Argentina - Safeguard Measures on Imports of Footwear

The summary below was up-to-date at 30 May 2008  

Appellate Body and Panel Reports Adopted

Complaint by the European Communities.

On 3 April 1998, the EC requested consultations with Argentina in respect of provisional and definitive safeguard measures imposed by Argentina on imports of footwear. The EC asserted that by Resolution 226/97 of 24 February 1997, Argentina imposed a provisional safeguard measure in the form of specific duties on imports of footwear effective from 25 February 1997, which was followed by Resolution 987/97, which imposed a definitive safeguard measure on these imports effective from 13 September 1997. The EC alleged that the above measures violate Articles 2, 4, 5, 6 and 12 of the Agreement on Safeguards, and Article XIX of GATT 1994.

On 10 June 1998, the EC requested the establishment of a panel. At its meeting on 22 June 1998, the DSB deferred the establishment of a panel. Further to a second request to establish a panel, the DSB established a panel at its meeting on 23 July 1998. Brazil, Indonesia, Paraguay, the US and Uruguay reserved their third-parties rights. On 15 September 1998, the Panel was composed. The report of the panel was circulated on 25 June 1999. The panel found that Argentina’s measure is inconsistent with Articles 2 and 4 of the Agreement on Safeguards.

On 15 September 1999, Argentina notified its intention to appeal certain issues of law and legal interpretations developed by the Panel. The report of the Appellate Body was circulated to Members on 14 December 1999. The Appellate Body upheld the panel’s finding that Argentina’s measure is inconsistent with Articles 2 and 4 of the Agreement on Safeguards, but reversed certain findings and conclusions of the panel in respect of the relationship between the Agreement on Safeguards and Article XIX of GATT 1994 and the justification of imposing safeguard measures only on non-MERCOSUR third country sources of supply.

The DSB adopted the Appellate Body Report and the Panel Report, as modified by the Appellate Body Report, on 12 January 2000.

Implementation Status of Adopted Reports

Pursuant to Article 21.3 of the DSU, Argentina informed the DSB on 11 February 2000 that the safeguard measure would remain in force until 25 February 2000 and, by that date, the measures aimed at complying with the DSB’s recommendations and ruling would be adopted.