The WTO Case Law of 2002: The American Law Institute Reporters' Studies (The American Law Institute Reporters Studies on WTO Law)

296 Pages·2005·1.81 MB·English

by  Henrik Horn

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THE WTO CASE LAW OF 2002
THE AMERICAN LAW INSTITUTE
REPORTERS’ STUDIES
Thisbookisthesecondinaseriesofannualvolumesthatwillbeutilizedin
the development of an American Law Institute (ALI) project on World
TradeOrganisationLaw.Thevolumesundertakeyearlyanalysisofthecase
lawfromtheadjudicatingbodiesoftheWTO.TheReporters’Studiesfor
2002coverawiderangeofWTOlawrangingfromclassictradeingoods
issues to intellectual property protection. Each of the cases is jointly
evaluatedbyaneconomistandalawyer,bothwell-knownexpertsinthe
field of trade law and international economics. The Reporters critically
review the jurisprudence of WTO adjudicating bodies and evaluate
whether the ruling ‘‘makes sense’’ from an economic as well as a legal
pointofview,and,ifnot,whethertheproblemliesintheinterpretationof
the law or the law itself. The Studies do not always cover all issues
discussedinacase,buttheyseektodiscussboththeproceduralandthe
substantiveissuesthatform,inthereporters’view,thecoreofthedispute.
HENRIK HORN isProfessorofInternationalEconomicsattheInstitutefor
InternationalEconomicStudies,StockholmUniversity.Heisamemberof
theEditorial BoardoftheWorldTrade Review andis amember ofthe
Centre of Economic Policy Research. He has previously worked for the
Economic Research and Analysis Division of the World Trade
Organization,andhasbeenajudgeintheSwedishMarketCourt(supreme
courtforcompetitionlaw).
PETROS C. MAVROIDIS isEdwinB.ParkerProfessorofLawatColumbia
LawSchool,ProfessorattheUniversityofNeuchaˆtel,andamemberofthe
Centre for Economic Policy Research. He was previously Chair of
Competition Law, EUI, Florence, and a member of the Legal Affairs
DivisionoftheWorldTradeOrganization.

THE WTO CASE LAW OF 2002
The American Law Institute
Reporters’ Studies
Edited by
HENRIK HORN
AND
PETROS C. MAVROIDIS
cambridge university press
Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo
Cambridge University Press
TheEdinburghBuilding,Cambridgecb22ru,UK
Published in the United States of America by Cambridge University Press, New York
www.cambridge.org
Information on this title: www.cambridge.org/9780521834223
©TheAmericanLawInstitute,2004
Thispublicationisincopyright.Subjecttostatutoryexceptionandtotheprovisionof
relevantcollectivelicensingagreements,noreproductionofanypartmaytakeplace
without the written permission of Cambridge University Press.
Firstpublishedinprintformat 2005
isbn-13 978-0-511-26634-8eBook(EBL)
isbn-10 0-511-26634-0 eBook(EBL)
isbn-13 978-0-521-83422-3hardback
isbn-10 0-521-83422-8 hardback
CambridgeUniversityPresshasnoresponsibilityforthepersistenceoraccuracyofurls
forexternalorthird-partyinternetwebsitesreferredtointhispublication,anddoesnot
guaranteethatanycontentonsuchwebsitesis,orwillremain,accurateorappropriate.
CONTENTS
Foreword page vii
List of reporters ix
1 Introduction 1
HenrikHornandPetrosC.Mavroidis
2 UnitedStates–Section129(c)(1)oftheUruguayRound
AgreementsAct(WTODoc.WT/DS22/Rof15July2002):
Beating Around (The) Bush 12
KyleBagwellandPetrosC.Mavroidis
3 UnitedStates–TaxTreatment
for‘‘ForeignSalesCorporations’’RecoursetoArbitration
bytheUnitedStatesUnderArticle22.6oftheDSU
andArticle4.11oftheSCMAgreement(WT/DS106/ARB):
A Comment 36
RobertHowseandDamienJ.Neven
4 UnitedStates–CountervailingDutiesonCertain
Corrosion-ResistantCarbonSteelFlatProductsfrom
Germany(WTODoc.WT/DS213/AB/R):
The Sounds of Silence 64
GeneM.GrossmanandPetrosC.Mavroidis
5 UnitedStates–CountervailingMeasures
ConcerningCertainProductsfromtheEuropean
Communities(WTODoc.WT/DS212/AB/R):Recurring
Misunderstanding of Non-Recurring Subsidies 78
GeneM.GrossmanandPetrosC.Mavroidis
6 Canada–ExportCreditsandLoanGuarantees
for Regional Aircraft (WT/DS222/R): A Comment 88
RobertHowseandDamienJ.Neven
v
vi contents
7 UnitedStates–DefinitiveSafeguardMeasures
onImportsofCircularWeldedCarbon
Quality Line Pipe From Korea 99
GeneM.GrossmanandPetrosC.Mavroidis
8 Chile–PriceBandSystemandSafeguardMeasures
Relating to Certain Agricultural Products 133
KyleBagwellandAlanO.Sykes
9 India – Measures Affecting the Automotive Sector 158
KyleBagwellandAlanO.Sykes
10 United States – Section 211
OmnibusAppropriationsActof1998
(WT/DS176/AB/R): A Comment 179
RobertHowseandDamienJ.Neven
11 UnitedStates–PreliminaryDetermination
withRespecttoCertainSoftwoodLumber
from Canada: What is a Subsidy? 220
HenrikHornandPetrosC.Mavroidis
12 EuropeanCommunities–TradeDescriptionofSardines:
Textualism and its Discontent 248
HenrikHornandJosephH.H.Weiler
Index 276
FOREWORD
This is the second volume in the American Law Institute’s effort to
contributetothedevelopmentofthelawofworldtrade.
In2004wepublishedTheWTOCaseLawof2001,analysesbydistin-
guished economists and law professors of the decisions rendered by the
adjudicatingbodiesoftheWTOin2001.Thisbookcontainsanalysesof
the2002decisions.Aswiththeearlieryear’swork,thedraftchapterswere
analyzedatameetingofalltheReportersinOctober2003.Theywerethen
furtherreviewedandcriticizedbyaninternationalgroupofexpertsonthe
lawandeconomicsoftheworldtradingsystematatwo-dayinvitational
conferenceinFebruary2004.
We expect to generate and publish one additional set of studies, dis-
cussingtheWTOdecisionsof2003.Ourplanisthentoattempttodraft
general principles of the law of trade. We believe that we can author
principles that will contribute to international discussion and assist the
developmentofasophisticatedandcoherentbodyoflawinthisgrowing
field.
The analyses in the book are the work of the participating Reporters
andnotofTheAmericanLawInstitute.WearegratefultotheReporters
andtothosewhohavesuppliedconstructivecriticismofearlierdrafts.We
are also grateful for financial support from Jan Wallander’s and Tom
Hedelius’ Research Foundation, Svenska Handelsbanken, Stockholm,
andfromtheMiltonandMiriamHandlerFoundation.
LanceLiebman
Director
TheAmericanLawInstitute
vii
AnoteontheAmericanLawInstitute
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TheAmericanLawInstitutehttp://www.ali.org
viii