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Decisions of the Appellate Body of the World
Trade Organization Current Survey
European Communities--Measures Affecting the Importation of Certain
Poultry Products
 
Joel P. Trachtman*
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text of WTO Appellate Body Report on WTO web site
WTO Appellate Body Report: European Communities--Measures
Affecting the Importation of Certain Poultry Products, AB-1998-3,
WT/DS69/AB/R (98-0000), adopted by Dispute Settlement Body, 23 July
1998. Brazil, Appellant/Appellee; European Communities,
Appellant/Appellee; Thailand and the United States, Third Participants.
Division: Bacchus, El- Naggar and Feliciano. Major Topics Addressed by
Appellate Body: Law Applicable by WTO Dispute Resolution Panel; Interpretation
of Schedule; MFN Nature of Quota Allocation.
1. Abstract
In this case, Brazil was complaining about the allocation to it of an EC
tariff quota relating to frozen poultry meat. The dispute involved the
interpretation of the ECs tariff schedule and its relationship with a
separate agreement entered into between the EC and Brazil. The Appellate Body
found, importantly, that the separate agreement was not a part of WTO law
within its jurisdiction, and instead, interpreted the relevant tariff schedule.
The Appellate Body found that the tariff schedule provided for MFN (most
favored nation) non-discriminatory treatment, denying Brazil the preferential
treatment it sought. The Appellate Body further found that the ECs
administration of this tariff quota did not violate the Import Licensing
Agreement.
The Appellate Body found that, despite art. 17 of the Dispute Settlement
Understanding (DSU), it could review legal issues that the panel, in pursuit of
judicial economy, had not addressed.
Finally, the Appellate Body interpreted the provisions regarding a
special safeguard mechanism in the Agreement on Agriculture, finding that the
prices necessary to be calculated to determine whether invocation of the
safeguard is appropriate must be calculated without reference to customs
duties.

*
Professor of International Law, The Fletcher School of Law and Diplomacy, Tufts
University, Medford, Massachusetts 02155, USA.
 
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