European Union — Countervailing Measures on Certain Polyethylene Terephthalate from Pakistan

 

Short title:	EU — PET (Pakistan)
Complainant:	Pakistan
Respondent:	European Union
Third Parties (original proceedings):	China; United States
Agreements cited: (as cited in request for consultations)	Art. VI  GATT 1994 Art. 1, 1.1(a), 1.1(a)(1)(i), 1.1(a)(1)(ii), 3, 3.1(a), 10, 12.6, 12.8, 14, 14(b), 15.5, 19, 19.1, 19.3, 22.3, 22.4, 32, Annex I, Annex II, Annex III, Annex VI  Subsidies and Countervailing Measures (SCM)
Agreements cited: (as cited in panel request)	Art. 1.1(a)(1)(i), 1.1(a)(1)(ii), 3.1(a), Annex I, Annex II, Annex III  Subsidies and Countervailing Measures (SCM) Art. VI  GATT 1994 Art. 1, 3, 14, 19, 1.1(a)(1), 1.1(b), 14, 14(b), 19.3, 15.5, 12.6, 12.8, Annex VI, 22.3, 22.4, 10, 19.1, 32  Subsidies and Countervailing Measures (SCM)
Consultations requested:	5 November 2014
Panel requested:	12 February 2015
Panel established:	25 March 2015
Panel composed:	13 May 2015
Panel report circulated:	6 July 2017 (adopted on 25 May 2018 )
Appellate Body report circulated:	16 May 2018 (adopted on 25 May 2018)

 

Summary of the dispute to date

 

The summary below was up-to-date at 27 June 2018 

 

Consultations

 

Complaint by Pakistan.

 

On 28 October 2014, Pakistan requested consultations with respect to the imposition of provisional and definitive countervailing measures by the European Union on imports of certain polyethylene terephthalate from Pakistan, and with respect to certain aspects of the investigation underlying these measures.

 

Pakistan claims that the measures appear to be inconsistent with:

 

- Articles 1, 1.1(a)(1), 1.1(b), 3, 3.1(a), 10, 12.6, 12.8, 14, 14(b), 15.5, 19, 19.1, 19.3, 22.3, 22.4 and 32, and Annexes I, II, III and VI, of the SCM Agreement; and

 

- Article VI of the GATT 1994.

 

Panel and Appellate Body proceedings

 

On 12 February 2015, Pakistan requested the establishment of a panel. At its meeting on 23 February 2015, the DSB deferred the establishment of a panel.

 

At its meeting on 25 March 2015, the DSB established a panel. China and the United States reserved their third-party rights. Following the agreement of the parties, the panel was composed on 13 May 2015.

 

On 13 November 2015, the Chair of the panel informed the DSB that the beginning of the panel's work was delayed as a result of a lack of available experienced lawyers in the Secretariat. The panel thus expected to issue its report before the end of 2016. On 10 December 2016, the Chair of the panel informed the DSB that because the delay in the beginning of the panel's work, the panel expected to issue its final report to the parties by 1 June 2017.

 

On 6 July 2017, the panel report was circulated to Members.

 

On 30 August 2017, the European Union notified the DSB of its decision to appeal to the Appellate Body certain issues of law and legal interpretations in the panel report. On 4 September 2017, Pakistan notified the DSB of its decision to cross-appeal.

 

On 27 October 2017, 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. On 7 May 2018, the Chair of the Appellate Body informed the Chair of the DSB that the Appellate Body report in these proceedings would be circulated no later than 16 May 2018.

 

On 16 May 2018, the Appellate Body report was circulated to Members.

 

At its meeting on 28 May 2018, the DSB adopted the Appellate Body report and the panel report, as modified by the Appellate Body report.