WTO's DSB to set up compliance panel in US-Brazil cotton case
05 Oct '06
2 min read
At its meeting on 28 September 2006, the Dispute Settlement Body established a compliance panel under DSU Article 21.5 at the second-time request by Brazil to review US' implementation of the DSB rulings in the “Cotton” case.
At the same meeting, China blocked the first-time requests by the EC, US and Canada for panels to examine China's measures on imports of auto parts; and the US blocked Thailand's first-time request for a panel to examine US measures on shrimp from Thailand.
United States — Subsidies on Upland Cotton At the second-time request by Brazil (WT/DS267/30), the DSB established a compliance review panel under DSU Article 21.5 to examine whether the measures implemented by the US were in conformity with the rulings of the DSB.
Brazil stated that the US had adopted no implementation measures at all, and that the measures it had implemented fell far short of compliance.
The US said that contrary to Brazil 's claim, the US had fully implemented the DSB's rulings by repealing the Step 2 programme, under which hundreds of millions of dollars were paid to domestic users and exporters of US cotton, and had also ceased operating two of its export credit programmes, namely the GSM-103 and SCGP programmes.
The sole remaining guarantee programme, the GSM-102, had been substantially modified to remove its export subsidy elements. Given all these changes, there was no basis for Brazil 's request. The US said that it was confident that its measures would be upheld by the compliance panel.
The following Members reserved their third-party rights: Argentina, Australia, Canada, China, India, Japan, New Zealand and the EC.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
