US Positively Reflects on First Ruling From WTO Appellate Body Alternative
The U.S. expressed some positive views on the first decision of the World Trade Organization's multiparty interim appeal arbitration arrangement (MPIA) concerning Colombia's antidumping duties on frozen fries from various EU countries. Speaking during the Dispute Settlement Body's Jan. 27 meeting, the U.S. said it welcomes the MPIA's "willingness to adopt an interpretation" it sees as consistent with the Anti-Dumping Agreement, "even and especially if the interpretation differs from the Appellate Body's erroneous views."
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In the ruling, the MPIA said the antidumping duties at issue violated global trade rules, though the arbitrators overturned some of the WTO panel conclusions (see 2212230025). The U.S. said the key question was whether an investigating authority's interpretation of the AD agreement is a permissible interpretation, claiming that where a country can reasonably interpret an element of the agreement, that interpretation should be upheld. The MPIA decision gave special deference to the investigating authorities under the agreement.
"The Arbitrator’s analysis differs from -- and implicitly rejects -- the past reports of the Appellate Body that expressed disregard for the meaning and importance of Article 17.6(ii)," the U.S. said. "... [T]his Arbitrator has developed an interpretation that is more consistent with the text agreed by Members. Adherence to the texts as negotiated and agreed by Members -- rather than consistency for consistency’s sake -- assists in providing security and predictability to the multilateral trading system -- per the precise words of Article 3.2 of the DSU."
Simon Lester, former legal affairs officer at the WTO Appellate Body, said these comments raise questions for the U.S. over the WTO dispute settlement system. These questions include asking whether the ruling makes the U.S. more sympathetic to the MPIA, whether the U.S. would consider using the system and how the U.S. sees the precedential value of the finding.