Indonesia — Safeguard on Certain Iron or Steel Products

 

Short title:	Indonesia — Iron or Steel Products (Chinese Taipei)
Complainant:	Chinese Taipei
Respondent:	Indonesia
Third Parties (original proceedings):	Australia; China; European Union; India; Japan; ; Russian Federation; Ukraine; Viet Nam; United States
Agreements cited: (as cited in request for consultations)	Art. I:1, XIX:1, XIX:2  GATT 1994 Art. 2.1, 3.1, 4.1(a), 4.1(b), 4.1(c), 4.2(a), 4.2(b), 4.2(c), 12.2, 12.3  Safeguards
Agreements cited: (as cited in panel request)	Art. XIX:1  GATT 1994 Art. 3.1, 2.1, 4.2(a), 4.2(c), 4.2(b)  Safeguards Art. I:1  GATT 1994 Art. 12.2  Safeguards Art. XIX:2  GATT 1994 Art. 12.3  Safeguards
Consultations requested:	12 February 2015
Panel requested:	20 August 2015
Panel established:	28 September 2015
Panel composed:	9 December 2015
Panel report circulated:	18 August 2017 (adopted on 27 August 2018 )
Appellate Body report circulated:	15 August 2018 (adopted on 27 August 2018)

 

Summary of the dispute to date

 

The summary below was up-to-date at 8 May 2019 

 

Consultations

 

Complaint by Chinese Taipei. (See DS496)

 

On 12 February 2015, Chinese Taipei requested consultations with Indonesia regarding a safeguard measure imposed by Indonesia on imports of certain flat-rolled iron or steel products and the investigation and determinations leading thereto.

 

Chinese Taipei claims that the measures are inconsistent with:

 

- Articles I:1, XIX:1(a) and XIX:2 of the GATT 1994; and

 

- Articles 2.1, 3.1, 4.1(a), 4.1 (b), 4.1(c), 4.2(a), 4.2 (b), 4.2(c), 12.2 and 12.3 of the Agreement on Safeguards

 

Panel and Appellate Body proceedings

 

On 20 August 2015, Chinese Taipei requested the establishment of a panel. At its meeting on 31 August 2015, the DSB deferred the establishment of a panel.

 

At its meeting on 28 September 2015, the DSB established a panel. Australia, Chile, China, the European Union, India, Japan, Korea, the Russian Federation, Ukraine, Viet Nam and the United States have reserved their third-party rights. In accordance with Article 9.1 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), the panel established at the meeting of 28 September 2015 in DS490 will also examine the dispute in DS496.

 

On 1 December 2015, Chinese Taipei and Viet Nam requested the Director-General to compose the panel. On 9 December 2015, the Director-General composed the panel.

 

On 18 August 2017, the panel report was circulated to Members.

 

On 28 September 2017, Indonesia notified the DSB of its decision to appeal to the Appellate Body certain issues of law and legal interpretations in the panel report. On 3 October 2017, Chinese Taipei notified the DSB of its decision to cross-appeal.

 

On 27 November 2017, upon expiry of the 60-day period provided for in Article 17.5 of the DSU, the Appellate Body informed the DSB that it would not be able to circulate the Appellate Body report in this appeal by the end of the 60-day period, nor within the 90-day time-frame provided for in Article 17.5 of the DSU. The Appellate Body referred to the substantially enhanced workload it faced in 2017, the existence of several appeals proceeding in parallel, and the increasing overlap in the composition of the Divisions hearing the different appeals owing to the vacancies on the Appellate Body. The Appellate Body also referred to the scheduling issues arising from these circumstances, the number and complexity of the issues raised in this and concurrent appellate proceedings, together with the demands that these concurrent appeals place on the WTO Secretariat's translation services, and the shortage of staff in the Appellate Body Secretariat. The Appellate Body also informed the DSB that the circulation date of the Appellate Body report in this appeal would be communicated to the participants and third participants after the oral hearing. On 6 July 2018, the Appellate Body informed the DSB that its report in this appeal would be circulated on 15 August 2018.

 

On 15 August 2018, the Appellate Body report was circulated to Members. This Appellate Body Report pertains to the disputes in DS490 and DS496.

 

At its meeting on 27 August 2018, the DSB adopted the Appellate Body report and the panel report, as modified by the Appellate Body report.

 

Reasonable period of time

 

On 11 October 2018, Indonesia informed the DSB that it required a reasonable period of time to comply with the DSB's recommendations and rulings because it was impracticable for Indonesia to do so immediately. Indonesia indicated that it was necessary for the parties to reach a mutually agreed reasonable period of time beyond the relevant 45-day period provided for in Article 21.3(b) of the DSU. Indonesia looked forward to discussing the appropriate length of the reasonable period of time with Chinese Taipei and Viet Nam.

 

On 20 November 2018, Chinese Taipei and Indonesia informed the DSB that Chinese Taipei and Viet Nam, on the one hand, and Indonesia, on the other hand, had agreed that the reasonable period of time to implement the DSB's recommendations and rulings would be seven months. Accordingly, the reasonable period of time was set to expire on 27 March 2019.

 

On 11 April 2019, Chinese Taipei and Indonesia informed the DSB of Agreed Procedures under Articles 21 and 22 of the DSU (sequencing agreement).

 

Implementation of adopted reports

 

On 15 April 2019, Indonesia informed the DSB that it had adopted a regulation, removing the safeguard measure challenged in this dispute, which it considered ensured full implementation of the DSB recommendations and rulings in this dispute as well as in DS496 Indonesia — Safeguard on Certain Iron or Steel Products.