IT ISN'T ENOUGH AT WTO TO WIN A CASE

12:08 PM Mar 20, 1997

IT ISN'T ENOUGH AT WTO TO WIN A CASE
Geneva 20 Mar (TWN) -- The WTO and its Dispute Settlement Body found themselves in a queer situation Thursday when the US sought time till the end of April to withdraw a trade measure, set to expire next week, and which a panel and the Appellate body found to be illegal.

The ruling against the United States in the case involving transition safeguards against imports of underwear from Costa Rica (instituted in 1995) was adopted on 25 Feb.

On Thursday, in reporting on its implementation intentions, the US said it intended to withdraw the restriction at end of April, whereupon Costa Rica pointed out that the safeguard measure itself was due to expire next week. Costa Rica asked whether the US thus intended to extend the measure for a further period?

The DSB chairman said that since the two parties were not agreed on the implementation, they should consult and report back to the DSB.

The DSB referred to a panel a Mexican complaint against Guatemala on anti-dumping investigation of cement, and a US request against Britain and Ireland over classification of computer equipment to the same panel that is hearing the same complaint against the EC.

The US did not agree to a panel reference of an Indian complaint over US measures against shrimp imports (that came up for the first time), in effect that India's interests could be satisfied by its already notified third party interest in a panel hearing the same complaint from Thailand, Malaysia and Pakistan.

Third parties in dispute proceedings cannot take up an issue in appeal, nor can they get compensation, if a panel ruling is not implemented by the party against whom there is a complaint.

In other matters before the DSB, the US notified that it was withdrawing its request for a panel over the reference prices established by the EC for grain imports.

A Canadian request for a panel in its dispute with Australia over restrictions on salmon imports for health reason was also put off, with Australia blocking the request. Reference will be automatic if Canada brings it up again to the next meeting.

The DSB also adopted the report of a panel, and of the appellate body, over a Philippines complaint against Brazil on import of desiccated coconut -- with the Philippines making a lengthy statement critical of the panel and the appellate body members for what Philippines called their imputing their own views on what the law laid out in an agreement should be, and thus acting in a non-judicious manner.