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Decisions of the Appellate Body of the World Trade Organization
United States-Import Measures on Certain Products from the European Communities
2. Facts
This case arises from the Bananas dispute between the U.S. and the EC. On 25 September 1997, the DSB adopted the Appellate Body report in European Communities-Regime for the Importation, Sale and Distribution of Bananas.1 The DSB recommended that the EC bring its regime into compliance with its WTO obligations. The period established under article 21.3(c) of the DSU for implementation expired on 1 January 1999. At the DSB meeting of 2 February 1999, the U.S. requested authorization to retaliate against the EC, arguing that the EC had not complied with the recommendation of the DSB. At that meeting, the EC requested that the level of suspension of concessions be referred to arbitration under article 22.6 of the DSU. On 2 March 1999, the date when the arbitrators' decision was due pursuant to article 22.6, the arbitrators reported their inability to provide a decision. As of 3 March 1999, the U.S. began the process of implementing sanctions against certain listed products from the EC (the "3 March Measure") by establishing increased bonding requirements for imports from the EC, and by withholding customs liquidation on those imports, valued at $520 million annually. The arbitrators provided their decision on 9April, 1999. The U.S. requested the DSB to authorize suspension of concessions pursuant to the arbitrators' report. The DSB granted its authorization on April 19, and the U.S. took action against a reduced list of EC exports (the "19 April Action"), valued at $191 million annually. The U.S. submitted that the increased bonding requirements of the 3 March Measure were removed for goods not included on the list relating to the 19 April Action, and therefore that the 3 March Measure was no longer in existence by 19 April.
1 WT/DS27/AB/R.
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