WT/DS207/AB/R

23 September 2002

Chile – Price Band System and Safeguard Measures Relating to Certain Agricultural Products

Report of the Appellate Body

 

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Georges Michel Abi-Saab (Presiding Member)

James Bacchus

John Lockhart

 

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$B#D#S#U!JJ6Ah2r7h$K78$k5,B'5Z$SUnderstanding on Rules and Procedures Governing the Settlement of Disputes$B!K#1#1>r!"G@6H6(Dj!JG@6H$K4X$9$k6(Dj!"(BAgreement on Agriculture$B!K#4!%#2>r(B

 

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r$NBP>]HO0O(B>$B#1!%%Q%M%k(Amendment of the Price Band System During the Course of the Panel Proceedings)

$B>e5i0Q0w2q$O!"%Q%M%k$B5,B'$dJd40E*5,Dj!"=$@5$r4^$`(B(as well as the regulations and complementary provisions and/or amendments)$B!W$H$7$F$*$j!"%W%i%$%9%P%s%I@)EY$N=$@5$r4^$_$&$k(B(135)$B!"-"(BBrazil – Export Financing Programme for Aircraft$B>e5i0Q0w2qJs9p$d(BArgentina – Footwear$B%Q%M%kJs9pF1MM!"$3$N=$@5$O%W%i%$%9%P%s%I@)EY$r=$@5A0$H(B$B0[$J$k(B$BA(the Amendment does not change the price band system into a measure different from the price band system that was in force before the Amendment)$B!"=$@5A0$NA(The measure is not, in essence, any different because of that Amendment)(136-139)$B!"-#0J>e$N2r(140-143)$B!"-$0J>e$N$3$H$OJ6Ah=hM}]A($B!H(Bmoving target$B!I(B)$B$KBP1~$rGw$i$l$k?=N)9q$KBP$9$kE,@5l9g$K$O!"=$@5$5$l$?A(If the terms of reference in a dispute are broad enough to include amendments to a measure – as they are in this case – and if it is necessary to consider an amendment in order to secure a positive solution to the dispute – as it is here – then it is appropriate to consider the measure as amended in coming to a decision in a dispute)$B$H$$$&$K$9$.$J$$(B(144)$B!#(B

 

$B#2!%#D#S#U#1#1>r(B(Article 11 of the DSU)

$B!!%A%j$O!"%"%k%<%s%A%s$,#1#9#9#4G/$N#G#A#T#T#2!%#1>r(B(b)$BBh#2J8$K4X$9$k?=N)$r9T$C$F$$$J$+$C$?$K$b$+$+$o$i$:%Q%M%k$,$3$N5,Dj$K$D$$$FG'Dj$r9T$C$?$3$H$K$D$$$F>eAJ$7$F$$$?!#>e5i0Q0w2q$OeAJ$rG'$a!"%Q%M%k$N#D#S#U#1#1>r0cH?$rG'$a$?!#-!%"%k%<%s%A%s$O!"%Q%M%k@_CVMW@A$NCf$G#1#9#9#4G/$N#G#A#T#T#2>r$K8@5Z$7$F$$$k$N$G!"F1#2(B.$B#1>r(B(b)$BBh#2J8$b%Q%M%k$NIUBw;v9`$K$O4^$^$l$F$$$?$H$$$($k(B(149-150)$B!"-"$7$+$7!"%"%k%<%s%A%s$O%Q%M%k$KBP$9$kBh#12s=qLL$NCf$G#G#A#T#T#2!%#1>r(B(b)$BBh#1J8$K4X$9$k(153-157)$B!"-#$=$N8e%Q%M%k$Nr$K4X$9$k?=N)$NCf$GF1Bh#2J8$K4X$9$k(158-164)$B!"-$%"%k%<%s%A%s$O!"%Q%M%k$O%"%k%<%s%A%s$N?=N)$rE,@Z$K=hM}$9$Y$/<+$i$NK!E*M}M3IU$1$r9T$&8"Mx$J$$$75AL3$rM-$7$F$$$?$H9M$($i$l$k(B(the Panel would have had the right, indeed the duty, to develop its own legal reasoning to support the proper resolution of Argentina$B!G(Bs claim)$B$HEC – Hormones$B>e5i0QJs9p$d(BUS – Certain EC Products$B>e5i0QJs9p$K$h$l$P!"%Q%M%k$O?=N)9q$,$"$kLdBj$K$D$$$F$N?=N)$r9T$C$F$$$k$3$H$,L@$i$+$J$H$-$K<+$i$NK!E*M}M3IU$1$r9T$&$3$H$,$G$-(B(we affirmed the capacity of panels to develop their own legal reasoning in a context in which it was clear that the complaining party had made a claim on the matter before the panel)$B!"$^$?>e5-$N-"%1!<%9$K$*$$$FEv;v9q$O%Q%M%kG'Dj$r;Y;}$9$kO@5r$rDs<($7$F$*$j(B(the complainant had advanced arguments in support of the finding made by the panel)$B!"K\7o$N$h$&$K$J$s$N?=N)$b@.$5$l$F$*$i$:$^$?2?$NO@5r$bDs<($5$l$F$$$J$$>l9g$K$O%Q%M%k$O<+$i$NK!E*M}M3IU$1$r9T$&!V8"Mx!W$b!V5AL3!W$bM-$7$F$$$J$$(B(166-168)$B!"-%%Q%M%k$N>Z5r$N?3::$K$D$$$F$O#D#S#U#1#1>r$KH?$7$F$$$?$H$O$$$($J$$$,!"?=N)$N$J$$#1#9#9#4G/$N#G#A#T#T#2!%#1>rBh#2J8$r?3::$7$?$3$H$O!"(B$B<+8J$KIUBw$5$l$?LdBj$N(B$B5R4QE*I>2A$r9T$&(B(make an objective assessment of the matter before it)$B$H$$$&#D#S#U#1#1>r$N5AL3$K0cH?$7$F$$$k(B(169-173)$B!"-&-%$K$h$j!"%Q%M%k$O#D#S#U!JJ6Ah2r7hN;2r!K$K$h$jM?$($i$l$k%A%j$NE,@5(because the Panel did not give Chile a fair right of response on this issue, we find that the Panel failed to accord to Chile the due process rights to which it is entitled under the DSU)(174-176)$B!#(B

 

$B#3!%J,@O$N=g=x(B(Order of Analysis)

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$B!!$3$l$KBP$7$F%"%k%<%s%A%s$O!"%A%j$O>e5-$NeAJ$NDLCN$NCf$G?($l$F$*$i$:!">e5i0Q0w2q$O>e5i0Q0w2q?3::$N8!F$(Working Procedures for Appellate Review)$B#2#0>r(B(2)(d)$B$K4p$E$-$3$N

$B!!>e5i0Q0w2q$O$^$:!"#D#S#U#6!%#2>r$K4X$9$k?=N)(B(claims)$B$HK!E*O@5r(B(legal arguments)$B$H$N0c$$$K?($l$D$D!"J,@O$N=g=x$K4X$9$k%A%j$N(separate $B!H(Ballegation of error$B!I(B)$B$H$$$&$h$j$OG@6H6(Dj#4!%#2>r5Z$S#1#9#9#4G/$N#G#A#T#T#2!%#1>r(B(b)$B$N(180-183)$B!#(B

$B!!>e5i0Q0w2q$O!"eAJ$rB`$1$?!#-!G@6H6(Dj#4!%#2>r$H#1#9#9#4G/$N#G#A#T#T#2!%#1>r(B(b)$BBh#1J8$H$rHf3S$9$l$P!"A0$B6qBNE*$K(B$B07$C$F$$$k(B(Article 4.2 of the Agreement on Agriculture deals more specifically with preventing the circumvention of tariff commitments on agricultural products)$B$3$H$OL@$i$+$G$"$k(B(186-187)$B!"-"G@6H6(Dj#4!%#2>r$O!"#1#9#9#4G/$N#G#A#T#T#2!%#1>r(B(b)$B$HF1$8!VDL>o$N4X@G!W$H$$$&J88@$rMQ$$$F$$$k$,!"$3$l$i$N5,Dj$O(B$BJL8D$K(B$B?3::$7!"$=$l$>$l$N5,Dj$,M-$9$kJL8D$NK!N'>e$N5AL3$K$D$$$F$=$N0UL#$H8z2L$rL@$i$+$K$9$k$h$&$J2r(Article 4.2 of the Agreement on Agriculture and Article II:1(b) of the GATT 1994 must be examined separately to give meaning and effect to the distinct legal obligations arising under these two different legal provisions)(188)$B!"-#%A%j$bG'$a$F$$$k$h$&$K!"J,@O$N=g=x$OH=CG$NFbMF$K1F6A$rM?$($k$b$N$G$O$J$$(B(189)$B!"-$AJ>Y7P:Q$N4QE@$+$i$b!"G@6H6(Dj#4!%#2>r$r@h$K8!F$$7$?$[$&$,K>$^$7$$(B(190)$B!#(B

 

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$B!!>e5i0Q0w2q$O$O$8$a$K!"G@6H6(Dj$OES>e9q$KBP$7$FG[N8$7$J$/$F$O$J$i$J$$>l9g$,$"$k$HDj$a$F$$$k$,!"K\7o$K4XO"$9$kES>e9q$K4X$9$kFCJL5,Dj$O$J$/!"$7$?$,$C$FK\7o$NEv;v9q$,APJ}$H$bES>e9q$G$"$k$H$$$&;v(196-199)$B!#(B

$BG@6H6(Dj#4!%#2>r5Z$S$=$NCm$N2r(General Interpretative Analysis of Article 4.2 and Footnote 1)

$B!!>e5i0Q0w2q$O!"G@6H6(Dj#4!%#2>r$N!V(B$BDL>o$N4X@G$KE>49$9$k$3$H$,MW5a$5$l$?A$3$l$KN`$9$k$$$+$J$kA(any measures of the kind which have been required to be converted into ordinary customs duties)$B!W$H$$$&J88@$N0UL#$HHO0O$,K\7o$N:GBg$NO@E@$H=R$Y$?>e$G!"F1>r$K$D$$$Fr$N>e5-J88@$,8=:_40N;7A$rMQ$$$F$$$k$H$$$&$3$H$K$OCmL\$9$Y$-$G$"$j!"8=:_40N;7A$G<($5$l$?5,Dj$ODL>o2a5n$K@8$8$F8=:_$bB3$$$F$$$k$h$&$J5AL3(B(obligations that came into being in the past, but may continue to apply at present)$B$r2]$7$F$*$j!"G@6H6(Dj#4!%#2>r$K4X$7$F$O!"$"$k4|F|$^$G$K#4!%#2>r$NBP>]$G$"$kAo$N4X@G$KE>49$7$J$/$F$O$J$i$:!"$^$?$"$k4|F|0J9_$O#4!%#2>r$G6X;_$5$l$?A(this temporal connotation relates to the date by which Members had to convert measures covered by Article 4.2 into ordinary customs duties, as well as to the date from which Members had to refrain from maintaining, reverting to, or resorting to, measures prohibited by Article 4.2)(206)$B!"-"$D$^$j!"#4!%#2>r$,8=:_40N;7A$G5,Dj$5$l$?$N$O!"%&%k%0%"%$!&%i%&%s%I$N7k2LE>49$9$k$3$H$,MW5a$5$l$?$K$b$+$+$o$i$:E>49$5$l$J$+$C$?A(to ensure that measures that were required to be converted as a result of the Uruguay Round – but were not converted – could not be maintained, by virtue of that Article, from the date of the entry into force of the WTO Agreement on 1 January 1995)$B$G$"$C$?$H9M$($i$l!"#4!%#2>r$O%&%k%0%"%$!&%i%&%s%I=*7k;~$^$G$K49$5$l$J$+$C$?A(207-208)$B!"-#G@6H6(Dj#4!%#2>rCm$NNc$,(B$BNc<(Ns5s$G$"$k$3$H!"$^$?$3$l$i$KN`$9$kDL>o$N4X@G0J30$N9q6-Ae$N2r(209-210)$B!"-$G@6H6(Dj#5!%#1>r$,!VE>49$5$l$F$*$j(B(have been converted)$B!W$H$$$&J88@$rMQ$$$F$$$k$3$H$H$NBPHf$+$i$b!"0J>e$N2r(211)$B!"-%%A%j$O!"%W%i%$%9%P%s%I@)EY$r0];}$7$F$$$?B>9q$b4X@G$KE>49$7$F$$$J$$$HrLsK!>rLs#3#1!%#3>r(B(b)$B$N!V8e$K@8$8$?(213-214)$B!"-&%A%j$O!"%W%i%$%9%P%s%I@)EY<+BN$OAo$N4X@G$N%l%Y%k$r7hDj$9$k@)EY$K$9$.$J$$$Ho$N4X@G$HF1$8(B$B7ABV(B$B$r$H$C$F$$$k$+$i$H$$$C$F!!!!!"!V2DJQM"F~2]D'6b!W$d!V:GDcM"F~2A3J!W$G$O(B$B$J$$(B$B$H$O$$$($J$$(B(the mere fact that a duty imposed on an import at the border is in the same form as an ordinary customs duty, does not mean that it is not a $B!H(Bvariable import levy$B!I(B or a $B!H(Bminimum import price$B!I(B)(215-216)$B!"-'G@6H6(Dj#5>r$,0lDj$NAr$,#5>r$K$h$C$FG'$a$i$l$F$$$k0J30$NA(217)$B!#(B

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$B!!>e5i0Q0w2q$O!"r5Z$S$=$NCm$G6X;_$5$l$F$$$kA$B4pK\E*$J(B(fundamental)$B!W@-e$N$b$N$,8_$$$KN`;w$7$F$$$k$H$$$($k$[$IF1(The better and appropriate approach is to determine similarity by asking the question whether two or more things have likeness or resemblance sufficient to be similar to each other)$B!"8!F$$N:]$K$O7P83E*%"%W%m!<%A$,$H$i$l$J$/$F$O$J$i$J$$(B(the task of determining whether something is similar to something else must be approached on an empirical basis)(226)$B!"-"G@6H6(Dj#4!%#2>rCm$KNs5s$5$l$F$$$kAo$N4X@G$H0[$J$kJ}K!$GG@;:IJM"F~$N?tNL$r@)8B$72A3J$r3IMp$9$k$H$$$&(have in common the object and effect of restricting the volume, and distorting the prices, of imports of agricultural products in ways different from the ways that ordinary customs duties do)$B!"$^$?9qFb2A3J$r9q:]2A3J$NF08~$+$i3VN%$7@$3&;T>l2A3J$,9qFb;T>l$K1F6A$rM?$($k$3$H$rK8$2$F$*$j(B(have in common also that they disconnect domestic prices from international price developments, and thus impede the transmission of world market prices to the domestic market)$B!"N`;w@-$r9MN8$9$k:]$K$O:GDc8B$3$l$i$r9MN8$7$J$/$F$O$J$i$J$$(B(227)$B!"-#%W%i%$%9%P%s%I@)EY$NN`;w@-$rH=CG$9$k4p=`$H$J$k2DJQM"F~2]D'6b$H$O!"K\MhE*$K2DJQ@-$rM-$9$k(B(Variability is inherent in a measure)$B!"$9$J$o$A<+F0E*$+$D7QB3E*$K2]D'6b$,JQ2=$9$k$h$&$K@_7W$5$l$F$$$kBN@)$b$7$/$O7A<0(B(a scheme or formula that causes or ensures that levies change automatically and continuously)$B$G!"F)L@@-$HM=8+2DG=@-$r7g$/$b$N$G$"$j(B(a lack of transparency and a lack of predictability)$B!":GDcM"F~2A3J$H$O!"%Q%M%k$K$h$l$P!"M"F~IJ$Nl9g$K2A3J:9$K1~$8$?DI2CE*$J2]D'6b$,2]$5$l$k$b$N$G!"Ev;v9q$O$3$NDj5A$K$D$$$FAh$C$F$$$J$$(B(228-238)$B!"-$%A%j$N%W%i%$%9%P%s%I$O2a5n#5G/4V$N@$3&2A3J$HO"F0$7$F@_Dj$5$l$k$H$O$$$(!"F1@)EY$O!"#4!%#2>r$NCm$G6X;_$5$l$F$$$kB>$NAl$X$NEAGE$rK8$2$k(B$B8z2L(B$B$r;}$A$((B(even though Chile$B!G(Bs price bands are set in relation to world prices from a past five-year period – Chile$B!G(Bs price band system can still have the effect of impeding the transmission of international price developments to the domestic market in a way similar to that of other categories of prohibited measures listed in footnote 1)$B!"%W%i%$%9%P%s%I$N@_Dj$OF)L@@-$dM=8+2DG=@-$r7g$$$F$$$k$H$$$($k(B(246)$B!"-%$^$?!"%W%i%$%9%P%s%I@)EY$K$*$1$k;29M2A3J$N7hDjJ}K!$bF)L@@-$dM=8+2DG=@-$r7g$$$F$$$k(B(247-251)$B!"-&%A%j$O%W%i%$%9%P%s%I@)EY$K$h$C$F2]$5$l$k4X@G$O>y5v4X@G$rD6$($J$$$h$&$K!V@)8B(B(cap)$B!W$,2]$5$l$F$$$k$Hr$NJ88@$O>y5v@GN($rD6$($J$$>l9g$K$O6X;_A(255)$B!"-'>y5v@GN($rD6$($k$+H]$+$OG@6H6(Dj#4!%#2>r$N@09g@-$K4X78$7$J$$$H$$$&$3$H$O!"G@6H6(DjImB0=q#5$d#1#9#9#4G/$N#G#A#T#T#2>r5Z$S#1#1>r$+$i$bL@$i$+$G$"$k(B(255-256)$B!"-(>y5v@GN($rD6$($J$$$h$&$J@)8B$O!"3IMp$NEY9g$$$r8:>/$5$;$k$@$1$G!"F)L@@-$N7gG!$dM=8+2DG=@-$N7gG!!"<+F0E*$GIQHK$J@GN(JQF0$K$h$k3IMp$O2r>C$5$l$J$$(B(257-259)$B!#(B

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