INDONESIA – SAFEGUARD ON CERTAIN IRON OR STEEL PRODUCTS

REPORT OF THE PANEL

WT/DS490/R • WT/DS496/R

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TABLE OF CONTENTS

1 INTRODUCTION ........................................................................................................... 8

1.1 Complaints by Chinese Taipei and Viet Nam ..................................................................... 8

1.2 Panel establishment and composition .............................................................................. 8

1.3 Panel proceedings......................................................................................................... 9

1.3.1 General .................................................................................................................... 9

2 FACTUAL ASPECTS ....................................................................................................... 9

2.1 The measures at issue .................................................................................................. 9

3 PARTIES' REQUESTS FOR FINDINGS AND RECOMMENDATIONS ................................. 10

3.1 Chinese Taipei and Viet Nam ("Complainants") ................................................................10

3.2 Indonesia ...................................................................................................................11

4 ARGUMENTS OF THE PARTIES .................................................................................... 12

5 ARGUMENTS OF THE THIRD PARTIES ......................................................................... 12

6 INTERIM REVIEW ....................................................................................................... 12

7 FINDINGS .................................................................................................................. 12

7.1 Standard of review, treaty interpretation, and burden of proof ..........................................12

7.1.1 Standard of review ...................................................................................................12

7.1.2 Treaty interpretation .................................................................................................14

7.1.3 Burden of proof ........................................................................................................14

7.2 Introduction ................................................................................................................14

7.3 Whether the specific duty on imports of galvalume constitutes a "safeguard measure" within the meaning of Article 1 of the Agreement on Safeguards ...............................15

7.3.1 Definition of a safeguard measure...............................................................................15

7.3.2 The specific duty at issue does not suspend, withdraw, or modify a relevant GATT obligation for the purpose of remedying or preventing serious injury ........................................16

7.3.2.1 No binding WTO tariff obligation with respect to imports of galvalume ..........................16

7.3.2.2 No other relevant GATT obligations preclude the adoption of the specific duty ...............17

7.3.3 Consequences of the fact that the specific duty was adopted following an investigation conducted by Indonesia's competent authority pursuant to Indonesia's safeguards legislation with a view to complying with the Agreement on Safeguards ...................20

7.3.4 Conclusion ...............................................................................................................22

7.4 Whether the exclusion of 120 countries from the application of the specific duty imposed pursuant to Regulation No. 137.1/PMK.011/2014 is inconsistent with Indonesia's obligation to afford MFN-treatment under Article I:1 of the GATT .............................................23

7.5 The complainants' claims under the Agreement on Safeguards and Articles XIX:1(a) and XIX:2 of the GATT 1994 ................................................................................................24

7.5.1 Unforeseen developments and the effect of GATT 1994 obligations .................................24

7.5.1.1 Parties' arguments .................................................................................................24

7.5.1.2 Relevant law .........................................................................................................25

7.5.1.3 Relevant facts .......................................................................................................26

7.5.2 Increased imports .....................................................................................................27

7.5.2.1 Parties' arguments .................................................................................................27