European Communities - Regime for the Importation, Sale and Distribution of Bananas (WT/DS27) Decision by the Arbitrators under Article 22.6 DSU

Summary

PROCEDURAL BACKGROUND

Ecuador's Request for Authorization of Suspension of Concessions or Other Obligations Pursuant to Article 22.2 of the DSU

On 8 November 1999, Ecuador requested authorization by the DSB to suspend concessions or other obligations under the TRIPS Agreement, the GATS and GATT 1994 in an amount of US$450 million.

With respect to the withdrawal of concessions in the goods sector, Ecuador submitted that such suspension is at present not practicable or effective, and that the circumstances are serious enough to request authorization to suspend concessions and other obligations under the GATS and the TRIPS Agreement.

As regards trade in services, Ecuador proposed to suspend the following subsector in its GATS Schedule of specific commitments:

Wholesale Trade Services (CPC 622)

As regards intellectual property rights, Ecuador specified that its request concerned the following categories set out in Part II of the TRIPS Agreement:

Section 1: Copyright and related rights, Article 14 on “Protection of performers, producers of phonograms (sound recordings) and broadcasting organizations”;

Section 3: Geographical indications;

Section 4: Industrial designs.

At the same time, Ecuador noted in its request under Article 22.2 that it reserved the right to suspend tariff concessions or other tariff obligations granted in the framework of the GATT 1994 in the event that these may be applied in a practicable and effective manner.

Ecuador intends to apply the suspension of concessions or other obligations, if authorized by the DSB, against 13 of the EC member States.

The European Communities’ Request for Arbitration Pursuant to Article 22.6 of the DSU

On 19 November 1999, the European Communities requested arbitration pursuant to Article 22.6 of the DSU. The relevant part of that provision reads:

“… However, if the Member concerned objects to the level of suspension proposed, or claims that the principles and procedures set forth in paragraph 3 have not been followed where a complaining party has requested authorization to suspend concessions or other obligations pursuant to paragraph 3(b) or (c), the matter shall be referred to arbitration. …”