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WTO CASE REVIEW 20021 Raj Bhala* and David A. Gantz** Table Of WTO CASE REVIEW 20021 Raj Bhala∗ and David A. Gantz** Table of Contents Page PART ONE: INTRODUCTION Stability Amidst Turmoil...................................................................................150 PART TWO: DISCUSSION OF THE 2002 CASE LAW I. Trade Remedies A. Countervailing Duties and de minimis Margins: The Carbon Steel Case...................................................................158 1. This WTO Case Review is the third in an annual series on the substantive international trade adjudications rendered by the World Trade Organization’s Appellate Body. Each Review explains and comments on the Appellate Body reports adopted by the Dispute Settlement Body during the preceding calendar year (January 1–December 31), excluding decisions on compliance with recommendations contained in previously adopted reports. See Raj Bhala & David A. Gantz, WTO Case Review 2001, 19 ARIZ. J. INT’L & COMP. L. 457 (2002) [hereinafter WTO Case Review 2001]; Raj Bhala & David A. Gantz, WTO Case Review 2000, 18 ARIZ. J. INT’L & COMP. L. 1 (2001) [hereinafter WTO Case Review 2000]. ∗ Rice Distinguished Professor of Law, University of Kansas School of Law, Lawrence, Kansas. Tel. 785-864-4550; Fax: 785-864-5054. J.D., Harvard Law School (1989); M.Sc., Oxford (1986); M.Sc., London School of Economics (1985); A.B., Duke (1984). Marshall Scholar (1984-86). Author of Trade, Development, and Social Justice (Carolina Academic Press 2003). In December 2002, Professor Bhala visited the WTO and benefited from many conversations with officials there. While their identities and contributions must remain anonymous, Professor Bhala wishes to thank them for their assistance and hospitality. He also wishes to thank his Research Assistant, Ms. Lucienne Attard, B.A. and M.Juris. (University of Malta), LL.M. (The George Washington University), S.J.D. candidate (The George Washington University), for her review of an earlier draft of this article. ** Professor of Law and Director, International Trade Law Program, University of Arizona, James E. Rogers College of Law, Tucson, Arizona; Associate Director, National Law Center for Inter-American Free Trade. Tel. 520-621-1801; Fax. 520-621-9140. J.S.M., Stanford (1970); J.D., Stanford (1967); A.B., Harvard (1964). 144 Arizona Journal of International and Comparative Law Vol 20, No. 2 2003 Citation.....................................................................................................158 United States–Countervailing Duties on Certain Corrosion-Resistant Carbon Steel Flat Products from Germany, WT/DS213/AB/R (issued November 28 2002, adopted December 19, 2002) (complaint by the European Communities). Explanation................................................................................................158 (1) Half a Percent Matters..................................................158 (2) The Dissent.................................................................168 (3) Let’s Not Fill the Gap this Time...................................170 Commentary.............................................................................................173 (1) Shifting Sands in the Desert.........................................173 (2) A Grander Role for the Director-General?...................175 B. Safeguards, Injury, and Causation: The Line Pipe Case................178 Citation....................................................................................................178 United States–Definitive Safeguard Measures on Imports of Circular Welded Carbon Quality Line Pipe from Korea, WT/DS202/AB/R (issued February 15, 2002, adopted March 8, 2002) (complaint by Korea, with Australia, Canada, the European Communities, Japan, and Mexico as Third Participants). Explanation............................................................................................178 (1) Introductory Note: Strict Scrutiny Again............................178 (2) Principal Issues Raised on Appeal......................................180 (3) Arguments of the Parties.....................................................181 WTO Case Review 2002 145 Rationale and Holdings.........................................................................186 (1) Adequate Opportunity for Prior Consultations...................187 (2) Substantially Equivalent Level of Concessions..................188 (3) Exclusion of de minimis Developing Country Exporters....188 (4) Discrete Determination of Serious Injury or of Threat of Serious Injury.................................................................189 (5) “Parallelism” Between the Investigation and Application of Safeguard Measures..................................190 (6) Non-Attribution of Injurious Effects of Other Factors to Increased Imports............................................................192 (7) Application of the Measure: Express Justification and Permissible Extent..............................................................194 Commentary...........................................................................................196 (1) Mootness Doesn’t Really Matter........................................196 (2) Compliance Through the Back Door?................................196 (3) The Bar Remains High for Safeguards...............................197 II. Intellectual Property and Trademark Rights: The Havana Club Case Citation...................................................................................................198 United States–Section 211 Omnibus Appropriations Act of 1998, WT/DS176/AB/R (issued January 2, 2002, adopted February 1, 2002) (complaint by the European Communities). Explanation............................................................................................198 (1) Introductory Note: The U.S. Regulatory Framework.........198 (2) Principal Issues on Appeal.................................................201 146 Arizona Journal of International and Comparative Law Vol 20, No. 2 2003 (3) Arguments of the Parties....................................................202 Rationale and Holdings..........................................................................206 (1) Scope of Appellate Review.................................................206 (2) Nature of the Measure (Ownership or Non-Ownership)....207 (3) Article 6quinquies of the Paris Convention (1967)............207 (4) Article 15 of TRIPS (Protectable Subject Matter)..............208 (5) Article 16 of TRIPS (Rights Conferred) .............................210 (6) Article 42 of TRIPS (Enforcement of Intellectual Property Rights)..................................................................211 (7) National Treatment Under the Paris Convention and TRIPS...........................................................................212 (8) Article 4 of TRIPS–Most Favored Nation Treatment..........215 (9) Article 8 of the Paris Convention (1967)–TRIPS Coverage of Trade Names..................................................216 Commentary...........................................................................................217 (1) An Unusual Deference to National Legislation?.................217 (2) MFN and Non-Discrimination are Sacred Principles for TRIPS Too.....................................................................218 (3) Section 211 and the U.S. Trade Embargo...........................219 III. Special Sectors: Agriculture and Minimum Import Prices Citation...................................................................................................221 Chile–Price Band System and Safeguard Measures Relating to Certain Agricultural Products, WT/DS207/AB/R (adopted October 23, 2002) (complaint by Argentina). WTO Case Review 2002 147 Explanation...........................................................................................221 (1) Chile’s Price Band System.................................................221 (2) Chile’s Safeguard Measures...............................................227 (3) Principal Issues on Appeal..................................................229 (4) Three Thrusts, Three Parries..............................................233 (5) Thrust–Parry No.1: The Matter Before the Panel................235 (6) Thrust–Parry No.2: The Panel’s Order of Analysis............236 (7) Thrust–Parry No.3: The Price Band System as a Forbidden Measure.....................................................……237 (8) Analogical Reasoning and Thrust–Parry No.3....................242 Commentary...........................................................................................251 (1) Sophisticated Argumentation from the Third World..........251 (2) Policy and Details...............................................................253 (3) Contra Judicial Activism....................................................255 (4) Some High Marks for Writing Style..................................257 IV. Other WTO Agreements: Technical Barriers to Trade Citation....................................................................................................258 European Communities–Trade Description of Sardines, WT/DS231/AB/R (issued September 26, 2002, adopted October 23, 2002) (complaint by Peru, with Canada, Chile, Ecuador, United States, and Venezuela as Third Participants). 148 Arizona Journal of International and Comparative Law Vol 20, No. 2 2003 Explanation............................................................................................258 (1) Facts: Conflict between International and National (EC) Standards? .................................................................258
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