United States - Restrictions on Imports of Cotton and Man-made Fibre Underwear Joel P. Trachtman Download the Complete Survey (RTF Format) WTO Appellate Body Report: United States - Restrictions on Imports of Cotton and Man-made Fibre Underwear, AB-1996-3, WT/DS24/AB/R (97-0454), adopted by Dispute Settlement Body, 25 February 1997. Costa Rica, Appellant; United States, Appellee; India, Third Participant. Division: Ehlermann, Feliciano and Matsushita. Major Topics Addressed by Appellate Body: Burden of Proof; Retroactive Application of Transitional Safeguards Measure. 1. Abstract This decision concerns the Uruguay Round Agreement on Textiles and Clothing ("ATC").1 The Panel had considered Costa Rica's complaint that a transitional safeguard measure imposed by the United States on underwear from Costa Rica under Article 6 of the ATC did not comply with the requirements thereunder. Specifically, Costa Rica argued, and the Panel held, inter alia, that the U.S. had violated its obligations under Article 6.2 and 6.4 of the ATC by imposing a restriction on Costa Rican exports without having demonstrated that serious damage or actual threat thereof was caused by such imports to the U.S. domestic industry.2 The U.S. did not appeal the decision, but Costa Rica appealed a limited part of the panel's decision, namely the issue of whether the U.S. transitional safeguard measure was improperly applied retroactively to the date when the U.S. began consultations. The Appellate Body, acceding to Costa Rica's request to decide this issue, held that the Panel erred in law by permitting limited retroactive application to the date of publication of the U.S. request for consultations, rather than permitting the imposition of the transitional safeguard measure only on a prospective basis. 1 Agreement on Textiles and Clothing, in 1 Uruguay Round of Multilateral Trade Negotiations: Legal Instruments Embodying the Results of the Uruguay Round of Multilateral Trade Negotiations Done at Marrakesh on April 15, 1994, 33 I.L.M. 1143 (1994) [hereinafter, "ATC"]. 2 Panel Report, United States - Restrictions on Imports of Cotton and Man-made Fibre Underwear, WT/DS24/R (96-4540), 8 November 1996 [hereinafter, "Panel Report"]. The Panelists were Thomas Cottier, Martin Harvey and Johannes Human.
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