WTO Adopts 2 Dispute Panel Reports, One on Avocados, One on Steel Safeguard Disputes

World Trade Organization members adopted two panel reports at the May 31 meeting of the Dispute Settlement Body, the WTO said May 31. The reports concern Mexico's challenge to Costa Rica's restrictions on fresh avocado imports from Mexico and Turkey's challenge to the EU's safeguard measure restricting certain steel product imports. Neither report is being appealed to the defunct Appellate Body.

In Costa Rica's case, the WTO panel said the restrictions weren't consistent with the provisions of the Agreement on the Application of Sanitary and Phytosanitary Measures. Specifically, the Mexican avocado restrictions weren't based on a risk assessment appropriate to the circumstances and, as such, they amount to a disguised restriction on trade, the WTO said. In response to the panel report, Costa Rica implemented new requirements for Mexican avocados and annulled the restrictions previously in place. Costa Rica said shipments of Mexican avocados already are underway.

The U.S. hailed the acceptance of the panel report, saying, "The United States welcomes the agreement of the parties on a way forward in this dispute through adoption of the panel report. The aim of dispute settlement under the DSU is to facilitate the prompt settlement of a dispute between Members."

As for the EU's steel safeguard, the WTO panel said it violated the WTO's General Agreement on Tariffs and Trade and the Safeguards Agreement. Turkey characterized the report as finding that the EU's threat of serious injury determination and establishment of a logical connection between the unforeseen developments and the increased imports were "fundamentally deficient." Turkey expects the EU to fully implement the panel's finding, which would lead to the measure's withdrawal. The EU expressed satisfaction at the ruling, noting it sided with the EU on "the most important questions," including the legality of the measure and the EU's approach. The parties had agreed in advance to alternative appeals procedures.