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The WTO Case Law of 2002: The American Law Institute Reporters' Studies (The American Law Institute Reporters Studies on WTO Law) PDF

296 Pages·2005·1.81 MB·English
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This page intentionally left blank THE WTO CASE LAW OF 2002 THE AMERICAN LAW INSTITUTE REPORTERS’ STUDIES Thisbookisthesecondinaseriesofannualvolumesthatwillbeutilizedin the development of an American Law Institute (ALI) project on World TradeOrganisationLaw.Thevolumesundertakeyearlyanalysisofthecase lawfromtheadjudicatingbodiesoftheWTO.TheReporters’Studiesfor 2002coverawiderangeofWTOlawrangingfromclassictradeingoods issues to intellectual property protection. Each of the cases is jointly evaluatedbyaneconomistandalawyer,bothwell-knownexpertsinthe field of trade law and international economics. The Reporters critically review the jurisprudence of WTO adjudicating bodies and evaluate whether the ruling ‘‘makes sense’’ from an economic as well as a legal pointofview,and,ifnot,whethertheproblemliesintheinterpretationof the law or the law itself. The Studies do not always cover all issues discussedinacase,buttheyseektodiscussboththeproceduralandthe substantiveissuesthatform,inthereporters’view,thecoreofthedispute. HENRIK HORN isProfessorofInternationalEconomicsattheInstitutefor InternationalEconomicStudies,StockholmUniversity.Heisamemberof theEditorial BoardoftheWorldTrade Review andis amember ofthe Centre of Economic Policy Research. He has previously worked for the Economic Research and Analysis Division of the World Trade Organization,andhasbeenajudgeintheSwedishMarketCourt(supreme courtforcompetitionlaw). PETROS C. MAVROIDIS isEdwinB.ParkerProfessorofLawatColumbia LawSchool,ProfessorattheUniversityofNeuchaˆtel,andamemberofthe Centre for Economic Policy Research. He was previously Chair of Competition Law, EUI, Florence, and a member of the Legal Affairs DivisionoftheWorldTradeOrganization. THE WTO CASE LAW OF 2002 The American Law Institute Reporters’ Studies Edited by HENRIK HORN AND PETROS C. MAVROIDIS cambridge university press Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo Cambridge University Press TheEdinburghBuilding,Cambridgecb22ru,UK Published in the United States of America by Cambridge University Press, New York www.cambridge.org Information on this title: www.cambridge.org/9780521834223 ©TheAmericanLawInstitute,2004 Thispublicationisincopyright.Subjecttostatutoryexceptionandtotheprovisionof relevantcollectivelicensingagreements,noreproductionofanypartmaytakeplace without the written permission of Cambridge University Press. Firstpublishedinprintformat 2005 isbn-13 978-0-511-26634-8eBook(EBL) isbn-10 0-511-26634-0 eBook(EBL) isbn-13 978-0-521-83422-3hardback isbn-10 0-521-83422-8 hardback CambridgeUniversityPresshasnoresponsibilityforthepersistenceoraccuracyofurls forexternalorthird-partyinternetwebsitesreferredtointhispublication,anddoesnot guaranteethatanycontentonsuchwebsitesis,orwillremain,accurateorappropriate. CONTENTS Foreword page vii List of reporters ix 1 Introduction 1 HenrikHornandPetrosC.Mavroidis 2 UnitedStates–Section129(c)(1)oftheUruguayRound AgreementsAct(WTODoc.WT/DS22/Rof15July2002): Beating Around (The) Bush 12 KyleBagwellandPetrosC.Mavroidis 3 UnitedStates–TaxTreatment for‘‘ForeignSalesCorporations’’RecoursetoArbitration bytheUnitedStatesUnderArticle22.6oftheDSU andArticle4.11oftheSCMAgreement(WT/DS106/ARB): A Comment 36 RobertHowseandDamienJ.Neven 4 UnitedStates–CountervailingDutiesonCertain Corrosion-ResistantCarbonSteelFlatProductsfrom Germany(WTODoc.WT/DS213/AB/R): The Sounds of Silence 64 GeneM.GrossmanandPetrosC.Mavroidis 5 UnitedStates–CountervailingMeasures ConcerningCertainProductsfromtheEuropean Communities(WTODoc.WT/DS212/AB/R):Recurring Misunderstanding of Non-Recurring Subsidies 78 GeneM.GrossmanandPetrosC.Mavroidis 6 Canada–ExportCreditsandLoanGuarantees for Regional Aircraft (WT/DS222/R): A Comment 88 RobertHowseandDamienJ.Neven v vi contents 7 UnitedStates–DefinitiveSafeguardMeasures onImportsofCircularWeldedCarbon Quality Line Pipe From Korea 99 GeneM.GrossmanandPetrosC.Mavroidis 8 Chile–PriceBandSystemandSafeguardMeasures Relating to Certain Agricultural Products 133 KyleBagwellandAlanO.Sykes 9 India – Measures Affecting the Automotive Sector 158 KyleBagwellandAlanO.Sykes 10 United States – Section 211 OmnibusAppropriationsActof1998 (WT/DS176/AB/R): A Comment 179 RobertHowseandDamienJ.Neven 11 UnitedStates–PreliminaryDetermination withRespecttoCertainSoftwoodLumber from Canada: What is a Subsidy? 220 HenrikHornandPetrosC.Mavroidis 12 EuropeanCommunities–TradeDescriptionofSardines: Textualism and its Discontent 248 HenrikHornandJosephH.H.Weiler Index 276 FOREWORD This is the second volume in the American Law Institute’s effort to contributetothedevelopmentofthelawofworldtrade. In2004wepublishedTheWTOCaseLawof2001,analysesbydistin- guished economists and law professors of the decisions rendered by the adjudicatingbodiesoftheWTOin2001.Thisbookcontainsanalysesof the2002decisions.Aswiththeearlieryear’swork,thedraftchapterswere analyzedatameetingofalltheReportersinOctober2003.Theywerethen furtherreviewedandcriticizedbyaninternationalgroupofexpertsonthe lawandeconomicsoftheworldtradingsystematatwo-dayinvitational conferenceinFebruary2004. We expect to generate and publish one additional set of studies, dis- cussingtheWTOdecisionsof2003.Ourplanisthentoattempttodraft general principles of the law of trade. We believe that we can author principles that will contribute to international discussion and assist the developmentofasophisticatedandcoherentbodyoflawinthisgrowing field. The analyses in the book are the work of the participating Reporters andnotofTheAmericanLawInstitute.WearegratefultotheReporters andtothosewhohavesuppliedconstructivecriticismofearlierdrafts.We are also grateful for financial support from Jan Wallander’s and Tom Hedelius’ Research Foundation, Svenska Handelsbanken, Stockholm, andfromtheMiltonandMiriamHandlerFoundation. LanceLiebman Director TheAmericanLawInstitute vii AnoteontheAmericanLawInstitute The American Law Institute was founded in 1923 and is based in Philadelphia. The Institute, through a careful and deliberative process, drafts and then publishes various restatements of the law, model codes, and other proposals for legal reform ‘‘to promote the clarification and simplification of the law and its better adaptation to social needs, to secure the better administration of justice, and to encourage and carry onscholarlyandscientificlegalwork.’’Itsmembershipconsistsofjudges, practicinglawyers,andlegalscholarsfromallareasoftheUnitedStatesas well as some foreign countries, selected on the basis of professional achievement and demonstrated interest in the improvement of the law. TheInstitute’sincorporatorsincludedChiefJusticeandformerPresident William Howard Taft, future Chief Justice Charles Evans Hughes, and former Secretary of State Elihu Root. Judges Benjamin N. Cardozo and LearnedHandwereamongitsearlyleaders. TheInstitute’srestatements,modelcodes,andlegalstudiesareusedas referencesbytheentirelegalprofession. TheAmericanLawInstitutehttp://www.ali.org viii

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This book is the second annual report of the American Law Institute (ALI) project on World Trade Organisation Law. The project undertakes yearly analysis of the case law from the adjudicating bodies of the WTO. The Reporters' Studies for 2002 cover a wide range of WTO law ranging from classic trade
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