Decisions of the Appellate Body of the World Trade Organization

Korea-Measures Affecting Imports of Fresh, Chilled and Frozen Beef

2. Facts

In this case, Australia and the U.S. challenge two types of measures affecting imports of beef to Korea. First, Korea maintained a system of supports to the domestic beef industry, and to the agriculture sector more generally. Australia and the U.S. argued that these supports exceeded Korea's commitments under the Agreement on Agriculture. Korea's schedule to that agreement contained two sets of figures, with one set, in brackets, setting forth higher levels of permitted support. Second, Korea maintained a separate retail distribution channel for imported beef under a "dual retail system." Under the dual retail system, department stores were required to erect a separate display for foreign beef, while other stores were required to choose whether they would sell domestic or foreign beef, and if foreign beef, provide signage notifying consumers.

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