European Union, Australia affirm intention to implement recent WTO rulings

DS600: European Union and certain Member states — Certain measures concerning palm oil and oil palm crop-based biofuels

The European Union said it intends to implement the panel ruling in DS600, which was formally adopted by the DSB on 26 April. The EU said it would need a reasonable period of time to implement the ruling and that it was keen to discuss and agree with Malaysia on the length of this period of time at the earliest available opportunity.

Malaysia, which brought the case against the EU, said the panel ruling serves to preserve the integrity of the multilateral trading system and ensure fairness in international trade. It stands ready to work positively with the EU on this matter to ensure effective implementation, it added. Malaysia said it was confident that, through continued cooperation, the two parties can find a pathway to address the concerns that led to this dispute for mutual benefit.

DS603: Australia — Anti-Dumping and Countervailing Duty Measures on Certain Products from China

Australia said it intends to implement promptly the panel ruling in DS603 which was formally adopted by the DSB on 26 April.  Australia said it would nevertheless need a reasonable period of time to implement the ruling and will engage with China to agree on this period of time.

China, which initiated the case against Australia, welcomed Australia's statement and said the dispute was of systemic importance for all WTO members. China said it looked forward to continuing to work with Australia so that the mutually agreed reasonable period of time can be agreed to in the coming days.

Appellate Body appointments

Colombia, speaking on behalf of 130 members, introduced for the 76th time the group's proposal to start the selection processes for filling vacancies on the Appellate Body. The extensive number of members submitting the proposal reflects a common concern over the current situation in the Appellate Body which is seriously affecting the overall WTO dispute settlement system against the best interest of members, Colombia said for the group.

The United States repeated that it does not support the proposed decision to commence the appointment of Appellate Body members as its longstanding concerns with WTO dispute settlement remain unaddressed. The US reiterated that re-launching the Appellate Body selection process will not address the concerns, and that calls for the restoration of the Appellate Body undermine collective efforts for reform.

Twenty-four members then took the floor to comment, with many referring to their previous statements made on this matter. Several members noted the mandate set out at the WTO's 12th Ministerial Conference (MC12) in 2022 and reiterated at MC13 earlier this year to conduct discussions with the view to having a fully and well-functioning dispute settlement system accessible to all members by 2024. They cited the need to make progress in the short time remaining. They also welcomed the recent appointment of Ambassador Usha Dwarka-Canabady of Mauritius as facilitator of the dispute settlement reform process. 

Nine members welcomed the recent decision by the Philippines to become a participant in the Multi-party interim appeal arrangement (MPIA), a means of maintaining appeal rights in the absence of a functioning Appellate Body. 

Colombia said that on behalf of the 130 members it regretted that for the 76th occasion members have not been able to launch the selection processes. Ongoing conversations about reform of the dispute settlement system should not prevent the Appellate Body from continuing to operate fully, and members should comply with their obligation under the Dispute Settlement Understanding (DSU) to fill the vacancies as they arise, Colombia said for the group.

The DSB Chair, Ambassador Saqer Abdullah Almoqbel of Saudi Arabia, said he was ready to support the facilitator in all her efforts towards achieving a positive outcome within the mandated time frame.

Surveillance of implementation

For the first time under the surveillance agenda item, China presented a status report with regards to DS601, “China — Anti Dumping Measures on Stainless Steel Products from Japan.”  China had until 8 May 2024 to ensure compliance with the panel's findings.

China said that its Ministry of Commerce launched a re-investigation on stainless steel products from Japan in November last year and that on 8 May the ministry published a notice and announced the determination of the re-investigation. Through the re-investigation, China said it has fully implemented the ruling.

Japan said it was deeply regrettable that China has decided to maintain the measures at issue, despite the clear findings of the panel that China acted inconsistently with its WTO obligations and the recommendations by the panel for China to bring the measures into conformity with its WTO obligations.  Japan urged China to abolish its measures immediately and said it would consider further actions as necessary.

Other matters previously addressed under the surveillance agenda item

The United States presented status reports with regard to DS184, “US — Anti-Dumping Measures on Certain Hot-Rolled Steel Products from Japan”,  DS160, “United States — Section 110(5) of US Copyright Act”, DS464, “United States — Anti-Dumping and Countervailing Measures on Large Residential Washers from Korea”, and DS471, “United States — Certain Methodologies and their Application to Anti-Dumping Proceedings Involving China.”

The European Union presented a status report with regard to DS291, “EC — Measures Affecting the Approval and Marketing of Biotech Products.”

Indonesia presented its status reports in DS477 and DS478, “Indonesia — Importation of Horticultural Products, Animals and Animal Products.”

Next meeting

The next regular DSB meeting will take place on 24 June 2024.

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