European Union – countervailing measures on certain
polyethylene terephthalate from pakistan

AB-2017-5

Report of the Appellate Body

Table of Contents

1   Introduction.. 9

2   Arguments of the Participants. 13

3   Arguments of the United States as a Third Participant. 13

4   Issues Raised in This Appeal. 14

5   Analysis of the Appellate Body. 14

5.1   European Union's claim of error regarding the expiry of the measure at issue. 14

5.1.1   Background information. 14

5.1.2   The Panel's findings. 15

5.1.3   Whether the Panel erred in deciding to make findings on Pakistan's claims in this dispute after the measure at issue had expired. 16

5.1.3.1   Review of the considerations that the Panel took into account at paragraph 7.13 of its Report 22

5.1.4   Conclusion. 26

5.1.5   Separate opinion of one Appellate Body Member regarding the Panel's decision to make findings on Pakistan's claims in this dispute, notwithstanding the expiry of the measure at issue. 26

5.2   European Union's claim of error regarding government revenue foregone. 28

5.2.1   Background information. 29

5.2.2   The Panel's findings. 31

5.2.3   Whether the Panel erred in its interpretation of Article 1.1(a)(1)(ii), footnote 1, and Annexes II and III to the SCM Agreement 34

5.2.4   Conclusion. 45

5.3   Pakistan's claim of error regarding the Commission's causation analysis. 46

5.3.1   Background information. 46

5.3.2   The Panel's findings. 48

5.3.3   Whether the Panel erred in its interpretation and application of Article 15.5 of the SCM Agreement 50

5.3.3.1   Interpretation of Article 15.5 of the SCM Agreement 51

5.3.3.2   Analysis of the Panel's findings. 54

5.3.4   Conclusion. 63

6   Findings And Conclusions. 64