The Panel decided that Colombia’s anti-dumping investigation was flawed in several respects, including the calculation of the dumping margin and the injury analysis.
The panel report has been appealed by Colombia pursuant to the Multi-party Interim Appeal Arbitration arrangement ('MPIA') and this appeal is currently pending. This is the first appeal to be heard under the MPIA. The MPIA has been put in place by its participating Members to ensure a functioning two-tier WTO dispute settlement system for their trade disputes despite the paralysis of the WTO’s Appellate Body.
The EU believes that this decision, if confirmed on appeal, will serve as a signal to other countries intending to limit the EU exports of frozen fries, or any other product, that anti-dumping investigations need to be carried out in full respect of the WTO rules.
Under the MPIA, to which Colombia and the EU are both parties, an appeal should be decided within 90 days, unless the parties agree otherwise on the request of the appeal arbitrators. Once the appeal is completed, and if the appeal arbitrators confirm at appeal that the Colombian measures are discriminatory, Colombia will have to remove the measures, either immediately, or within a period of time negotiated with the EU or fixed by a WTO arbitrator.
Exports of frozen fries from the three Member States to Colombia amounted to €23 million in 2016. The duties were imposed in November 2018 for a two-year period, and target almost all (85% or €19.3 million) of EU exports of frozen fries to Colombia.
This dispute (DS591) was submitted by the EU against Colombia in November 2019 and is covered by the MPIA. The MPIA ensures that disputes between Colombia, the European Union and 26 other WTO Members that currently participate in the MPIA can continue benefiting from a functioning dispute settlement system at the WTO, despite the paralysis of the WTO’s Appellate Body. The MPIA preserves the right of the parties to appeal panel rulings and ensures binding outcomes by preventing the so-called 'appeals into the void' before a non-functioning Appellate Body. Appeal arbitration awards are issued within the WTO framework and are binding on the parties.
For more information
- 10 oktoober 2022
- Kaubanduse peadirektoraat
- Trade topics
- Dispute settlement