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Brazil--Measures Affecting Desiccated Coconut

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Joel P. Trachtman

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WTO Appellate Body Report:

Brazil--Measures Affecting Desiccated Coconut,

AB-1996-4, WT/DS22/AB/R (97-0695),

adopted by Dispute Settlement Body, 20 March 1997.

Philippines, Appellant/Appellee; Brazil, Appellant/Appellee; United States and European Communities, Third Participants. Division: El-Naggar, Ehlermann and Lacarte-Muró.

Major Topics Addressed by Appellate Body: Interpretation of Agreement on Subsidies and Countervailing Measures; Relation of Agreement on Subsidies and Countervailing Measures to GATT 1994.

1. Abstract

This decision addresses the question of when obligations arose under the Uruguay Round Agreements, including GATT 1994, the Agreement on Agriculture ("Agriculture Agreement") and the Agreement on Subsidies and Countervailing Measures ("SCM").1 The Panel and Appellate Body held that these treaties do not constitute applicable law, ratione temporis, for purposes of this dispute. The Philippines argued that Brazil was not permitted, under articles I, II and VI of GATT 1994, after the date of entry into force of GATT 1994, to apply duties in excess of the bound duty or the MFN duty, based on Brazil's countervailing duty law. The Panel and Appellate Body determined that the SCM specifically excludes the discipline of countervailing duties applied based on applications and investigations that commence prior to the entry into force of that agreement. They further determined that this exclusion extends to the other relevant provisions of GATT 1994, which provisions might otherwise constrain Brazil's application of these countervailing duties.

The Appellate Body's expression of the nature of the WTO, its distinction from the prior GATT 1947-based legal system and its vision of the integrated nature of WTO obligations will be important in future interpretation of WTO obligations.


Top Of Page1 Each of these agreements appears 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).

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