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World Trade
Organization

WT/DS98/R
21 June 1999
(99-2101)
Original: English

Korea - Definitive Safeguard Measure on Imports of Certain Dairy Products

Report of the Panel


Report of the Panel

The report of the Panel on Korea - Definitive Safeguard Measure on Imports of Certain Dairy Products is being circulated to all Members, pursuant to the DSU. The report is being circulated as an unrestricted document from 21 June 1999. Pursuant to the Procedures for the Circulation and Derestriction of WTO Documents (WT/L/160/Rev.1). Members are reminded that in accordance with the DSU only parties to the dispute may appeal a panel report. An appeal shall be limited to issues of law covered in the Panel report and legal interpretations developed by the Panel. There shall be no ex parte communications with the Panel or Appellate Body concerning matters under consideration by the Panel or Appellate Body.

Note by the Secretariat: This Panel Report shall be adopted by the Dispute Settlement Body (DSB) within 60 days after the date of its circulation unless a party to the dispute decides to appeal or the DSB decides by consensus not to adopt the report. If the Panel Report is appealed to the Appellate Body, it shall not be considered for adoption by the DSB until after the completion of the appeal. Information on the current status of the Panel Report is available from the WTO Secretariat.


Table of Contents

I. Introduction

A. Background
B. Establishment and Composition of the Panel
C. Panel Proceedings
II. Factual Aspects
III. Findings and Recommendations Requested by the Parties
A. European Community
B. Korea
IV. Main Arguments of the Parties A. Procedural Objections 1. Lack of commercial interest and good faith by the European Communities
2. Inadequacy of the EC request for establishment of a panel
3. The nature of the EC case and its request for rulings by the Panel
B. Subsidiary Issues 1. Burden of proof and standard of review
2. What are the appropriate documents to be considered by the Panel in evaluating the analysis performed during the investigation?
C. Claim under Article XIX:1(a) of GATT
D. Claim under Article XIX:1(a) of Gatt and Article 2.1 of the Agreement on Safeguards
E. Korea's Application of Safeguard Measures to Agricultural Products
F. Claim under Article 4.2(a) of the Agreement on Safeguards
G. Claim under Article 4.2(b) of the Agreement on Safeguards
H. Claims under Article 5.1 of the Agreement on Safeguards
I. Claims under Article 12 of the Agreement on Safeguard
V. Third Party Arguments A. United States VI. Interim review
VII. Findings
A. Procedural Matters 1. Insufficiency of the EC Request for Establishment of the Panel
2. Lack of Economic Interest
3. Submission of the OAI Report
4. The absence of a claim by the European Communities under Article 3 of the Agreement on Safeguards
B. Burden of Proof
C. Standard of Review
D. General Principles of Interpretation
E. Claims under Article XIX of GATT
F. Violation of Article 2.1 of the Agreement on Safeguards - Failure to Analyze "under Such Conditions"
G. Claims under Article 4.2 of The Agreement on Safeguards 1. Korea's examination of serious injury to the domestic industry
2. Korea's examination of the causal link between increased imports and serious injury
H. Claims under Article 5.1 of the Agreement on Safeguards
I. Claims under Article 12 1. Incomplete and Untimely Notifications
2. Claim of inadequate consultations
VIII. Conclusions and Recommendations

To continue with Introduction