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Decisions of the Appellate Body of the World Trade Organization

United States - Transitional Safeguard Measure On Combed Cotton Yarn From Pakistan

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Joel P. Trachtman

WTO Appellate Body Report: United States - Transitional Safeguard Measure On Combed Cotton Yarn From Pakistan, AB-2001-3, WT/DS192/AB/R, adopted by Dispute Settlement Body, 5 November 2001. United States, Appellant; Pakistan, Appellee; European Communities and India, Third Participants. Division: Abi-Saab, Ehlermann, and Ganesan. Major Topics Addressed by Appellate Body: Transitional Safeguards Measures under Article 6 of the Agreement on Textiles and Clothing; Right of Panel under Article 11 of the Dispute Settlement Understanding to Examine Evidence That Was Not Before the Administering Authority; Inclusion of Captive Producers in Domestic Industry under Article 6.2 of ATC; Attribution of Causation to Multiple States under Article 6.4 of ATC.

1. Abstract

This case involves Appellate Body review of several aspects of US administration of transitional safeguards measures under the Agreement on Textiles and Clothing (ATC). First, the Appellate Body determined that the Panel was not entitled to review certain evidence that had not been before the US administering authority. Second, the Appellate Body upheld the Panel's finding that the US violated Article 6.2 by excluding from the scope of the domestic industry yarn produced by vertically integrated producers for their internal use. In connection with its analysis, the Appellate Body referred to the rule of proportionality under general international law, and established an approach that seeks to interpret the ATC in compliance with other international law. The Appellate Body also found that the administering authority must evaluate the individual contribution of other states to serious damage under Article 6.4 of the ATC.

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