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WT/DS301 - European Communities - Measures affecting trade in commercial vessels

WTO dispute settlement case - Complaint against the EU

Country or region
South Korea
Trade topics
Dispute settlement
Dispute settlement
WTO - Complaint against the EU

Summary of the case

  • Complaint by: Korea, Republic Of
  • Complaint against: EU
  • Third parties: China

Korea challenges various EU and Member State measures in favour of the EU shipbuilding industry including export credits, state aid measures and the Temporary Defence Mechanism (TDM) for shipbuilding.

Relevant WTO provision: GATT (I:1, III:4); SDM (1, 2, 3.1, 4, 5(a), 5(c), 6(a), 6(b), 6(c), 6.4, 6.5, 7, 32(1)); DSU (23(1), 23(2))

Status

The Panel was established at the DSB meeting of 19 March 2004. The final report of the Panel was circulated to all WTO Members on 22 April 2005. The DSB adopted the Panel report at its meeting of 20 June 2005. The TDM was not condemned because aid could be provided to EC shipyards but because this aid was available only in strictly limited circumstances.

The Panel indeed dismissed three out of four claims made by Korea and found that the TDM Regulation does not violate any of the obligations under the GATT 1994 and the SCM Agreement. But, the Panel concluded from the conditions imposed before an aid may be granted that with the TDM the EC was seeking to induce Korea to stop alleged subsidisation of its shipyards and therefore did not respect its obligation to use exclusively the WTO dispute settlement system to solve its dispute over Korean subsidisation of shipyards.

The Panel report was adopted at the DSB meeting of 20 June 2005. At the meeting of 20 July 2005, the EC informed the DSB that it had brought the measures in conformity with the DSB rulings and recommendations since the Council regulation establishing the TDM had expired on 31 March 2005.

  • Consultations requested: 03 September 2003
  • Panel requested: 05 February 2004
  • Panel established: 19 March 2004

Documents

Full case details and WTO documents on the WTO website

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