The Panel also found that Turkey cannot prioritise reimbursement reviews and marketing applications of domestic pharmaceuticals over foreign ones. The Panel ruled that these localisation and prioritisation measures are discriminatory and incompatible with Turkey’s World Trade Organization (WTO) commitments. The verdict is a clear win for the EU, because all claims were decided in the EU’s favour. It also sends a strong signal discouraging other countries from continuing or pursuing similar discriminatory forced localisation policies. The EU will defend the ruling in the appeal arbitration process that Turkey triggered on 25 April.
Under the appeal arbitration procedures agreed with Turkey, the 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 Turkish measures are discriminatory, Turkey will have to remove the measures - either immediately, or within a period of time negotiated with the EU or fixed by a WTO arbitrator.
This dispute (DS583) was submitted by the EU against Turkey in April 2019. Together with Turkey’s dispute on EU safeguard measures on steel products (DS595), it is covered by the appeal arbitration agreement between the EU and Turkey signed on 25 March 2022. The EU and Turkey have made sure that, despite the paralysis of the Appellate Body, these disputes can continue to benefit from a fully functioning dispute settlement system in the WTO.
For more information
- Publication date
- 28 April 2022
- Directorate-General for Trade
- Country or region
- Trade topics
- Dispute settlement