), 9 December 1998 (WT/DS152/4, WT/DS152/5 and WT/DS152/6), 7 December 1998 (WT/DS152/7), and 10 December 1998 (WT/DS152/8 and WT/DS152/10) respectively, to be joined in those consultations, pursuant to Article 4.11 of the DSU. Consultations between the European Communities and the United States were held on 17 December 1998, but the parties were unable to settle the dispute.
1.3 On 26 January 1999, the European Communities requested the establishment of a panel pursuant to Article 6 of the DSU (WT/DS152/11).
"By imposing specific, strict time limits within which unilateral determinations must be made and trade sanctions must be taken, Sections 306 and 305 of the Trade Act of 1974 do not allow the United States to comply with the rules of the DSU in situations where a prior multilateral ruling under the DSU on the conformity of implementing measures has not yet been adopted by the DSB. Where measures have been taken to implement DSB recommendations, the DSU rules require either agreement between the parties to the dispute or a multilateral finding on non-conformity under Article 21.5 DSU before any determination of non-conformity can be made, let alone any measures of retaliation can be announced or implemented. The DSU procedure resulting in a multilateral finding, even if initiated immediately at the end of the reasonable period of time for implementation, cannot be finalised, nor can the subsequent DSU procedure for seeking compensation or suspension of concessions be complied with, within the time limits of Sections 306 and 305.
Articles I, II, III, VIII and XI of GATT 1994.
Through these violations of WTO rules, this legislation nullifies or impairs benefits accruing, directly or indirectly, to the European Communities under GATT 1994. This legislation also impedes important objectives of the GATT 1994 and of the WTO.
"To examine, in the light of the relevant provisions of the covered agreements cited by the European Communities in document WT/DS152/11, the matter referred to the DSB by the European Communities in that document and to make such findings as will assist the DSB in making the recommendations or in giving the rulings provided for in those agreements".
1.6 Brazil, Cameroon, Canada, Columbia, Costa Rica, Cuba, Dominica, Dominican Republic, Ecuador, Hong Kong (China), India, Israel, Jamaica, Japan, Korea, St. Lucia, and Thailand, reserved their rights to participate in the Panel proceedings as third parties. Cameroon later withdrew its reservations as a third party.
1.8 The Panel had substantive meetings with the parties on 29 and 30 June 1999, and 28 July 1999.
fees or restrictions on the services of, such foreign country for such time as the Trade Representative determines appropriate".17 If the act, policy or practice of the foreign country fails to meet the eligibility criteria for duty-free treatment under the United States' Generalised System of Preferences, the Caribbean Basin Economic Recovery Act or the Andean Trade Preference Act, the USTR is also authorized to withdraw, limit or suspend such treatment. In addition, the USTR may enter into binding agreements with the country in question.
2.16 If the DSB adopts rulings favourable to the United States on a measure investigated under Section 301, and the WTO Member concerned agrees to implement that ruling within the reasonable period foreseen in Article 21 of the DSU, the USTR can determine that the rights of the United States are being denied but that "satisfactory measures" are being taken that justify the termination of the Section 301 investigation.
"(1) IN GENERAL.If, on the basis of the monitoring carried out under subsection (a), the Trade Representative considers that a foreign country is not satisfactorily implementing a measure or agreement referred to in subsection (a), the Trade Representative shall determine what further action the Trade Representative shall take under section 301(a). For purposes of section 301, any such determination shall be treated as a determination made under section 304(a)(1).
to recommend that the DSB request the United States to bring its Trade Act of 1974 into conformity with its obligations under the DSU, the GATT 1994 and the WTO Agreement.
Sections 301-310 are not inconsistent with Article XVI:4 because they do not mandate action in violation of any provision of the DSU or GATT 1994, nor do they preclude action consistent with those obligations.
1 The original text of the Sections 301-310 is attached hereto as Annex I.
2 Section 301(a)(1), 19 U.S.C. §2411(a)(1).
3 Section 304(a)(1), 19 U.S.C. §2414(a)(1).
4 Section 301(a), 19 U.S.C. §2411(a).
5 Section 301(a)(2)(A), 19 U.S.C. §2411(a)(2)(A).
6 The European Communities notes that the USTR terminated on this basis the original Section 301 investigation concerning the EC banana regime. (See Federal Register, Vol. 63, No. 204, October 22 1998, page 56688).
7 Section 301(a)(2)(B)(ii)(I), 19 U.S.C. §2411(a)(1)(B)(ii)(I).
8 Section 301(a)(2)(B)(ii)(II), 19 U.S.C. §2411(a)(1)(B)(ii)(II).
9 Section 301(a)(2)(B)(iii), 19 U.S.C. §2411(a)(1)(B)(iii).
10 Section 301(a)(2)(B)(iv), 19 U.S.C. §2411(a)(1)(B)(iv).
11 Section 301(a)(2)(B)(v), 19 U.S.C. §2411(a)(1)(B)(v).
12 Section 301(a)(3), 19 U.S.C. §2411(a)(3).
13 Section 301(b), 19 U.S.C. §2411(b).
14 Section 301(d)(3)(B), 19 U.S.C. §2411(d)(3)(B).
15 Section 301(d)(5), 19 U.S.C. §2411(d)(5).
16 Section 301(b), 19 U.S.C. §2411(b).
17 Section 301(c), 19 U.S.C. §2411(c).
18 Section 302(a)(2), 19 U.S.C. § 2412(a)(2).
19 Section 302(b), 19 U.S.C. § 2412(b).
20 See 19 U.S.C. § 2171(a), (b)(1) (1998).
21 See 19 U.S.C. § 2171(c)(1) (1998); Reorg. Plan No. 3 of 1979, 44 Fed. Reg. 69273 (1979); 19 C.F.R. § 2001.3(a) (1998).
22 Section 302(a)(2), 19 U.S.C. §2412(a)(2).
24 Section 303(a)(2), 19 U.S.C. §2413(a)(2).
25 Section 304(a)(2), 19 U.S.C. §2414(a)(2).
26 Section 304(a)(1)(A), 19 U.S.C. §2414(a)(1)(A).
27 Section 304(a)(1)(B), 19 U.S.C. §2414(a)(1)(B).
28 Section 306(a), 19 U.S.C. §2416(a).
29 Section 306(b), 19 U.S.C. § 2416(b).
30 Section 305(a)(1), 19 U.S.C. §2415(a)(1).
31 Section 305(a)(2)(A), 19 U.S.C. §2415(a)(2)(A).

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