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Decisions of the Appellate Body of the World Trade Organization

European Communities – Conditions for the Granting of Tariff Preferences to Developing Countries

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European Communities – Conditions for the Granting of Tariff Preferences to Developing Countries, WT/DS246/AB/R, adopted April 20, 2004 . European Communities, Appellant; India, Appellee; Bolivia, Brazil, Colombia, Costa Rica, Cuba, Ecuador, El Salvador, Guatemala, Honduras, Mauritius, Nicaragua, Pakistan, Panama, Paraguay, Peru, United States, and Venezuela, Third Participants. Division: Abi-Saab Baptista, and Sacerdoti. Major Topics Addressed by the Appellate Body: (i) Article 1 of GATT; (ii) the Enabling Clause; (iii) Burdens of Proof.

1. Abstract

This decision examined a complaint by India against the EC regarding the conditions under which the EC accords tariff preferences to developing countries. The Appellate Body first found that, although the respondent bore the burden of proof as to the availability of the exception under the Enabling Clause, the complainant must allege violation of the Enabling Clause with specificity. Most importantly, the Appellate Body found that the requirement in the Enabling Clause for non-discriminatory treatment does not require formally identical treatment, but requires identical treatment of similarly-situated beneficiaries. The distinction among beneficiaries must “respond positively” to the needs of developing countries.

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