United States - Measures Affecting the Importation of Animals, Meat and Other Animal Products from Argentina - Report of the Panel

UNITED STATES – MEASURES AFFECTING THE IMPORTATION
OF ANIMALS, MEAT AND OTHER ANIMAL PRODUCTS
FROM ARGENTINA

report of the panel

 

 


TABLE OF CONTENTS

 

1           Introduction........................................................................................................ 20

1.1         Complaint by Argentina............................................................................................... 20

1.2         Panel establishment and composition........................................................................ 20

1.3         Panel proceedings....................................................................................................... 20

1.3.1      General....................................................................................................................... 20

1.3.2      Consultation of experts............................................................................................... 21

1.3.2.1   Expert selection.......................................................................................................... 22

2           Factual aspects................................................................................................... 24

2.1         The relevant disease: Foot-and-mouth disease (FMD)................................................ 24

2.2         The measures at issue................................................................................................ 25

2.2.1      Prohibition on importation of fresh (chilled or frozen) beef from Northern Argentina and animals, meat and other animal products from the Patagonia region................................................ 25

2.2.1.1   Title 9 of the Code of Federal Regulations, Part 94...................................................... 25

2.2.1.2   APHIS' 2001 Interim and Final Rules amending 9 CFR 94............................................ 27

2.2.2      The United States' alleged undue delay in the application of the procedures set forth in 9 CFR 92.2 to Argentina's requests for imports of fresh (chilled or frozen) beef from Northern Argentina and for recognition of Patagonia as free from FMD.................................................................. 27

2.2.2.1   Section 737 of the 2009 Omnibus Appropriations Act................................................. 29

2.3         Products at issue........................................................................................................ 30

2.4         Relevant international standards, guidelines, and recommendations......................... 30

2.4.1      The OIE and its mandate............................................................................................. 30

2.4.2      The Terrestrial Code.................................................................................................... 31

2.4.2.1   Objectives and structure of the Terrestrial Code......................................................... 31

2.4.2.2   Official recognition of disease status........................................................................... 32

2.4.3      Relevant standards, guidelines or recommendations invoked by the parties............. 33

2.5         The parties' domestic FMD situations.......................................................................... 34

2.5.1      Argentina.................................................................................................................... 34

2.5.1.1   Northern Argentina..................................................................................................... 35

2.5.1.2   Patagonia.................................................................................................................... 35

2.5.2      United States.............................................................................................................. 35

3           Parties' requests for findings and recommendations.......................... 35

4           Arguments of the parties................................................................................. 37

5           Arguments of the thiRd parties..................................................................... 37

6           Interim review..................................................................................................... 37

6.1         Whether APHIS' review processes of Argentina's requests were undertaken and completed without undue delay................................................................................................................ 37

6.2         The United States' appropriate level of protection for foot-and-mouth disease.......... 40

6.3         Whether the United States took into account the objective of minimizing negative trade effects when determining its appropriate level of sanitary protection.............................................. 41

6.4         Whether the United States' measures are more trade-restrictive than required to achieve the United States' ALOP..................................................................................................... 42

6.5         Special and differential treatment............................................................................... 43

6.6         Argentina's claims under the GATT 1994..................................................................... 44

7           Findings................................................................................................................. 44

7.1         Order of analysis......................................................................................................... 44

7.1.1      Main arguments of the parties.................................................................................... 45

7.1.2      Analysis by the Panel................................................................................................... 45

7.2         Whether the United States' measures are SPS measures.......................................... 48

7.2.1      Relevant legal provisions............................................................................................. 48

7.2.2      Main arguments of the parties.................................................................................... 48

7.2.2.1   Argentina.................................................................................................................... 48

7.2.2.2   United States.............................................................................................................. 49

7.2.3      Analysis by the Panel................................................................................................... 50

7.2.3.1   Whether the United States' measures are SPS measures within the meaning of Annex A(1)   50

7.2.3.2   Whether the United States' measures directly or indirectly affect international trade 52

7.2.4      Conclusion.................................................................................................................. 53

7.3         Control, inspection and approval procedures.............................................................. 53

7.3.1      Relevant legal provisions............................................................................................. 53

7.3.2      Whether the application of the procedures set forth in 9 CFR 92.2 to Argentina's requests falls within the scope of Article 8 and Annex C(1) of the SPS Agreement..................................... 54

7.3.2.1   Main arguments of the parties.................................................................................... 54

7.3.2.2   Main arguments of the third parties............................................................................ 55

7.3.2.3   Analysis by the Panel................................................................................................... 56

7.3.3      Whether APHIS' review processes of Argentina's requests were undertaken and completed without undue delay................................................................................................................ 59

7.3.3.1   General arguments of the parties............................................................................... 59

7.3.3.2   APHIS' review of Argentina's request for imports of fresh (chilled or frozen) beef from Northern Argentina.................................................................................................................... 60

7.3.3.3   APHIS' review of Argentina's request for recognition of Patagonia as FMD‑free........... 63

7.3.3.4   Main arguments of the third parties............................................................................ 66

7.3.3.5   Analysis by the Panel................................................................................................... 67

7.3.4      Whether APHIS' review processes of Argentina's requests met the procedural requirements set forth in Annex C(1)(b) of the SPS Agreement...................................................................... 89

7.3.4.1   Arguments of the parties............................................................................................ 89

7.3.4.2   Main arguments of the third parties............................................................................ 90

7.3.4.3   Analysis by the Panel................................................................................................... 91

7.4         Harmonization............................................................................................................. 94

7.4.1      Relevant legal provisions............................................................................................. 94

7.4.2      Whether the United States' measures are based on relevant international standards, guidelines or recommendations...................................................................................................... 95

7.4.2.1   Main arguments of the parties.................................................................................... 95

7.4.2.2   Main arguments of the third parties............................................................................ 98

7.4.2.3   Analysis by the Panel................................................................................................. 100

7.4.3      Whether the United States' measures are introduced or maintained consistently with Article 3.3................................................................................................................................. 110

7.5         Whether the United States' measures are based on scientific principles and maintained with sufficient scientific evidence.................................................................................................... 111

7.5.1      Relevant legal provisions........................................................................................... 111

7.5.2      Whether the United States' measures fall within the scope of the exemption in Article 5.7     113

7.5.2.1   Main arguments of the parties.................................................................................. 113

7.5.2.2   Main arguments of the third parties.......................................................................... 116

7.5.2.3   European Union........................................................................................................ 118

7.5.2.4   Analysis by the Panel................................................................................................. 119

7.5.2.5   Conclusion................................................................................................................ 122

7.5.3      Whether the United States' measures are based on a risk assessment................... 122

7.5.3.1   Main arguments of the parties.................................................................................. 122

7.5.3.2   Main arguments of the third parties.......................................................................... 124

7.5.3.3   Analysis by the Panel................................................................................................. 125

7.5.4      Article 2.2 of the SPS Agreement.............................................................................. 131

7.5.4.1   Main arguments of the parties.................................................................................. 131

7.5.4.2   Main arguments of the third parties.......................................................................... 133

7.5.4.3   Analysis by the Panel................................................................................................. 133

7.6         Appropriate level of protection.................................................................................. 134

7.6.1      Relevant legal provisions........................................................................................... 134

7.6.2      The United States' appropriate level of protection for foot-and-mouth disease........ 135

7.6.2.1   Main arguments of the parties.................................................................................. 135

7.6.2.2   Analysis by the Panel................................................................................................. 137

7.6.3      Whether the United States took into account the objective of minimizing negative trade effects when determining its appropriate level of sanitary protection............................................ 140

7.6.4      Main arguments of the parties.................................................................................. 140

7.6.4.1   Argentina.................................................................................................................. 140

7.6.4.2   United States............................................................................................................ 140

7.6.5      Main arguments of the third parties.......................................................................... 141

7.6.5.1   Australia.................................................................................................................... 141

7.6.5.2   European Union........................................................................................................ 141

7.6.6      Analysis by the Panel................................................................................................. 141

7.6.6.1   Conclusion................................................................................................................ 143

7.6.7      Whether the United States' measures are more trade-restrictive than required to achieve the United States' ALOP................................................................................................... 144

7.6.7.1   Relevant legal provisions........................................................................................... 144

7.6.7.2   Main arguments of the parties.................................................................................. 144

7.6.7.3   Main arguments of the third parties.......................................................................... 148

7.6.7.4   Analysis by the Panel................................................................................................. 149

7.7         Whether the United States' measures arbitrarily or unjustifiably discriminate between Members where identical or similar conditions prevail or are applied in a manner which constitutes a disguised restriction on international trade............................................................................... 181

7.7.1      Relevant legal provisions........................................................................................... 181

7.7.2      Main arguments of the parties.................................................................................. 182

7.7.2.1   Argentina.................................................................................................................. 182

7.7.2.2   United States............................................................................................................ 184

7.7.3      Main arguments of the third parties.......................................................................... 186

7.7.3.1   China......................................................................................................................... 186

7.7.3.2   European Union........................................................................................................ 187

7.7.4      Analysis by the Panel................................................................................................. 187

7.7.4.1   Discrimination between Northern Argentina and Uruguay......................................... 190

7.7.4.2   Discrimination between Patagonia, Santa Catarina, and Chile.................................... 194

7.7.4.3   Discrimination between Northern Argentina, Patagonia, Japan, and the United Kingdom. 197

7.8         Adaptation to regional conditions.............................................................................. 199

7.8.1      Relevant legal provisions........................................................................................... 199

7.8.2      Main arguments of the parties.................................................................................. 200

7.8.2.1   Argentina.................................................................................................................. 200

7.8.2.2   United States............................................................................................................ 201

7.8.3      Main arguments of the third parties.......................................................................... 202

7.8.3.1   Brazil......................................................................................................................... 202

7.8.3.2   European Union........................................................................................................ 203

7.8.4      Analysis by the Panel................................................................................................. 203

7.8.4.1   The obligations under Article 6.1............................................................................... 203

7.8.4.2   The obligations under Article 6.2............................................................................... 204

7.8.4.3   The obligations under Article 6.3............................................................................... 205

7.8.4.4   The relationship between the obligations contained in the three paragraphs of Article 6  206

7.8.4.5   Whether the United States recognized the concept of FMD‑free areas and adapted its measure to the SPS characteristics of Patagonia................................................................................ 209

7.9         Special and differential treatment............................................................................. 211

7.9.1      Relevant legal provisions........................................................................................... 211

7.9.2      Main arguments of the parties.................................................................................. 211

7.9.2.1   Argentina.................................................................................................................. 211

7.9.2.2   United States............................................................................................................ 212

7.9.3      Main arguments of the third parties.......................................................................... 212

7.9.3.1   China......................................................................................................................... 212

7.9.3.2   European Union........................................................................................................ 213

7.9.4      Analysis by the Panel................................................................................................. 213

7.9.4.1   Whether Article 10.1 is a positive obligation............................................................. 213

7.9.4.2   Shall take account of special needs of developing country Members....................... 214

7.9.4.3   Burden of proof......................................................................................................... 215

7.9.4.4   Whether the United States took account of Argentina's special needs..................... 217

7.9.4.5   Conclusion................................................................................................................ 219

7.10       Consequential violations........................................................................................... 219

7.10.1    Argentina's claims under Article 1.1 of the SPS Agreement...................................... 219

7.10.1.1 .................................................................................................. Relevant legal provision  219

7.10.1.2 ........................................................................................ Main arguments of the parties  219

7.10.1.3 ................................................................................ Main arguments of the third parties  220

7.10.1.4 ...................................................................................................... Analysis by the Panel  220

7.10.2    Argentina's claims under Article 3.3 of the SPS Agreement...................................... 220

7.11       Argentina's claims under the GATT 1994................................................................... 221

7.11.1    Main arguments of the parties.................................................................................. 221

7.11.1.1 ........................................................................................................................ Argentina  221

7.11.1.2 .................................................................................................................. United States  222

7.11.2    Analysis by the Panel................................................................................................. 222

8           Conclusions and Recommendation(s)........................................................ 223

APPENDIX 1.......................................................................................................................... 226


ANNEX A

Working Procedures of The Panel

Contents

Page

Annex A-1

Working Procedures of the Panel

A-2

Annex A-2

Additional Working Procedures on consultations with experts and the World Organisation for Animal Health (OIE)

A-7

ANNEX B

Arguments Of The Parties

ARGENTINA

Contents

Page

Annex B-1

First part of the integrated executive summary of the arguments of Argentina

B-2

Annex B-2

Second part of the integrated executive summary of the arguments of Argentina

B-14

 

 

UNITED STATES

Contents

Page

Annex B-3

First part of the integrated executive summary of the arguments of the United States

B-25

Annex B-4

Second part of the integrated executive summary of the arguments of the United States

B-37

ANNEX C

Arguments of the Third Parties

Contents

Page

Annex C-1

Integrated executive summary of the arguments of Australia

C-2

Annex C-2

Integrated executive summary of the arguments of Brazil

C-6

Annex C-3

Integrated executive summary of the arguments of China

C-9

Annex C-4

Integrated executive summary of the arguments of the European Union

C-13

 


CASES CITED IN THIS REPORT

Short Title

Full Case Title and Citation

Australia – Apples

Appellate Body Report, Australia – Measures Affecting the Importation of Apples from New Zealand, WT/DS367/AB/R, adopted 17 December 2010, DSR 2010:V, p. 2175

Australia – Apples

Panel Report, Australia – Measures Affecting the Importation of Apples from New Zealand, WT/DS367/R, adopted 17 December 2010, as modified by Appellate Body Report WT/DS367/AB/R, DSR 2010:VI, p. 2371

Australia – Salmon

Appellate Body Report, Australia – Measures Affecting Importation of Salmon, WT/DS18/AB/R, adopted 6 November 1998, DSR 1998:VIII, p. 3327

Australia – Salmon

Panel Report, Australia – Measures Affecting Importation of Salmon, WT/DS18/R and Corr.1, adopted 6 November 1998, as modified by Appellate Body Report WT/DS18/AB/R, DSR 1998:VIII, p. 3407

Australia – Salmon
(Article 21.5 – Canada)

Panel Report, Australia – Measures Affecting Importation of Salmon – Recourse to Article 21.5 of the DSU by Canada, WT/DS18/RW, adopted 20 March 2000, DSR 2000:IV, p. 2031

Brazil – Aircraft

Panel Report, Brazil – Export Financing Programme for Aircraft, WT/DS46/R, adopted 20 August 1999, as modified by Appellate Body Report WT/DS46/AB/R, DSR 1999:III, p. 1221

Brazil – Desiccated Coconut

Appellate Body Report, Brazil – Measures Affecting Desiccated Coconut, WT/DS22/AB/R, adopted 20 March 1997, DSR 1997:I, p. 167

Brazil – Retreaded Tyres

Appellate Body Report, Brazil – Measures Affecting Imports of Retreaded Tyres, WT/DS332/AB/R, adopted 17 December 2007, DSR 2007:IV, p. 1527

Brazil – Retreaded Tyres

Panel Report, Brazil – Measures Affecting Imports of Retreaded Tyres, WT/DS332/R, adopted 17 December 2007, as modified by Appellate Body Report WT/DS332/AB/R, DSR 2007:V, p. 1649

Canada – Aircraft

Appellate Body Report, Canada – Measures Affecting the Export of Civilian Aircraft, WT/DS70/AB/R, adopted 20 August 1999, DSR 1999:III, p. 1377

Canada – Autos

Appellate Body Report, Canada – Certain Measures Affecting the Automotive Industry, WT/DS139/AB/R, WT/DS142/AB/R, adopted 19 June 2000, DSR 2000:VI, p. 2985

Canada – Continued Suspension

Appellate Body Report, Canada – Continued Suspension of Obligations in the EC – Hormones Dispute, WT/DS321/AB/R, adopted 14 November 2008, DSR 2008:XIV, p. 5373

Canada – Continued Suspension

Panel Report, Canada – Continued Suspension of Obligations in the EC – Hormones Dispute, WT/DS321/R, adopted 14 November 2008, as modified by Appellate Body Report WT/DS321/AB/R, DSR 2008:XV, p. 5757

Canada – Dairy
(Article 21.5 – New Zealand and US II)

Panel Report, Canada – Measures Affecting the Importation of Milk and the Exportation of Dairy Products – Second Recourse to Article 21.5 of the DSU by New Zealand and the United States, WT/DS103/RW2, WT/DS113/RW2, adopted 17 January 2003, as modified by Appellate Body Report WT/DS103/AB/RW2, WT/DS113/AB/RW2, DSR 2003:I, p. 255

Canada – Pharmaceutical Patents
(Article 21.3(c))

Award of the Arbitrator, Canada – Patent Protection of Pharmaceutical Products – Arbitration under Article 21.3(c) of the DSU, WT/DS114/13, 18 August 2000, DSR 2002:I, p. 3

Canada – Renewable Energy /
Canada – Feed-in Tariff Program

Appellate Body Reports, Canada – Certain Measures Affecting the Renewable Energy Generation Sector / Canada – Measures Relating to the Feed-in Tariff Program, WT/DS412/AB/R / WT/DS426/AB/R, adopted 24 May 2013

Canada – Wheat Exports and Grain Imports

Appellate Body Report, Canada – Measures Relating to Exports of Wheat and Treatment of Imported Grain, WT/DS276/AB/R, adopted 27 September 2004, DSR 2004:VI, p. 2739

China – Broiler Products

Panel Report, China - Anti-Dumping and Countervailing Duty Measures on Broiler Products from the United States, WT/DS427/R and Add.1, adopted 25 September 2013

China – GOES

Appellate Body Report, China – Countervailing and Anti-Dumping Duties on Grain Oriented Flat-Rolled Electrical Steel from the United States, WT/DS414/AB/R, adopted 16 November 2012, DSR 2012:XII, p. 6251

China – GOES

Panel Report, China – Countervailing and Anti-Dumping Duties on Grain Oriented Flat-Rolled Electrical Steel from the United States, WT/DS414/R and Add.1, adopted 16 November 2012, upheld by Appellate Body Report WT/DS414/AB/R, DSR 2012:XII, p. 6369

China – Publications and Audiovisual Products

Panel Report, China – Measures Affecting Trading Rights and Distribution Services for Certain Publications and Audiovisual Entertainment Products, WT/DS363/R and Corr.1, adopted 19 January 2010, as modified by Appellate Body Report WT/DS363/AB/R, DSR 2010:II, p. 261

China – Raw Materials

Appellate Body Reports, China – Measures Related to the Exportation of Various Raw Materials, WT/DS394/AB/R / WT/DS395/AB/R / WT/DS398/AB/R, adopted 22 February 2012, DSR 2012:VII, p. 3295

Dominican Republic – Import and Sale of Cigarettes

Appellate Body Report, Dominican Republic – Measures Affecting the Importation and Internal Sale of Cigarettes, WT/DS302/AB/R, adopted 19 May 2005, DSR 2005:XV, p. 7367

EC – Approval and Marketing of Biotech Products

Panel Reports, European Communities – Measures Affecting the Approval and Marketing of Biotech Products, WT/DS291/R / WT/DS292/R / WT/DS293/R, Add.1 to Add.9, and Corr.1, adopted 21 November 2006, DSR 2006:III, p. 847

EC – Asbestos

Appellate Body Report, European Communities – Measures Affecting Asbestos and Asbestos‑Containing Products, WT/DS135/AB/R, adopted 5 April 2001, DSR 2001:VII, p. 3243

EC – Bananas III

Appellate Body Report, European Communities – Regime for the Importation, Sale and Distribution of Bananas, WT/DS27/AB/R, adopted 25 September 1997, DSR 1997:II, p. 591

EC – Bananas III (Ecuador)

Panel Report, European Communities – Regime for the Importation, Sale and Distribution of Bananas, Complaint by Ecuador, WT/DS27/R/ECU, adopted 25 September 1997, as modified by Appellate Body Report WT/DS27/AB/R, DSR 1997:III, p. 1085

EC – Bananas III (Guatemala and Honduras)

Panel Report, European Communities – Regime for the Importation, Sale and Distribution of Bananas, Complaint by Guatemala and Honduras, WT/DS27/R/GTM, WT/DS27/R/HND, adopted 25 September 1997, as modified by Appellate Body Report WT/DS27/AB/R, DSR 1997:II, p. 695

EC – Bananas III (Mexico)

Panel Report, European Communities – Regime for the Importation, Sale and Distribution of Bananas, Complaint by Mexico, WT/DS27/R/MEX, adopted 25 September 1997, as modified by Appellate Body Report WT/DS27/AB/R, DSR 1997:II, p. 803

EC – Bananas III (US)

Panel Report, European Communities – Regime for the Importation, Sale and Distribution of Bananas, Complaint by the United States, WT/DS27/R/USA, adopted 25 September 1997, as modified by Appellate Body Report WT/DS27/AB/R, DSR 1997:II, p. 943

EC – Chicken Cuts

Appellate Body Report, European Communities – Customs Classification of Frozen Boneless Chicken Cuts, WT/DS269/AB/R, WT/DS286/AB/R, adopted 27 September 2005, and Corr.1, DSR 2005:XIX, p. 9157

EC – Fasteners (China)

Appellate Body Report, European Communities – Definitive Anti-Dumping Measures on Certain Iron or Steel Fasteners from China, WT/DS397/AB/R, adopted 28 July 2011, DSR 2011:VII, p. 3995

EC – Hormones

Appellate Body Report, EC Measures Concerning Meat and Meat Products (Hormones), WT/DS26/AB/R, WT/DS48/AB/R, adopted 13 February 1998, DSR 1998:I, p. 135

EC – Hormones (Canada)

Panel Report, EC Measures Concerning Meat and Meat Products (Hormones), Complaint by Canada, WT/DS48/R/CAN, adopted 13 February 1998, as modified by Appellate Body Report WT/DS26/AB/R, WT/DS48/AB/R, DSR 1998:II, p. 235

EC – Hormones (US)

Panel Report, EC Measures Concerning Meat and Meat Products (Hormones), Complaint by the United States, WT/DS26/R/USA, adopted 13 February 1998, as modified by Appellate Body Report WT/DS26/AB/R, WT/DS48/AB/R, DSR 1998:III, p. 699

EC – Hormones (Article 21.3(c))

Award of the Arbitrator, EC Measures Concerning Meat and Meat Products (Hormones) – Arbitration under Article 21.3(c) of the DSU, WT/DS26/15, WT/DS48/13, 29 May 1998, DSR 1998:V, p. 1833

EC – IT Products

Panel Reports, European Communities and its member States – Tariff Treatment of Certain Information Technology Products, WT/DS375/R / WT/DS376/R / WT/DS377/R, adopted 21 September 2010, DSR 2010:III, p. 933

EC – Sardines

Appellate Body Report, European Communities – Trade Description of Sardines, WT/DS231/AB/R, adopted 23 October 2002, DSR 2002:VIII, p. 3359

EC – Sardines

Panel Report, European Communities – Trade Description of Sardines, WT/DS231/R and Corr.1, adopted 23 October 2002, as modified by Appellate Body Report WT/DS231/AB/R, DSR 2002:VIII, p. 3451

EC – Seal Products

Appellate Body Reports, European Communities – Measures Prohibiting the Importation and Marketing of Seal Products, WT/DS400/AB/R / WT/DS401/AB/R, adopted 18 June 2014

EC – Seal Products

Panel Reports, European Communities – Measures Prohibiting the Importation and Marketing of Seal Products, WT/DS400/R / WT/DS401/R / and Add.1, adopted 18 June 2014, as modified by Appellate Body Reports WT/DS400/AB/R / WT/DS401/AB/R

EC – Selected Customs Matters

Appellate Body Report, European Communities – Selected Customs Matters, WT/DS315/AB/R, adopted 11 December 2006, DSR 2006:IX, p. 3791