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Publish Date : 05-Mar-2018

At its meeting on 28 February, the Dispute Settlement Body (DSB) agreed to establish a panel to determine whether India has complied with a previous ruling regarding its domestic content requirements for solar cells and solar modules. The DSB also adopted a panel ruling regarding anti-dumping duties imposed by the European Union on biodiesel imports from Indonesia and a compliance panel ruling regarding Chinese anti-dumping and countervailing duties on broiler products from the United States.

India Certain Measures Relating to Solar Cells and Solar Modules
India submitted its second request for the establishment of a panel to determine its compliance with the recommendations and rulings of the DSB in this dispute; the first request was blocked by the United States at a DSB meeting on 9 February. India reiterated that it has complied with the findings in DS456 and that the logical course for disagreements over whether a member has complied with a WTO ruling is recourse to compliance proceedings under Article 21.5 of the WTO's Dispute Settlement Understanding (DSU).

The United States once again declared that India has no basis for asserting compliance with the ruling and that India continues to apply the WTO-inconsistent measures. The US also said it reserved its right to move forward with its request for WTO authorization to take countermeasures under Article 22.6 of the DSU, but that it remains willing to work with India to find a resolution to the dispute.

The DSB agreed to establish the compliance panel as requested by India. The European Union, Singapore, Korea, China, Canada, Japan, Chinese Taipei, Indonesia, Norway and the Russian Federation reserved their third party rights to participate in the panel proceedings.

DS480 European Union Anti-Dumping Measures on Biodiesel from Indonesia
Indonesia said it welcomed the fact that the panel not only substantively reaffirmed the conclusions in a similar dispute case, "Argentina-Biodiesel" (DS473), but went much further. Not only should the costs in a dumping investigation be based on the records of the company and the country of origin, but the panel also made important findings concerning a proper determination of profit, the constructed export price and injury.

Indonesia said it was disappointed the panel did not agree that provisional duties wrongly imposed and collected by the European Union should be refunded, but given the current strains on the Appellate Body and the fact that the EU implied in the proceedings that it would work on the refund during the implementation stage, it decided not to file an appeal.

The European Union said it was pleased the panel had rejected a number of claims made by Indonesia. The EU also noted panel and Appellate Body clarification that WTO rules do not preclude an investigating authority from using information on the cost of production "in the country of origin" from sources outside the country as long as this information is apt or capable of yielding a cost of production in the country of origin. Regarding the other findings, the EU said the panel clarifications are relevant for the specific circumstances of the case. The EU said it intends to comply with the ruling.

The DSB adopted the panel report.

DS427 China Anti-Dumping and Countervailing Duty Measures on Broiler Products from the United States
The United States said it was pleased to propose the adoption of the compliance panel report. The US is a world leader in broiler chicken production, and the ant-dumping and countervailing duties imposed by China, one of the largest markets for the US, cost its industry billions of dollars in lost sales. The panel's comprehensive findings support the US view that China should have never imposed the duties in the first place, let alone continued them for four years following the original WTO ruling. China has informed the US that it decided to terminate the duties; this is welcome news, and the US said it is in the process of reviewing the information.
China said it welcomed the panel's rejection of several US claims regarding the investigations but regretted the panel concluded that China failed to comply with the original recommendations and ruling. China said it was particularly concerned the compliance panel ruled on an issue which the original panel declined to examine on grounds of judicial economy. China said in keeping with its respect for international law and WTO treaties, it has implemented the panel decision through the Chinese Ministry of Commerce's 27 February announcement terminating the anti-dumping and countervailing duties on the US broiler products.

The DSB adopted the compliance panel report.

DS482 Canada Anti-Dumping Measures on Imports of Certain Carbon Steel Welded Pipe from Chinese Taipei
Chinese Taipei thanked Canada for announcing its intention to comply with the ruling in the dispute before the 25 March implementation deadline but said bilateral exchanges were continuing on the measures concerned. Chinese Taipei said it hoped to speed up these talks in order to resolve the dispute as soon as possible. Canada said it has addressed the technical questions posed by Chinese Taipei and remains ready to discuss the matter.

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