WTO Panel Set on US AD Duties on OCTG

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Geneva – The World Trade Organization’s Dispute Settlement Body Oct. 26 gave a green signal for establishing a panel to rule against the imposition of US antidumping duties on imported oil country tubular goods from Argentina.

At a DSB meeting Oct. 26, Argentina pressed ahead with its second request for establishing a panel against Washington’s antidumping duties on imported oil country tubular goods from Argentina.

Though the United States expressed disappointment with the Argentinean second request, it could not prevent the establishment of a panel.

Also at the meeting, Washington for the 68th time blocked a request from 130 members to start the selection processes for filling vacancies on the Appellate Body. The United States has been blocking the request from more than two-thirds of members for almost six years on grounds that the AB has deviated from its mandate.

Washington’s decision to go against the request from a large majority of members seems to be an indication that it may not allow a strong Appellate Body to reemerge despite the ongoing informal negotiations to reform the WTO before the WTO’s 13th ministerial conference to be held in Abu Dhabi in February next year, said a trade envoy who asked not to be quoted.

Informal Process for Reform

At the DSB meeting, chair Ambassador Petter Ølberg of Norway, who acted as a facilitator at the just-concluded senior officials meeting said senior officials strongly supported the ongoing informal process being carried out in Geneva by technical experts.

At the same time, the chair said, the officials were cognizant of the different views expressed on the issue of the timing of the formalization of this process.

He said senior officials conveyed their political support for the dispute reform work while highlighting the following elements on the way forward. The elements include 1) the need to focus on addressing the dispute settlement challenges with a sense of urgency; 2) the need to take into account the dispute settlement interests of all members; and 3) the need to uphold the WTO member-driven nature as well as to ensure full participation, inclusiveness and transparency, including by facilitating the effective participation of developing and LDC members, taking into account capacity constraints.

Privately, several participants told WTD that their views on formalizing the informal process before the MC13 were not properly reflected in the facilitator’s report. It is unfortunate that the facilitator’s report seems to be doctored, said a participant, who is familiar with the discussions.

Apparently, 34 members intervened to convey their specific concerns. They raised concerns on the need to take better account of the needs of developing and least developed country members in the reform discussions; concerns with the pace and frequency of the discussions.

The 34 countries including Indonesia and the Africa Group said the process needed to be more transparent and inclusive, with a number calling for the process to be formalized by moving the discussions up to the DSB and General Council.

However, major industrialized countries and some developing countries praised the facilitator, Marco Molina, the deputy trade envoy of Guatemala for conducting the negotiations in a transparent, inclusive and participatory manner.

Several industrialized countries, including the United States, opposed moving the discussion prematurely from its current informal basis to formal discussion in the DSB or General Council, arguing the informal nature was key to the progress achieved so far.

Meanwhile, in another trade dispute concerning the European Union’s countervailing duties on imports of biodiesel from Indonesia, Brussels blocked a first-time request from Indonesia.

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