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WTO Issues Involving the U.S. for March 2010

The World Trade Organization frequently posts communications to WTO members on issues that involve the U.S. The following are short summaries of such issues for March 2010:

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(Note that all of these items were either included in BP’s Miscellaneous International Trade Notices or covered individually when they were first posted. Also note that it may be necessary to attempt to open certain source documents twice for proper viewing.)

Requests for Consultations/Panels Involving the U.S.

U .S.-China dispute on U.S. tire duties -- panel composed. The WTO informed Members that on March 12, 2010, a dispute settlement panel (DSP) was composed to examine "U.S. Measures Affecting Imports of Certain Passenger Vehicle and Light Truck Tires from China" (DS399). (Notice, dated 03/16/10, available at http://docsonline.wto.org/DDFDocuments/t/wt/ds/399-3.doc)

U.S.-Philippines distilled spirits dispute -- panel requested. On March 26, 2010, the U.S requested the establishment of a DSP regarding “Philippines - Taxes on Distilled Spirits” (DS403). (See ITT’s Online Archives or 03/30/10 news, (Ref: 10033025), for BP summary.) (Notice, dated 03/29/10, available http://docsonline.wto.org:80/DDFDocuments/t/WT/DS/403-4.doc)

Ongoing Disputes Involving the U.S.

U.S.-Brazil cotton dispute -- goods retaliation finalized, then delayed. In March 2010, Brazil finalized its list of U.S. products that it intended to subject to increased duties of 12 to 100% on April 7, 2010, due to the U.S.’ noncompliance in the upland cotton dispute. It also issued for comment its proposed list of areas for retaliation against U.S. intellectual property rights and services. Note that on April 5, Brazil announced that it would delay the increased duties, and the USTR announced that the U.S. and Brazil had agreed on a path forward for solving the cotton dispute. (See ITT’s Online Archives or 04/07/10, 04/06/10, 03/19/10, and 03/09/10 news, (Ref: 10040705), (Ref: 10040605), (Ref: 10031915), and (Ref: 10030910), for BP summaries.)

U.S.-Thailand retail carrier bag dispute -- U.S. to implement rulings. At the March 19, 2010 meeting of the WTO’s Dispute Settlement Body (DSB), the U.S. formally announced its intent to implement the rulings and recommendations of the panel in the dispute, “U.S. - Anti-dumping measures on polyethylene retail carrier bags from Thailand (DS383) on U.S. “zeroing.” (See ITT’s Online Archives or 03/29/10, (Ref: 10032945), for BP summary.)

U.S.-China poultry dispute -- panel report delayed. The WTO circulated a Communication from the Chairman of the Dispute Settlement Panel examining the dispute, "U.S.-Certain Measures Affecting Imports of Poultry from China" (DS392) stating that the panel will only be able to issue its final report in July 2010 due to the technical complexity of the matter and requests by the parties to postpone a number of deadlines. (Communication, dated 03/24/10, available at http://docsonline.wto.org/DDFDocuments/t/wt/ds/392-4.doc)

EU-Argentina GMO dispute - agreement reached. The European Union and Argentina settled the WTO dispute brought against the EU in 2003 on its biotech product legislation and genetically modified organisms. The solution provides for the establishment of a regular dialogue on the issue. A similar agreement was reached with Canada in July 2009, but no agreement has been reached with the U.S., which is the third complainant. (Press release, dated 03/18/10, available at http://trade.ec.europa.eu/doclib/press/index.cfm?id=536)

Miscellaneous WTO Issues Involving or of Interest to the U.S.

Global trade expected to grow 9.5% in 2010. The WTO estimated that global trade would rebound in 2010 by growing at 9.5%. Exports from developed economies are expected to increase by 7.5%, while shipments from the rest of the world should rise by around 11%. This strong expansion will help recover some but not all of the ground lost in 2009 when global trade contracted 12.2%. (Press release, dated 03/26/10, available at http://www.wto.org/english/news_e/pres10_e/pr598_e.htm)

Doha stocktaking exercise ends, not very close to goal. At the close of the World Trade Organization's Doha "stocktaking" exercise, WTO Director General Lamy acknowledged disappointment at not being closer to the final goal, but stated that Members are ready to start working towards weaving all strings of the negotiations into an overall package. (News release, dated 03/26/10, available at http://www.wto.org/english/news_e/news10_e/tnc_dg_stat_26mar10_e.htm)

DSB discusses China’s IPR compliance, etc. The WTO posted highlights of the DSB’s March 19, 2010 meeting. China stated it has fully complied with DSB rulings in the intellectual property rights case; the EU announced its agreement with Argentina in the biotech dispute; and the U.S. and Thailand have agreed to a six month "reasonable period of time" for the U.S. to comply in the retail carrier bag dispute. (Notice, dated 03/19/10, available at http://www.wto.org/english/news_e/news10_e/dsb_19mar10_e.htm)

TBT Committee concerned about Canada tobacco measure, etc. The WTO posted highlights of a March 24-25 Technical Barriers to Trade Committee meeting in which Members raised concerns about: Brazil and Thailand’s new labeling measures related to alcoholic beverages; concerns about a Canadian measure on tobacco products that would effectively ban “blended cigarettes;” and a U.S. measure on lithium battery transportation. (Highlights, posted 03/24/10, available at http://www.wto.org/english/news_e/news10_e/tbt_24mar10_e.htm)

Report on India's textile/apparel export competitiveness. The WTO issued a report in response to a U.S. request that it examine the export competitiveness of textile and apparel imports from India, as the U. S. had reason to believe that India had met the definition of "export competitiveness." (Report, dated 03/23/10, available at http://docsonline.wto.org/DDFDocuments/t/g/scm/132A1.doc)

Council for trade in goods elects new chair, discusses FTA notifications. The WTO posted a summary of the Council for Trade in Goods' March 23, 2010 meeting in which it: elected a new chairperson; agreed on chairpersons for its subsidiary bodies; and discussed the recent notification of new regional trade agreements such as the Peru-China FTA, Panama-Honduras FTA, ASEAN-Japan FTA, etc. (Summary, posted 03/23/10, available at http://www.wto.org/english/news_e/news10_e/good_23mar10_e.htm)

Group negotiating GIs agrees to new approach. The WTO group negotiating a multilateral register of geographical indications for wines and spirits has endorsed new chairperson Mwape’s approach. The group's positions remain largely unchanged, but they are willing to dig deeper into how various proposals would be implemented in countries’ domestic intellectual property systems. (News release, dated 03/04/10, available at http://www.wto.org/english/news_e/news10_e/trip_04mar10_e.htm)

TRIPS Council debates decision on improved access to medicine, etc. The WTO’s Council on Trade-Related Aspects of Intellectual Property Rights (TRIPS) debated various issues during their March 2, 2010 meeting, including whether a 2003 decision designed to improve access to medicines is working; issues related to patents and biodiversity; technical cooperation; and improving the way information on intellectual property is shared. (News release, dated 03/02/10, available at http://www.wto.org/english/news_e/news10_e/trip_02mar10_e.htm)

Negotiating text on chemical classification & labeling. The WTO circulated the negotiating text of an Understanding on Non-Tariff Barriers Pertaining to Standards, Technical Regulations and Conformity Assessment Procedures for Chemical Products in which Members would gradually align their regulations to the Globally Harmonized System of Classification and Labeling of Chemicals with substantial alignment by the end of 2015. (Notice, dated 03/19/10, available at http://docsonline.wto.org/DDFDocuments/t/tn/ma/W137.doc)

Ag negotiating group discusses special safeguards, tariff caps, etc. The Chair of the WTO agriculture negotiations stated that the small group negotiations which took place March 3-12, 2010 included discussion of the Special Safeguard Mechanism, a tool that will allow developing countries to raise tariffs temporarily to deal with import surges or price falls; sensitive products whose tariff reductions will be less than normal; tariff caps; etc. (News release, dated 03/12/10, available at http://www.wto.org/english/news_e/news10_e/agng_03mar10_e.htm)

Market Access Committee circulates recommended HS changes for Jan 1, 2012. The WTO’s Committee on Market Access has circulated to WTO Members the amendments to the Harmonized System which were accepted pursuant to the Recommendation of June 26, 2009 of the Customs Cooperation Council. These WCO-recommended changes to the Harmonized System are set to take effect on January 1, 2012. (Amendments, dated 03/24/10, available at http://docsonline.wto.org/DDFDocuments/t/g/ma/W100.doc)

Honduras notifies members of dairy import licensing system. Honduras has notified WTO members of its automatic import licensing system for dairy products. Those wishing to import dairy products are required to submit an application with the importer's name, type(s) of products, quantities to be imported, and a copy of the sanitary requirements and formalities in force in the country. Licenses are issued within 5 working days. (Notice, dated 03/26/10, available at http://docsonline.wto.org/DDFDocuments/t/G/LIC/N3HND1A1.doc)

WTO updates 2010 program of meetings. The WTO has updated its 2010 program of meetings. (Program, dated 03/05/10, available at http://www.wto.org/meets_public/meets_e.pdf)

Documents not specifically cited above are available on the WTO Web site at http://www.wto.org/index.htm by clicking on Documents, Official Documents, Simple Search, and by typing the desired date in the appropriate field.