I. Introduction..................................................................................................................... 1
II. Arguments of the Participants and the Third Participants................................................. 5
A. Claims of Error by the United States – Appellant................................................. 5
1. Article 2.1 of the TBT Agreement
– "Like Products"................................ 5
(a) End‑Uses..................................................................................... 5
(b) Consumer Tastes and Habits........................................................ 6
2. Article 2.1 of the TBT Agreement
– "Treatment No Less Favourable"...... 9
3. Article 2.12 of the TBT Agreement
– "Reasonable Interval"................... 13
B. Arguments of Indonesia – Appellee.................................................................... 15
1. Article 2.1 of the TBT Agreement
– "Like Products".............................. 15
(a) End‑Uses................................................................................... 16
(b) Consumer Tastes and Habits...................................................... 17
2. Article 2.1 of the TBT Agreement
– "Treatment No Less Favourable".... 20
3. Article 2.12 of the TBT Agreement
– "Reasonable Interval"................... 23
C. Arguments of the Third Participants.................................................................. 25
1. Brazil..................................................................................................... 25
2. Colombia............................................................................................... 27
3. European Union..................................................................................... 27
4. Mexico................................................................................................... 29
5. Norway.................................................................................................. 31
6. Turkey................................................................................................... 32
III. Issues Raised in This Appeal......................................................................................... 33
IV. Background................................................................................................................... 34
V. Article 2.1 of the TBT Agreement................................................................................... 37
A. Introduction....................................................................................................... 37
B. The Panel's Finding that Clove Cigarettes and Menthol Cigarettes are
"Like Products" within the Meaning of Article 2.1 of the
TBT Agreement.................................................... 41
1. "Like Products" under Article 2.1 of the TBT Agreement....................... 42
2. End‑Uses............................................................................................... 48
3. Consumer Tastes and Habits.................................................................. 51
4. Conclusion on "Like Products".............................................................. 58
C. The Panel's Finding that Section 907(a)(1)(A) of the FFDCA
Accords Imported Clove Cigarettes Less Favourable Treatment than That Accorded
to Domestic Menthol Cigarettes, within the Meaning of Article 2.1 of the
TBT Agreement.................................................... 60
1. Introduction........................................................................................... 60
2. "Treatment No Less Favourable" under Article 2.1 of
the TBT Agreement 61
3. Product Scope of the "Treatment No Less Favourable"
Comparison...... 66
4. Temporal Scope of the "Treatment No Less Favourable"
Comparison... 72
(a) Application of Article 2.1 of the TBT Agreement....................... 72
(b) Article 11 of the DSU................................................................ 74
5. Detrimental Impact on Imported Products.............................................. 75
(a) Application of Article 2.1.......................................................... 77
(b) Article 11 of the DSU................................................................ 80
6. Conclusion on "Treatment No Less Favourable".................................... 82
D. Conclusions under Article 2.1 of the TBT Agreement......................................... 82
VI. Article 2.12 of the TBT Agreement................................................................................. 83
A. Introduction....................................................................................................... 83
B. The Interpretative Value of Paragraph 5.2 of the Doha
Ministerial Decision.... 84
C. The Panel's Finding that the United States Acted Inconsistently with
Article 2.12 of the TBT Agreement.................................................................................................. 94
VII. Findings and Conclusions............................................................................................ 101