Dispute Settlement DS347

21/05/2013 12:00 - 974 Views

European Communities and Certain Member States — Measures Affecting Trade in Large Civil Aircraft (Second Complaint)

Short title:	EC and certain member States — Large Civil Aircraft (2nd complaint)
Complainant:	United States
Respondent:	European Communities; France; Germany; Spain; United Kingdom
Third Parties:	Australia; Brazil; Canada; China; Japan; Korea, Republic of
Agreements cited: (as cited in request for consultations)	GATT 1994: Art. III:4, XVI:1 Subsidies and Countervailing Measures: Art.1, 2, 3.1(a), 3.1(b), 3.2, 4, 5(a), 5(c),6.3(a), 6.3(b), 6.3(c), 7
Request for Consultations received:	31 January 2006

Consultations

Complaint by the United States.

On 31 January 2006, the United States requested consultations with the Governments of France, Germany, Spain and the United Kingdom (the “member States”) and with the European Communities (“EC”) concerning measures affecting trade in large civil aircraft. (See also dispute WT/DS316).

The United States considered that measures of the EC and the member States provide subsidies that are inconsistent with their obligations under the SCM Agreement and the GATT 1994. The United States is concerned that the launch aid provided by the EC and the member States to Airbus for the development of large civil aircraft and the EIB loans provided to Airbus appear to be subsidies that are inconsistent with Articles 3.1(a), 3.1(b) and 3.2 of the SCM Agreement.

The United States is concerned that the measures of the EC and the member States that are the subject of their request for consultations appear to be causing adverse effects to US interests within the meaning of Articles 5(a), 5(c), 6.3(a), 6.3(b) and 6.3(c) of the SCM Agreement.

The United States is also concerned that the measures appear to be inconsistent with Articles III:4 and XVI:1 of the GATT 1994.

On 10 April 2006, the United States requested the establishment of a panel. At the DSB meeting on 20 April 2006, the DSB deferred the establishment of a panel.

Panel and Appellate Body proceedings

At the DSB meeting on 9 May 2006, the DSB established a panel. Australia, Brazil, Canada, China, Japan and Korea reserved their third-party rights. On 7 July 2006, the United States requested the Director-General to determine the composition of the Panel. On 17 July 2006, Deputy Director-General Alejandro Jara composed the Panel.

Withdrawal/termination

On 9 October 2006, the Chairman of the Panel informed the DSB that the United States had requested the Panel on 6 October 2006 to suspend its work, in accordance with Article 12.12 of the DSU. The Panel had agreed to this request. As the Panel had not been requested to resume its work, the authority of the panel lapsed as of 7 October 2007.