WT/DS135/R

Page 135
VII. INTERIM REVIEW
1
A. INTRODUCTION
7.1 The Panel's interim re!rt "as gi#en t! the arties !n 13 $%ne &'''( %rs%ant t! Arti)le 15.& !*
the Un+erstan+ing. On &7 $%ne &'''( Cana+a an+ the ,%r!ean C!mm%nities sent a re-%est t! the
Panel in "riting as.ing it t! re#ie" )ertain ase)ts !* the interim re!rt. Neither !* the arties
re-%este+ the Panel t! h!l+ a *%rther meeting "ith them. When sen+ing the interim re!rt t! the
arties( the Panel ga#e ea)h art/ an !!rt%nit/ t! transmit in "riting its )!mments !n the initial
re-%est *!r re#ie" s%0mitte+ 0/ the !ther art/( i* n! meeting "as re-%este+( r!#i+e+ that the
)!mments "ere stri)tl/ )!n*ine+ t! the -%esti!ns i+enti*ie+ 0/ the !ther art/ in its initial re-%est *!r
re#ie". The arties s%0mitte+ their )!mments !n 1 $%l/ &'''.
&
7.& As a reliminar/ remar.( the Panel n!tes that the arties re-%este+ the Panel t! imr!#e %!n
s!me !* its s%mmaries !* their arg%ments in the *in+ings. The Panel in+i)ates( h!"e#er( that neither
art/ )laime+ that the Panel ha+ ma+e an/ s%0stanti#e err!r in its assessment !* the *a)ts.
3
7.3 The Panel als! n!tes that the t"! Parties ha#e %t *!r"ar+ )!rre)ti!ns !* *!rm an+ !*
s%0stan)e. Where#er ar!riate( the Panel a))ete+ the *!rmer.
1
The *!ll!"ing !0ser#ati!ns
there*!re !nl/ )!n)ern the )!mments "hi)h the Panel )!nsi+ere+ t! 0e remar.s )!n)erning the
s%0stan)e.
,. CO22,NTS 34 CANADA
7.1 Regar+ing Cana+a's )!mments !n s%0stan)e( the Panel amen+e+ *!!tn!te 1 t! ta.e int!
a))!%nt 0!th Cana+a's remar. an+ the !05e)ti!ns !* the ,%r!ean C!mm%nities.
5
7.5 Cana+a's *irst s%0stanti#e )!mment )!n)erning the art !* !%r *in+ings !n the ali)ati!n !*
the Agreement !n Te)hni)al 3arriers t! Tra+e t! De)ree N!. 6781133
7
relates t! the Panel's s%mmar/
!* Cana+a's arg%ments in aras. 9.16 an+ 9.&' !* the interim re!rt :aras. 9.&' an+ 9.&1 !* the *inal
Re!rt;.
7
The Panel )!nsi+ers that this s%mmar/ a+e-%atel/ re*le)ts Cana+a's arg%ments in the
1
P%rs%ant t! Arti)le 15.3 !* the Un+erstan+ing !n R%les an+ Pr!)e+%res <!#erning the Settlement !*
Dis%tes :hereina*ter the =Un+erstan+ing=;( =The *in+ings !* the *inal anel re!rt shall in)l%+e a +is)%ssi!n !*
the arg%ments ma+e at the interim re#ie" stage=. The *!ll!"ing se)ti!n entitle+ =interim re#ie"= there*!re
*!rms art !* !%r re!rt's *in+ings.
&
The )!mments re)ei#e+ !n 1 $%l/ &''' are +ealt "ith "here ne)essar/ in the se)ti!ns !n the
)!mments *r!m Cana+a an+ the ,%r!ean C!mm%nities 0el!".
3
The Panel n!tes that( in the letter atta)he+ t! Cana+a's )!mments( the latter in+i)ates that its re-%est
*!r re#ie" =is "ith!%t re5%+i)e t! Cana+a's !siti!n !n all the ase)ts !* the Panel's Re!rt=. In this
)!nne)ti!n( the Panel )!nsi+ers that( i* it ha+ mis%n+erst!!+ !r misreresente+ s!me !* the *a)t%al ase)ts !* the
)ase in its *in+ings( the arties "!%l+ nee+ the interim re#ie" stage in !r+er t! ma.e the ne)essar/ )!rre)ti!ns !r
)lari*i)ati!ns 0e)a%se( %nli.e err!rs !* la"( err!rs !* *a)t )ann!t %s%all/ 0e m!+i*ie+ !n aeal. The arties
sh!%l+ ta.e a+#antage !* this last !!rt%nit/ t! re)ti*/ the *a)t%al assessments !* the Panel !ther"ise the Panel
)!%l+ %nne)essaril/ 0e at ris. !* 0eing a))%se+ !* n!t ha#ing ma+e an !05e)ti#e e#al%ati!n !* the *a)ts. It might
0e )laime+ that the *a)t that a art/ +!es n!t in*!rm the Panel !* a *a)t%al err!r in its *in+ings ma/ 0e )!ntrar/ t!
the !0ligati!n in Arti)le 3.1' !* the Un+erstan+ing( "hi)h r!#i+es inter alia that =all 2em0ers "ill engage in
these r!)e+%res >settlement !* +is%tes? in g!!+ *aith in an e**!rt t! res!l#e the +is%te= :emhasis a++e+;.
1
@!r eAamle( the Panel .et the "!r+s =in g!!+ *aith= in ara. 9.&6 0e)a%se the g!!+ *aith
re-%irement alies 0!th t! the ers!n interreting the teAt an+ the ers!n ha#ing +ra*te+ it :see Ian Sin)lairB
The Cienna C!n#enti!n !n the Da" !* Treaties :169'( . 116;.
5
Eereina*ter the =,C=.
7
Eereina*ter the =De)ree=.
7
The )hange in the n%m0ering !* aragrahs is +%e t! the intr!+%)ti!n !* a aragrah !n the Panel's
+e)isi!n )!n)erning a "ritten s%0missi!n an+ a re-%est *!r a hearing ma+e 0/ a n!n8g!#ernmental !rganiFati!n
+%ring the interim re#ie" r!)e+%re.
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+es)riti#e art. It +i+ n!t there*!re +eem it ne)essar/ t! rela)e the teAt as s%ggeste+ 0/ Cana+a.
The neAt )!mment )!n)erns ara. 9.&9 :ara. 9.&6 !* the *inal Re!rt;. In res!nse t! Cana+a's
remar. that the Panel re*erre+ t! the !05e)t an+ %r!se !* the WTO Agreement "ith!%t eAamining it
s%0se-%entl/( in ara. 9.19 !* the *inal Re!rt "e ha#e ma+e it )lear that "e +i+ n!t *in+ an/
arti)%larl/ rele#ant elements in the ream0le t! the WTO Agreement relating t! the terms "e ha+ t!
interret. As regar+s the )!mment !n *!!tn!te 37 in the interim re!rt :*!!tn!te 11 in the *inal
Re!rt;( "e +i+ n!t )!nsi+er it ne)essar/ t! +elete it 0e)a%se it is n!t a -%esti!n !* t%rning t! the
rearat!r/ "!r. "ithin the meaning !* Arti)le 3& !* the Cienna C!n#enti!n !n the Da" !*
Treaties :1676;( 0%t !* a re*eren)e t! a +!)%ment sh!"ing that the Agreement !n Te)hni)al 3arriers t!
Tra+e !* the T!./! R!%n+ "as alrea+/ seen as a +e#el!ment !* )ertain r%les !* the <ATT. We ha#e
ne#ertheless e+ite+ the *!!tn!te in !r+er t! ma.e !%r intenti!n )learer. We ha#e als! re"!r+e+ aras.
9.71 an+ 9.7& !* the *inal Re!rt an+ the *!!tn!te )!n)erning ara. 9.71 in !r+er t! ma.e it )lear that(
in the light !* !%r re#i!%s *in+ings( it "as n!t ne)essar/ t! eAamine "hether the De)ree met the *i#e
re-%irements "hi)h( in Cana+a's !ini!n( are )!ntaine+ in the +e*initi!n !* =te)hni)al reg%lati!n= in
the T3T Agreement. Di.e"ise( "e +i+ n!t "ish t! gi#e the imressi!n that Cana+a )!n*irme+ the
initial #ie" !* the Panel that it "!%l+ 0e ar!riate t! anal/se the t"! ase)ts !* the De)ree
searatel/. We ha#e als! )lari*ie+ this !int. The same alies t! ara. 9.7& !* the *inal Re!rt.
Ea#ing rea)he+ the )!n)l%si!n that the legal )hara)teriFati!n !* the eA)eti!ns in the De)ree +i+ n!t
a**e)t the legal )hara)teriFati!n !* the 0an( "e ha#e siml/ *!%n+ that Cana+a +i+ n!t ma.e an/
)laims )!n)erning the eA)eti!ns an+( )!nse-%entl/( "e )!%l+ n!t rea)h an/ *in+ings there!n
a))!r+ing t! !%r terms !* re*eren)e.
7.7 With regar+ t! the se)ti!n !* !%r *in+ings !n ali)ati!n !* Arti)le III an+/!r Arti)le GI !* the
<ATT 1661( "e ha#e ma+e !%r s%mmar/ !* Cana+a's arg%ments :ara. 9.91 !* the *inal Re!rt;
)learer an+ ha#e re#ise+ the rest !* the se)ti!n :aras. 9.9789.1'' !* the *inal Re!rt; in !r+er t!
res!n+ t! the )!mments )!n)erning aras. 9.95 an+ 9.65 !* the interim re!rt.
7.7 In )!nne)ti!n "ith the +is)%ssi!n !n #i!lati!n !* Arti)le IIIB1 !* the <ATT 1661( "e ha#e
als! ma+e aras. 9.1'6( 9.117( 9.1&1 an+ 9.115 !* the *inal Re!rt )learer( ta.ing int! a))!%nt
Cana+a's ertinent remar.s.
7.9 C!n)erning ali)ati!n !* Arti)le GG:0; !* the <ATT 1661( "e ha#e amen+e+ *!!tn!te 1&9
in the interim re!rt :*!!tn!te 11& in the *inal Re!rt; in !r+er t! in)l%+e the ,C's arg%ments( "hile
maintaining the re*eren)e t! Dr. Een+ers!n's remar.s. The Panel has als! re#ise+ ara. 9.197 !* the
*inal Re!rt 0e)a%se this "as n!t a re*eren)e 0/ Cana+a 0%t 0/ a Cana+ian s)ientist )ite+ 0/ !ne !*
the eAerts )!ns%lte+ %rs%ant t! Arti)le 13 !* the Un+erstan+ing. The Panel +i+ n!t +eem the ,C's
!05e)ti!n relating t! ara. 9.197 t! 0e rele#ant. In a++iti!n( "hile maintaining the !r+er !*
aras. 9.167 an+ 9.167 in the *inal Re!rt( 0e)a%se the ,C re*erre+ t! Arti)le GG !* the <ATT 1661(
the Panel )!mlete+ the s%mmar/ !* Cana+a's arg%ments in ara. 9.167 0/ in)l%+ing the *a)t%al
elements as "ell( as "as +!ne in the s%mmar/ !* the ,C's arg%ments. The Panel n!tes that the *a)t%al
elements menti!ne+ 0/ Cana+a ha#e alrea+/ 0een s%mmariFe+ in ara. 9.171 !* the *inal Re!rt( 0%t
m!re )!n)isel/.
7.6 With regar+ t! ara. 9.&33 :ara. 9.&39 !* the *inal Re!rt;( the Panel +!es n!t )!nsi+er that
the *all in @ren)h im!rts !* as0est!s *r!m 1667 !n"ar+s :see ara. 3.&' a0!#e; is r!!* !*
r!te)ti!nist intenti!ns %n+erl/ing the a+!ti!n !* the De)ree. In this )!nne)ti!n( the Panel n!tes that
Cana+a +e#!tes a l!ng assage :aras. 3.&7 an+ 3.&7 a0!#e; t! sh!"ing that the De)ree "as a+!te+
hastil/ %n+er the ress%re !* %0li) !ini!n. Regar+ing the in+%strial an+ )!mmer)ial ase)ts(
Cana+a's +es)riti!n in ara. 3.&9 a0!#e ma.es this a se)!n+ar/ element. The @ren)h <!#ernment's
)all *!r resear)h r!!sals in $%l/ 1667( se)i*i)all/ t! +e#el! s%0stit%te *i0res( +!es n!t aear t! 0e
the )!nse-%en)e !* the )h!i)e alrea+/ ma+e *!r reas!ns that 0ear n! +ire)t relati!n t! in+%strial !r
)!mmer)ial )!nsi+erati!ns.
7.1' Dastl/( in !%r )!nsi+erati!ns !n Arti)le GGIIIB1:0; !* the <ATT 1661( "e ha#e harm!niFe+
!%r termin!l!g/ in aras. 9.&63( 9.&61 an+ 9.3'3 !* the *inal Re!rt.
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C. CO22,NTS 34 TE, ,UROP,AN CO22UNITI,S
7.11 Di.e Cana+a( the ,C ha#e ma+e a n%m0er !* )!mments "ith a #ie" t! amen+ing the Panel's
s%mmar/ !* their arg%ments in its *in+ings. As "as the )ase *!r Cana+a( "e ha#e generall/ ta.en
these )!mments int! a))!%nt r!#i+e+ that "e "ere a0le t! i+enti*/ them in the s%0missi!ns ma+e t!
the Panel in the )!%rse !* the r!)e+%re.
7.1& This is the )ase *!r ara. 9.7 in relati!n t! ara. 3.7. Regar+ing the +es)riti!n !* the ,C's
arg%ments in ara. 9.&5 !* the *inal Re!rt( "e ha#e ta.en the rele#ant arts !* aras. 3.&71 an+ 3.&75
a0!#e( "hi)h )!ntain the ,C's arg%ments !n these !ints. We +i+ n!t a))et Cana+a's )!mments !* 1
$%l/ &''' 0e)a%se the/ essentiall/ reeate+ arg%ments alrea+/ ma+e an+ ta.en int! a))!%nt +%ring
the r!)e+%re.
7.13 We ha#e ma+e )learer the last senten)e !* ara. 9.3& an+ the *irst senten)e !* ara. 9.11 !* the
*inal Re!rt. We ha#e als! amen+e+ the )!ntent !* *!!tn!tes 55 an+ 59 !* the *inal Re!rt an+ ha#e
re#ise+ the teAt !* aras. 9.116( 9.116( 9.17& an+ 9.195 !* the *inal Re!rt( ta.ing int! a))!%nt
Cana+a's )!mments !* 1 $%l/ &''' an+ r!#i+e+ that the ,C's s%ggesti!ns "ere in line "ith their
s%0missi!ns t! the Panel !r the terms !* the De)ree. We ha#e als! ma+e the *irst senten)e !*
ara. 9.116 !* the *inal Re!rt )learer. On the !ther han+( "e +i+ n!t )!nsi+er it ar!riate t!
rela)e the "!r+s =Cana+a's !siti!n= in ara. 9.57 !* the *inal Re!rt 0/ the "!r+s =Cana+a's
)!nteAt%al interretati!n=( arti)%larl/ sin)e Cana+a !!se+ this in its )!mments !* 1 $%l/ &'''.
Di.e"ise( "e +i+ n!t )!nsi+er that the )!mlementar/ nat%re !* the ,C's arg%ment !n the transiti!nal
nat%re !* the eA)eti!ns in the De)ree "arrante+ the +eleti!n !r amen+ment !* ara. 9.75 !* the *inal
Re!rt. In this )!nne)ti!n( the Panel n!tes that the ,C +i+ n!t )learl/ state "hat the/ "ishe+ the
Panel t! +! "ith this aragrah.
7.11 The ,C als! re-%este+ the Panel t! amen+ aras. 9.7789.7' an+ 6.1:a; !* the interim re!rt t!
ta.e a))!%nt !* the *a)t that Cana+a +i+ n!t in)l%+e the imlementing De)ree re*erre+ t! in Arti)le &
!* the De)ree in the terms !* re*eren)e !* the Panel an+ that( )!nse-%entl/( n! *in+ing )!%l+ 0e ma+e
in this rese)t. Alth!%gh "e agree "ith the ,C that "e )ann!t rea)h an/ findings regar+ing the art !*
the De)ree !n eA)eti!ns( "e )!nsi+er that this is rimaril/ +%e t! the a0sen)e !* allegati!ns 0/
Cana+a regar+ing these eA)eti!ns. In this sense( !%r assessment is *%ll/ in )!mlian)e "ith the
ra)ti)e !* the Aellate 3!+/ !n interretati!n !* the terms !* re*eren)e *!r anels. On the !ther
han+( "e +! n!t )!nsi+er that the *a)t that the imlementing De)ree "as n!t se)i*i)all/ menti!ne+ in
the Panel's terms !* the re*eren)e re#ents %s *r!m ta.ing it int! a))!%nt "hen e#al%ating the legal
characterization !* the art !* the De)ree !n eA)eti!ns. I* this "ere the )ase( the legal
)hara)teriFati!n !* a meas%re )!%l+ +een+ !n the s)!e !* the terms !* re*eren)e +e*ine+ 0/ the
)!mlaining art/( "hi)h is %na))eta0le *r!m a legal !int !* #ie". It th%s aears ar!riate t! %s
t! )!nsi+er the De)ree in the light !* the imlementing meas%res it r!#i+es. @!r %s( the
imlementing +e)ree is a *a)t.
9
In a++iti!n( "e )an in*er its eAisten)e siml/ 0/ rea+ing the teAt !*
the De)ree. C!nse-%entl/( "e +! n!t )!nsi+er that "e ha#e eA)ee+e+ !%r terms !* re*eren)e 0/
e#al%ating the legal )hara)teriFati!n !* !ne art !* the De)ree in the light !* the *a)ts 0e*!re %s. We
are a"are that !%r e**!rts t! +e*ine the legal )hara)teriFati!n !* the eA)eti!ns in the De)ree might( at
*irst sight an+ in the a0sen)e !* )laims *r!m Cana+a( aear t! 0e an obiter dictum. Ne#ertheless( this
r!)e+%re "as ne)essar/ *!r t"! reas!nsB :a; it r!#i+es !siti#e )!n*irmati!n !* !%r anal/sis !* the
s)!e !* the T3T AgreementH an+ :0; it ermits a )!mrehensi#e anal/sis !* the elements !* the
De)ree( *%l*illing !%r !0ligati!n t! ma.e an !05e)ti#e eAaminati!n !* the *a)ts. We +i+ n!t there*!re
+eem it ne)essar/ t! amen+ the aragrahs in -%esti!n( eA)et *!r ara. 6.1:a;( in !r+er t! ma.e the
meaning !* !%r )!n)l%si!ns )learer in the light !* the )!mments a0!#e.
9
In this )!nne)ti!n( see the ar!a)h a+!te+ 0/ the Aellate 3!+/ in India Patent Protection for
Pharmaceutical and Agricultural Chemical Products, a+!te+ !n 17 $an%ar/ 1669( WT/DS5'/A3/R(
aras. 75877. See als! the Re!rt !* the Panel in United States Sections 301-310 of the rade Act of 1!"#,
a+!te+ !n &' $an%ar/ &'''( WT/DS15&/R( aras. 7.19 an+ 7.&587.&7.
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Page 139
7.15 In res!nse t! the ,C's )!mments an+ als! th!se !* Cana+a in its )!mm%ni)ati!n !*
1 $%l/ &'''( "e ha#e eAlaine+ in ara. 9.&73 !* the *inal Re!rt "h/ "e )!nsi+ere+ that the ris. !*
an e**e)ti#e in)rease in the )!st !* health meas%res *!ll!"ing ali)ati!n !* Arti)le GGIIIB1:0; t!
meas%res 5%sti*ie+ %n+er Arti)le GG:0; "!%l+ 0e marginal. We ha#e als! ma+e the last senten)e !*
ara. 9.&67 !* the *inal Re!rt )learer.
7.17 @inall/( the Panel )!nsi+ere+ it ne)essar/ t! a++ a aragrah )!n)erning the re-%est 0/ a n!n8
g!#ernmental !rganiFati!n( re)ei#e+ !n &7 $%ne &'''( t! 0e all!"e+ t! ma.e a "ritten s%0missi!n an+
t! 0e hear+ 0/ the Panel. 2!re!#er( 0earing in min+ the nat%re !* the )!mments 0/ the arties( the
Panel )!nsi+ere+ it ar!riate t! a++ a *!!tn!te t! ara. 9.35( t! re#ise *!!tn!tes 11 an+ 5'( an+ t!
amen+ the *irst senten)e !* ara. 9.193 !* the *inal Re!rt. The Panel has als! )lari*ie+ its )!mments
in aras. 9.&11 an+ 9.&11. Other )hanges !* *!rm ha#e 0een ma+e in !r+er t! ta.e int! a))!%nt the
)hange in the n%m0ering !* )ertain aragrahs. Dastl/( the Panel a+!te+ the "!r+ =eA)eti!ns= t!
+es)ri0e the regime ali)a0le %n+er Arti)les & et se$% !* the De)ree( in )!n*!rmit/ "ith the term %se+
in the De)ree itsel*.
IIIIIIIIIIIIIIIIIIII
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VIII. VIII. FINDINGS
A. SU22AR4 O@ TE, @ACTS AT TE, ORI<IN O@ TEIS DISPUT, AND CDAI2S 34 TE, PARTI,S
1. Measure at the origin of the dispute
9.1 The meas%re at the !rigin !* this +is%te is De)ree N!. 6781133 !* &1 De)em0er 1667( iss%e+
0/ the Prime 2inister !* the <!#ernment !* the @ren)h Re%0li)( 0anning as0est!s
1
( imlemente+
%rs%ant t! the Da0!%r C!+e an+ the C!ns%mer C!+e
&
:hereina*ter the =De)ree=;. The rele#ant
r!#isi!ns !* the De)ree are set !%t 0el!"B
3
&Article 1
I. @!r the %r!se !* r!te)ting "!r.ers( an+ %rs%ant t! Arti)le D. &3187 !* the Da0!%r C!+e(
the man%*a)t%re( r!)essing( sale( im!rt( la)ing !n the +!mesti) mar.et an+ trans*er %n+er an/ title
"hats!e#er !* all #arieties !* as0est!s *i0res shall 0e r!hi0ite+( regar+less !* "hether these s%0stan)es
ha#e 0een in)!r!rate+ int! materials( r!+%)ts !r +e#i)es.
II. @!r the %r!se !* r!te)ting )!ns%mers( an+ %rs%ant t! Arti)le D. &&1.3 !* the C!ns%mer
C!+e( the man%*a)t%re( im!rt( +!mesti) mar.eting( eA!rtati!n( !ssessi!n *!r sale( !**er( sale an+
trans*er %n+er an/ title "hats!e#er !* all #arieties !* as0est!s *i0res !r an/ r!+%)t )!ntaining as0est!s
*i0res shall 0e r!hi0ite+.
III. The 0ans instit%te+ %n+er Arti)les I an+ II shall n!t re#ent *%l*ilment !* the !0ligati!ns
arising *r!m legislati!n !n the eliminati!n !* "astes.
Article '
I. On an eA)eti!nal an+ tem!rar/ 0asis( the 0ans instit%te+ %n+er Arti)le 1 shall n!t al/ t!
)ertain eAisting materials( r!+%)ts !r +e#i)es )!ntaining )hr/s!tile *i0re "hen( t! er*!rm an
e-%i#alent *%n)ti!n( n! s%0stit%te *!r that *i0re is a#aila0le "hi)hB
8 On the !ne han+( in the resent state !* s)ienti*i) .n!"le+ge( !ses a lesser !))%ati!nal
health ris. than )hr/s!tile *i0re t! "!r.ers han+ling th!se materials( r!+%)ts !r +e#i)esH
8 !n the !ther( r!#i+es all te)hni)al g%arantees !* sa*et/ )!rres!n+ing t! the %ltimate %r!se
!* the %se there!*.
II. The s)!e !* ali)ati!n !* aragrah I !* this Arti)le shall )!#er !nl/ the materials( r!+%)ts
!r +e#i)es *alling "ithin the )ateg!ries sh!"n in an eAha%sti#e list +e)ree+ 0/ the 2inisters *!r Da0!%r(
C!ns%mti!n( the ,n#ir!nment( In+%str/( Agri)%lt%re an+ Trans!rt. T! as)ertain the 5%sti*i)ati!n *!r
maintaining these eA)eti!ns( the list shall 0e re8eAamine+ !n an ann%al 0asis( a*ter "hi)h the Seni!r
C!%n)il *!r the Pre#enti!n !* O))%ati!nal EaFar+s an+ the Nati!nal C!mmissi!n *!r O))%ati!nal
Eealth an+ Sa*et/ in Agri)%lt%re shall 0e )!ns%lte+.
1
In these *in+ings( the "!r+ =as0est!s= is %se+ t! +es)ri0e all #arieties !* as0est!s "ith!%t +istin)ti!n
:see aras. &.1 an+ &.& a0!#e *!r a +es)riti!n !* the r!+%)t;. =The Panel n!tes that( alth!%gh the !nl/ #ariet/
!* as0est!s re*erre+ t! 0/ Cana+a is )hr/s!tile as0est!s( De)ree N!. 6781133 +!es n!t +isting%ish am!ng the
+i**erent #arieties !* as0est!s. Onl/ Arti)le & !n eA)eti!ns se)i*i)all/ menti!ns )hr/s!tile *i0res.
C!nse-%entl/( "here#er ne)essar/( the Panel "ill in+i)ate "hether it is re*erring t! as0est!s in general !r
)hr/s!tile in arti)%lar.
&
(fficial )ournal of the *rench +e,ublic !* &7 De)em0er 1667.
3
The *%ll teAt !* the De)ree is atta)he+ t! this re!rt as AnneA I.
WT/DS135/R
Page 11'
Article 3
I. The man%*a)t%re( r!)essing( im!rtati!n an+ +!mesti) mar.eting !* an/ !* the materials(
r!+%)ts !r +e#i)es *alling int! !ne !* the )ateg!ries menti!ne+ !n the list en#isage+ %n+er Arti)le &
shall 0e s%05e)t t! a statement( signe+( as ar!riate( 0/ the hea+ !* the 0%siness esta0lishment( the
im!rter !r the art/ res!nsi0le *!r +!mesti) mar.eting( "hi)h sh!%l+ 0e a++resse+ t! the 2inister *!r
Da0!%r. This statement shall 0e *ile+ in $an%ar/ !* ea)h /ear !r( as ar!riate( three m!nths 0e*!re the
start !* a ne" a)ti#it/ !r the alterati!n !* an eAisting r!+%)ti!n a)ti#it/( 0/ means !* a *!rm +e)ree+
0/ the 2inisters *!r Da0!%r( C!ns%mti!n( In+%str/ an+ Agri)%lt%re.
The statement shall 0e a))!manie+ 0/ all the s%!rting +!)%ments in the !ssessi!n !* the
+e)laring art/ ma.ing it !ssi0le( )!nsi+ering the state !* s)ienti*i) an+ te)hn!l!gi)al r!gress( t!
+etermine that as !* the +ate !* signat%re !* the statement( the a)ti#it/ )!#ere+ 0/ the statement meets
the )!n+iti!ns set *!rth in Arti)le &.I.
II. A)ti#ities that ha#e n!t 0een the s%05e)t !* a *%ll statement s%0mitte+ "ithin the set time8
*rame ma/ n!t 0ene*it *r!m the eA)eti!n grante+ %n+er Arti)le &.
III. The 2inister *!r Da0!%r ma/ at all times )!n#e/ t! the a%th!r !* the statement s%)h
in*!rmati!n as ma/ seem t! him t! esta0lish that the material( r!+%)t !r +e#i)e in -%esti!n( alth!%gh
*alling int! !ne !* the )ateg!ries !n the list menti!ne+ in Arti)le &( +!es n!t meet the )!n+iti!ns lai+
+!"n in aragrah I !* that same Arti)le. A*ter re-%esting )!mments *r!m the +e)laring art/( he ma/
ser#e n!ti)e t! sai+ art/ t! )ease man%*a)t%re( r!)essing( im!rtati!n !r +!mesti) mar.eting an+ t!
!0ser#e the 0an instit%te+ %n+er Arti)le 1. Ee ma/ ma.e s%)h n!ti*i)ati!n %0li).
Article #
The man%*a)t%re an+ r!)essing !* the materials( r!+%)ts an+ +e#i)es *alling int! the
)ateg!ries !n the list menti!ne+ in Arti)le & !* this De)ree m%st )!n*!rm "ith the r%les lai+ +!"n
%n+er Chaters I an+ II an+ Chater III( Se)ti!n 1 !* the a*!rementi!ne+ De)ree +ate+
7 @e0r%ar/ 1666.
Da0elling an+ mar.ing shall )!n*!rm "ith the re-%irements !* Arti)le D. &3187 !* the Da0!%r
C!+e an+ the r%les esta0lishe+ 0/ the a*!rementi!ne+ De)ree +ate+ &9 Aril 1669.
1
Article -
With!%t re5%+i)e t! the ali)ati!n !* the enalties en#isage+ %n+er Arti)le D. &738& !* the
Da0!%r C!+e in the e#ent !* #i!lati!n !* the r!#isi!ns !* Arti)le 1.I !* this De)ree( the a)t !*
man%*a)t%ring( im!rting( intr!+%)ing int! the +!mesti) mar.et( eA!rting( !**ering( selling(
trans*erring %n+er an/ title !r !ssessing *!r sale all #arieties !* as0est!s *i0res !r an/ r!+%)t
)!ntaining as0est!s *i0res( in )!ntra#enti!n !* the r!#isi!ns !* Arti)le 1.II shall 0e %nisha0le 0/ the
*ine res)ri0e+ *!r *i*th

)lass !**en)es.
Article .
I. Arti)les 1( &( 3 an+ Arti)le 7.I !* the a0!#e8menti!ne+ De)ree N!. 998177 !* &9 Aril 1669
are here0/ reeale+.
5
II. In the *irst s%0aragrah !* Arti)le 1 !* the same De)ree( the "!r+sB '0ans en#isage+ in
Arti)le & a0!#e' shall 0e rela)e+ 0/ the "!r+B '0ans'.
III. In Arti)le 7.II !* the same De)ree( the "!r+sB '!ther than th!se en#isage+ %n+er Arti)le &'
shall 0e rela)e+ 0/ the "!r+sB '"hi)h are n!t s%05e)t t! 0ans'.
Article "
1
The ream0%lar aragrahs !* the De)ree ha#e n!t 0een in)l%+e+ here. The *%ll teAt !* the De)ree is
atta)he+ as AnneA I t! this Re!rt.
5
I0i+.
WT/DS135/R
Page 111
Until 31 De)em0er &''1 an+ !n a transiti!nal 0asis( the 0an !n !ssessi!n *!r sale( !**ering
*!r sale an+ trans*er %n+er an/ title shall n!t al/ t! the %se+ #ehi)les n!r t! the agri)%lt%ral !r
*!restr/ ma)hiner/ %t int! )ir)%lati!n 0e*!re the e**e)ti#e +ate !* this De)ree( an+ )!#ere+ 0/
Arti)le R.139 !* the Tra**i) Da". >J?=
7
9.& The De)ree entere+ int! *!r)e !n 1 $an%ar/ 1667.
4. Main cai!s "# the parties
$
:a; 2ain )laims 0/ Cana+a
9.3 Cana+a )laims( *irstl/ that the De)ree is a te)hni)al reg%lati!n )!#ere+ 0/ the Agreement !n
Te)hni)al 3arriers t! Tra+e.
9
As s%)h( it is in)!mati0le "ith aras. 1( &( 1 an+ 9 !* Arti)le & !* the
T3T Agreement.
9.1 Se)!n+l/( Cana+a )laims that the De)ree is in)!mati0le "ith Arti)les GI an+ IIIB1 !* the
<ATT 1661.
9.5 Dastl/( Cana+a re-%ests that( in the e#ent that the Panel is %na0le t! *in+ a #i!lati!n !*
Arti)le GGIIIB1:a; !* the <ATT 1661( it ne#ertheless *in+s that the r!#isi!ns !* Arti)le GGIIIB1:0; !*
the <ATT 1661 al/.
:0; 2ain )laims 0/ the ,%r!ean C!mm%nities
9.7 The ,%r!ean C!mm%nities
6
as. the Panel t! *in+ that the De)ree is n!t )!#ere+ 0/ the T3T
Agreement an+ that( in an/ )ase( it )!mlies "ith the rele#ant r!#isi!ns !* that Agreement.
9.7 With regar+ t! the <ATT 1661( the ,C re-%est the Panel t! )!n*irm that either the De)ree
+!es n!t esta0lish less *a#!%ra0le treatment *!r im!rte+ r!+%)ts than *!r li.e +!mesti) r!+%)ts
"ithin the meaning !* Arti)le IIIB1 !r that the De)ree is ne)essar/ t! r!te)t h%man health "ithin the
meaning !* Arti)le GG:0;. Dastl/( the ,C as. the Panel t! *in+ that Arti)le GGIIIB1:0; !* the
<ATT 1661 +!es n!t al/.
9.9 3e*!re g!ing *%rther int! the )laims 0/ the arties( "e m%st *irst re)all )ertain +e)isi!ns ta.en
in the )!%rse !* the r!)e+%re.
@. ISSU,S ON WEICE TE, PAN,D EAD TO TAK, A POSITION DURIN< TE, PROC,DUR,
1. Introduction
9.6 In the )!%rse !* the r!)e+%re( the Panel t!!. t"! +e)isi!ns "hi)h it )!nsi+ers sh!%l+ 0e
rer!+%)e+ as an integral art !* these *in+ings. These "ere :a; its +e)isi!n t! )!ns%lt s)ienti*i)
eAerts !n an in+i#i+%al 0asis ta.ing int! a))!%nt Arti)le 13.1 !* the Un+erstan+ing !n R%les an+
Pr!)e+%res <!#erning the Settlement !* Dis%tesH an+ :0; its +e)isi!n !n "hether !r n!t t! ta.e int!
a))!%nt =amicus curiae 0rie*s& re)ei#e+ +%ring the r!)e+%re.
4. %onsutation of e&perts
9.1' At the *irst s%0stanti#e meeting( the Panel in*!rme+ the arties !* its intenti!n t! see. the
!ini!n !* in+i#i+%al s)ienti*i) eAerts eA)et "here( in the light !* the arties' "ritten re0%ttals( it
7
Arti)les 9 an+ 6 !* the De)ree ha#e n!t 0een rer!+%)e+. The *%ll teAt !* the De)ree is atta)he+ as
AnneA I t! this re!rt.
7
The *%ll teAt !* the )laims 0/ the arties )an 0e *!%n+ in se)ti!n III.A a0!#e.
9
Eereina*ter the =T3T Agreement=.
6
Eereina*ter the =,C=.
WT/DS135/R
Page 11&
+eeme+ that s%)h a r!)e+%re "as n!t ne)essar/. Ea#ing )!ns%lte+ the arties an+ re)ei#e+ their
)!mments( the Panel +e)i+e+ t! )!ns%lt eAerts in+i#i+%all/( in a))!r+an)e "ith ara. 1 an+ the *irst
senten)e !* ara. & !* Arti)le 13 !* the Un+erstan+ing.
1'
The Panel's +e)isi!n "as rea**irme+ !n
& A%g%st 1666. The *!ll!"ing are the rele#ant arts !* its letterB
=>J? The Panel )are*%ll/ eAamine+ the arg%ments %t *!r"ar+ 0/ the arties )!n)erning the meth!+ !*
)!ns%lting eAerts( in arti)%lar the arg%ment !* the ,%r!ean C!mm%nities that Arti)le 13.& !* the
Un+erstan+ing re-%ires that( "hen )!ns%lting s)ienti*i) eAerts( there sh!%l+ 0e an eAert re#ie" gr!%
a))!r+ing t! the terms !* Aen+iA 1 t! the Un+erstan+ing.
We +ra" attenti!n t! Arti)le 13 !* the Un+erstan+ing "hi)h states inter alia that =ea)h anel shall ha#e
the right t! see. in*!rmati!n an+ te)hni)al a+#i)e *r!m an/ in+i#i+%al !r 0!+/ "hi)h it +eems
ar!riate= an+ =anels ma/ see. in*!rmati!n *r!m an/ rele#ant s!%r)e an+ ma/ )!ns%lt eAerts t!
!0tain their !ini!n !n )ertain ase)ts !* the matter.
We als! n!te that Arti)le 13.& r!#i+es that anels 'ma/' re-%est an a+#is!r/ re!rt in "riting *r!m an
eAert re#ie" gr!%( in arti)%lar 0%t n!t eA)l%si#el/ in !r+er t! )!nsi+er a *a)t%al iss%e )!n)erning a
s)ienti*i) matter. We )!nsi+er that this teAt all!"s the esta0lishment !* s%)h an eAert re#ie" gr!%
0%t +!es n!t re#ent eAerts 0eing )!ns%lte+ !n an in+i#i+%al 0asis "ith rese)t t! s)ienti*i) matters !r
an/ '!ther te)hni)al matter'. In !%r #ie"( this interretati!n !* Arti)le 13.& !* the Un+erstan+ing *%ll/
)!mlies "ith the teAt !* this r!#isi!n interrete+ a))!r+ing t! Arti)le 31 !* the Cienna C!n#enti!n !n
the Da" !* Treaties an+ the interretati!n !* the Aellate 3!+/ "here0/ Arti)le 13 !* the
Un+erstan+ing +!es n!t re#ent a anel *r!m )!ns%lting eAerts in+i#i+%all/ an+ lea#es the anel *ree
t! +etermine "hether it is ne)essar/ !r ar!riate t! esta0lish an eAert re#ie" gr!%.
11
The Panel als! t!!. a))!%nt !* the arg%ment !* the ,%r!ean C!mm%nities that( i* the meas%re in
-%esti!n sh!%l+ 0e )!nsi+ere+ as )!ming %n+er the T3T Agreement( "hi)h it )!ntests in an/ )ase(
Arti)le 11.& !* the Agreement "!%l+ mean that a te)hni)al eAert gr!% "!%l+ ha#e t! 0e )!ns%lte+ *!r
an/ s)ienti*i) !r te)hni)al -%esti!n( as "ell as the !siti!n !* the ,%r!ean C!mm%nities that this
r!#isi!n( %rs%ant t! Arti)le 1.& !* the Un+erstan+ing( "!%l+ re#ail !#er the r!#isi!ns in Arti)le 13
!* the Un+erstan+ing.
Arti)le 11.& !* the T3T Agreement is !ne !* the r!#isi!ns menti!ne+ in Aen+iA & t! the
Un+erstan+ing an+ "hi)h( a))!r+ing t! Arti)le 1.& !* the Un+erstan+ing( re#ails !#er the latter i* there
is an/ +i**eren)e 0et"een the t"!. We n!te( h!"e#er( that it is !nl/ 'i* there is an/ +i**eren)e' 0et"een
the r%les an+ r!)e+%res in the Un+erstan+ing an+ a se)ial !r a++iti!nal r%le !r r!)e+%re )!#ere+ 0/
Aen+iA & t! the Un+erstan+ing that the latter "!%l+ re#ail. As the Aellate 3!+/ has alrea+/
!inte+ !%t( it is !nl/ "hen the r!#isi!ns in the Un+erstan+ing an+ the se)ial !r a++iti!nal r%les an+
r!)e+%res in Aen+iA & cannot 0e )!nstr%e+ as com,lementar/ that the se)ial !r a++iti!nal r%les
"ill re#ail !#er th!se in the Un+erstan+ing( in !ther "!r+s( in a sit%ati!n "here the t"! r!#isi!ns
"!%l+ 0e m%t%all/ in)!mati0le.
1&
In this arti)%lar )ase( Arti)le 11.& !* the T3T Agreement r!#i+es
that a anel 'ma/' esta0lish a te)hni)al eAert gr!%. Di.e Arti)le 13.& !* the Un+erstan+ing( this teAt
all!"s the ,ossibilit/ !* esta0lishing an eAert gr!% an+ +etermines the r!)e+%res ali)a0le t! it(
"here ali)a0le. It +!es n!t h!"e#er ma.e the esta0lishment !* s%)h a gr!% man+at!r/ an+( in !%r
#ie"( this !ssi0ilit/ is n!t in)!mati0le "ith the !#erall !ssi0ilit/ gi#en in Arti)le 13 !* the
Un+erstan+ing !* )!ns%lting eAerts in+i#i+%all/. The t"! r!#isi!ns )an 0e seen as )!mlementar/.
1'
These )!mments )an 0e *!%n+ in aras. 5.& t! 5.17 a0!#e.
11
The letter )!ntains the *!ll!"ing n!teB =See the re!rts !* the Aellate 3!+/ in 0uro,ean
Communities 1easures Concerning 1eat and 1eat Products 23ormones4 :WT/DS&78DS19/A3/R( ara. 117
:'J in +is%tes in#!l#ing s)ienti*i) !r te)hni)al iss%es( neither Arti)le 11.& !* the SPS Agreement( n!r Arti)le 13
!* the DSU re#ents anels *r!m )!ns%lting "ith in+i#i+%al eAerts. Rather( 0!th the SPS Agreement an+ the
DSU lea#e t! the s!%n+ +is)reti!n !* a anel the +eterminati!n !* "hether the esta0lishment !* an eAert re#ie"
gr!% is ne)essar/ !r ar!riate.'; an+ in Argentina 1easures Affecting Im,orts of *oot5ear, e6tiles,
A,,arel and (ther Items :WT/DS57/A3/R;( ara. 91 :' J Arti)le 13 !* the DSU ena0les a anel t! see.
in*!rmati!n an+ te)hni)al a+#i)e as it +eems ar!riate in a arti)%lar )ase( an+ :J; the DSU lea#es 't! the
s!%n+ +is)reti!n !* a anel the +eterminati!n !* "hether the esta0lishment !* an eAert re#ie" gr!% is
ne)essar/ !r ar!riate'.=;.
1&
The letter )!ntains the *!ll!"ing n!teB =See the Re!rt !* the Aellate 3!+/ in 7uatemala Anti-
8um,ing In9estigation +egarding Portland Cement from 1e6ico :WT/DS7'/A3/R;( aras. 75 an+ 77.=
WT/DS135/R
Page 113
In this )ase( it aeare+ t! %s that )!ns%ltati!n !* eAerts !n an in+i#i+%al 0asis "as the m!st
ar!riate meth!+ inasm%)h as it "!%l+ 0e the m!st ar!riate "a/ !* all!"ing the Panel t! !0tain
%se*%l in*!rmati!n an+ !ini!ns !n the s)ienti*i) an+ te)hni)al iss%es raise+ 0/ this )ase. In #ie" !* the
"i+e #ariet/ !* *iel+s !* )!meten)e in#!l#e+( in arti)%lar( it aeare+ t! %s t! 0e re*era0le t! !0tain
+i**erent in*!rmati!n an+ !ini!ns in+i#i+%all/ rather than re-%esting a 5!int re!rt !n the #ari!%s
s)ienti*i) !r te)hni)al iss%es raise+.
>J?
In the light !* the *!reg!ing( "e emhasiFe that !%r +e)isi!n t! )!ns%lt eAerts in+i#i+%all/ is "ith!%t
re5%+i)e t! the -%esti!n !* the ali)a0ilit/ !* the T3T Agreement t! the meas%re in -%esti!n( !n
"hi)h the arties +isagree.=
9.11 The Panel rea**irms the +e)isi!n an+ the reas!ning in this letter.
'. Amicus curiae "riefs
9.1& In the )!%rse !* the r!)e+%re( the Panel re)ei#e+ "ritten s%0missi!ns !r =amicus curiae=
0rie*s *r!m *!%r s!%r)es !ther than 2em0ers !* the WTO.
13
Re*erring t! the !siti!n ta.en 0/ the
Aellate 3!+/ in United States Im,ort Prohibition of Certain Shrim, and Shrim, Products
1#
!n the
interretati!n !* Arti)le 13 !* the Un+erstan+ing )!n)erning amicus curiae 0rie*s( the Panel in*!rme+
the arties a))!r+ingl/ an+ transmitte+ the s%0missi!ns t! them. The ,C in)l%+e+ t"! !* these
s%0missi!ns in their !"n s%0missi!n. Ea#ing eAamine+ ea)h !* the amicus curiae 0rie*s( the Panel
+e)i+e+ t! ta.e int! a))!%nt the s%0missi!ns 0/ the Collegium +amazzini an+ the American
*ederation of :abor and Congress of Industrial (rganizations( as the/ ha+ 0een in)l%+e+ 0/ the ,C
in their !"n s%0missi!ns !n an e-%al *!!ting. At the se)!n+ meeting "ith the arties( Cana+a "as
gi#en an !!rt%nit/ t! res!n+ in "riting an+ !rall/ t! the arg%ments in the t"! amicus curiae
0rie*s.
9.13 On the !ther han+( the Panel +e)i+e+ n!t t! ta.e int! a))!%nt the amicus curiae 0rie*s
s%0mitte+ rese)ti#el/ 0/ the ;an Asbestos <et5or= an+ 0/ the Instituto 1e6icano de *ibro-
Industrias A%C% an+ in*!rme+ Cana+a an+ the ,C a))!r+ingl/ at the se)!n+ meeting "ith the arties
hel+ !n &1 $an%ar/ &'''.
9.11 On &7 $%ne &'''( the Panel re)ei#e+ a "ritten 0rie* *r!m the n!n8g!#ernmental !rganiFati!n
(<0 2&(nl/ <ature 0ndures&4 sit%ate+ in 2%m0ai( In+ia. In #ie" !* the r!#isi!ns in the
Un+erstan+ing !n the interim re#ie"( the Panel )!nsi+ere+ that this 0rie* ha+ 0een s%0mitte+ at a stage
in the r!)e+%re "hen it )!%l+ n! l!nger 0e ta.en int! a))!%nt. It there*!re +e)i+e+ n!t t! a))et the
re-%est !* (<0 an+ in*!rme+ the !rganiFati!n a))!r+ingl/. The Panel transmitte+ a )!/ !* the
+!)%ments re)ei#e+ *r!m (<0 t! the arties *!r in*!rmati!n an+ n!ti*ie+ them !* the +e)isi!n it ha+
ta.en. At the same time( it als! in*!rme+ the arties that the same +e)isi!n "!%l+ al/ t! an/ 0rie*s
re)ei#e+ *r!m n!n8g!#ernmental !rganiFati!ns 0et"een that !int an+ the en+ !* the r!)e+%re.
C. ORD,R IN WEICE TE, PAN,D ,GA2IN,D TE, CDAI2S
9.15 The Panel n!tes that Cana+a )!nsi+ers that the T3T Agreement is ali)a0le t! the De)ree
0e)a%se the De)ree is a =te)hni)al reg%lati!n= )!#ere+ 0/ the Agreement. The ,C( !n the !ther han+(
)!nsi+er that the De)ree is n!t a te)hni)al reg%lati!n( that the T3T Agreement +!es n!t al/ t! it an+
that it sh!%l+ 0e )!nsi+ere+ in the )!nteAt !* the <ATT 1661 al!ne.
13
See aras. 7.187.3 a0!#e.
11
A+!te+ !n &' Setem0er 1666( WT/DS59/A3/R :hereina*ter =United States Shrim,&;(
aras. 1'181'6. See als! the re!rt !* the Aellate 3!+/ in United States Im,osition of Counter9ailing
8uties on Certain 3ot-+olled :ead and ;ismuth Carbon Steel Products (riginating in the United >ingdom(
a+!te+ !n 7 $%ne &'''( WT/DS/139/A3/R( aras. 1'81&.
WT/DS135/R
Page 111
9.17 We n!te that the 2arra.esh Agreement ,sta0lishing the W!rl+ Tra+e OrganiFati!n
15
)!nstit%tes a single treat/ instr%ment that "as a))ete+ 0/ the WTO 2em0ers as a =single
%n+erta.ing=
17
"ithin "h!se *rame"!r. all the ali)a0le r!#isi!ns m%st 0e gi#en meaning.
17
3!th
the <ATT 1661 an+ the T3T Agreement *!rm art !* AnneA 1A t! the WTO Agreement an+ ma/
al/ t! the meas%res in -%esti!n. C!nse-%entl/( alth!%gh "e +! n!t in rin)ile eA)l%+e ali)ati!n
!* the T3T Agreement an+/!r the <ATT 1661 t! the De)ree( "e ha#e t! +etermine the !r+er in "hi)h
"e sh!%l+ )!nsi+er this )ase. A))!r+ing t! the Aellate 3!+/ in 0uro,ean Communities +egime
for the Im,ortation, Sale and 8istribution of ;ananas
1?
, "hen the <ATT 1661 an+ an!ther Agreement
in AnneA 1A aear a ,riori t! al/ t! the meas%re in -%esti!n( the latter sh!%l+ 0e eAamine+ !n the
0asis !* the Agreement that +eals =se)i*i)all/( an+ in +etail(= "ith s%)h meas%res. In this arti)%lar
)ase( as the arties +! n!t agree !n the legal nat%re !* the meas%re itsel* :te)hni)al reg%lati!n )!#ere+
0/ the T3T Agreement !r general 0an )!ming %n+er the s)!e !* the <ATT 1661 al!ne;( it is +i**i)%lt
at this stage t! +etermine "hi)h Agreement( either the <ATT 1661 !r the T3T Agreement( +eals "ith
the meas%re in -%esti!n m!st se)i*i)all/ an+ in the m!st +etaile+ manner "ith!%t %n+erta.ing an in8
+eth eAaminati!n !* the meas%re in the light !* ea)h Agreement.
9.17 In !r+er t! +e)i+e %!n the !r+er in "hi)h !%r )!nsi+erati!n sh!%l+ r!)ee+( in the "a/
s%ggeste+ 0/ the Aellate 3!+/( the h/!thesis sh!%l+ 0e that( i* the De)ree is a =te)hni)al
reg%lati!n= "ithin the meaning !* the T3T Agreement( then the latter "!%l+ +eal "ith the meas%re in
the m!st se)i*i) an+ m!st +etaile+ manner. C!nse-%entl/( in !%r #ie" it m%st *irst 0e +etermine+
"hether the De)ree is a te)hni)al reg%lati!n "ithin the meaning !* the T3T Agreement. I* this is the
)ase( "e shall start )!nsi+ering this )ase 0/ eAamining the "a/s in "hi)h the De)ree #i!lates the T3T
Agreement. I* "e *in+ that the De)ree is n!t a =te)hni)al reg%lati!n=( "e shall then imme+iatel/ start
t! )!nsi+er it in the )!nteAt !* the <ATT 1661.
D. APPDICA3IDIT4 O@ TE, T3T A<R,,2,NT TO TE, D,CR,,
1. (rgu!ents of the parties and approach adopted "# the )ane
:0; Arg%ments !* the arties )!n)erning the ali)a0ilit/ !* the T3T Agreement t! the De)ree
16
9.19 Cana+a )!nsi+ers that the De)ree is a =te)hni)al reg%lati!n= "ithin the meaning !* the
+e*initi!n gi#en in AnneA 1 t! the T3T Agreement. The ,C )!nsi+er that the De)ree +!es n!t )!me
%n+er the +e*initi!n !* a te)hni)al reg%lati!n in the T3T Agreement.
9.16 The *!ll!"ing is the +e*initi!n !* =te)hni)al reg%lati!n= in AnneA 1.1 t! the T3T AgreementB
=1. echnical regulation
D!)%ment "hi)h la/s +!"n r!+%)t )hara)teristi)s !r the relate+ r!)esses an+ r!+%)ti!n meth!+s(
in)l%+ing the ali)a0le a+ministrati#e r!#isi!ns( "ith "hi)h )!mlian)e is man+at!r/. It ma/ als!
in)l%+e !r +eal eA)l%si#el/ "ith termin!l!g/( s/m0!ls( a).aging( mar.ing !r la0elling re-%irements as
the/ al/ t! a r!+%)t( r!)ess !r r!+%)ti!n meth!+.=
15
Eereina*ter =the WTO Agreement=. Re*eren)e "ill als! 0e ma+e in these *in+ings t! the 2arra.esh
Agreement ,sta0lishing the W!rl+ Tra+e OrganiFati!n "ith!%t its AnneAes %sing the "!r+s =Agreement
,sta0lishing the WTO=. The "!r+s =WTO Agreements= re*er t! the Agreements anneAe+ t! the Agreement
,sta0lishing the WTO.
17
See the Re!rt !* the Aellate 3!+/ in ;razil 1easures Affecting 8esiccated Coconut( a+!te+ !n
&' 2ar)h 1667( WT/DS&&/A3/R :hereina*ter =;razil 8esiccated Coconut=;( . 1& an+ 13.
17
See the Re!rts !* the Aellate 3!+/ in ;razil 8esiccated Coconut( !. )it. . 17 an+ 17H
Argentina Safeguard 1easures on Im,orts of *oot5ear( :hereina*ter =Argentina Safeguards=; a+!te+ !n
13 $an%ar/ &'''( WT/DS/1&1/A3/R( ara. 96.
19
A+!te+ !n &5 Setem0er 1667( WT/DS&7/A3/R( hereina*ter =0uro,ean Communities ;ananas&,
ara. &'1%
16
The arties' arg%ments are set !%t in +etail in Se)ti!n III a0!#e.
WT/DS135/R
Page 115
9.&' Cana+a )!nten+s that the De)ree )!nsi+ers that all as0est!s *i0res an+ all materials( r!+%)ts
!r +e#i)es )!ntaining s%)h *i0res !se ris.s *!r e!le's health. The De)ree is a =te)hni)al reg%lati!n=
in arti)%lar 0e)a%se it la/s +!"n a )hara)teristi) !* a r!+%)t( a r!)ess an+ a r!+%)ti!n meth!+( as
"ell as a+ministrati#e r!#isi!ns ali)a0le t! a r!+%)t.
9.&1 Re*erring t! the +e*initi!n !* =te)hni)al reg%lati!n= in AnneA 1 t! the T3T Agreement(
Cana+a )!nsi+ers that the !r+inar/ meaning !* the "!r+ =)hara)teristi)= is =that "hi)h )!nstit%tes a
re)!gniFa0le +istin)ti#e *eat%re=. The De)ree +es)ri0es a re)!gniFa0le +istin)ti#e *eat%re 0e)a%se it
0ans as0est!s *i0re( arti)%larl/ )hr/s!tile( in the man%*a)t%ring an+ r!)essing !* materials( r!+%)ts
!r +e#i)es la)e+ !n the @ren)h mar.et. The )hara)teristi) !* these materials( r!+%)ts an+ +e#i)es is
the a0sen)e !* as0est!s *i0res. The De)ree in+i)ates re)isel/ !r +es)ri0es the *eat%res !* the
materials( r!+%)ts !r +e#i)es in "h!se man%*a)t%re !r r!)essing the in)!r!rati!n !* as0est!s is
r!hi0ite+. The De)ree re*ers t! the r!)essing !* all as0est!s *i0res( "hether !r n!t in)l%+e+ in
r!+%)ts. 3/ s! +!ing( it im!ses restri)ti!ns !n the r!)esses an+ r!+%)ti!n meth!+s *!r as0est!s
*i0res. 2!re!#er( the De)ree sti%lates that man%*a)t%ring a)ti#ities are s%05e)t t! the stan+ar+s
g!#erning eA!s%re t! as0est!s +%st in la)es !* 0%siness an+ this im!ses a man%*a)t%ring r!)ess.
It in)l%+es a+ministrati#e r!#isi!ns an+ a +e)larati!n me)hanism ali)a0le t! r!+%)ts "hi)h(
eA)eti!nall/( )!ntain )hr/s!tile *i0re. Dastl/( the De)ree als! +eals "ith la0elling re-%irements an+
its rin)ial r!#isi!ns are 0in+ing.
9.&& The ,C )laim that the De)ree )ann!t 0e )!nstr%e+ as a =te)hni)al reg%lati!n= "ithin the
meaning !* the T3T Agreement 0e)a%se the latter +!es n!t )!#er general r!hi0iti!ns !n the %se !* a
r!+%)t *!r reas!ns t! +! "ith the r!te)ti!n !* h%man health( "hi)h )!me %n+er the <ATT 1661. It
*!ll!"s *r!m the ream0le( *r!m the 0a).gr!%n+ t! the T3T Agreement an+ *r!m the a)t%al "!r+ing
!* se#eral !* its r!#isi!ns that the *%n+amental !05e)ti#e !* the Agreement is t! m!nit!r the a+!ti!n
an+ ali)ati!n !* the =stan+ar+s= an+ =te)hni)al reg%lati!ns= that relate t! the +etaile+ )hara)teristi)s
!* r!+%)ts !r their meth!+s !* r!+%)ti!n :e.g. the minim%m resistan)e le#el *!r seat80elts;. The
+e*initi!n in AnneA 1 means that the T3T Agreement +!es n!t al/ t! the De)ree 0e)a%se( a))!r+ing
t! this +e*initi!n( a te)hni)al reg%lati!n is a +!)%ment "hi)h la/s +!"n the )hara)teristi)s !r
r!)esses !r r!+%)ti!n meth!+s "ith "hi)h a se)i*i)/i+enti*ie+ r!+%)t m%st )!ml/( in arti)%lar i*
it is t! 0e release+ *!r *ree )ir)%lati!n !n a gi#en mar.et.
9.&3 @!r the ,C( an/ !ther ar!a)h "!%l+ 0e e-%i#alent t! n%lli*/ing the e**e)t !* )ertain
r!#isi!ns !* the <ATT 1661( *!r eAamle( Arti)les I an+ III( "hi)h al/ t! general r!hi0iti!ns.
The T3T Agreement m%st 0e )!nsi+ere+ as the se)i*i) ali)ati!n !* the rin)iles !* the <ATT
1661 t! te)hni)al reg%lati!ns. The De)ree r!hi0its as0est!s *i0res at all stages. It +!es n!t se)i*/
the )hara)teristi)s( the r!)esses !r r!+%)ti!n meth!+s *!r as0est!s *i0res an+ as0est!s8)!ntaining
r!+%)ts !r the r!+%)ts eAemt *r!m the r!hi0iti!n meas%re. The ,C +! n!t )!nsi+er that the *a)t
!* n!t )!ntaining as0est!s ser#es t! )hara)teriFe r!+%)ts la)e+ !n the @ren)h mar.et. @!r the
De)ree t! 0e a0le t! la/ +!"n the =)hara)teristi)s= !* a r!+%)t( it "!%l+ ha#e ha+ t! i+enti*/ the
r!+%)t:s; t! "hi)h the sai+ )hara)teristi)s relate. The De)ree( h!"e#er( +!es n!t +esignate an/
r!+%)t. It la/s +!"n the rin)ile !* r!hi0iti!n. As regar+s the =r!)esses an+ meth!+s=( the ,C
emhasiFe that the De)ree +!es n!t la/ +!"n an/ means !r set !* r%les g!#erning the r!+%)ti!n !*
as0est!s *i0res !r r!+%)ts )!ntaining them.
9.&1 In Cana+a's #ie"( in)l%+ing a general r!hi0iti!n "ithin the s)!e !* the T3T Agreement is
)!ntrar/ neither t! its !05e)t n!r its %r!se. The +istin)ti!n ma+e 0/ the ,C 0et"een r!hi0iti!ns
that al/ t! all r!+%)ts "ith!%t +istin)ti!n an+ meas%res aime+ arti)%larl/ at a se)i*i) r!+%)t is
n!t s%!rte+ 0/ the T3T Agreement. The ,C's interretati!n is )!ntrar/ t! the rin)ile !*
e**e)ti#enessB it "!%l+ s%**i)e t! gi#e a meas%re the *!rm !* a general r!hi0iti!n in !r+er t! all!" it
t! e#a+e the +is)ilines !* the T3T Agreement. Cana+a als! )!nsi+ers that( in !r+er t! +etermine
"hether the De)ree satis*ies the )riteria *!r the +e*initi!n !* a =te)hni)al reg%lati!n=( its r!#isi!ns !n
0!th as0est!s an+ eA)eti!ns m%st 0e eAamine+.
WT/DS135/R
Page 117
9.&5 @!r the ,C( the *a)t that the +e*initi!n !* =te)hni)al reg%lati!n= is narr!" is n!t a matter !*
)han)e( 0%t signi*ies that the a%th!rs inten+e+ t! limit the s)!e !* the Agreement. The !05e)t an+
%r!se !* the T3T Agreement is t! +eal "ith te)hni)al reg%lati!ns an+ stan+ar+s( n!t t! res!l#e
mar.et a))ess r!0lems ass!)iate+ "ith general r!hi0iti!ns. This +!es n!t res%lt in a legal #a)%%m
0e)a%se the general r!hi0iti!ns )!ntin%e t! 0e )!#ere+ 0/ !ther r!#isi!ns( in arti)%lar Arti)les I
an+ III !* the <ATT 1661. The general r!hi0iti!n eliminates these r!+%)ts *r!m the mar.et. A
te)hni)al reg%lati!n( !n the !ther han+( means that the r!+%)ts a**e)te+ 0/ the reg%lati!n )an still 0e
la)e+ !n the mar.et. ,#en in the )ase !* limite+ an+ transiti!nal eA)eti!ns( the s!le re!))%ati!n
!* the @ren)h a%th!rities has 0een t! r!te)t h%man health. The De)ree +!es n!t +e*ine either the
r!)esses an+ r!+%)ti!n meth!+s *!r the r!+%)ts that ma/ 0e eAemte+ *r!m the general r!hi0iti!n
a+!te+. The r!#isi!ns !* the De)ree )!n)erning eA)eti!ns( there*!re( +! n!t *all "ithin the s)!e
!* the T3T Agreement either.
9.&7 Cana+a )laims that the *a)t that the De)ree -%ali*ies as a =te)hni)al reg%lati!n= is )!n*irme+
0/ @ran)e's n!ti*i)ati!n t! the C!mmittee !n Te)hni)al 3arriers t! Tra+e. A))!r+ing t! Cana+a(
@ran)e there0/ re)!gniFe+ the ali)a0ilit/ !* the T3T Agreement in t! the De)ree. The ,C als!
re)!gniFe+ the ali)a0ilit/ !* the T3T Agreement in a +!)%ment *r!m the ,%r!ean C!mmissi!n
an+ +%ring the )!ns%ltati!ns relating t! this )ase.
9.&7 A))!r+ing t! the ,C( the *a)t that the De)ree "as n!ti*ie+ t! the C!mmittee !n Te)hni)al
3arriers t! Tra+e in n! "a/ re5%+ges the ali)a0ilit/ !* the Agreement. The n!ti*i)ati!n "as ma+e
in g!!+ *aith *!r the sa.e !* transaren)/. An/ !ther interretati!n "!%l+ )reate a++iti!nal
!0ligati!ns *!r 2em0ers an+ "!%l+ in+%)e them t! +is)!ntin%e( !r at least re+%)e( n!ti*i)ati!ns.
:0; Ar!a)h *!ll!"e+ 0/ the Panel
2i4 Criteria for the a,,lication of the ; Agreement
9.&9 The Panel )!nsi+ers that( *!r the T3T Agreement t! al/ t! the De)ree( the meas%res
im!se+ %n+er the De)ree m%st )!me "ithin the +e*initi!n !* =te)hni)al reg%lati!n= in AnneA 1.1 t!
the T3T Agreement.
&'
On the 0asis !* the arg%ments %t *!r"ar+ 0/ Cana+a an+ the ,C( it aears
that the arties share this #ie". The Panel "ill there*!re eAamine this +e*initi!n.
9.&6 A))!r+ing t! Arti)le 3.& !* the Un+erstan+ing( the Panel m%st )lari*/ the terms !* the WTO
Agreement in a))!r+an)e "ith )%st!mar/ r%les !* interretati!n !* %0li) internati!nal la"( m!re
arti)%larl/ th!se set !%t in Arti)les 31( 3& an+ 33 !* the 1676 Cienna C!n#enti!n !n the Da" !*
Treaties.
&1
The Panel "ill there*!re *irst )!nsi+er the !r+inar/ meaning t! 0e gi#en in g!!+ *aith t!
the "!r+ing !* the +e*initi!n !* =te)hni)al reg%lati!n= in AnneA 1 t! the T3T Agreement( ta.en in
)!nteAt an+ in the light !* the !05e)t an+ %r!se !* the T3T Agreement an+ the WTO Agreement in
general. I* ne)essar/( a++iti!nal "a/s !* interreting Arti)le 3& "ill 0e ta.en int! a))!%nt. As the
WTO Agreement is a treat/ "ith a%thenti) teAts in three lang%ages( it is als! im!rtant t! 0ear in min+
the sirit %n+erl/ing the r!#isi!ns !* Arti)le 33.
&&
&'
The "!r+ing !* the +e*initi!n is gi#en in aragrah 9.19 a0!#e.
&1
Unite+ Nati!ns D!)%ment A/CON@. 36/&7 :1676;. Eereina*ter the =Cienna C!n#enti!n=.
&&
The Panel als! n!tes the im!rtan)e atta)he+ 0/ the Aellate 3!+/ t! the rin)ile !* e**e)ti#eness
:ut res magis 9aleat $uam ,ereat4 )!n)erning the interretati!n !* the r!#isi!ns !* the WTO Agreement in
se#eral )ases :see( *!r eAamle( United States Standards for +eformulated and Con9entional 7asoline,
a+!te+ !n &' 2a/ 1667( WT/DS7'/A3/R :hereina*ter =United States 7asoline&;( !. )it.( .19 an+ &3H
7uatemala Cement, !. )it.( ara. 75H Argentina Safeguards, !. )it%, ara. 99. The Panel als! n!tes in the
+e,orts of the Commission to the 7eneral Assembl/, @earboo= of the International :a5 Commission, 1677(
C!l%me II( A/CN.1/S,R.A/1677/A++.1( . &16( that the Internati!nal Da" C!mmissi!n in+i)ates thatB
=>J? in s! *ar as the maAim ut res magis 9aleat $uam ,ereat re*le)ts a tr%e general r%le !*
interretati!n( it is em0!+ie+ in Arti)le >31?( aragrah 1( "hi)h re-%ires that a treat/ shall 0e
interrete+ in good faith in a))!r+an)e "ith the !r+inar/ meaning t! 0e gi#en t! its terms in the )!nteAt
WT/DS135/R
Page 117
2ii4 8ifferentiation among the ,rohibitions as such and the e6ce,tions
9.3' We n!te that Cana+a )laims that the eA)eti!ns t! the 0an !n as0est!s in the De)ree )!n*irm
that the latter is a te)hni)al reg%lati!n. The ,C state that neither the r!#isi!ns !n eA)eti!ns n!r the
r!hi0iti!n itsel* are )!#ere+ 0/ the T3T Agreement.
9.31 N!t"ithstan+ing the *a)t that the main %r!se !* the De)ree is t! 0an the %se !* as0est!s in
@ran)e( "e n!te that the teAt is essentiall/ )!m!se+ !* a general r!hi0iti!n !n the !ne han+
:Arti)les 1 an+ 5; an+( !n the !ther( eA)eti!ns( in)l%+ing the a+ministrati#e regime ali)a0le t!
them :Arti)les &81;. It m%st there*!re 0e +etermine+ "hether "e sh!%l+ eAamine the r!hi0iti!ns an+
eA)eti!ns as !ne single meas%re !r as searate meas%res that might )!me %n+er +i**erent
Agreements.
9.3& We n!te *irst !* all that it is !ssi0le *!r se#eral )!m!nents !* the same a+ministrati#e a)t t!
0e )!#ere+ 0/ a single Agreement !r 0/ +i**erent Agreements. While it is the res!nsi0ilit/ !* the
arties t! r!#e the *a)ts the/ )laim
&3
( it is "ithin the )!meten)e an+ is !ne !* the +%ties !* the Panel
t! +etermine the la" ali)a0le t! the *a)ts( "ith the hel !* the arties' arg%ments.
&1
N!thing
there*!re re#ents the Panel *r!m eAamining the De)ree as a single an+ %ni-%e meas%re( i* it 0elie#es
there are legal gr!%n+s *!r this. Di.e"ise( i* the Panel )!nsi+ers that )ertain r!#isi!ns !* the De)ree
are )!#ere+ 0/ r!#isi!ns !* the WTO Agreement !ther than th!se ali)a0le t! the rest !* the
De)ree( n!thing re#ents it *r!m )!nsi+ering these r!#isi!ns in the light !* th!se !ther r!#isi!ns !*
the WTO Agreement.
&5
9.33 C!nse-%entl/( "ith!%t ta.ing an/ +e)isi!n at this stage !n the %ltimate nee+ *!r a searate
st%+/ !* the t"! arts !* the De)ree L "e might in *a)t rea)h the )!n)l%si!n that 0!th arts ha#e the
same legal )hara)teriFati!n !r that !ne sh!%l+ 0e )!nsi+ere+ as s%lementing the !ther L "e )!nsi+er
that there sh!%l+ 0e a searate eAaminati!n !* the r!#isi!ns se)i*i)all/ )!n)erning the 0an !n
as0est!s an+ the r!#isi!ns !n eA)eti!ns in !r+er t! ma.e !%r anal/sis )learer. We shall there*!re
*irst )!nsi+er the ali)a0ilit/ !* the +e*initi!n !* =te)hni)al reg%lati!n= in AnneA 1 t! the T3T
Agreement t! the r!#isi!ns !* the De)ree !n the r!hi0iti!n. On the 0asis !* these )!n)l%si!ns( "e
shall then )!nsi+er the legal nat%re !* the eA)eti!ns an+ an/ e**e)t the/ ma/ ha#e !n the legal stat%s
!* the De)ree as a "h!le.
!* the treat/ and in the light of its obAect and ,ur,ose. When a treat/ is !en t! t"! interretati!ns !ne
!* "hi)h +!es an+ the !ther +!es n!t ena0le the treat/ t! ha#e ar!riate e**e)ts( g!!+ *aith an+ the
!05e)t an+ %r!ses !* the treat/ +eman+ that the *!rmer interretati!n sh!%l+ 0e a+!te+.= >Itali)s in
the !riginal.?
&3
See the re!rt !* the Aellate 3!+/ in United States 1easures Affecting Im,orts of Bo9en Bool
Shirts and ;louses from India( a+!te+ !n &3 2a/ 1667( WT/DS33/A3/R :hereina*ter =United States Shirts
and ;louses=;( . 11 an+ Se)ti!n CIII.,.1:0; 0el!".
&1
The Panel is n!t( h!"e#er( !0lige+ t! 0ase itsel* s!lel/ !n the arg%ments !* the arties. See the re!rt
!* the Aellate 3!+/ in 0C 1easures Concerning 1eat and 1eat Products 23ormones4, ado,ted on
13 *ebruar/ 1!!?, BC8S'.CA;C+, BC8S#?CA;C+ 2hereinafter =0uro,ean Communities 3ormones&4,
ara. 157B
=Panels are inhi0ite+ *r!m a++ressing legal )laims *alling !%tsi+e their terms !* re*eren)e. E!"e#er(
n!thing in the DSU limits the *a)%lt/ !* a anel *reel/ t! %se arg%ments s%0mitte+ 0/ an/ !* the
arties L !r t! +e#el! its !"n legal reas!ning L t! s%!rt its !"n *in+ings an+ )!n)l%si!ns !n the
matter %n+er its )!nsi+erati!n. A anel might "ell 0e %na0le t! )arr/ !%t an !05e)ti#e assessment !*
the matter( as man+ate+ 0/ Arti)le 11 !* the DSU( i* in its reas!ning it ha+ t! restri)t itsel* s!lel/ t!
arg%ments resente+ 0/ the arties t! the +is%te.=
See als! the Re!rt !* the Panel in United States Sections 301-310 of the rade Act of 1!"#( a+!te+
!n &7 $an%ar/ &'''( WT/DS15&/R( ara. 7.17.
&5
With regar+ t! the r!#isi!ns "hi)h the Panel m%st ta.e int! a))!%nt "hen )!nsi+ering the De)ree(
the Panel is !* )!%rse limite+ 0/ the r!#isi!ns in its terms !* re*eren)e :see the Re!rt !* the Aellate 3!+/ in
0uro,ean Communities ;ananas, !. )it%, ara. 111;.
WT/DS135/R
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*. Is the Decree a technica reguation +ithin the !eaning of the T,T (gree!ent-
:a; ,Aaminati!n !* the art !* the De)ree r!hi0iting the mar.eting !* as0est!s an+ as0est!s8
)!ntaining r!+%)ts
2ii4 Preliminar/ remar=s
9.31 Cana+a %ts *!r"ar+ its arg%ments in general in relati!n t! )hr/s!tile *i0res an+ r!+%)ts
)!ntaining )hr/s!tile *i0res :mainl/ )hr/s!tile8)ement r!+%)ts;. Alth!%gh Cana+a )laims that
)hr/s!tile *i0re is siml/ an in%t in !ther r!+%)ts an+ is !* n! %se ,er se( "e )!nsi+er that it is a
r!+%)t. In !%r eAaminati!n !* the ali)a0ilit/ !* the T3T Agreement t! the De)ree( there is n!
reas!n t! treat )hr/s!tile *i0re +i**erentl/ t! r!+%)ts )!ntaining )hr/s!tile.
9.35 The Panel n!tes that the meas%re at iss%e in this )ase is a general 0an eA)l%+ing a gi#en
r!+%)t *r!m the @ren)h mar.et as s%)h !r "hen it is in)!r!rate+ in !ther r!+%)ts n!t se)i*ie+ in
the De)ree. C!nse-%entl/( the Panel "ishes t! emhasiFe that its *in+ings regar+ing the s)!e !* the
)!n)et !* te)hni)al reg%lati!n in the )!nteAt !* the T3T Agreement are lin.e+ t! the se)i*i)ities !*
the meas%re in -%esti!n an+ in n! "a/ re5%+ge the )!n)l%si!ns that an/ !ther anel might rea)h
)!n)erning the same r!#isi!ns !* the T3T Agreement in !ther *a)t%al )ir)%mstan)es.
&7
2ii4 Anal/sis
Or+inar/ meaning !* the terms in the +e*initi!n in AnneA 1 t! the T3T Agreement
9.37 The Panel n!tes *irst !* all that the +e*initi!n !* =te)hni)al reg%lati!n= relates t! the
)hara)teristi)s !* a r!+%)t !r its r!)esses !r r!+%)ti!n meth!+s. The Panel n!tes that the +e*initi!n
%ses the "!r+ ,roduct. Al/ing the rin)ile !* e**e)ti#eness
&7
( "e m%st ass%me that there "as a
se)i*i) %r!se %n+erl/ing the %se !* the "!r+ =r!+%)t= in the +e*initi!n in AnneA 1.1 t! the T3T
Agreement an+ that it +!es n!t aear 0/ )han)e.
&9
9.37 An initial eAlanati!n might 0e that the a%th!rs "ishe+ t! in+i)ate that this +e*initi!n relate+
t! r!+%)ts rather than ser#i)es( *!r eAamle. E!"e#er( as the T3T Agreement is in AnneA 1A t! the
WTO Agreement( "hi)h +eals "ith tra+e in g!!+s( se)i*/ing that the +e*initi!n alies t! r!+%)ts
"as n!t ne)essar/.
&6
2!re!#er( it is !ssi0le t! +e*ine a te)hni)al reg%lati!n ali)a0le t! r!+%)ts
"ith!%t se)i*i)all/ %sing the "!r+ =r!+%)t=. As an eAamle( "e n!te that aragrah 3.5.1 !* the
ISO <%i+e/I,C &B1661 )!ntains a +e*initi!n !* the "!r+s =te)hni)al reg%lati!n= that +!es n!t eml!/
the "!r+ =r!+%)t=.
3'
We there*!re )!nsi+er that the a%th!rs "hen %sing the "!r+ =r!+%)t= "ere
%rs%ing an!ther !05e)ti#e.
9.39 An!ther interretati!n "!%l+ 0e that the %r!se s!%ght 0/ intr!+%)ing the "!r+ =r!+%)t=
"as t! )reate a lin. 0et"een the te)hni)al )hara)teristi)s an+ !ne !r m!re gi#en r!+%)ts. In !ther
&7
This is re)isel/ "h/ !%r anal/sis la/s greater emhasis !n the )hara)teristi)s !* the r!+%)t than !n
the r!)ess an+ r!+%)ti!n meth!+s.
&7
See *!!tn!te && a0!#e !n ali)ati!n !* the rin)ile !* interretati!n ut res magis 9aleat $uam
,ereat.
&9
See the Re!rt !* the Aellate 3!+/ in 0uro,ean Communities 3ormones, !. )it%, ara. 171.
&6
Alth!%gh the title !* AnneA 1A is =2%ltilateral Agreements !n Tra+e in <!!+s= :emhasis a++e+;(
"e n!te that the Agreement !n Agri)%lt%re %ses the "!r+ =r!+%)ts=( as +! the Agreement !n TeAtiles an+
Cl!thing an+ !ther Agreements in AnneA 1A. The s)!e !* AnneA 1A there*!re )!#ers tra+e in =r!+%)ts=. See
als! the Re!rt !* the Panel in United States +estrictions on Im,orts of una( %na+!te+( DS&1/R(
3 Setem0er 1661( ara. 5.11B =J Arti)le III )!#ers !nl/ meas%res a**e)ting r!+%)ts as s%)h=.
3'
The +e*initi!n in ara. 3.5.1 !* the ISO/I,C <%i+e <eneral C!)a0%lar/ C!n)erning Stan+ar+iFati!n
an+ Relate+ A)ti#ities rea+s as *!ll!"sB
=..'.1 technica reguation/ reguation that r!#i+es te)hni)al re0uire!ents( either +ire)tl/ !r 0/
re*erring t! !r in)!r!rating the )!ntent !* a standard( technica specification !r code of practice= :in
0!l+ in the !riginal( n!te !mitte+;
WT/DS135/R
Page 116
"!r+s( the r!+%)t:s; t! "hi)h the )hara)teristi)s re*er m%st 0e )learl/ i+enti*ia0le in the +!)%ment in
-%esti!n. I*( in the +!)%ment( the )hara)teristi)s +es)ri0e+ +! n!t re*er t! an i+enti*ia0le ,roduct(
the +!)%ment +!es n!t meet the )riteria in AnneA 1.1 t! the T3T Agreement.
31
We )!nsi+er that this
interretati!n is 0etter a0le t! gi#e a r!er meaning t! the "!r+ =r!+%)t= in the +e*initi!n !*
=te)hni)al reg%lati!n= in AnneA 1.1 t! the T3T Agreement.
9.36 We there*!re )!n)l%+e that a te)hni)al reg%lati!n is a reg%lati!n "hi)h sets !%t the se)i*i)
)hara)teristi)s !* !ne !r m!re i+enti*ia0le r!+%)ts in )!maris!n "ith general )hara)teristi)s that
ma/ 0e share+ 0/ se#eral %nse)i*ie+ r!+%)ts.
9.1' In this )!nne)ti!n( the Panel n!tes that the 0an intr!+%)e+ 0/ the De)ree is generall/
ali)a0le 0!th t! as0est!s an+ r!+%)ts )!ntaining it( in !ther "!r+s( a #er/ large n%m0er !* r!+%)ts
"hi)h the De)ree +!es n!t i+enti*/ 0/ name n!r e#en 0/ *%n)ti!n !r )ateg!r/.
9.11 The Panel als! n!tes that the ,C )!nten+ that the De)ree +!es n!t +es)ri0e the characteristics
!* a r!+%)t an+ that its %r!se )ann!t 0e t! +es)ri0e the characteristics !* an im,orted r!+%)t
0e)a%se la)ing as0est!s an+ as0est!s8)!ntaining r!+%)ts !n the @ren)h mar.et is r!hi0ite+. In !%r
#ie"( a))!r+ing t! the ali)a0le )%st!mar/ r%les !* interretati!n( it is als! ne)essar/ t! eAamine the
meaning !* the "!r+ =)hara)teristi)s=. The !r+inar/ meaning !* =)hara)teristi)= is =that "hi)h
)!nstit%tes the +istin)ti#e *eat%re( is t/i)al !* a ers!n !r thing=
3&
( =a re)!gniFa0le +istin)ti#e
*eat%re=.
33
There is th%s a lin. 0et"een the )hara)teristi)s !* a r!+%)t an+ the r!+%)t itsel*.
Ne#ertheless( the =)hara)teristi)s= m%st 0e +i**erentiate+ *r!m the i+enti*i)ati!n !* the r!+%)t itsel*.
It is in+ee+ !ssi0le t! +es)ri0e te)hni)al )hara)teristi)s "ith!%t se)i*i)all/ i+enti*/ing the
r!+%)t:s; t! "hi)h the/ relate. Di.e"ise( the i+enti*i)ati!n !* a r!+%)t +!es n!t s%**i)e t! sh!" its
)hara)teristi)s. The Panel n!tes that the re*eren)e t! =)hara)teristi)s= is the se)ial *eat%re !* the
+e*initi!n !* =te)hni)al reg%lati!n= in AnneA 1.1 t! the T3T Agreement. The meas%re m%st n!t !nl/
relate t! !ne !r m!re gi#en r!+%)ts( 0%t its ,ur,ose m%st 0e t! +e*ine the )hara)teristi)s( i.e. the
)riteria !r elements "hi)h the r!+%)t:s; )!n)erne+ m%st satis*/ in !r+er t! 0e intr!+%)e+ int! the
territ!r/ !* the 2em0er that a+!te+ the meas%re.
9.1& 3/ a++ing the "!r+ =r!+%)t= 0e*!re =)hara)teristi)s=( the a%th!rs !* AnneA 1.1 there*!re
"ishe+ t! se)i*/ the )ir)%mstan)es in "hi)h the T3T Agreement alie+. In !r+er %rel/ an+ siml/
t! 0an the im!rt !* a r!+%)t( it is n!t a0s!l%tel/ ne)essar/ t! +e*ine its )hara)teristi)s. In the same
"a/( i* it is +esire+ t! eA)l%+e )ertain ra" materials as s%)h( it is n!t ne)essar/ t! se)i*/ the r!+%)ts
in "hi)h the/ )an 0e in)!r!rate+. On the !ther han+( i* the characteristics of a gi9en ,roduct are
i+enti*ie+ L e#en th!se "hi)h mean that im!rt is n!t all!"e+ L at the same time the )hara)teristi)s !*
r!+%)ts "hi)h )an 0e intr!+%)e+ int! the territ!r/ !* the )!%ntr/ al/ing the meas%re are i+enti*ie+.
9.13 The Panel there*!re )!n)l%+es that( ta.ing int! a))!%nt the !r+inar/ meaning !* the "!r+s
=)hara)teristi)s= an+ =r!+%)t=( the +e*initi!n !* =te)hni)al reg%lati!n= in AnneA 1.1 t! the T3T
Agreement alies t! the meas%res "hi)h +e*ine the te)hni)al se)i*i)ati!ns that !ne !r m!re gi#en
r!+%)ts m%st meet in !r+er t! 0e a%th!riFe+ *!r mar.eting in a 2em0er.
9.11 It ma/( h!"e#er( 0e )!nsi+ere+( as Cana+a +!es( that the r!hi0iti!ns in the De)ree )!n)ern a
gi#en r!+%)tB as0est!s( 0e)a%se !* its se)i*i) )hara)teristi)s. Ne#ertheless( as *ar as the 0an !n
as0est!s as s%)h is )!n)erne+( the De)ree +!es n!t )!n)ern itsel* "ith the )hara)teristi)s !* this
r!+%)t( in an/ e#ent( n!t se)i*i)all/. What is 0anne+ is n!t as0est!s "hi)h !ssesses )ertain
)hara)teristi)s 0%t all t/es !* as0est!s. As regar+s as0est!s8)!ntaining r!+%)ts( the Panel n!tes
Cana+a's arg%ment that the )hara)teristi) !* the r!+%)ts a%th!riFe+ *!r im!rt is the a0sen)e !*
31
In relati!n t! the *!reg!ing( "e als! n!te that the stan+ar+ n!ti*i)ati!n *!rms %n+er the
T3T Agreement )!ntain a se)ti!n t! 0e )!mlete+ 0/ a +es)riti!n !* the r!+%)t a**e)te+ 0/ the n!ti*i)ati!n(
"hi)h in !%r #ie" seems t! )!n*irm the se)!n+ meaning "e ha#e gi#en *!r the "!r+ =r!+%)t=.
3&
Petit Dar!%sse ill%strM :1697;( . 17&.
33
De N!%#ea% Petit R!0ert :1661;( . 3'1.
WT/DS135/R
Page 15'
as0est!s. We n!te( h!"e#er( that the +e*initi!n in AnneA 1.1 t! the T3T Agreement re*ers t! the
te)hni)al )hara)teristi)s !* a gi#en r!+%)t. In this )ase( the r!+%)ts "h!se )hara)teristi) "!%l+ 0e
that the/ )!ntaine+ as0est!s are n!t i+enti*ie+ in the De)ree. As "e ha#e alrea+/ *!%n+( the
i+enti*i)ati!n !* a r!+%)t aears t! 0e !ne !* the )riteria in the +e*initi!n in AnneA 1.1.
9.15 Dastl/( the Panel n!tes that the 0an ali)a0le t! as0est!s8)!ntaining r!+%)ts is in *a)t !ne
as,ect of !r com,lementar/ to the general 0an !n as0est!s. It )an there*!re !nl/ 0e )!nsi+ere+
t!gether "ith the 0an !n as0est!s as s%)h. It is in *a)t there in !r+er t! ens%re that as0est!s is n!t
im!rte+ int! @ran)e in an/ *!rm "hats!e#er. In s%)h a )!nteAt( n!t +e*ining the r!+%)ts )!n)erne+
is n!t siml/ a )h!i)e !* "!r+ing 0%t is the res%lt !* the l!gi) !* the !05e)ti#e s!%ght :a 0an !n all
forms !* as0est!s;. T! se)i*/ ea)h r!+%)t a**e)te+ "!%l+ 0e !intless.
O05e)t an+ %r!se
9.17 T! the eAtent that Arti)le 31 !* the Cienna C!n#enti!n )!ntains a single r%le !* interretati!n
an+ n!t a n%m0er !* alternati#e r%les( the #ari!%s )riteria in the Arti)le sh!%l+ 0e )!nsi+ere+ as
*!rming art !* a "h!le. Alth!%gh the Panel s%0+i#i+e+ its anal/sis *!r reas!ns !* )larit/( this +!es
n!t mean that there has t! 0e a hierar)h/ am!ng the #ari!%s elements in the r%le !* interretati!n.
31
In
this arti)%lar )ase( "e +eem it re*era0le t! anal/se the )!nteAt a*ter eAamining the !05e)t an+
%r!se 0e)a%se the latter hel t! )lari*/ the %n+erstan+ing !* the )!nteAt !* =te)hni)al reg%lati!n= in
AnneA 1 t! the T3T Agreement.
9.17 We n!te that the !05e)t an+ %r!se !* a treat/ )an als! 0e *!%n+ in its ream0le.
35
Al/ing
the ra)ti)e !* the Aellate 3!+/ in this rese)t
37
( it is rele#ant t! l!!. n!t !nl/ at the ream0le t!
the WTO Agreement 0%t als! at the ream0le t! the T3T Agreement itsel*( "hi)h r!#i+es )ertain
in+i)ati!ns.
9.19 In this )!nne)ti!n( "e n!te *irst !* all that( alth!%gh the ream0le t! the WTO Agreement
re*ers in arti)%lar t! eAan+ing tra+e in g!!+s( it +!es n!t gi#e s%**i)ientl/ re)ise in*!rmati!n !n the
terms "hi)h "e m%st interret. We there*!re t%rn t! the ream0le t! the T3T Agreement. This re*ers
t! stan+ar+s *!r r!+%)ts an+ their r!le in imr!#ing e**i)ien)/ !* r!+%)ti!n.
37
The T3T Agreement
th%s aims t! imr!#e mar.et a))ess 0/ en)!%raging inter alia the %se !* internati!nal stan+ar+s( "hile
at the same time eAer)ising )!ntr!l !#er the +e#el!ment an+ %se !* stan+ar+s at the nati!nal le#el.
The re*eren)e in the ream0le t! a).aging( mar.ing an+ la0elling
39
aears t! )!n*irm that the !05e)t
an+ %r!se !* the Agreement relate t! the )riteria *!r mar.eting these r!+%)ts.
36
31
See +e,ort of the Commission to the 7eneral Assembl/, @earboo= of the International :a5
Commission, 1677( C!l%me II( A/CN.1/S,R.A/1677/A++.1( ages &168&&'B
=The C!mmissi!n( 0/ hea+ing the arti)le =<eneral r%le !* interretati!n= in the sing%lar an+ 0/
%n+erlining the )!nneAi!n 0et"een aragrahs 1 an+ & >!* Arti)le 31? an+ again 0et"een aragrah 3
an+ the t"! re#i!%s aragrahs( inten+e+ t! in+i)ate that the ali)ati!n !* the means !* interretati!n
in the arti)le "!%l+ 0e a single )!m0ine+ !erati!n. >J? the C!mmissi!n +esire+ t! emhasiFe that
the r!)ess !* interretati!n is a %nit/ an+ the r!#isi!ns !* the arti)le *!rm a single( )l!sel/ integrate+
r%le.=
35
See I. Sin)lairB The Cienna C!n#enti!n !n the Da" !* Treaties :169';( . 1&7 an+ 13'.
37
See the Re!rt !* the Aellate 3!+/ in 0uro,ean Communities Customs Classification of Certain
Com,uter 0$ui,ment( a+!te+ !n && $%ne 1669( WT/DS7&/A3/RH WT/DS77/A3/RH WT/DS79/A3/R(
ara. 99.
37
=8esiring( there*!re t! en)!%rage the +e#el!ment !* s%)h internati!nal stan+ar+s an+ )!n*!rmit/
assessment s/stemsH=.
39
=8esiring( h!"e#er t! ens%re that te)hni)al reg%lati!ns an+ stan+ar+s( in)l%+ing a).aging( mar.ing
an+ la0elling re-%irements( an+ r!)e+%res *!r assessment !* )!n*!rmit/ "ith te)hni)al reg%lati!ns an+
stan+ar+s +! n!t )reate %nne)essar/ !0sta)les t! internati!nal tra+eH=.
36
Alth!%gh te)hni)all/ these are a++iti!nal "a/s !* interreting Arti)le 3&( "e n!te that the
,re,arator/ 5or= )!n*irms this !05e)ti#e. D!)%ment TR,/W/&1 !* 17 $an%ar/ 1661 n!tes that the +ra*t C!+e
:Se):7&;3; ela0!rate+ in the )!%rse !* the rearat!r/ "!r. *!r the T!./! R!%n+ re*ers t! the rearati!n an+
a+!ti!n !* =man+at!r/ stan+ar+s=. The %se !* the "!r+s =man+at!r/ standards= :!ne !* the +e*initi!ns !* the
WT/DS135/R
Page 151
9.16 It might 0e arg%e+ that the *a)t that the T3T Agreement !nl/ re*ers t! elements relating t! the
mar.eting )riteria *!r a r!+%)t +!es n!t in itsel* mean that it +!es n!t al/ t! im!rt 0ans. Stri)t
ali)ati!n !* stan+ar+s )an in *a)t lea+ t! a 0an !n the im!rt !* )ertain r!+%)ts. The Panel n!tes(
h!"e#er( that there is n! se)i*i) re*eren)e in the T3T Agreement t! the t/e !* meas%re in#!l#e+ in
this arti)%lar )ase :i.e. a %re an+ simle im!rt 0an "ith!%t an/ re*eren)e t! the )hara)teristi)s !*
gi#en r!+%)ts;( e#en th!%gh a 0an is 0/ its #er/ nat%re the m!st restri)ti#e mar.et a))ess meas%re.
C!nse-%entl/( i* the 2em0ers ha+ agree+ that the T3T Agreement als! alie+ t! general 0ans( the/
"!%l+ %n+!%0te+l/ ha#e menti!ne+ it. It "!%l+ aear that the %r!se !* the T3T Agreement is t!
re#ent m%)h m!re )!mleA sit%ati!ns than a straight*!r"ar+ %n)!n+iti!nal 0an !n a r!+%)t( "hi)h
is )!#ere+ 0/ the #er/ stri)t r!#isi!ns in Arti)le GIB1 !* the <ATT 1661. In the Panel's #ie"
the %r!se !* a+!ting the T3T Agreement "as t! )!ntr!l the +e#el!ment an+ ali)ati!n !*
stan+ar+s 8 sit%ati!ns in "hi)h r!te)ti!nist aims )an 0e 0etter +isg%ise+ an+ *!r "hi)h the eAisting
+is)ilines "ithin the <ATT aeare+ t! 0e ina+e-%ate. A general r!hi0iti!n 0/ nat%re +!es n!t
%s%all/ in#!l#e an/ te)hni)al se)i*i)ati!ns. It th%s aears that the +ra*ters "ere )!n)erne+ at the
+e#el!ment an+ ali)ati!n !* te)hni)al )hara)teristi)s *!r r!te)ti!nist %r!ses !r lea+ing t!
r!te)ti!nist e**e)ts( as )an 0e seen *r!m the ream0le t! the T3T AgreementB
=8esiring h!"e#er t! ens%re that te)hni)al reg%lati!ns an+ stan+ar+s( in)l%+ing a).aging( mar.ing
an+ la0elling re-%irements >J? +! n!t )reate %nne)essar/ !0sta)les t! internati!nal tra+eH=. :,mhasis
a++e+;.
9.5' It "!%l+ there*!re seem that in rin)ile the !05e)t an+ %r!se !* the T3T Agreement "ere
that it sh!%l+ al/ t! !tentiall/ r!te)ti!nist ase)ts !* the ali)ati!n !* te)hni)al reg%lati!ns an+
stan+ar+s "hi)h( e#en i* their e**e)t might 0e %rel/ an+ siml/ a 0an( )!%l+ )ir)%m#ent the <ATT
+is)ilines m!re easil/ *!r a n%m0er !* reas!ns.
9.51 The Panel ne#ertheless n!tes that Cana+a !ints !%t that the im!siti!n !* te)hni)al
)hara)teristi)s ali)a0le t! the im!rt !* a r!+%)t imlies a 0an !n r!+%)ts "hi)h +! n!t meet
these )hara)teristi)s. C!nse-%entl/( an/ te)hni)al reg%lati!n is als! a general r!hi0iti!n !n r!+%)ts
that are n!t in )!n*!rmit/. The Panel +!es n!t +isagree. It n!tes h!"e#er that( in this arti)%lar )ase(
n!ne !* the r!+%)ts )!#ere+ 0/ the De)ree )an 0e im!rte+( "ith the eA)eti!n !* th!se gi#en a
tem!rar/ eAemti!n. This is a ma5!r +i**eren)e )!mare+ "ith a te)hni)al reg%lati!n that +e*ines the
)hara)teristi)s !* !ne !r m!re gi#en r!+%)ts. ,#en i* the n%m0er !* r!+%)ts that )an in *a)t 0e
im!rte+ is #er/ restri)te+( im!rt remains !ssi0le( in the!r/ !r in ra)ti)e.
9.5& This +!es n!t mean either that a te)hni)al reg%lati!n "hi)h +e*ines the )hara)teristi)s !* a
r!+%)t negati#el/ +!es n!t )!me %n+er the T3T Agreement. It is al"a/s !ssi0le t! +e*ine the
)hara)teristi)s !* a r!+%)t negati#el/ as l!ng as these te)hni)al )hara)teristi)s are se)i*ie+ in s%)h a
"a/ as t! all!" the r!+%)t t! 0e mar.ete+ in the im!rting )!%ntries. As "e emhasiFe+ in
ara. 9.1' a0!#e( the De)ree )!ntains a general r!hi0iti!n that +!es n!t +e*ine the )hara)teristi)s !*
se)i*i) r!+%)ts.
C!nteAt
9.53 The Panel n!tes that the r!#isi!ns !* the T3T Agreement are sit%ate+ "ithin the 0r!a+er
)!nteAt !* AnneA 1A t! the WTO Agreement. The ,C emhasiFe in this )!nne)ti!n that an
interretati!n rea**irming the ali)a0ilit/ !* the T3T Agreement t! a general r!hi0iti!n meas%re
"!%l+ 0e e-%i#alent t! n%lli*/ing the e**e)t !* Arti)les I( III( an+ GI !* the <ATT. Cana+a )!nsi+ers
that( i* the 0an in the De)ree is n!t +eeme+ t! 0e a =te)hni)al reg%lati!n=( there is a ris. !*
"!r+ =stan+ar+= in ,nglish is =a +!)%ment se)i*/ing nati!nall/ !r internati!nall/ agree+ r!erties *!r
man%*a)t%re+ g!!+s( rin)iles *!r r!)e+%re( et).=. The Ne" Sh!rter OA*!r+ ,nglish Di)ti!nar/ :1663;(
. 3'&9; imlies that the %r!se !* the Agreement "as t! ens%re a r!+%)t's )!n*!rmit/ "ith the )hara)teristi)s
!* !ther r!+%)ts mar.ete+.
WT/DS135/R
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)ir)%m#enting the +is)ilines !* the T3T Agreement 0/ intr!+%)ing =h!riF!ntal= r!hi0iti!ns instea+
!* te)hni)al reg%lati!ns in the stri)t sense. We )!nsi+er that these matters sh!%l+ 0e eAamine+ m!re
se)i*i)all/ in the light !* the )!nteAt !* the T3T Agreement 0e)a%se it is 0/ ta.ing int! a))!%nt the
)!ntent !* the !0ligati!ns in the r!#isi!ns that *!rm art !* the )!nteAt !* the T3T Agreement that
"e "ill 0e a0le t! +etermine the s)!e !* the +e*initi!n !* =te)hni)al reg%lati!n= in the T3T
Agreement.
9.51 The Panel )!nsi+ers that the )!n)et !* )ir)%m#enti!n imlies that a gi#en attit%+e ma.es it
!ssi0le t! a#!i+ an !0ligati!n that "!%l+ !ther"ise al/. An !0ligati!n m%st 0e generall/
ali)a0le 0e*!re )ir)%m#enti!n )an !))%r. @irstl/( n!thing r!#es that it is in a 2em0er's interest t!
tr/ t! e#a+e the !0ligati!ns in the T3T Agreement 0e)a%se its r!#isi!ns reresent a )!m0inati!n !*
rights an+ !0ligati!ns "h!se 0alan)e "as )are*%ll/ neg!tiate+. Ne#ertheless( ass%ming that it "as in
the 2em0er's interest( i* the !05e)t an+ %r!se !* the T3T Agreement are t! reg%late the mar.eting
)!n+iti!ns( a meas%re that -%ite siml/ 0anne+ mar.et a))ess "!%l+ n!t )!me %n+er the Agreement.
This +!es n!t( h!"e#er( mean that s%)h meas%res "!%l+ n!t 0e enaliFe+ i* the/ )reate+ =%nne)essar/
!0sta)les t! internati!nal tra+e=. T! the eAtent that the <ATT 1661 alies( ese)iall/ Arti)les I( III !r
GI "h!se s)!e is arti)%larl/ 0r!a+( there "!%l+ n!t 0e an/ legal #a)%%m.
9.55 We als! n!te that the )riteria !n the rearati!n( a+!ti!n !r ali)ati!n !* te)hni)al
reg%lati!ns in Arti)le &.& !* the T3T Agreement are #er/ similar t! th!se in Arti)le GG !* the
<ATT 1661. The ream0le t! the T3T Agreement in *a)t reeats s!me !* the "!r+ing !* Arti)le GG
!* the <ATT.
1'
In the Panel's #ie" the T3T Agreement is a +e#el!ment !* the <ATT. As menti!ne+
in ara. 9.16 a0!#e( the T3T Agreement aears t! ha#e 0een a+!te+ in !r+er t! strengthen the
+is)ilines ali)a0le t! the se)i*i) area !* man%*a)t%ring stan+ar+s( "here the/ aeare+ t! 0e
ins%**i)ient t! re#ent )ertain *!rms !* r!te)ti!nism.
11
9.57 We als! n!te that the ,C )laim that Cana+a's interretati!n !* the T3T Agreement "!%l+ 0e
e-%i#alent t! n%lli*/ing the e**e)t !* Arti)les I an+ III !* the <ATT 1661. We n!te in this )!nne)ti!n
that the Aellate 3!+/ has !n man/ !))asi!ns( m!st re)entl/ in the Argentina Safeguards )ase(
re)alle+ that =a treat/ interreter m%st rea+ all ali)a0le r!#isi!ns !* the treat/ in a "a/ that gi#es
meaning t! all !* them( harm!ni!%sl/=.
1&
It is there*!re im!rtant that !%r interretati!n !* the
r!#isi!ns !* the T3T Agreement in this )ase sh!%l+ n!t res%lt =in re+%)ing "h!le )la%ses !r
aragrahs !* a treat/ t! re+%n+an)/ !r in%tilit/=.
13
Cana+a is )!n)erne+ that a arti)%lar
interretati!n might all!" 2em0ers t! )ir)%m#ent the !0ligati!ns im!se+ 0/ the T3T Agreement.
As alrea+/ in+i)ate+ a0!#e( in !%r #ie" the main reas!n *!r )ir)%m#enting a r!#isi!n is t! a#!i+
)ertain !0ligati!ns. I* a general r!hi0iti!n is n!t )!#ere+ 0/ the T3T Agreement( this +!es n!t mean
that it is n!t s%05e)t t! an/ !ther r!#isi!n in the WTO Agreement. At the #er/ least( it "ill )!me
"ithin the s)!e !* Arti)les I( an+/!r III( an+/!r GI !* the <ATT 1661 an+ ma/ ha#e t! meet the
)riteria in Arti)le GG in !r+er t! 0e 5%sti*ie+ %n+er this Agreement. There ma/ 0e gr!%n+s *!r
Cana+a's !siti!n i* it is esta0lishe+ that the r!#isi!ns !* the T3T Agreement im!se stri)ter
+is)ilines than th!se in the <ATT 1661 an+ that eA)l%+ing general r!hi0iti!ns *r!m their s)!e
"!%l+ n%lli*/ their e**e)t. The elements 0e*!re %s( h!"e#er( +! n!t all!" %s t! )!n)l%+e that this is
the )ase.
1'
=+ecognizing that n! )!%ntr/ sh!%l+ 0e re#ente+ *r!m ta.ing meas%res ne)essar/ >J? *!r the
r!te)ti!n !* h%man >J? li*e !r health >J? s%05e)t t! the re-%irement that the/ are n!t alie+ in a
manner "hi)h "!%l+ )!nstit%te a means !* ar0itrar/ !r %n5%sti*ia0le +is)riminati!n 0et"een )!%ntries
"here the same )!n+iti!ns re#ail !r a +isg%ise+ restri)ti!n !n internati!nal tra+e >J?= :i+enti)al
"!r+ing t! that in Arti)le GG !* the <ATT 1661( emhasis a++e+;.
11
We n!te in this )!nne)ti!n that the rearat!r/ "!r. !n the Agreement !n Te)hni)al 3arriers t!
Tra+e in the T!./! R!%n+ sh!" that the T3T Agreement that sh!%l+ ha#e emerge+ *r!m the T!./! R!%n+ "as
alrea+/ seen as 0eing a +e#el!ment !* the eAisting r%les !* the <ATT( n!ta0l/ Arti)le GG. See *!r eAamle the
eAtra)t *r!m +!)%ment 2TN/3,/W/&7( O)t!0er 1671( -%!te+ in aragrah 7 !* +!)%ment TR,/W/&1(
17 $an%ar/ 1661.
1&
O. )it., ara. 91 an+ *!!tn!te 7&( :%n+erline+ in the !riginal;.
13
Re!rt !* the Aellate 3!+/ in United States 7asoline, !. )it%, . &3.
WT/DS135/R
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9.57 The Panel there*!re )!n)l%+es that( ta.ing int! a))!%nt the terms !* the +e*initi!n )!nsi+ere+
"ithin their )!nteAt an+ in the light !* the !05e)t an+ %r!se !* the T3T Agreement( a meas%re
)!nstit%tes a =te)hni)al reg%lati!n= i*B
:a; the meas%re a**e)ts !ne !r m!re gi#en r!+%)tsH
:0; the meas%re se)i*ies the te)hni)al )hara)teristi)s !* the r!+%)t:s; "hi)h all!" them
t! 0e mar.ete+ in the 2em0er that t!!. the meas%re
11
H
:); )!mlian)e is man+at!r/.
9.59 In the light !* the a0!#e( "e r!#isi!nall/ )!n)l%+e that the art !* the De)ree +ealing "ith
the general r!hi0iti!n !n mar.eting as0est!s an+ as0est!s8)!ntaining r!+%)ts +!es n!t )!nstit%te a
=te)hni)al reg%lati!n= "ithin the meaning !* the +e*initi!n in AnneA 1.1 t! the T3T Agreement.
2iii4 Additional arguments b/ Canada
9.56 The Panel n!tes that Cana+a %ts *!r"ar+ t"! a++iti!nal arg%ments that m%st 0e eAamine+
0e*!re )!ming t! a +e*inite )!n)l%si!n !n this matter. @irstl/( in Cana+a's #ie"( the ,C re)!gniFe+
that the T3T Agreement alie+ 0/ n!ti*/ing the De)ree t! the C!mmittee !n Te)hni)al 3arriers t!
Tra+e an+ +%ring the )!ns%ltati!ns relating t! this +is%te.
9.7' @r!m a legal !int !* #ie"( the -%esti!n seems t! 0e "hether there is esto,,el !n the art !*
the ,C 0e)a%se the/ n!ti*ie+ the De)ree !r 0e)a%se !* their statements( in)l%+ing th!se +%ring the
)!ns%ltati!ns. This "!%l+ 0e the )ase i* it "as +etermine+ that Cana+a ha+ legitimatel/ relie+ !n the
n!ti*i)ati!n !* the De)ree an+ "as n!" s%**ering the negati#e )!nse-%en)es res%lting *r!m a )hange
in the ,C's !siti!n.
15
In this )ase( h!"e#er( it +!es n!t aear that Cana+a "as a0le legitimatel/ t!
rel/ !n a n!ti*i)ati!n t! the C!mmittee !n Te)hni)al 3arriers t! Tra+e !r !n a statement ma+e +%ring
the )!ns%ltati!ns. We )!nsi+er that n!ti*i)ati!ns %n+er the T3T Agreement are ma+e *!r reas!ns !*
transaren)/.
17
It has 0een re)!gniFe+ that s%)h n!ti*i)ati!ns +! n!t ha#e an/ re)!gniFe+ legal
e**e)ts.
17
@%rtherm!re( n!ti*i)ati!n %n+er the T3T Agreement is !ne !* the *e" "a/s !* n!ti*/ing this
t/e !* meas%re *!r a 2em0er "h! "ishes t! sh!" transaren)/ in g!!+ *aith. Dastl/ "e )!nsi+er
11
A))!r+ing t! the +e*initi!n in AnneA 1.1 t! the T3T Agreement( the )riteria *!r la)ing a r!+%)t !n
the mar.et m%st )!n)ern its )hara)teristi)s !r the relate+ r!)esses !r r!+%)ti!n meth!+s( in)l%+ing the
ali)a0le a+ministrati#e r!#isi!ns.
15
See the +e)isi!n 0/ the Internati!nal C!%rt !* $%sti)e in the <orth Sea Continental Shelf )ase(
Re!rts !* $%+gements 1676( . &7( ara. 3'. Regar+ing the r!)e+%ral ase)t !* the %se !* the "!r+
=est!el=( see als! Daillier N PelletB Dr!it Internati!nal P%0li) :1661;( . 931( )iting <%ggenheim( TraitM +e
Dr!it internati!nal %0li)( #!l%me II( . 159.
17
See the ream0le t! the De)isi!n !n N!ti*i)ati!n Pr!)e+%res( a+!te+ 0/ the Tra+e Neg!tiati!ns
C!mmittee !n 15 De)em0er 1663.
17
See the se)!n+ aragrah in Se)ti!n I !* the De)isi!n !n N!ti*i)ati!n Pr!)e+%res( a+!te+ 0/ the
C!mmittee !n Tra+e Neg!tiati!ns !n 15 De)em0er 1663( as anneAe+ t! the @inal A)t em0!+/ing the res%lts !*
the Ur%g%a/ R!%n+ !* m%ltilateral tra+e neg!tiati!ns( +!ne at 2arra.esh !n 15 Aril 1661.
=2em0ers re)all their %n+erta.ings set !%t in the Un+erstan+ing Regar+ing N!ti*i)ati!n( C!ns%ltati!n(
Dis%te Settlement an+ S%r#eillan)e a+!te+ !n &9 N!#em0er 1676 :3ISD &7S/&1';. With regar+ t!
their %n+erta.ing therein t! n!ti*/( t! the maAim%m eAtent !ssi0le( their a+!ti!n !* tra+e meas%res
a**e)ting the !erati!n !* the <ATT 1661( s%)h n!ti*i)ati!n itsel* 0eing "ith!%t re5%+i)e t! #ie"s !n
the )!nsisten)/ !* meas%res "ith !r their rele#an)e t! rights an+ !0ligati!ns %n+er the 2%ltilateral
Tra+e Agreements an+( "here ali)a0le( the Pl%rilateral Tra+e Agreements( 2em0ers agree t! 0e
g%i+e+( as ar!riate( 0/ the anneAe+ list !* meas%res. 2em0ers there*!re agree that the intr!+%)ti!n
!r m!+i*i)ati!n !* s%)h meas%res is s%05e)t t! the n!ti*i)ati!n re-%irements !* the 1676
Un+erstan+ing.= :,mhasis a++e+;
Paragrah 3 !* the Un+erstan+ing Regar+ing N!ti*i)ati!n( C!ns%ltati!n( Dis%te Settlement an+ S%r#eillan)e(
a+!te+ !n &9 N!#em0er 1676 :3ISD &7S/&1'; r!#i+es thatB
WT/DS135/R
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that 0!th the n!ti*i)ati!n an+ the )!mments ma+e 0/ the ,C +%ring the )!ns%ltati!ns !r in an!ther
)!nteAt )!nstit%te !0ser#ati!ns !n the legal )hara)teriFati!n !* the De)ree. Claims regar+ing the legal
)hara)teriFati!n !* a *a)t 0/ the arties( h!"e#er( )ann!t 0in+ the Panel.
9.71 Dastl/( "e n!te that Cana+a asserts that the De)ree )!ntains *i#e !* the re-%irements in the
+e*initi!n in AnneA 1.1 t! the T3T Agreement( namel/( it in+i)ates the )hara)teristi)s !* a r!+%)t( the
r!)esses an+ r!+%)ti!n meth!+s relating t! a r!+%)t( the a+ministrati#e r!#isi!ns ali)a0le t! a
r!+%)t( an+ a).aging !r la0elling re-%irements *!r a r!+%)t. @inall/( )!mlian)e is man+at!r/.
19
We +! n!t in rin)ile r%le !%t that the De)ree ma/ in)l%+e s!me !r e#en all the re-%irements
menti!ne+ 0/ Cana+a. We n!te( h!"e#er( that !%r )!nsi+erati!n !* the terms !* the +e*initi!n !*
=te)hni)al reg%lati!n= in AnneA 1.1 in their )!nteAt an+ in light !* the !05e)t an+ %r!se !* the T3T
Agreement in relati!n t! the art !* the De)ree r!hi0iting the mar.eting !* as0est!s has le+ %s t!
)!n)l%+e that this art !* the De)ree is n!t )!#ere+ 0/ the T3T Agreement. C!n)erning Cana+a's
arg%ments( "e ha#e *!%n+ that the art !* the De)ree r!hi0iting as0est!s an+ *!r the r!+%)ti!n !*
as0est!s8)!ntaining r!+%)ts +!es n!t +e*ine the )hara)teristi)s !* the r!+%)ts "h!se im!rt is
0anne+. We ha#e als! *!%n+ that this art !* the De)ree +!es n!t )!#er r!)esses !r meth!+s *!r the
r!+%)ti!n !* as0est!s !r as0est!s8)!ntaining r!+%)ts. ,#en i* "e a+!t the ar!a)h s%ggeste+ 0/
Cana+a *!r the i+enti*i)ati!n !* the *i#e re-%irements( in !%r #ie"( the a0sen)e !* the *irst t"!
re-%irements s%**i)es t! )!n)l%+e that the De)ree +!es n!t meet the )riteria *!r the +e*initi!n !*
=te)hni)al reg%lati!n= in the T3T Agreement. We +! n!t there*!re thin. it ne)essar/ t! )!nsi+er
"hether the three !ther re-%irements re*erre+ t! 0/ Cana+a are t! 0e *!%n+ in this art !* the De)ree.
9.7& We ne#ertheless n!te that( in its arg%ments( Cana+a +!es n!t +isting%ish( as the Panel +!es(
0et"een the art !* the De)ree 0anning as0est!s an+ the art relating t! eA)eti!ns t! the 0an. It is
th%s !ssi0le that the elements t! "hi)h Cana+a re*ers are t! 0e *!%n+ in the art !* the De)ree !n
eA)eti!ns. I* this "as the )ase( this "!%l+ 0e e#en greater 5%sti*i)ati!n *!r !%r +e)isi!n t! anal/se
the t"! ase)ts !* the De)ree searatel/.
9.73 We there*!re )!n)l%+e that the art !* the De)ree +ealing "ith the general 0an !n the
mar.eting !* as0est!s an+ as0est!s8)!ntaining r!+%)ts +!es n!t )!nstit%te a =te)hni)al reg%lati!n=
"ithin the meaning !* the +e*initi!n in AnneA 1.1 t! the T3T Agreement.
:0; Anal/sis !* eA)eti!ns an+ the e**e)t !* the t/e !* eA)eti!ns !n the *in+ings )!n)erning
r!hi0iti!ns
:i4 he e6ce,tions in the 8ecree constitute technical regulations
9.71 3earing in min+ the +is)%ssi!n in the re)e+ing se)ti!n( "e !int !%t that the *!ll!"ing
ase)ts !* a meas%re are li.el/ t! mean that the meas%re is )!#ere+ 0/ the +e*initi!n !* =te)hni)al
reg%lati!n= in AnneA 1.1 t! the T3T Agreement.
16
:a; The meas%re a**e)ts !ne !r m!re gi#en r!+%)tsH
:0; the meas%re se)i*ies the te)hni)al )hara)teristi)s !* the r!+%)t:s; "hi)h all!" them
t! 0e mar.ete+ in the 2em0er that t!!. the meas%re
5'
H
=C!ntra)ting arties m!re!#er %n+erta.e( t! the maAim%m eAtent !ssi0le( t! n!ti*/ the
CONTRACTIN< PARTI,S !* their a+!ti!n !* tra+e meas%res a**e)ting the !erati!n !* the <eneral
Agreement( it 0eing %n+erst!!+ that s%)h n!ti*i)ati!n "!%l+ !* itsel* 0e "ith!%t re5%+i)e t! #ie"s !n
the )!nsisten)/ !* meas%res "ith !r their rele#an)e t! rights an+ !0ligati!ns %n+er the <eneral
Agreement.=
19
See Cana+a's arg%ments( se)ti!n III.C.1:a; a0!#e( in arti)%lar aras. 3.&17 an+ 3.&7'83.&71.
16
These )riteria are 0/ n! means eAha%sti#e.
5'
A))!r+ing t! the +e*initi!n in AnneA 1.1 !* the T3T Agreement( the )riteria *!r la)ing a r!+%)t !n
the mar.et m%st )!n)ern its )hara)teristi)s !r the relate+ r!)esses !r r!+%)ti!n meth!+s( in)l%+ing the
ali)a0le a+ministrati#e r!#isi!ns.
WT/DS135/R
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:); )!mlian)e is man+at!r/.
9.75 @irst !* all( "e n!te that the ,C )!nten+ that eA)eti!ns are transiti!nal meas%res limite+ 0/
their %r!se an+ tem!rar/ 0/ nat%re. C!nse-%entl/( the/ sh!%l+ n!t 0e )!#ere+ 0/ the T3T
Agreement. We +! n!t )!nsi+er that the =transiti!nal= nat%re !* a meas%re s%**i)es t! eA)l%+e it *r!m
the s)!e !* the T3T Agreement. The Agreement +!es n!t +isting%ish 0et"een meas%res a))!r+ing t!
"hether !r n!t the/ are transiti!nal !r tem!rar/.
9.77 We als! n!te the ,C's arg%ments !n the an)illar/ nat%re !* the eA)eti!ns.
51
We ha#e alrea+/
in+i)ate+ a0!#e that( in the!r/( there is n! reas!n "h/ t"! arts !* the same teAt )!%l+ n!t ha#e a
+i**erent legal )hara)teriFati!n. We n!te that( %rs%ant t! the a))ess!r/ the!r/ :accessorium se$uitur
,rinci,ale4, the legal regime ali)a0le t! a g!!+ !r an a)ti!n ma/ 0e relate+ !r s%05e)t t! the regime
*!r a rin)ial g!!+ !r a)ti!n.
5&
Ass%ming that this the!r/ alies t! a %0li) internati!nal la"
sit%ati!n( "e )!nsi+er that this arti)%lar )ase +!es n!t )!me "ithin its s)!e. The meas%res 0e*!re %s
+! n!t relate t! ali)ati!n !* the 0an in the stri)t sense 0%t t! an eA)eti!n "hi)h in ra)ti)e all!"s
)hr/s!tile as0est!s t! enter the @ren)h mar.et. In s%)h a )!nteAt( "e hesitate t! )!nsi+er the
eA)eti!ns in the De)ree as an)illar/ t! the 0an !n as0est!s.

9.77 We n!te that the art !* the De)ree )!n)erning eA)eti!ns t! the general 0an !n im!rting
as0est!s !r as0est!s8)!ntaining r!+%)ts :Arti)les &81; +!es n!t +e*ine the r!+%)ts 0ene*iting *r!m
s%)h eA)eti!ns. Arti)le &.II( h!"e#er( )!#ers the i+enti*i)ati!n !* the materials( r!+%)ts !r +e#i)es
sh!"n in an eAha%sti#e list +ra"n % 0/ +e)ree 0/ the 2inisters *!r Da0!%r( C!ns%mti!n( the
,n#ir!nment( In+%str/( Agri)%lt%re an+ Trans!rt. We there*!re )!nsi+er that the ali)a0le @ren)h
reg%lati!n :i.e. the De)ree as imlemente+ 0/ the a0!#e8menti!ne+ De)ree; i+enti*ies the r!+%)ts
0ene*iting *r!m an eA)eti!n.
9.79 We als! n!te that Arti)le & !* the De)ree sets !%t the )riteria *!r mar.eting the r!+%)ts
i+enti*ie+ in the De)ree an+ n!t s!lel/ the )riteria *!r eA)l%+ing r!+%)ts *r!m the mar.et. The
se)!n+ senten)e in Arti)le 3.I !* the De)ree )!mletes these )riteria.
9.76 In !%r #ie"( the mar.eting )riteria in Arti)le &.I !* the De)ree relate t! the )hara)teristi)s !*
!ne !r m!re gi#en r!+%)ts !r r!)esses !r r!+%)ti!n meth!+s relating t! them. This is arti)%larl/
tr%e !* the se)!n+ s%0aragrah !n the te)hni)al g%arantees !* sa*et/ ar!riate t! the %se( "hi)h has
t! 0e rea+ in )!n5%n)ti!n "ith the se)!n+ aragrah !* Arti)le 3.I !* the De)ree. We als! n!te that
Arti)le &.II an+ Arti)le 3 in arti)%lar )!#er the a+ministrati#e r!#isi!ns ali)a0le t! the te)hni)al
reg%lati!ns. The se)!n+ aragrah !* Arti)le 1 )!ntains r!#isi!ns !n the la0elling an+ mar.ing !*
r!+%)ts 0ene*iting *r!m an eA)eti!n. Dastl/( )!mlian)e "ith these r!#isi!ns is man+at!r/ an+
there is r!#isi!n *!r enalties :see Arti)le 3.III;.
9.7' We th%s )!n)l%+e that the art !* the De)ree )!n)erning eA)eti!ns t! the 0an !n as0est!s
)!mes "ithin the s)!e !* the +e*initi!n !* te)hni)al reg%lati!n in AnneA 1.1 t! the T3T Agreement.
2ii4 0ffect of the legal characterization of the e6ce,tions on the legal characterization of the
,rohibitions
9.71 The Panel n!tes that Cana+a )!nsi+ers that the regime ali)a0le t! eA)eti!ns r!#es that the
De)ree as a "h!le is a te)hni)al reg%lati!n. We are !* the !ini!n that there is n! legal reas!n "h/
)ertain arts !* the De)ree sh!%l+ n!t )!me %n+er !ne !* the WTO Agreements an+ !ther arts %n+er
51
See the rel/ 0/ the ,C t! -%esti!n & in the -%esti!ns 0/ the Panel at the se)!n+ s%0stanti#e meeting(
aras. &&'8&&1.
5&
See R. <%illien an+ $. Cin)entB DeAi-%e +e termes 5%ri+i-%es :1691;( . 3B in )i#il la" =the
s%0si+iar/ *!ll!"s the rin)ial in the sense that the rin)ial g!!+ transmits its legal )hara)teriFati!n t! the
g!!+ atta)he+ t! it=. :WTO translati!n;. See als! 3la).'s Da" Di)ti!nar/ :166';( . 11( regar+ing the )riminal
la" ali)a0le in )ertain 2em0ers.
WT/DS135/R
Page 157
an!ther Agreement. We ha#e alrea+/ re*erre+ a0!#e t! ali)ati!n !* the a))ess!r/ )!n)et in this
arti)%lar )ase. ,#en ass%ming that the a))ess!r/ )!n)et might al/ t! this arti)%lar )ase( the *a)t
that it is the eA)eti!ns t! the general 0an "hi)h )!me %n+er the T3T Agreement an+ n!t the rin)ial
element !* the De)ree :namel/ the general 0an !n as0est!s; ma.es it +i**i)%lt t! )!n)l%+e that the 0an
m%st *!ll!" the eA)eti!ns regime. C!nse-%entl/( the *a)t that the eA)eti!ns in the De)ree are
)!#ere+ 0/ the T3T Agreement in !%r #ie" sh!%l+ n!t a**e)t the legal )hara)teriFati!n !* the general
0an an+ ese)iall/ the *a)t !* "hether !r n!t the 0an )!mes "ithin the s)!e !* the T3T Agreement.
9.7& In an/ e#ent( as the legal )hara)teriFati!n !* the eA)eti!ns +!es n!t a**e)t that !* the general
0an an+ e#en th!%gh Cana+a )!ntests the legalit/ !* the De)ree as a "h!le( the Panel sh!%l+ n!t g!
*%rther than the -%esti!n !* the legal )hara)teriFati!n !* the eA)eti!ns. The Panel )!nsi+ers that
Cana+a +i+ n!t ma.e an/ se)i*i) )laims )!n)erning the eA)eti!ns in the terms !* re*eren)e +ra"n
% %n+er Arti)le 7.& !* the Un+erstan+ing. The Panel there*!re )!n)l%+es that it +!es n!t ha#e t!
rea)h an/ *in+ings )!n)erning the eA)eti!ns.
.. %oncusion
:a; The T3T Agreement +!es n!t al/ t! the art !* the De)ree relating t! the 0an !n
im!rts !* as0est!s an+ as0est!s8)!ntaining r!+%)ts 0e)a%se that art +!es n!t
)!nstit%te a =te)hni)al reg%lati!n= "ithin the meaning !* AnneA 1.1 t! the T3T
Agreement.
:0; The T3T Agreement alies t! the art !* the De)ree relating t! eA)eti!ns t! the 0an
!n im!rts !* as0est!s an+ as0est!s8)!ntaining r!+%)ts 0e)a%se that art )!nstit%tes
a =te)hni)al reg%lati!n= "ithin the meaning !* AnneA 1.1 t! the T3T Agreement.
This legal )hara)teriFati!n( h!"e#er( +!es n!t a**e)t the legal )hara)teriFati!n !* the
art !* the De)ree 0anning as0est!s n!r !%r )!nsi+erati!n !* the rest !* this )ase
0e)a%se Cana+a +i+ n!t ma.e an/ se)i*i) )laims regar+ing the eA)eti!ns t! the
general 0an.
53
9.73 Ea#ing )!n)l%+e+ that the art !* the De)ree 0anning as0est!s an+ as0est!s8)!ntaining
r!+%)ts +!es n!t )!me "ithin the s)!e !* the T3T Agreement( "e shall n!" )!nsi+er Cana+a's
)laims relating t! the <ATT 1661.
,. APPDICATION O@ TE, <ATT 1661 TO TE, D,CR,,
1. )rei!inar# 0uestions
:a; The e**e)t !* ra)ti)e "ithin the <ATT 1617 an+ the WTO
9.71 The Panel n!tes that( in s%!rt !* their arg%ments( the arties re*er t! anel an+ Aellate
3!+/ re!rts a+!te+ in the WTO. The/ als! re*er at length t! anel re!rts %n+er the <ATT 1617(
s!me !* "hi)h "ere a+!te+ an+ !thers n!t. As )ertain iss%es raise+ 0/ the arties ha#e 0een +ealt
"ith in +etail !r e#en eA)l%si#el/ %n+er the <ATT 1617( "e +eem it %se*%l t! eAlain h!" "e inten+
t! ta.e int! a))!%nt the anel re!rts iss%e+ "ithin the *rame"!r. !* the <ATT 1617. @!r this
%r!se( "e shall 0ase !%rsel#es !n the ar!a)h *!ll!"e+ 0/ the Aellate 3!+/ in )a,an a6es on
Alcoholic ;e9erages%
51

9.75 In this arti)%lar )ase( the Aellate 3!+/ emhasiFe+ that( "ith regar+ t! the re!rts a+!te+
0/ anels %n+er the <ATT 1617( Arti)le GCIB1 !* the Agreement ,sta0lishing the WTO an+
53
@!r eAamle( Cana+a +i+ n!t )laim that the WTO Agreement ha+ 0een #i!late+ 0/ the "a/ in "hi)h
@ran)e a+ministere+ the eA)eti!ns. 2!re!#er( the Panel n!tes that the/ are eA)eti!nal an+ tem!rar/
eAemti!ns. The/ "ill +isaear as an+ "hen relia0le an+ e**e)ti#e s%0stit%te r!+%)ts are +e#el!e+.
51
A+!te+ !n 1 N!#em0er 1667( WT/DS9H DS1'HDS11/A3/R( hereina*ter =)a,an Alcoholic
;e9erages=( . 11815.
WT/DS135/R
Page 157
aragrah 1:0;:i#; !* AnneA 1A in)!r!rating the <ATT 1661 int! the WTO Agreement all!" the
=legal hist!r/ an+ eAerien)e %n+er the <ATT 1617= t! 0e 0r!%ght int! the ne" WTO. A+!te+ anel
re!rts =are an im!rtant art !* the <ATT ac$uis&%
55
The/ )reate legitimate eAe)tati!ns am!ng
WTO 2em0ers an+ sh!%l+ th%s 0e ta.en int! a))!%nt "hen the/ are rele#ant t! an/ +is%te.
9.77 T%rning t! %na+!te+ re!rts( the Aellate 3!+/ state+ that unado,ted anel re!rts =ha#e
n! legal stat%s in the <ATT !r WTO s/stem sin)e the/ ha#e n!t 0een en+!rse+ thr!%gh +e)isi!ns 0/
the CONTRACTIN< PARTI,S t! <ATT !r WTO 2em0ers=. >*!!tn!te !mitte+?. Di.e"ise( =a anel
)!%l+ ne#ertheless *in+ %se*%l g%i+an)e in the reas!ning !* an %na+!te+ anel re!rt that it
)!nsi+ere+ t! 0e rele#ant=. >*!!tn!te !mitte+?.
9.77 @!ll!"ing this ar!a)h( "e shall +%l/ ta.e int! a))!%nt the rele#ant a+!te+ anel re!rts
an+( t! the eAtent ne)essar/( "e shall ta.e int! a))!%nt the reas!ning set !%t in %na+!te+ anel
re!rts "hen "e +eem it rele#ant t! the iss%es raise+ in !%r eAaminati!n.
:0; 3%r+en !* r!!*
9.79 Cana+a )laims #i!lati!n !* Arti)les IIIB1 an+ GIB1 !* the <ATT 1661. The ,C )!nsi+er that(
e#en i* there is a #i!lati!n !* these r!#isi!ns( the meas%re is 5%sti*ie+ %rs%ant t! Arti)le GG:0;. We
n!te that the Aellate 3!+/ rea**irme+ the general r%les ali)a0le t! the 0%r+en !* r!!* in the )ase
!* United States Shirts and ;louses%
57
9.76 Al/ing these r%les( it is !%r !ini!n that Cana+a( as the )!mlaining art/( sh!%l+ n!rmall/
r!#i+e s%**i)ient e#i+en)e t! esta0lish a res%mti!n that there are gr!%n+s *!r ea)h !* its )laims. I*
it +!es s!( it "ill then 0e % t! the ,C t! a++%)e s%**i)ient e#i+en)e t! re0%t the res%mti!n. When
the ,C %ts *!r"ar+ a arti)%lar meth!+ !* +e*en)e in the a**irmati#e( it is % t! them t! *%rnish
s%**i)ient e#i+en)e( 5%st as Cana+a m%st +! *!r its !"n )laims. I* 0!th arties *%rnish e#i+en)e that
meets these re-%irements( it is the res!nsi0ilit/ !* the Panel t! assess these elements as a "h!le.
Where the e#i+en)e )!n)erning a )laim !r a arti)%lar *!rm !* +e*en)e is( in general( e-%all/
0alan)e+( a *in+ing has t! 0e ma+e against the art/ !n "hi)h the 0%r+en !* r!!* relating t! this
)laim !r this *!rm !* +e*en)e is in)%m0ent.
9.9' The Panel als! n!tes the eAtreme *a)t%al an+ s)ienti*i) )!mleAit/ !* this )ase( "hi)h le+ t!
the )!ns%ltati!n !* eAerts %n+er Arti)le 13 !* the Un+erstan+ing. It n!tes that( in the )!nteAt !* the
Agreement !n the Ali)ati!n !* Sanitar/ an+ Ph/t!sanitar/ 2eas%res( "here s)ienti*i) *a)ts an+ +ata
la/ a #er/ im!rtant r!le( the Aellate 3!+/ has ta.en a se)ial ar!a)h. As it is ne)essar/ t!
eAamine the ali)ati!n !* Arti)les IIIB1 an+ GIB1 !* the <ATT 1661 0e*!re e#en )!nsi+ering the ,C's
arg%ments 0ase+ !n Arti)le GG( "e siml/ ta.e n!te !* this ar!a)h an+( i* ne)essar/( "ill ret%rn t!
it "hen eAamining the iss%es raise+ in )!nne)ti!n "ith Arti)le GG.
9.91 3earing in min+ the a0!#e( "e )!nsi+er that it is im!rtant *!r ea)h art/ t! state )learl/ its
arguments and factual e9idence in s%!rt !* its )laims. I* n!t( the Panel "ill !nl/ 0e a0le t!
)!n)l%+e that the art/ )!n)erne+ +i+ n!t ma.e the rima *a)ie )ase nee+e+ t! esta0lish its )laim.
57
The Panel )!nsi+ers that it )an !nl/ rea)h *in+ings )!n)erning a )laim !r art !* a )laim( e#en "hen it
is )learl/ +e*ine+ in the terms !* re*eren)e set 0/ the DS3( i* the art/ ma.ing the )laim
55
I0i+.( age 11.
57
O. )it.( age 11B
=The 0%r+en !* r!!* rests %!n the art/( "hether )!mlaining !r +e*en+ing( "h! asserts the
a**irmati#e !* a arti)%lar )laim !r +e*en)e. I* that art/ a++%)es e#i+en)e s%**i)ient t! raise a
res%mti!n that "hat is )laime+ is tr%e( the 0%r+en then shi*ts t! the !ther art/( "h! "ill *ail %nless it
a++%)es s%**i)ient e#i+en)e t! re0%t the res%mti!n=.
57
Re!rt !* the Aellate 3!+/ in )a,an 1easures Affecting Agricultural Products, a+!te+ !n
16 2ar)h 1666( WT/DS77/A3/R( ara. 1&7.
WT/DS135/R
Page 159
s!ntane!%sl/ ma.es the rima *a)ie )ase nee+e+ t! esta0lish its )laim.
59
In*!rmati!n r!#i+e+ 0/ the
eAerts )!ns%lte+ 0/ the Panel %rs%ant t! Arti)le 13 !* the Un+erstan+ing =t! hel it t! %n+erstan+
an+ e#al%ate the e#i+en)e s%0mitte+ an+ the arg%ments ma+e 0/ the arties=
56
( e#en "here it has 0een
re-%este+ 0/ the Panel( )an %n+er n! )ir)%mstan)es 0e %se+ 0/ a anel t! r%le in *a#!%r !* a art/
"hi)h has n!t esta0lishe+ a rima *a)ie )ase 0ase+ !n se)i*i) legal )laims !r leas asserte+ 0/ it.
7'
P%t an!ther "a/( the Panel )ann!t %tiliFe the in*!rmati!n *%rnishe+ 0/ the eAerts in !r+er t! esta0lish
the #ali+it/ !* a )laim 0/ !ne !* the arties i* that art/ has n!t alrea+/ esta0lishe+ a rima *a)ie )ase.
9.9& On an/ legal matter, n!ta0l/ the interretati!n !* the Agreements )!n)erne+( the Panel "ill 0e
assiste+ 0/ the arg%ments !* the arties 0%t "ill n!t 0e 0!%n+ 0/ them. P%rs%ant t! Arti)le 3B& !* the
Un+erstan+ing( !%r +e)isi!n !n these matters m%st 0e in a))!r+an)e "ith the )%st!mar/ r%les !*
interretati!n !* %0li) internati!nal la" ali)a0le t! the WTO Agreement.
:); Ali)ati!n !* Arti)le IIIB1 an+/!r Arti)le GI !* the <ATT 1661
2i4 Duestion before the Panel
71
9.93 The Panel n!tes that the arties ha#e +i**ering #ie"s )!n)erning the ali)a0ilit/ t! the
De)ree !* Arti)le IIIB1 an+ Arti)le GIB1 !* the <ATT 1661.
9.91 Cana+a )!nsi+ers that the De)ree sh!%l+ 0e eAamine+ in the light !* these t"! Arti)les
0e)a%se it )!mrises t"! +istin)t ase)ts. On the !ne han+( it r!hi0its im!rts !* as0est!s in a
manner in)!mati0le "ith Arti)le GIB1. On the !ther( it in)l%+es internal reg%lati!ns r!hi0iting the
sale an+ %se !* as0est!s in a manner in)!mati0le "ith Arti)le IIIB1. Cana+a )!nsi+ers that t"!
+i**erent ase)ts !* the same meas%re )an 0e eAamine+ in the light !* t"! +i**erent arti)les !* the
same Agreement. Cana+a )!nsi+ers that the interretati#e N!te Ad Article III +!es n!t al/ in this
)ase. I* the Panel )!nsi+ers that the De)ree )ann!t 0e eAamine+ %n+er the t"! Arti)les( it sh!%l+ 0e
)!nsi+ere+ as a meas%re a**e)ting im!rts an+ in)!mati0le "ith Arti)le GIB1. I* it )ann!t 0e
)!nsi+ere+ as a meas%re a**e)ting im!rts( it sh!%l+ 0e )!nsi+ere+ as a meas%re a**e)ting sales an+
!ther transa)ti!ns !n the @ren)h mar.et an+ s! in)!mati0le "ith Arti)le IIIB1.
9.95 The ,C assert that either the meas%re is an internal reg%lati!n( in "hi)h )ase it is )!#ere+ 0/
Arti)le IIIB1( !r it !nl/ )!n)erns the im!rt !* r!+%)ts( in "hi)h )ase it m%st 0e assesse+ in the light
!* Arti)le GIB1. The +istin)ti!n ma+e 0/ Cana+a *ails t! ta.e a))!%nt !* the relati!nshi 0et"een the
t"! Arti)les( "hi)h means that a single meas%re that alies 0!th t! +!mesti) an+ im!rte+ r!+%)ts
m%st ne)essaril/ 0e )!#ere+ as a "h!le 0/ Arti)le IIIB1 i* it is im!se+ !n an im!rte+ r!+%)t at the
time !r la)e !* im!rtati!n. Pre#i!%s ra)ti)e in the <ATT )!n*irms that there )an 0e n! )%m%lati#e
ali)ati!n "ith Arti)le GI. The ra)ti)al ali)ati!n !* the De)ree means that the same meas%re(
namel/ a general 0an !n as0est!s an+ as0est!s8)!ntaining r!+%)ts( alies t! all r!+%)ts
irrese)ti#e !* their !rigin. As !ne an+ the same meas%re is alie+ t! 0!th +!mesti) an+ im!rte+
r!+%)ts L ali)ati!n is at the 0!r+er *!r the latter L !nl/ Arti)le IIIB1 is ali)a0le in this )ase.
2ii4 Anal/sis
7&
9.97 The Panel n!tes that the rele#ant r!#isi!ns !* Arti)le IIIB1 r!#i+e the *!ll!"ingB
=The r!+%)ts !* the territ!r/ !* an/ )!ntra)ting art/ im!rte+ int! the territ!r/ !* an/ !ther
)!ntra)ting art/ shall 0e a))!r+e+ treatment n! less *a#!%ra0le than that a))!r+e+ t! li.e r!+%)ts !*
nati!nal !rigin in rese)t !* all la"s( reg%lati!ns an+ re-%irements a**e)ting their internal sale( !**ering
*!r sale( %r)hase( trans!rtati!n( +istri0%ti!n !r %se.=
59
I0i+.( ara. 13'.
56
I0i+.( aras. 1&981&6.
7'
I0i+.( ara. 1&6.
71
The arg%ments !* the arties are set !%t in +etail in Se)ti!n III a0!#e.
7&
The arg%ments !* the arties are set !%t in +etail in Se)ti!n III a0!#e.
WT/DS135/R
Page 156
N!te Ad Article III in the N!tes an+ S%lementar/ Pr!#isi!ns in AnneA I t! the <ATT 1661 states the
*!ll!"ingB
=An/ internal taA !r !ther internal )harge( !r an/ la"( reg%lati!n !r re-%irement !* the .in+ re*erre+ t!
in aragrah 1 "hi)h alies t! an im!rte+ r!+%)t an+ t! the li.e +!mesti) r!+%)t an+ is )!lle)te+
!r en*!r)e+ in the )ase !* the im!rte+ r!+%)t at the time !r !int !* im!rtati!n( is ne#ertheless t! 0e
regar+e+ as an internal taA !r !ther internal )harge( !r a la"( reg%lati!n !r re-%irement !* the .in+
re*erre+ t! in aragrah 1( an+ is a))!r+ingl/ s%05e)t t! the r!#isi!ns !* Arti)le III.=
Arti)le GIB1 !* the <ATT 1661 states the *!ll!"ingB
=N! r!hi0iti!ns !r restri)ti!ns !ther than +%ties( taAes !r !ther )harges( "hether ma+e e**e)ti#e
thr!%gh -%!tas( im!rt !r eA!rt li)en)es !r !ther meas%res( shall 0e instit%te+ !r maintaine+ 0/ an/
)!ntra)ting art/ !n the im!rtati!n !* an/ r!+%)t !* the territ!r/ !* an/ !ther )!ntra)ting art/ !r !n
the eA!rtati!n !r sale *!r eA!rt !* an/ r!+%)t +estine+ *!r the territ!r/ !* an/ !ther )!ntra)ting
art/.=
9.97 The Panel n!tes *irst !* all that the arties agree that Arti)le IIIB1 alies t! that ase)t !* the
De)ree "hi)h 0ans in arti)%lar the sale( +!mesti) mar.eting an+ trans*er %n+er an/ title !* all
#arieties !* as0est!s *i0res an+ an/ r!+%)t )!ntaining them. This ase)t )!n)erns the =treatment
a))!r+e+ t! r!+%)ts >J? in rese)t !* all la"s( reg%lati!ns an+ re-%irements a**e)ting their internal
sale( !**ering *!r sale( %r)hase( trans!rtati!n( +istri0%ti!n !r %se= "ithin the meaning !*
Arti)le IIIB1. Cana+a( !n the !ther han+( )!nsi+ers that Arti)le GIB1 alies t! the 0an !n im!rts
a**e)ting r!+%)ts *r!m Cana+a.
73

9.99 The Panel +ra"s attenti!n t! N!te Ad Article III( "hi)h se)i*i)all/ )!#ers a sit%ati!n in
"hi)h a la"( reg%lati!n !r re-%irement alies 0!th t! an im!rte+ r!+%)t an+ t! the li.e +!mesti)
r!+%)t an+ is en*!r)e+ in the )ase !* the im!rte+ r!+%)t at the time !r !int !* im!rtati!n. The
latter is in *a)t the )ase. C!nse-%entl/( the Panel )!nsi+ers it r!er t! )!mmen)e its anal/sis 0/
+etermining "hether the N!te Ad Article III alies t! this )ase. As neither !* the arties )!ntests the
*a)t that the meas%re ali)a0le t! the im!rte+ r!+%)t is im!se+ at the time !r !int !* im!rtati!n(
it is ne)essar/ t! eAamine "hether the De)ree =alies t! an im!rte+ r!+%)t an+ t! the li.e +!mesti)
r!+%)t=.
9.96 In Cana+a's #ie"( interretati#e N!te Ad Article III !nl/ alies i* the meas%re is ali)a0le t!
the im!rte+ r!+%)t an+ t! the +!mesti) r!+%)t. The eAli)it im!rt 0an +!es n!t( h!"e#er( al/
t! the +!mesti) r!+%)t 0e)a%se the +!mesti) r!+%)t is !0#i!%sl/ n!t im!rte+. 2!re!#er( as @ran)e
neither r!+%)es n!r mines as0est!s *i0res !n its territ!r/( the 0an !n man%*a)t%ring( r!)essing(
selling an+ +!mesti) mar.eting is( in ra)ti)al terms( e-%i#alent t! a 0an !n im!rting )hr/s!tile
as0est!s *i0re.
9.6' @!r the ,C( the im!rt 0an is merel/ the l!gi)al )!r!llar/ !* the general r!hi0iti!n !n the %se
!* as0est!s an+ as0est!s8)!ntaining r!+%)ts. Arti)le IIIB1 m%st 0e assesse+ in the light !* the
interretati#e N!te relating t! it. When a +!mesti) meas%re alies t! 0!th +!mesti) an+ im!rte+
r!+%)ts( Arti)le III m%st al/.
9.61 The Panel n!tes that the "!r+ =)!mme= in the @ren)h teAt !* N!te Ad Article III >=an+= in the
,nglish teAt? imlies in the *irst la)e that the meas%re alies t! the im!rte+ r!+%)t an+ t! the li.e
+!mesti) r!+%)t.
71
The Panel n!tes in this )!nne)ti!n that the *a)t that @ran)e n! l!nger r!+%)es
as0est!s !r as0est!s8)!ntaining r!+%)ts +!es n!t s%**i)e t! ma.e the De)ree a meas%re *alling %n+er
73
It is !nl/ i* the Panel re5e)ts Cana+a's *irst interretati!n that the De)ree )!mes in art %n+er
Arti)le IIIB1 an+ in art %n+er Arti)le GI.1 that Cana+a )!nsi+ers that the "h!le !* the De)ree sh!%l+ *all %n+er
Arti)le GIB1 !r( i* the Panel als! re5e)ts this ar!a)h( Arti)le IIIB1.
71
De N!%#ea% Petit R!0ert( !. )it.( . 111.
WT/DS135/R
Page 17'
Arti)le GIB1. It is in *a)t 0e)a%se the De)ree r!hi0its the man%*a)t%re an+ r!)essing !* as0est!s
*i0res that there is n! l!nger an/ @ren)h r!+%)ti!n. The )essati!n !* @ren)h r!+%)ti!n is the
)!nse-%en)e !* the De)ree an+ n!t the re#erse. C!nse-%entl/( the De)ree is a meas%re "hi)h =alies
t! an im!rte+ r!+%)t an+ t! the li.e +!mesti) r!+%)t= "ithin the meaning !* N!te Ad Article III.
9.6& Se)!n+l/( the Panel n!tes that the "!r+s =an/ la"( reg%lati!n !r re-%irement >J? "hi)h
alies t! an im!rte+ r!+%)t an+ >=)!mme= in the @ren)h teAt? t! the li.e +!mesti) r!+%)t= in the
N!te Ad Article III )!%l+ als! mean that the same regime m%st al/ t! the im!rte+ r!+%)t an+ the
+!mesti) r!+%)t.
75
In this )ase( %n+er the De)ree( the +!mesti) r!+%)t ma/ n!t 0e s!l+( la)e+ !n
the +!mesti) mar.et !r trans*erre+ %n+er an/ title( !ssesse+ *!r sale( !**ere+ !r eA!rte+. I* "e
*!ll!" Cana+a's reas!ning( r!+%)ts *r!m thir+ )!%ntries are s%05e)t t! a +i**erent regime 0e)a%se( as
the/ )ann!t 0e im!rte+( the/ )ann!t 0e s!l+( la)e+ !n the +!mesti) mar.et( trans*erre+ %n+er an/
title( !ssesse+ *!r sale !r !**ere+. @irstl/( the reg%lati!ns ali)a0le t! +!mesti) r!+%)ts an+ *!reign
r!+%)ts lea+ t! the same res%ltB the halting !* the srea+ !* as0est!s an+ as0est!s8)!ntaining
r!+%)ts !n @ren)h territ!r/. In ra)ti)e( in !ne )ase :+!mesti) r!+%)ts;( the/ )ann!t 0e la)e+ !n
the +!mesti) mar.et 0e)a%se the/ )ann!t 0e trans*erre+ %n+er an/ title. In the !ther :im!rte+
r!+%)ts;( the im!rt 0an als! re#ents their mar.eting.
9.63 @!r the *!ll!"ing reas!ns( "e als! )!nsi+er that the "!r+ing !* N!te Ad Article III an+
ra)ti)e in the <ATT 1617 in this rese)t +! n!t s%!rt Cana+a's ar!a)h that an identical meas%re
m%st 0e alie+ t! the +!mesti) r!+%)t an+ the li.e im!rte+ r!+%)t i* the meas%re ali)a0le t! the
im!rte+ r!+%)t is t! *all %n+er Arti)le III.
9.61 We n!te that the rele#ant art !* the ,nglish teAt !* N!te Ad Article III rea+s as *!ll!"sB
=An/ >J? la"( reg%lati!n !r re-%irement >J? "hi)h alies t! an im!rte+ r!+%)t and t! the li.e
+!mesti) r!+%)t=.
77
The "!r+ =an+= +!es n!t ha#e the same meaning as =in the same "a/ as=( "hi)h
)an 0e an!ther meaning *!r the "!r+ =)!mme= in the @ren)h teAt. We there*!re )!nsi+er that the
"!r+ =)!mme= )ann!t 0e interrete+ as re-%iring an i+enti)al meas%re t! 0e alie+ t! im!rte+
r!+%)ts an+ +!mesti) r!+%)ts i* Arti)le III is t! al/.
9.65 We n!te that !%r interretati!n is )!n*irme+ 0/ ra)ti)e %n+er the <ATT 1617. In
United States Section 33" of the ariff Act of 1!30
77
, the Panel ha+ t! eAamine meas%res se)i*i)all/
ali)a0le t! im!rte+ r!+%)ts s%se)te+ !* #i!lating an Ameri)an atent right. In this )ase(
re*erring t! N!te Ad Article III( the Panel )!nsi+ere+ that the r!#isi!ns !* Arti)le IIIB1 +i+ al/ t!
the se)ial r!)e+%res res)ri0e+ *!r im!rte+ r!+%)ts s%se)te+ !* #i!lating a atent r!te)te+ in
the Unite+ States 0e)a%se these r!)e+%res "ere )!nsi+ere+ t! 0e =la"s( reg%lati!ns an+
re-%irements= a**e)ting the internal sale !* the im!rte+ r!+%)ts( "ithin the meaning !* Arti)le III !*
the <ATT. It sh!%l+ 0e n!te+ that in this )ase the r!)e+%res eAamine+ "ere n!t the same as the
e-%i#alent r!)e+%res ali)a0le t! +!mesti) r!+%)ts.
79
75
=In the same "a/ as=( =t! the same eAtent as= are am!ng the alternati#e meanings *!r the "!r+
=)!mme= in the @ren)h teAt :De N!%#ea% Petit R!0ert( !. )it%, . 111;. >In the ,nglish teAt the "!r+ is =an+=?.
77
,mhasis a++e+. In the la)e !* =an+= an+ =)!mme=( the Sanish #ersi!n %ses the )!n5%n)ti!n =/=
:=et= in @ren)h;.
77
See the Re!rt !* the Panel in United States Section 33" of the ariff Act of 1!30( a+!te+ !n
7 N!#em0er 1696( 3ISD 37S/315( :hereina*ter =United States Section 33"=;.
79
The Panel ga#e the gr!%n+s *!r its +e)isi!n in ara. 5.1' as *!ll!"sB
=The *a)t that Se)ti!n 337 is %se+ as a means *!r the en*!r)ement !* Unite+ States Patent Da" at the
0!r+er +!es n!t r!#i+e an es)ae *r!m the ali)a0ilit/ !* Arti)le IIIB1H the interretati#e N!te t!
Arti)le III states that an/ la"( reg%lati!n !r re-%irement a**e)ting the internal sale !* r!+%)ts that is
en*!r)e+ in the )ase !* the im!rte+ r!+%)t at the time !r !int !* im!rtati!n is ne#ertheless s%05e)t
t! the r!#isi!ns !* Arti)le III. N!r )!%l+ the ali)a0ilit/ !* Arti)le IIIB1 0e +enie+ !n the gr!%n+ that
m!st !* the r!)e+%res in the )ase 0e*!re the Panel are alie+ t! ers!ns rather than r!+%)ts( sin)e
the *a)t!r +etermining "hether ers!ns might 0e s%s)eti0le t! Se)ti!n 337 r!)ee+ings !r *e+eral
+istri)t )!%rt r!)e+%res is the s!%r)e !* the )hallenge+ r!+%)ts( that is "hether the/ are !*
Unite+ States !rigin !r im!rte+. @!r these reas!ns( the Panel *!%n+ that the r!)e+%res %n+er Se)ti!n
337 )!me "ithin the )!n)et !* 'la"s( reg%lati!ns an+ re-%irements' a**e)ting the internal sale !*
WT/DS135/R
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9.67 Cana+a als! )laims that the im!rt 0an is n!t an internal meas%re im!se+ at the 0!r+er( *!r
a+ministrati#e reas!ns. We )!nsi+er that an internal )harge alie+ t! a +!mesti) r!+%)t m%st als!
0e im!se+ !n an im!rte+ r!+%)t. Ne#ertheless( i* it is +eeme+ ar!riate t! im!se the )harge at
the 0!r+er rather than "aiting %ntil the im!rte+ r!+%)t is a)t%all/ mar.ete+( the same l!gi) alies
in the )ase !* a reg%lat!r/ meas%re res)ri0ing a 0an !n mar.eting. Is it n!t e-%all/ re*era0le *r!m
the a+ministrati#e !int !* #ie" an+ in the interests !* the im!rters themsel#es t! re#ent the entr/
!* the li.e r!+%)t int! the )!%ntr/ al/ing the meas%re rather than "aiting %ntil it is la)e+ in a
"areh!%se 0e*!re 0anning its saleO
9.67 The Panel als! n!tes that Cana+a ma.es re*eren)e t! aras. 1.&1 an+ 1.&7 !* the Re!rt !* the
Panel in Canada Im,ort, 8istribution and Sale of Certain Alcoholic 8rin=s b/ Pro9incial 1ar=eting
Agencies
76
t! s%!rt its )laim that the De)ree sh!%l+ 0e eAamine+ %n+er Arti)le GIB1 !* the <ATT
1661. We n!te that in aragrah 1.&1 !* the Re!rt( the Panel )!nsi+ere+ that a))!r+ing t! the N!te
Ad Articles GI( GII( GIII( GIC an+ GCIII( restri)ti!ns ma+e e**e)ti#e thr!%gh state8tra+ing !erati!ns
"ere =im!rt restri)ti!ns= !r =eA!rt restri)ti!ns=. It )!nsi+ere+ that( in the )ase !* enterrises
en5!/ing a m!n!!l/ !* 0!th im!rtati!n an+ +istri0%ti!n in the +!mesti) mar.et( the +istin)ti!n
n!rmall/ ma+e 0et"een restri)ti!ns a**e)ting the im!rtati!n !* r!+%)ts an+ restri)ti!ns a**e)ting
im!rte+ r!+%)ts l!st m%)h !* its signi*i)an)e sin)e 0!th t/es !* restri)ti!n )!%l+ 0e ma+e e**e)ti#e
thr!%gh +e)isi!n 0/ the m!n!!l/. In this )ase( the De)ree +i+ n!t instit%te a m!n!!l/ !n the im!rt
!r +istri0%ti!n !* as0est!s an+ li.e r!+%)ts( s! the N!te Ad Articles GI( GII( GIII( GIC an+ GCIII is
n!t rele#ant t! settlement !* this matter.
9.69 As regar+s Cana+a's re*eren)e t! aragrah 1.&7 !* the a*!rementi!ne+ re!rt
7'
( "e )!nsi+er
that it +!es n!t s%0stantiate Cana+a's !siti!n in this )ase either. In this aragrah( the Panel re*rains
*r!m r%ling !n a #i!lati!n !* Arti)le IIIB1. It aears t! +! s!( h!"e#er( *!r reas!ns !* legal e)!n!m/
0e)a%se it sim%ltane!%sl/ re)!gniFes that Arti)le IIIB1 )!%l+ al/ t! state8tra+ing transa)ti!ns.
C!ntrar/ t! Cana+a's asserti!n( this aragrah +!es n!t )!n*irm the n!n8ali)a0ilit/ !* Arti)le IIIB1
t! the art !* an internal meas%re +ealing "ith the treatment !* im!rte+ r!+%)ts. At the m!st( it
)!%l+ )!n*irm the ali)ati!n !* 0!th r!#isi!ns. Ne#ertheless( as eAlaine+ in the re)e+ing
aragrah( the Panel *!%n+ that Arti)le GIB1 alie+( re*erring t! the N!te Ad Articles GI( GII( GIII(
GIC an+ GCIII. This N!te !nl/ alies t! state8tra+ing transa)ti!ns. In the resent )ase( h!"e#er(
there is n! -%esti!n !* a meas%re alie+ in the )!nteAt !* state8tra+ing a)ti#ities.
9.66 @!r the *!reg!ing reas!ns( "e )!nsi+er that Arti)le IIIB1 !* the <ATT 1661 alies t! the 0an
!n im!rting as0est!s an+ as0est!s8)!ntaining r!+%)ts im!se+ 0/ the De)ree. On the 0asis !* the
gr!%n+s *!r this )!n)l%si!n( "e +! n!t )!nsi+er it ne)essar/ t! eAamine *%rther Cana+a's arg%ments
!n the eA)l%si#e ali)ati!n !* Arti)le GIB1.
9.1'' D!!.ing at Cana+a's arg%ments( it is +i**i)%lt t! see "hether Cana+a is )laiming that( e#en i*
the im!rt 0an *alls %n+er Arti)le IIIB1( it is als! )!#ere+ 0/ Arti)le GIB1. I* Cana+a +!es in *a)t ma.e
s%)h a )laim *!r the )%m%lati#e ali)ati!n !* Arti)le IIIB1 an+ Arti)le GIB1 t! the art !* the De)ree
0anning im!rts( "e +! n!t )!nsi+er that this *!rms art !* the terms !* re*eren)e gi#en t! the Panel
0/ the DS3 an+( e#en i* that "ere the )ase( Cana+a's arg%ments +! n!t ma.e a rima *a)ie )ase in the
im!rte+ r!+%)ts( as set !%t in Arti)le III !* the <eneral Agreement.=
76
A+!te+ !n && 2ar)h 1669( 3ISD 35S/37.
7'
=The Panel )!nsi+ere+ that it "as n!t ne)essar/ t! +e)i+e in this arti)%lar )ase "hether the ra)ti)es
)!mlaine+ !* "ere )!ntrar/ t! Arti)le IIIB1 0e)a%se it ha+ alrea+/ *!%n+ that the/ "ere in)!nsistent "ith
Arti)le GI. E!"e#er( the Panel sa" great *!r)e in the arg%ment that Arti)le IIIB1 "as als! ali)a0le t! state8
tra+ing enterrises at least "hen the m!n!!l/ !* the im!rtati!n an+ m!n!!l/ !* the +istri0%ti!n in the
+!mesti) mar.ets "ere )!m0ine+( as "as the )ase !* the r!#in)ial li-%!r 0!ar+s in Cana+a. This interretati!n
"as )!n*irme+ a contrario 0/ the "!r+ing !* Arti)le IIIB9:a;.=
WT/DS135/R
Page 17&
sense gi#en t! this )!n)et 0/ the Aellate 3!+/.
71
C!nse-%entl/( "e +! n!t )!nsi+er it ne)essar/ t!
eAamine this !int an/ *%rther.
7&
*. Vioation of (rtice III of the G(TT 1114
:a; Arg%ments !* the arties
73
9.1'1 A))!r+ing t! Cana+a the li.eness !* r!+%)ts sh!%l+ 0e assesse+ !n a )ase80/8)ase 0asis(
)!nsi+ering( in arti)%lar( the en+8%se !* the r!+%)t( )!ns%mers' tastes an+ ha0its( an+ the r!erties(
nat%re an+ -%alit/ !* the r!+%)t. T! these sh!%l+ 0e a++e+ tari** )lassi*i)ati!n. Pre)e+ents %n+er the
<ATT 1617 an+ the <ATT 1661 +! n!t( h!"e#er( re-%ire that all the )riteria 0e alie+ "hen
e#al%ating the li.eness !* gi#en r!+%)ts. 2!re!#er( =li.e= +!es n!t mean =i+enti)al=( it is a matter !*
sh!"ing that the r!+%)ts )!mare+ share man/ similar *eat%res. @!r Cana+a( al/ing the )riteria in
the re)e+ents )!n*irms the li.eness !* !l/#in/l al)!h!l :hereina*ter =PCA=;( )ell%l!se an+ glass
*i0res an+ )hr/s!tile *i0re( !n the !ne han+( an+ *i0r!8)ement an+ )hr/s!tile8)ement r!+%)ts !n the
!ther.
9.1'& The ,C )!nten+ that as0est!s an+ as0est!s8)!ntaining r!+%)ts( !n the !ne han+( an+
s%0stit%te r!+%)ts( !n the !ther( are n!t li.e r!+%)ts "ithin the meaning !* Arti)le IIIB1 !* the <ATT
1661. @!%r )riteria in arti)%lar )an 0e %se+ t! assess the li.eness !* r!+%)tsB :a; their r!erties(
nat%re an+ -%alit/H :0; their tari** )lassi*i)ati!nH :); their en+8%seH an+ :+; )!ns%mers' tastes an+
ha0its. In this )ase( three )riteria are rele#antB the r!erties( nat%re an+ -%alit/H the tari**
)lassi*i)ati!n an+ the en+8%se !* the r!+%)t. In the ,C's #ie" Cana+a is )!n*%sing the )!n)et !*
=li.e= r!+%)t in Arti)le IIIB1 "ith that !* =)!metiti#e= !r =+ire)tl/ s%0stit%ta0le= r!+%)t in
Arti)le IIIB&( rea+ in )!n5%n)ti!n "ith the rele#ant interretati#e N!te. In this )ase( alth!%gh )ertain
*i0r!%s r!+%)ts are in+ee+ =s%0stit%ta0le= *!r )hr/s!tile as0est!s an+ r!+%)ts )!ntaining it( the/ are
ne#ertheless n!t =li.e= r!+%)ts. As0est!s has %ni-%e h/si)al )hara)teristi)s an+ r!erties that
ma.e it +i**i)%lt t! rela)e *!r )ertain in+%strial %r!ses. This is "h/ the De)ree en#isages
eA)eti!ns. As as0est!s has s! man/ %ses( there is n! single nat%ral !r s/ntheti) r!+%)t "hi)h(
al!ne( )!%l+ rela)e it in all the r!+%)ts an+ materials that )!ntain as0est!s.
:0; Iss%es raise+ in )!nne)ti!n "ith the arg%ments !* the arties relating t! Arti)le IIIB1 !* the
<ATT 1661
9.1'3 The Panel )!nsi+ers that the arg%ments !* the arties raise the *!ll!"ing iss%esB
:a; The *irst iss%e is the )riteria t! 0e alie+ in !r+er t! +etermine the li.eness !* the
r!+%)ts in -%esti!n. The Panel n!tes that the arties +! n!t in *a)t agree !n the
s)!e !* the )!n)et !* li.e r!+%)t %n+er Arti)le IIIB1. Ne#ertheless( "ith regar+ t!
the )riteria t! 0e ta.en int! )!nsi+erati!n "hen assessing li.eness( the arties re*erre+
t! the )riteria )!ntaine+ inter alia in the Re!rt !* the W!r.ing Part/ !n ;order a6
AdAustments
71
an+ in the Re!rts !* the Panel an+ the Aellate 3!+/ in )a,an
71
See the Re!rts !* the Aellate 3!+/ in United States Shirts and ;louses, !. )it% an+ Australia
Salmon, !. )it% See als! Se)ti!n CIII.,.1:0; a0!#e.
7&
We n!te in this )!nne)ti!n that the Re!rt !* the Panel in Canada Im,ort, 8istribution and Sale of
Certain Alcoholic 8rin=s b/ Pro9incial 1ar=eting Agencies, a+!te+ !n 19 @e0r%ar/ 166&( 3ISD 36S/&7( in
ara. 5.&9 se)i*i)all/ eAamines the -%esti!n !* "hether minim%m ri)es *ell %n+er Arti)le GIB1 !r Arti)le IIIB1
an+ n!te+ the *!ll!"ingB
=The Panel *irst eAamine+ "hether the minim%m ri)es *ell %n+er Arti)le GIB1 !r Arti)le IIIB1. The
Panel n!te+ that( a))!r+ing t! the N!te A+ Arti)le III( a reg%lati!n is s%05e)t t! the r!#isi!ns !* Arti)le
III i* it 'alies t! an im!rte+ r!+%)t an+ t! the li.e +!mesti) r!+%)t' e#en i* it is 'en*!r)e+ in )ase !*
the im!rte+ r!+%)t at the time !r !int !* im!rtati!n'. The Panel found that( as the minim%m ri)es
"ere alie+ t! 0!th im!rte+ an+ +!mesti) 0eer( the/ *ell( a))!r+ing t! this N!te( %n+er Arti)le III.=
73
The arg%ments !* the arties are set !%t in +etail in Se)ti!n III a0!#e.
71
Re!rt !* the W!r.ing Part/ !n ;order a6 AdAustments, a+!te+ !n & De)em0er 167'(
3ISD 19S/67( ara. 19.
WT/DS135/R
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a6es on Alcoholic ;e9erages%
75
The r!0lem )an there*!re 0e s%mmariFe+ as
"hether the )riteria +e#el!e+ in these )ases m%st 0e alie+ as s%)h !r in a arti)%lar
"a/ in the )!nteAt !* Arti)le IIIB1( !r "hether a++iti!nal )riteria sh!%l+ 0e ta.en int!
)!nsi+erati!n. Inasm%)h as these are the !nl/ )riteria +e#el!e+ t! +ate in )!nne)ti!n
"ith Arti)le III( "e )!nsi+er it ar!riate t! )!mmen)e !%r anal/sis 0/ al/ing
them t! the *a)ts in this )ase. I*( "hen al/ing these )riteria( "e en)!%nter
+i**i)%lties se)i*i) t! Arti)le IIIB1( "e shall +eal "ith them at that stage. 2!re!#er(
"e n!te that in the a0!#e8menti!ne+ )ase the Aellate 3!+/ se)i*ie+ that ea)h
)riteri!n sh!%l+ 0e assesse+ !n a )ase80/8)ase 0asis.
77
It is th%s n!t a -%esti!n !*
s/stemati)all/ +etermining the )riteria ali)a0le in the )!nteAt !* Arti)le IIIB1 0%t
rather !* +e)i+ing "hi)h are rele#ant in this )ase.
:0; The se)!n+ iss%e is relate+ t! the *a)t that the arties !*ten re*er in general t!
s%0stit%te r!+%)ts *!r )hr/s!tile( r!+%)ts )!ntaining as0est!s in general( )hr/s!tile8
)ement r!+%)ts !r *i0r!8)ement r!+%)ts. Ta.ing int! a))!%nt the ra)ti)e !* the
Aellate 3!+/ regar+ing +eterminati!n !* the li.eness !* r!+%)ts an+ the 0%r+en !*
r!!* in this )!nne)ti!n( "e )!nsi+er that the i+enti*i)ati!n !* the r!+%)ts "hi)h
ha#e t! 0e )!mare+ %rs%ant t! Arti)le IIIB1 is !* im!rtan)e in !%r *in+ings.
77
We
als! ha#e t! +e)i+e h!" t! +eal "ith the *i0res as s%)h as )!mare+ t! r!+%)ts
)!ntaining the *i0res.
79
9.1'1 In #ie" !* the arti)%lar imli)ati!ns !* the se)!n+ -%esti!n *!r !%r *in+ings( it aears t! %s
ne)essar/ *irst t! +e#!te a se)ial se)ti!n !* the re!rt t! this.
:); The Panel's ar!a)h t! r!+%)t80/8r!+%)t anal/sis an+ )ertain se)i*i) ase)ts !* the
0%r+en !* r!!*.
9.1'5 The Panel n!tes that the ,C ha#e in+i)ate+ that 6' er )ent !* im!rte+ )hr/s!tile *i0re "as
%se+ *!r ma.ing as0est!s8)ement r!+%)ts ri!r t! the ali)ati!n !* the De)ree.
76
The Panel als!
n!tes that Cana+a =*!)%ses= its arg%ments !n )hr/s!tile *i0res an+ s%0stit%te *i0res *!r )hr/s!tile( as
"ell as !n )hr/s!tile8)ement an+ *i0r!8)ement r!+%)ts. With regar+ t! s%0stit%te *i0res *!r
)hr/s!tile( Cana+a !ints !%t that there are m!re than 15' s%0stit%te *i0res *!r )hr/s!tile *i0re.
Ne#ertheless( Cana+a in+i)ates that( in #ie" !* Arti)le IIIB1 !* the <ATT 1661( it )!nsi+ers that the
Panel's *in+ings an+ )!n)l%si!ns sh!%l+ ta.e int! a))!%nt the ima)t !* the De)ree in relati!n t! three
s%0stit%te *i0resB PCA( )ell%l!se *i0res an+ glass *i0res( as "ell as the *i0r!8)ement r!+%)ts
in)!r!rating these. Cana+a als! in+i)ates that it +!es n!t in#!.e the arg%ment !* li.eness "ith
rese)t t! n!n8*i0r!%s s%0stit%tes *!r )hr/s!tile *i0res :e.g. PCC !r +%)tile ir!n;( n!r t! n!n8*i0r!%s
r!+%)ts %se+ as s%0stit%tes *!r )hr/s!tile8)ement r!+%)ts.
9.1'7 The ,C in+i)ate that in its re-%est *!r )!ns%ltati!ns an+ its re-%est *!r the esta0lishment !* a
anel( Cana+a ne#er )laime+ that this +is%te )!n)erne+ high8+ensit/ )ement r!+%)ts )!ntaining
)hr/s!tile. The Panels terms !* re*eren)e +! n!t re*er t! these either. 2!re!#er( the ,C !int !%t that
Cana+a !nl/ eA!rte+ )hr/s!tile as0est!s as a ra" material an+ n!t in the *!rm !* high8+ensit/ )ement
r!+%)ts )!ntaining )hr/s!tile.
75
O. )it.( . &&8&5.
77
I0i+.( . &&.
77
See the Re!rt !* the Aellate 3!+/ in )a,an 1easures Affecting Agricultural Products, !. )it.(
aras. 1378139.
79
3earing in min+ Cana+a's rel/ t! -%esti!n N!. 15 0/ the Panel( aras. 71877( "e )!n)l%+e that
Cana+a +!es n!t raise the iss%e !* the li.eness !* n!n8*i0r!%s r!+%)ts( "hether s%0stit%te r!+%)ts !r r!+%)ts
)!ntaining them( as )!mare+ t! )hr/s!tile !r r!+%)ts )!ntaining it.
76
See the ,C's rel/ t! -%esti!n 3' 0/ the Panel( AnneA II( ara. 113 0el!".
WT/DS135/R
Page 171
9.1'7 Ta.ing int! a))!%nt the r%les g!#erning the 0%r+en !* r!!*
9'
( the Panel in the *irst la)e
)!nsi+ers that it sh!%l+ restri)t its eAaminati!n !* the li.eness !* r!+%)ts in the )!nteAt !*
Arti)le IIIB1 t! th!se r!+%)ts i+enti*ie+ 0/ Cana+a *!r "hi)h the arties r!#i+e+ e#i+en)e !r ma+e
an a+e-%ate rima *a)ie )ase t! esta0lish their li.eness !r their a0sen)e !* li.eness t! )hr/s!tile an+
r!+%)ts )!ntaining it.
91
9.1'9 We n!te( that alth!%gh *ri)ti!n r!+%)ts are menti!ne+( Cana+a +!es n!t in)l%+e these in its
)!maris!ns relating t! Arti)le IIIB1. We there*!re )!n)l%+e that Cana+a +!es n!t inten+ the Panel t!
r%le !n the li.eness !* *ri)ti!n r!+%)ts )!ntaining )hr/s!tile an+ !ther r!+%)ts.
9&
We shall there*!re
n!t eAamine these r!+%)ts in !%r *in+ings relating t! the r!#isi!ns !* the <ATT 1661.
9.1'6 Se)!n+l/( alth!%gh Cana+a aears s!metimes t! )!nsi+er that )hr/s!tile *i0re is siml/ an
in%t an+ n!t a r!+%)t ,er se( "e n!te that the De)ree re*ers t! =#arieties !* as0est!s *i0res( J
regar+less !* "hether these s%0stan)es ha#e 0een in)!r!rate+ int! materials( r!+%)ts !r +e#i)es=.
We als! n!te that the t"! arties +is)%sse+ the li.eness !* as0est!s *i0res as s%)h( irrese)ti#e !* the
r!+%)ts int! "hi)h the/ "ere in)!r!rate+.
9.11' C!n)erning the ,C's arg%ment that neither in the re-%est *!r )!ns%ltati!ns n!r in the re-%est
*!r the esta0lishment !* a anel n!r in the Panel's terms !* re*eren)e is it se)i*ie+ that the +is%te
)!n)erns high8+ensit/ )ement r!+%)ts )!ntaining )hr/s!tile( the Panel "ishes t! re)all that it is n!t
ne)essar/ *!r the re-%est *!r the esta0lishment !* a anel t! list all the r!+%)ts )!n)erne+ in +etail.
The Panel als! )!nsi+ers that the *a)t that Cana+a +i+ n!t eA!rt high8+ensit/ )ement r!+%)ts
)!ntaining )hr/s!tile )ann!t )!nstit%te an !0sta)le t! )laims relating t! these r!+%)ts.
93
9.111 In the light !* the *!reg!ing( it "!%l+ aear ar!riate t! str%)t%re !%r anal/sis as *!ll!"sB
:a; @irst !* all( t! eAamine "hether PCA( )ell%l!se an+ glass *i0res( ta.en searatel/
:i.e. n!t in)!r!rate+ in a r!+%)t;( are r!+%)ts li.e t! )hr/s!tile *i0re. ,#en i* the/
are n!t a *inishe+ r!+%)t( the *i0res themsel#es are r!+%)ts "hi)h are eA!rte+ an+
mar.ete+ an+ "e 0elie#e it is rele#ant t! )!mare them.
:0; Se)!n+l/( "ith regar+ t! r!+%)ts )!ntaining as0est!s !r s%0stit%te *i0res( "e n!te
that Cana+a )!n*ines its )!maris!n t! r!+%)ts )!m0ining )ement an+ )hr/s!tile
:=)hr/s!tile8)ement=; !r !ne !r the !ther !* the three a*!rementi!ne+ *i0res :=*i0r!8
)ement=;. We shall there*!re limit !%r *in+ings t! these )ateg!ries.
:); Dastl/( "e n!te that( alth!%gh Cana+a ma.es a se)i*i) re*eren)e t! an+ )ites as an
eAamle )ertain r!+%)tsB ies( tiles( ins%lating tiles !r 0!ar+s( it +!es n!t *%rnish an
eAha%sti#e list !* the r!+%)ts a)t%all/ a**e)te+ 0/ the meas%re an+ its )laims are n!t
arrange+ !n a =r!+%)t80/8r!+%)t= 0asis. Cana+a re*ers in generi) terms t! t"!
ma5!r )ateg!ries !* r!+%)tB :a; )hr/s!tile( PCA( )ell%l!se an+ glass *i0resH an+
9'
See in arti)%lar the re!rts !* the Aellate 3!+/ in Australia Salmon, !. )it% an+ )a,an
Agricultural Products, !. )it..
91
We are a"are that Cana+a's )laims :see ara. 3.1 a0!#e; state that the De)ree is in)!mati0le "ith
Arti)le IIIB1 !* the <ATT 1661 0e)a%se it =*a#!%rs the nati!nal in+%str/ !* r!+%)ts li.e )hr/s!tile )ement an+
)hr/s!tile8)ement r!+%)ts J= 2!re!#er( !%r terms !* re*eren)e are n!t )!n*ine+ t! PCA( )ell%l!se an+ glass
*i0res :see WT/DS135/3;. We n!te( h!"e#er( that Cana+a +!es n!t as. *!r *in+ings !n !ther *i0res. We
there*!re limit !%r *in+ings t! the r!+%)ts *!r "hi)h "e )!nsi+er Cana+a ha+ re-%este+ *in+ings( namel/( PCA(
)ell%l!se an+ glass *i0res.
9&
See AnneA II( Cana+a's rel/ t! -%esti!n 15 0/ the Panel( aras. 71 et se$%%
93
See the Re!rt !* the Aellate 3!+/ in 0uro,ean Communities ;ananas, !. )it.( ara. 137( "here
it is menti!ne+ that the !tential eA!rt interest 0/ the Unite+ States )!%l+ n!t 0e eA)l%+e+ e#en th!%gh at that
time the Unite+ States +i+ n!t eA!rt 0ananas *r!m their territ!r/ t! the ,C. See als! the Re!rt !* the Panel in
Indonesia Certain 1easures Affecting the Automobile Industr/( a+!te+ !n &3 $%l/ 1669( WT/DS51( 55( 56(
71/R( ara. 11.113.
WT/DS135/R
Page 175
:0; r!+%)ts )!m0ining )hr/s!tile an+ )ement !r !ther *i0res an+ )ement. We als!
n!te that the ,C +!es n!t +isting%ish 0et"een #ari!%s *i0r!8)ement !r )hr/s!tile8
)ement r!+%)ts. ,#en th!%gh the +i**erent r!+%)ts )!m!se+ !* )hr/s!tile8)ement
!r *i0r!8)ement ha#e +i**erent %ses :"ater ies( thermal ins%lati!n( r!!*ing( et).;( "e
+! n!t )!nsi+er it ne)essar/ t! i+enti*/ ea)h r!+%)t man%*a)t%re+ in )hr/s!tile8
)ement !r *i0r!8)ement 0e)a%se the/ are all )!m!se+ !* either *i0r!8)ement !r
)hr/s!tile8)ement an+ the matters +is)%sse+ 0/ the arties )!n)erning their li.eness
are essentiall/ relate+ t! "hether !r n!t the/ )!ntain )hr/s!tile.
:+; Anal/sis !* li.eness
2i4 Introductor/ remar=s
9.11& We n!te that 0!th Cana+a an+ the ,C re*er t! the Re!rt !* the W!r.ing Part/ !n ;order a6
AdAustments, "hi)h( %sing the terms !* the Aellate 3!+/ in )a,an Alcoholic ;e9erages, la/s
+!"n the *%n+amental rin)ile *!r interreting the "!r+s =li.e r!+%)ts= in general in the #ari!%s
r!#isi!ns !* the <ATT 1617. This Re!rt states the *!ll!"ingB
= J the interretati!n !* the term >'li.e r!+%)ts'? sh!%l+ 0e eAamine+ !n a )ase80/8)ase 0asis. This
"!%l+ all!" a *air assessment in ea)h )ase !* the +i**erent elements that )!nstit%te a 'similar' r!+%)t.
S!me )riteria "ere s%ggeste+ *!r +etermining( !n a )ase80/8)ase 0asis( "hether a r!+%)t is 'similar'B
the r!+%)t's en+8%ses in a gi#en mar.etB )!ns%mers' tastes an+ ha0its( "hi)h )hange *r!m )!%ntr/ t!
)!%ntr/H the r!+%)t's r!erties( nat%re an+ -%alit/=.
91
9.113 The Panel an+ the Aellate 3!+/ in )a,an Alcoholic ;e9erages re)!gniFe+ the rele#an)e
!* this list an+ a++e+ tari** )lassi*i)ati!n in the Earm!niFe+ S/stem :=ES=;. The Aellate 3!+/ als!
!inte+ !%t that the rin)ile ela0!rate+ 0/ the W!r.ing Part/ in ;order a6 AdAustments ha+ 0een
*!ll!"e+ in alm!st all the re!rts !* s%0se-%ent anels. We n!te in this )!nne)ti!n that the anel in
United States 7asoline, in the )!nteAt !* the <ATT 1661( alie+ this rin)ile "hen eAamining
li.eness in relati!n t! Arti)le IIIB1.
95
9.111 @inall/ "e n!te that in )a,an Alcoholic ;e9erages the Aellate 3!+/ rea**irme+ that
anels m%st %se their 0est 5%+gement "hen +etermining "hether( r!+%)ts are in *a)t li.e r!+%)ts(
an+ this "!%l+ al"a/s ine#ita0l/ in#!l#e a +egree !* +is)reti!nar/ 5%+gement. The Aellate 3!+/
als! )!n*irme+ that( "hen ma.ing an assessment( n! single ar!a)h "!%l+ 0e ar!riate t! e#er/
single )ase. The )ir)%mstan)es e)%liar t! ea)h )ase m%st 0e ta.en int! a))!%nt. The )riteria !%tline+
in the re!rt !n ;order a6 AdAustments sh!%l+ 0e eAamine+( 0%t there )!%l+ 0e n! re)ise an+
a0s!l%te +e*initi!n !* li.e.
9.115 We "!%l+ a++ that e#en th!%gh( *!r reas!ns !* )larit/( ea)h )riteri!n has t! 0e eAamine+
searatel/( it is m!re than li.el/ that the/ are largel/ inter+een+ent. In !ther "!r+s( it +!es n!t
aear ar!riate t! eAamine ea)h !* the )riteria in is!lati!n. O%r eAaminati!n sh!%l+ 0e 0ase+ !n
an assessment !* ea)h )riteri!n in its )!nteAt( that is t! sa/ in the light !* the !ther )riteria +eeme+
rele#ant in this )ase.
9.117 Ea#ing +e*ine+ the ar!a)h t! 0e %se+( "e )!mmen)e !%r anal/sis 0/ eAamining the
li.eness !* *i0res.
2ii4 :i=eness of asbestos fibres and substitute fibres
91
O. )it.( ara. 19.
95
O. )it.( aras. 7.9 an+ 7.6.
WT/DS135/R
Page 177
9.117 We n!te that( in their arg%ments( the arties ha#e n!t al"a/s +isting%ishe+ 0et"een *i0res as
s%)h an+ r!+%)ts )!ntaining s%)h *i0res.
97
In this se)ti!n( there*!re( "e shall eAamine the rele#ant
)riteria r!#i+e+ that the/ )an 0e relate+ se)i*i)all/ t! the *i0res.
Pr!erties( nat%re an+ -%alit/ !* the r!+%)ts
9.119 Cana+a )!nsi+ers that the nat%re !* )hr/s!tile an+ s%0stit%te *i0res is the same 0e)a%se the/
are all *i0res. ,#en i* the length( +iameter an+ "i+th8+iameter rati! ha#e an e**e)t !n ath!geni)it/(
this +!es n!t mean that *i0res !* +i**erent +imensi!ns )ann!t 0e li.e *i0res. The +imensi!nal
arameters set 0/ the WEO +! n!t )!nstit%te the )riteri!n !* the nat%re( -%alit/ an+ r!erties
a))!r+ing t! "hi)h the li.eness !* *i0r!%s r!+%)ts is +etermine+. T!! m%)h im!rtan)e sh!%l+ n!t
0e atta)he+ t! the se)ial nat%re !* as0est!s *i0res )laime+ 0/ the ,C. ,#en i* s%0stit%te *i0res are
m!re )!stl/ than )hr/s!tile *i0res an+ ha#e !ther %ses( )hr/s!tile8)ement !r *i0r!8)ement
man%*a)t%rers %se them *!r the same %r!ses an+ the li.eness !* the man%*a)t%ring r!)esses *!r
)hr/s!tile8)ement an+ *i0r!8)ement sh!"s the similarities !* the r!erties an+ the nat%re !* these
*i0res. In !r+er t! !**er the same te)hni)al g%arantees as )hr/s!tile8)ement r!+%)ts :!ne !* the
)!n+iti!ns *!r s%0stit%ta0ilit/ in the De)ree;( *i0r!8)ement r!+%)ts m%st in+%0ita0l/ ha#e the same
r!erties( -%alit/ an+ nat%re. Similarl/( the =l!"er= ath!geni)it/ !* s%0stit%te *i0res sh!%l+ n!t
re)l%+e the )!n)l%si!n that the/ are li.e as0est!s. Pr!+%)ts ma/ 0e )!nsi+ere+ li.e +esite their
+i**ering ima)t !n health. There is n! )!ntra+i)ti!n 0et"een +isting%ishing t"! t/es !* *i0re in
s)ienti*i) terms an+ a))!r+ing t! their ath!geni)it/( !n the !ne han+( an+( !n the !ther( al/ing the
)riteria +eri#e+ *r!m WTO an+ <ATT ra)ti)e *!r +etermining "hether r!+%)ts are li.e. The
t!Ai)it/ !* a r!+%)t is n!t re)!gniFe+ as a )riteri!n *!r the e#al%ati!n !* li.eness.
9.116 The ,C )!nsi+er that the r!erties( nat%re an+ -%alit/ !* r!+%)ts are im!rtant "hen
assessing li.eness "ithin the meaning !* Arti)le IIIB1. Unli.e !ther )riteria( this )riteri!n has al"a/s
0een %se+ 0/ anels in )!nne)ti!n "ith Arti)le IIIB1. In the light !* this )riteri!n( the r!+%)ts are in
an/ )ase +i**erent. As0est!s *i0res ha#e a #er/ arti)%lar *i0r!%s teAt%re :0%n+les !* *i0rils that )an
easil/ 0e searate+ length"a/s an+ ha#e a #er/ small +iameter;. The h/si)al an+ )hemi)al
)hara)teristi)s !* s%0stit%te *i0res are n!t the same as th!se !* as0est!s *i0res :*!r eAamle( their
+iameter is m%)h 0igger an+ their *i0rillati!n )aa)it/ is m!re limite+;. N! single nat%ral !r s/ntheti)
s%0stit%te r!+%)t is a0le t! )!m0ine( !r )!m0ines( all the r!erties !* as0est!s( 0earing in min+ the
%ni-%e nat%re !* the )hara)teristi)s !* as0est!s *i0res. These )hara)teristi)s als! ma.e as0est!s *i0res
arti)%larl/ +anger!%s *!r health. Sin)e 1677( the WEO has )lassi*ie+ as0est!s *i0res in )ateg!r/ 1 !*
r!#en )ar)in!gens. The ,C !int !%t that( in )!ntrast( n!ne !* the s%0stit%te r!+%)ts *!r )hr/s!tile
as0est!s is )lassi*ie+ as a r!#en )ar)in!gen *!r h%mans. The nat%re( )!m!siti!n( h/si)al
r!erties an+ r!#en e**e)ts !n h%man health !* )hr/s!tile ma.e it ra+i)all/ +i**erent *r!m s%0stit%te
r!+%)ts. In s%)h a sit%ati!n( the health ris. !se+ 0/ the r!+%)t m%st ne)essaril/ 0e ta.en int!
a))!%nt. A +anger!%s r!+%)t sh!%l+ 0e regar+e+ as 0eing +i**erent in nat%re an+ -%alit/ *r!m a
harmless !r less +anger!%s r!+%)t.
9.1&' The Panel )!nsi+ers that( in a++iti!n t! the *a)t%al elements( the arties' arg%ments raise a
*irst iss%e( namel/( in "hat )!nteAt sh!%l+ the )riteri!n !* the r!erties( nat%re an+ -%alit/ !* the
*i0res 0e ta.en int! a))!%nt *!r the li.eness test "ithin the meaning !* Arti)le IIIB1O The arties in
*a)t 0asi)all/ ta.e % the -%esti!n !* the "a/ in "hi)h the r!erties( nat%re an+ -%alit/ !* the *i0res
sh!%l+ 0e ta.en int! a))!%nt 0/ the Panel.
9.1&1 The Panel n!tes that n! art/ )!ntests that the str%)t%re !* )hr/s!tile *i0res is %ni-%e 0/ nat%re
an+ in )!maris!n "ith arti*i)ial *i0res that )an rela)e )hr/s!tile as0est!s. The arties agree that
n!ne !* the s%0stit%te *i0res menti!ne+ 0/ Cana+a in )!nne)ti!n "ith Arti)le IIIB1 has the same
str%)t%re( either in terms !* its *!rm( its +iameter( its length !r its !tential t! release arti)les that
97
See( *!r eAamle( the arg%ments !* the arties !n the )!n)et !* =li.e r!+%)ts=( Se)ti!n III.C. &:0;:i;
a0!#e.
WT/DS135/R
Page 177
!ssess )ertain )hara)teristi)s.
97
2!re!#er( the/ +! n!t ha#e the same )hemi)al )!m!siti!n
99
( "hi)h
means that( in %rel/ h/si)al terms( n!ne !* them has the same nat%re !r -%alit/. It )!%l+ there*!re
0e )!n)l%+e+ that the/ are n!t li.e r!+%)ts.
9.1&& It sh!%l+ 0e re)alle+( ne#ertheless( that the )!nteAt *!r the ali)ati!n !* Arti)le IIIB1 is n!t a
s)ienti*i) )lassi*i)ati!n eAer)ise. The !05e)ti#e !* Arti)le III )!n)erns mar.et a))ess *!r r!+%)ts.
96
Its %r!se is t! re#ent internal meas%res *r!m 0eing alie+ in s%)h a "a/ as t! r!te)t +!mesti)
r!+%)ti!n.
6'
Arti)le IIIB1 %h!l+s this !05e)ti#e in rese)t !* la"s( reg%lati!ns an+ re-%irements
a**e)ting the sale( mar.eting( %r)hase( trans!rtati!n( +istri0%ti!n an+ %se !* r!+%)ts !n the
+!mesti) mar.et. We als! n!te that the )riteri!n in)l%+es the )!n)et !* the =-%alit/= !* a r!+%)t(
"hi)h is in+i)ati#e !* a )!mmer)ial ar!a)h( !ther"ise the "!r+ =-%alit/= "!%l+ n! +!%0t ha#e
0een %se+ in the l%ral( in "hi)h )ase it "!%l+ ha#e 0een the same as =r!erties= in the sense !* a
arti)%lar -%alit/ !* a r!+%)t.
61
It is th%s "ith a #ie" t! mar.et a))ess that the r!erties( nat%re an+
-%alit/ !* im!rte+ an+ +!mesti) r!+%)ts ha#e t! 0e e#al%ate+.
9.1&3 Alth!%gh "e share Cana+a's #ie" that all the r!+%)ts are =*i0res= an+ th%s li.e r!+%)ts( "e
+! n!t )!nsi+er that the eAaminati!n !* the h/si)al str%)t%re an+ )hemi)al )!m!siti!n :"hi)h in !%r
#ie" relate t! the nat%re !* the r!+%)t; sh!%l+ 0e ta.en t! the !ther eAtreme( e#en th!%gh it has 0een
arg%e+ that !ther anels *!ll!"e+ a narr!"er ar!a)h in this rese)t.
6&
I* s%)h an ar!a)h "as
a+!te+( man/ r!+%)ts "!%l+ ne#er 0e li.e in rese)t !* their nat%re( e#en i* the/ ha+ a similar %se.
On the !ther han+( r!+%)ts "hi)h 0!re n! relati!n t! ea)h !ther in terms !* their %se in e#er/+a/ li*e
)!%l+ 0e )!nsi+ere+ as li.e r!+%)ts 0e)a%se !* their )hemi)al )!m!siti!n. As menti!ne+ in
ara. 9.111 a0!#e( "e n!te the nee+ t! e#al%ate these )riteria !n a )ase80/8)ase 0asis( in !ther "!r+s(
0earing in min+ the *a)t%al )ir)%mstan)es. In this arti)%lar )ase( 0e)a%se !* its h/si)al an+
)hemi)al )hara)teristi)s( as0est!s is a %ni-%e r!+%)t. We n!te( ne#ertheless( that *!r man/ in+%strial
%ses !ther r!+%)ts ha#e the same ali)ati!ns as as0est!s. I* the )hemi)al an+ h/si)al
)hara)teristi)s "ere t! 0e re)!gniFe+ as +e)isi#e in this )ase( "e "!%l+ ha#e t! +isregar+ all the !ther
)riteria an+ this +!es n!t aear t! %s t! 0e )!nsistent "ith the *leAi0ilit/ gi#en t! anels 0/ the
Aellate 3!+/ "hen eAamining the rin)ile !* li.eness.
9.1&1 As regar+s r!erties( "e n!te that n! s%0stit%te *i0re al!ne )!m0ines all the r!erties an+
-%alities !* )hr/s!tile *i0re itsel*. Arti)le &( aragrah I( se)!n+ s%08aragrah !* the De)ree
re)!gniFes this 0/ 0asing the )riteria *!r s%0stit%ti!n inter alia !n =all te)hni)al g%arantees !* sa*et/
)!rres!n+ing t! the %ltimate %r!se !* the %se there!*=. A narr!" interretati!n !* the )!n)et !*
li.e r!+%)t might erhas lea+ %s t! eA)l%+e the li.eness !* r!+%)ts "hi)h +! n!t al"a/s sh!" the
same r!erties in all )ir)%mstan)es. In the )!nteAt !* mar.et a))ess( it is n!t ne)essar/ *!r +!mesti)
r!+%)ts t! !ssess all the r!erties !* the im!rte+ r!+%)t in !r+er t! 0e a li.e r!+%)t. It s%**i)es
that( *!r a gi#en %tiliFati!n( the r!erties are the same t! the eAtent that !ne r!+%)t )an rela)e the
!ther. I* the r!erties !* r!+%)ts al"a/s ha+ t! 0e the same( the )ateg!r/ !* li.e r!+%)ts "!%l+ 0e
97
In this )!nne)ti!n( "e n!te the !0ser#ati!n 0/ !ne !* the eAerts )!ns%lte+ 0/ the Panel that the
)hara)teristi)s !* s!me arti*i)ial s%0stit%te *i0res )an 0e altere+ 0/ in+%str/ i* ne)essar/ :Dr. Een+ers!n(
ara. 5.393 a0!#e;.
99
Regar+ing the )hemi)al )!m!siti!n !* as0est!s( see the ta0le r!#i+e+ 0/ the ,C in rel/ t!
-%esti!n &6 0/ the Panel( ara. 1'7.
96
See the Re!rt !* the Panel in United States 1easures Affecting Alcoholic and 1alt ;e9erages(
a+!te+ !n 16 $%ne 166&( 3ISD 36S/&'7( ara. 5.&5.
6'
I0i+.( ara. 5.71. See als! the Re!rt !* the Panel in Italian 8iscrimination Against Im,orted
Agricultural 1achiner/( a+!te+ !n &3 O)t!0er 1659( 7S/7'( ara. 11( an+ the Re!rt !* the Panel
United States Section 33" of the ariff Act of 1!30( a+!te+ !n 7 N!#em0er 1696( 37S/315( ara. 5.1'.
61
In this )!nne)ti!n( "e n!te that the ,nglish teAt !* the Re!rt !n ;order a6 AdAustments, !. )it.(
ara. 19( %ses the "!r+s =r!erties= an+ =-%alit/=.
6&
See the ,C's arg%ments in ara. 3.11 a0!#e )!n)erning the Re!rt !* the Panel in 00C 1easures
on Animal *eed Proteins( a+!te+ !n 11 2ar)h 1679( 3ISD &5S/16. The Panel +!es n!t )!nsi+er that the
*a)t%al elements e)%liar t! this a**air an+ the )!n)l%si!ns !* the Panel :see ara. 1.&; ma.e it !ssi0le t! +ra"
the )!n)l%si!ns s%ggeste+ 0/ the ,C in the resent )ase.
WT/DS135/R
Page 179
#er/ small( s!metimes e#en 5%st !ne r!+%)t. We n!te in this )!nne)ti!n that the Panel in )a,an
Customs 8uties, a6es and :abelling Practices on Im,orted Bines and Alcoholic ;e9erages
63
)!nsi+ere+ that gin( #!+.a( "his./( 0ran+/( li-%e%rs( still "ine an+ sar.ling "ine sh!%l+ 0e
)!nsi+ere+ as li.e r!+%)ts "ithin the meaning !* Arti)le IIIB& in #ie" !* their similar r!erties an+
en+8%ses
61
"e )!nsi+er that this Re!rt %h!l+s !%r ar!a)h. I* r!+%)ts "h!se nat%re is n!t eAa)tl/
the same an+ "h!se r!erties are n!t al"a/s i+enti)al( *!r eAamle "ine !n the !ne han+ an+ "his./
!n the !ther( )an 0e )!nsi+ere+ li.e r!+%)ts( the same ar!a)h )an 0e *!ll!"e+ %rs%ant t!
Arti)le IIIB1 *!r )hr/s!tile *i0res !n the !ne han+ an+ PCA( )ell%l!se an+ glass *i0res !n the !ther.
9.1&5 In this )ase( e#en i* the en+8%ses !* )hr/s!tile *i0res !n the !ne han+ an+ PCA( )ell%l!se an+
glass *i0res !n the !ther are !nl/ the same *!r a small n%m0er !* their rese)ti#e ali)ati!ns( in s!me
)ases the ali)ati!ns are similar. Their r!erties are then e-%i#alent( i* n!t i+enti)al. This is the
5%n)t%re !* interest t! %s( the m!ment "hen the r!+%)ts are %se+ *!r the same %r!se. As "e ha#e
alrea+/ menti!ne+ a0!#e( the )riteria r!!se+ *!r +etermining li.eness sh!%l+ n!t 0e eAamine+ in
is!lati!n. In this arti)%lar )ase( "e )!nsi+er that the en+8%se !* the r!+%)ts sh!%l+ a**e)t the "a/ in
"hi)h "e eAamine the r!erties !* the *i0res )!mare+( inasm%)h as n!ne !* the *i0res menti!ne+ 0/
Cana+a al"a/s *%l*ils the same *%n)ti!ns.
9.1&7 We there*!re )!n)l%+e that( ta.ing int! a))!%nt the r!erties )riteri!n( )hr/s!tile *i0res are
li.e PCA( )ell%l!se an+ glass *i0res. With regar+ t! nat%re an+ -%alit/( "e )!nsi+er that these )riteria
sh!%l+ n!t 0e alie+ narr!"l/ in the *a)t%al )ir)%mstan)es !* the resent )ase. C!nse-%entl/( the
*a)t that )hr/s!tile *i0res +! n!t ha#e the same str%)t%re !r )hemi)al )!m!siti!n as PCA( )ell%l!se !r
glass *i0res )ann!t 0e +e)isi#e *!r the e#al%ati!n !* the li.eness !* these r!+%)ts.
9.1&7 The se)!n+ -%esti!n that m%st 0e ans"ere+ in relati!n t! the ali)ati!n !* the r!erties(
nat%re an+ -%alit/ )riteri!n is that !* the rele#an)e !* the ris. !* the r!+%)t raise+ 0/ the ,C.
65
9.1&9 The Panel has n!te+ the ,C's arg%ment that the )aa)it/ !* )hr/s!tile *i0res t! 0rea. % int!
eAtremel/ *ine arti)les that )an enetrate the %lm!nar/ al#e!li ga#e these *i0res a r!ert/ "hi)h
meant that the/ "ere n!t li.e 0e)a%se this r!ert/ "as the 0asis *!r )hr/s!tile's !tential t! )a%se
+iseases !* the l%ng an+ the le%ra( mainl/ l%ng )an)ers an+ mes!theli!mas.
67
9.1&6 We n!te *irst !* all that the ris. !* a r!+%)t *!r h%man !r animal health has ne#er 0een %se+
as a *a)t!r !* )!maris!n 0/ anels entr%ste+ "ith al/ing the )!n)et !* =li.eness= "ithin the
meaning !* Arti)le III. In a++iti!n t! the *a)t that n! !ther anel has r!0a0l/ e#er 0een )alle+ %!n
t! eAamine a -%esti!n similar t! the !ne 0e*!re %s( in !%r #ie" the reas!n is t! 0e *!%n+ in the
econom/ !* the <ATT 1661. Its rim!r+ial r!le is t! ens%re that a )ertain n%m0er !* +is)ilines are
alie+ t! +!mesti) tra+e reg%lati!ns. Arti)le GG !* the <ATT( h!"e#er( re)!gniFes that )ertain
interests ma/ ta.e re)e+en)e !#er the r%les g!#erning internati!nal tra+e an+ a%th!riFes the a+!ti!n
!* tra+e meas%res aime+ at reser#ing these interests "hile at the same time !0ser#ing )ertain
)riteria.
67
63
A+!te+ !n 1' N!#em0er 1697( 3ISD 31S/91( hereina*ter =)a,an Alcoholic ;e9erages 21!?"4=.
61
I0i+%( ara. 5.7.
65
We n!te that the ,C +ra" attenti!n t! the ris. !se+ 0/ )hr/s!tile *i0res n!t !nl/ in )!nne)ti!n "ith
the r!erties( nat%re an+ -%alit/ )riteri!n 0%t als! in relati!n t! the en+8%se an+ the tastes an+ ha0its !*
)!ns%mers. In this s%0se)ti!n( h!"e#er( "e eAamine the )riteri!n !* the ris. !* a r!+%)t inasm%)h as the ,C(
in its arg%ments( re*erre+ t! this )riteri!n mainl/ in relati!n t! the )riteri!n !* the r!erties( nat%re an+ -%alit/
!* as0est!s *i0res. The )!n)l%si!ns !* !%r eAaminati!n( h!"e#er( "ill al/ t! all the )ir)%mstan)es in "hi)h
the ,C re*er t! the ris. !* a r!+%)t in relati!n t! the +eterminati!n !* li.eness "ithin the meaning !*
Arti)le IIIB1 !* the <ATT 1661.
67
2es!theli!ma is a *!rm !* le%ral )an)er. See *!r eAamle the +es)riti!n 0/ Dr. Een+ers!n(
ara. 5.&6 a0!#e.
67
See the re!rt !* the Panel in Canada 1easures on 06,ort of Un,rocessed 3erring and Salmon(
a+!te+ !n && 2ar)h 1699( 3ISD 35S/69( ara. 1.7.
WT/DS135/R
Page 176
9.13' We )!nsi+er that intr!+%)ing a )riteri!n !n the ris. !* a r!+%)t int! the anal/sis !* li.eness
"ithin the meaning !* Arti)le III "!%l+ largel/ n%lli*/ the e**e)t !* Arti)le GG:0;.
69
The r!te)ti!n !*
h%man health an+ li*e is se)i*i)all/ )!#ere+ 0/ this Arti)le. Arti)le III( !n the !ther han+( +!es n!t
re*er t! this. The 0%r+en !* r!!* "!%l+ n!t !* )!%rse 0e greatl/ m!+i*ie+ 0e)a%se the ,C "!%l+ still
ha#e t! r!#e the ris. !* the r!+%)t( al/ing the rin)ile !* ,robatio incumbit eAus $ue di6it% We
ne#ertheless )!nsi+er that !ther ase)ts that *!rm art !* the rights an+ !0ligati!ns neg!tiate+ 0/ the
2em0ers "!%l+ 0e a**e)te+. Intr!+%)ing the r!te)ti!n !* h%man health an+ li*e int! the li.eness
)riteria "!%l+ all!" the 2em0er )!n)erne+ t! a#!i+ the !0ligati!ns in Arti)le GG( arti)%larl/ the
test !* ne)essit/ *!r the meas%re %n+er aragrah :0; an+ the )!ntr!l eAerte+ 0/ the intr!+%)t!r/
)la%se t! Arti)le GG )!n)erning an/ a0%se !* Arti)le GG:0; "hen al/ing the meas%re. As the
Aellate 3!+/ has emhasiFe+ !n a n%m0er !* !))asi!ns
66
( all these r!#isi!ns in the WTO
Agreement m%st 0e gi#en meaning. Intr!+%)ing a ris. )riteri!n int! the eAaminati!n !* li.eness
%n+er Arti)le III "!%l+ 0e )!ntrar/ t! this 0asi) rin)ile !* interretati!n.
9.131 @inall/( i* s%)h a )riteri!n "as alie+( it "!%l+ ma.e all the !ther )riteria menti!ne+ 0/ the
W!r.ing Part/ !n ;order a6 AdAustments
1''
t!tall/ re+%n+ant 0e)a%se it "!%l+ 0e)!me +e)isi#e
"hen assessing the li.eness !* r!+%)ts in e#er/ )ase in "hi)h it "as in#!.e+( irrese)ti#e !* the
!ther )riteria alie+.
9.13& We there*!re )!n)l%+e that( 0earing in min+ the !#erall e)!n!m/ !* the WTO Agreement( in
arti)%lar the relati!nshi 0et"een Arti)le III an+ Arti)le GG:0;( it is n!t ar!riate t! al/ the
=ris.= )riteri!n r!!se+ 0/ the ,C( neither in the )riteri!n relating t! the r!erties( nat%re an+
-%alit/ !* the r!+%)t( n!r in the !ther li.eness )riteria in#!.e+ 0/ the arties.
,n+8%se
9.133 Cana+a )!nsi+ers that( gi#en the nat%re !* )hr/s!tile *i0re :a ra" mineral res!%r)e;( se)ial
im!rtan)e m%st 0e atta)he+ t! the )riteri!n !* the r!+%)t's en+8%se. Chr/s!tile *i0re has n! %se in
its ra" *!rm. A*ter in)!r!rati!n int! the )ement( )hr/s!tile *i0re an+ PCA( )ell%l!se an+ glass *i0res
are %se+ *!r the man%*a)t%re !* )hr/s!tile8)ement an+ *i0r!8)ement r!+%)ts rese)ti#el/. At the en+8
%se stage( these r!+%)ts )!nstit%te !ne single r!+%)t t! 0e %se+ *!r the same %r!se. A))!r+ing t!
Cana+a( al/ing the en+8%se )riteri!n s%**i)es t! )!n)l%+e that )hr/s!tile *i0res an+ the
a*!rementi!ne+ s%0stit%te *i0res are li.e r!+%)ts. I* en+8%se is a .e/ )riteri!n *!r +etermining
"hether t"! r!+%)ts are +ire)tl/ )!metiti#e !r s%0stit%ta0le %rs%ant t! Arti)le IIIB&( it is e-%all/
im!rtant *!r li.eness. It is the mar.et "hi)h +etermines the en+8%se !* a r!+%)t.
9.131 A))!r+ing t! the ,C( the en+8%ses !* these *i0res are +i**erent an+ this )riteri!n is n!t
+e)isi#e "hen +etermining =li.eness= "ithin the meaning !* Arti)le IIIB1( "hi)h is essentiall/
=te)hni)al=. ,#en "here r!+%)ts ma/ ha#e s!me en+8%ses in )!mm!n( these %ses are n!t s%**i)ient
t! )lassi*/ the r!+%)ts as li.e r!+%)ts "hen ea)h !* them als! has man/ !ther en+8%ses. The
)riteri!n !* en+8%se )!%l+ n!t( 0/ itsel*( in#ali+ate the )!n)l%si!n 0ase+ !n !ther )riteria that these
r!+%)ts are n!t li.e r!+%)ts "ithin the meaning !* Arti)le IIIB1 !* the <ATT 1661.
9.135 The Panel n!tes that Cana+a limite+ its arg%ments t! the %se !* )hr/s!tile in )ement r!+%)ts
an+( at the same time( t! the %se !* PCA( )ell%l!se an+ glass *i0res in )ement r!+%)ts.
9.137 We ha#e alrea+/ *!%n+ a0!#e
1'1
that the rese)ti#e r!erties !* )hr/s!tile *i0res !n the !ne
han+ an+ PCA( )ell%l!se !r glass *i0res !n the !ther all!"e+ )ertain i+enti)al !r at least similar en+8
%ses. We +! n!t there*!re +eem it ne)essar/ t! ela0!rate this *%rther( eA)et t! re)all that( in !%r #ie"(
69
See the +is)%ssi!n !n the )!n)et !* e**e)ti#eness( *!!tn!te && a0!#e.
66
See in arti)%lar Argentina Safeguards, !. )itH ;razil 8esiccated Coconut, !. )it%
1''
See ara. 9.11& a0!#e.
1'1
See ara. 9.1&5 a0!#e.
WT/DS135/R
Page 17'
the *a)t that all the en+8%ses !* these *i0res are n!t li.e %ses +!es n!t mean that the r!+%)ts are n!t
li.e r!+%)ts.
C!ns%mers' tastes an+ ha0its
9.137 As regar+s )!ns%mers' tastes an+ ha0its( Cana+a is !* the #ie" that man%*a)t%rers !*
)hr/s!tile8)ement !r *i0r!8)ement r!+%)ts are the )!ns%mers. The +r! in )hr/s!tile as0est!s
im!rts in 1667 an+ 1667 is a res%lt !* the De)ree an+ n!t !* a )hange in )!ns%mers' tastes an+ ha0its.
It is th%s inar!riate t! )!nsi+er this )riteri!n. Cana+a agrees "ith the ra)ti)e !* anels )ite+ 0/
the ,C
1'&
( an+ as.s the Panel n!t t! ta.e int! a))!%nt )!ns%mers' tastes an+ ha0its "hen +etermining
the li.eness !* r!+%)ts in this )ase.
9.139 In the #ie" !* the ,C( the )!ns%mers' tastes an+ ha0its )riteri!n is n!t a ri!ri rele#ant
0e)a%se the r!+%)ts )!n)erne+ are n!t e#er/+a/ )!ns%mer g!!+s. It might ne#ertheless 0e
interesting t! anal/se the )!ns%mers' er)eti!n !* these r!+%)ts. In*!rme+ %sers "ill n!t )h!!se
as0est!s a*ter the )!metent internati!nal !rganiFati!ns ha#e +e)i+e+ that it is a r!#en )ar)in!gen.
9.136 We n!te *irst !* all that the arties +! n!t )!nsi+er it %se*%l !r ne)essar/ *!r %s t! ta.e this
)riteri!n int! a))!%nt. In !%r #ie"( this is n!t in itsel* s%**i)ient reas!n *!r %s n!t t! ta.e it int!
a))!%nt. We +! n!t agree either( that( in #ie" !* Arti)le IIIB1( there are reas!ns *!r eA)l%+ing
)!nsi+erati!n !* this )riteri!n a ri!ri.
1'3
We )!nsi+er that it is % t! the Panel t! +e)i+e "hether !ne
!* the )riteria ali)a0le t! +etermining the =li.eness= !* the r!+%)ts )!n)erne+ is rele#ant !r n!t.
1'1
What is im!rtant is t! ens%re that !%r anal/sis ta.es int! a))!%nt all the rele#ant elements. In this
arti)%lar )ase( "e n!te *irst !* all that( "hen +etermining the tastes an+ ha0its !* )!ns%mers( it is
ne)essar/ t! la)e !nesel* at the time ri!r t! the entr/ int! *!r)e !* the 0an in the De)ree. ,#en i* "e
+! la)e !%rsel#es ri!r t! that +ate( h!"e#er( it "!%l+ 0e +i**i)%lt t! +etermine re)isel/ "hat "ere
the tastes an+ ha0its !* )!ns%mers at that time. The gr!%s !* )!ns%mers t! 0e ta.en int! a))!%nt are
#er/ #arie+ an+ their tastes an+ ha0its 0ase+ !n an e-%all/ "i+e #ariet/ !* )!nsi+erati!ns. 3e)a%se
this )riteri!n "!%l+ n!t r!#i+e )lear res%lts( the Panel )!nsi+ers that it is n!t rele#ant t! ta.e it int!
a))!%nt in the se)ial )ir)%mstan)es !* this )ase.
9.11' We shall there*!re re*rain *r!m ta.ing a !siti!n !n the ima)t !* this )riteri!n !n the li.eness
!* the r!+%)ts )!nsi+ere+.
Tari** )lassi*i)ati!n
1'&
These )ases are )ite+ in ara. 3.117 a0!#e an+ in the )!rres!n+ing *!!tn!tes.
1'3
In the )ases )ite+ 0/ the ,C L t! "hi)h Cana+a als! re*ers L "e +! n!t *in+ an/ legal reas!ns
relating t! Arti)le IIIB1 t! 5%sti*/ eA)l%+ing the )riteri!n !* )!ns%mers' tastes an+ ha0its. In 1easures Affecting
Alcoholic and 1alt ;e9erages :a+!te+ !n 16 $%ne 166&( 3ISD 36S/&'7;( ara. 5.73( the anel in+ee+ +i+ n!t
agree that l!" al)!h!l 0eer an+ high al)!h!l 0eer "ere li.e r!+%)ts !n the 0asis !* )!ns%mers' tastes an+
ha0its( 0%t it +i+ ne#ertheless %se this )riteri!n. In 00C 1easures on Animal *eed Proteins :a+!te+ !n
11 2ar)h 1679( 3ISD &5S/16;( ara. 1.&( the anel +i+ n!t eA)l%+e the ali)a0ilit/ !* )!ns%mers' tastes(
n!tingB
=>J? in this )ase( s%)h *a)t!rs as the n%m0er !* r!+%)ts an+ tari** items )arr/ing +i**erent +%t/ rates
an+ tari** 0in+ings( the #ar/ing r!tein )!ntents an+ the +i**erent #egeta0le( animal an+ s/ntheti)
!rigins !* the r!tein r!+%)ts 0e*!re the Panel L n!t all !* "hi)h "ere s%05e)t t! the ,,C meas%res=.
In #ie" !* the terms %se+ 0/ the anel in this )ase( it +!es n!t seem that the anel in rin)ile re5e)te+ the
rele#an)e !* )!ns%mers' tastes an+ ha0its. In United States 7asoline, !. )it.( e#en th!%gh the anel +i+ n!t
menti!n the )riteri!n !* )!ns%mers' tastes an+ ha0its in its )!n)l%si!ns in ara. 7.6( in ara. 7.9 it n!netheless
re)alle+ the ali)a0ilit/ %n+er Arti)le IIIB1 !* the )riteria s%mmariFe+ 0/ the W!r.ing Part/ in ;order a6
AdAustments, !. )it.( "hi)h in)l%+e )!ns%mers' tastes an+ ha0its. We ha#e n!t *!%n+ an/ reas!n either t!
restri)t the meaning !* the "!r+ =)!ns%mers= s!lel/ t! the en+8)!ns%mers !* )hr/s!tile8)ement r!+%)ts(
i.e. in+i#i+%al )!ns%mers.
1'1
See the Re!rt !* the Aellate 3!+/ in )a,an Alcoholic ;e9erages( !. )it.( . &1.
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9.111 As regar+s tari** )lassi*i)ati!n( Cana+a re)alls that the 1'7 siA !r eight8+igit )!+es *!r
)hr/s!tile8)ement r!+%)ts in the Earm!niFe+ C!mm!+it/ Des)riti!n an+ C!+ing S/stem !* the
C%st!ms C!!erati!n C!%n)il
1'5
are i+enti)al t! the 1'7 )!+es *!r *i0r!8)ement r!+%)ts.
9.11& The ,C )!nsi+er that the tari** )lassi*i)ati!ns are +i**erent( "hether *!r as0est!s *i0res an+
s%0stit%te *i0res !r *!r r!+%)ts )!ntaining as0est!s an+ s%0stit%tes *!r as0est!s. @!r eAamle( in the
Earm!niFe+ S/stem( as0est!s *i0res are )lassi*ie+ in their !"n hea+ing.
9.113 We +! n!t )!nsi+er that the *a)t that as0est!s *i0res are )lassi*ie+ in their !"n hea+ing is
+e)isi#e in this )ase. PCA( )ell%l!se an+ glass *i0res rese)ti#el/ are als! )lassi*ie+ in +i**erent tari**
hea+ings. We n!te( h!"e#er( that s%)h a )lassi*i)ati!n re*le)ts the +i**eren)e in their nat%re( "hether
the/ are mineral !r #egeta0le( arti*i)ial !r nat%ral. We ha#e alrea+/ *!%n+ that this *a)t!r +i+ n!t
a**e)t the *a)t that their r!erties an+ en+8%se are the same %n+er )ertain )ir)%mstan)es.
1'7
C!n)l%si!n
9.111 A0!#e "e )!n)l%+e+ that )hr/s!tile *i0res( !n the !ne han+( an+ PCA( )ell%l!se an+ glass
*i0res( !n the !ther( are( in )ertain )ir)%mstan)es( similar in r!erties( nat%re an+ -%alit/. We als!
)!n)l%+e+ that these r!+%)ts ha#e similar en+8%ses. @r!m this it *!ll!"s that )hr/s!tile *i0res( !n the
!ne han+( an+ PCA( )ell%l!se an+ glass *i0res( !n the !ther( are li.e r!+%)ts "ithin the meaning !*
Arti)le IIIB1 !* the <ATT 1661.
2iii4 :i=eness bet5een ,roducts containing asbestos and certain other ,roducts
9.115 The Panel )!nsi+ers that man/ !* the arg%ments %t *!r"ar+ in relati!n t! as0est!s( PCA(
)ell%l!se an+ glass *i0res are ali)a0le mutatis mutandis t! r!+%)ts )!ntaining th!se *i0res. Th%s( i*
a *i0r!8)ement r!+%)t( *!r eAamle( a tile( is )!mare+ "ith a similar tile !* )hr/s!tile8)ement( the
!nl/ +i**eren)e 0et"een the r!+%)ts )!n)erne+ is the resen)e !* either )hr/s!tile !r a s%0stit%te
*i0re in the tile( the r!+%)t itsel* 0eing a tile an+ the !ther )!m!nent !* the material 0eing in 0!th
)ases )ement. It is the resen)e !* )hr/s!tile !r s!me !ther *i0re that gi#es the )ement r!+%)t its
se)i*i) *%n)ti!nB me)hani)al strength( resistan)e t! heat( )!mressi!n( et).
9.117 2!re!#er( "e n!te that( in Cana+a's !ini!n( )hr/s!tile8)ement an+ *i0r!8)ement r!+%)ts are
0!th in+%strial r!+%)ts "hi)h )ann!t 0e +isting%ishe+ !n the 0asis !* their eAternal aearan)e.
@r!m the stan+!int !* the tastes an+ ha0its !* the @ren)h )!ns%mer( the/ are inter)hangea0le.
A))!r+ing t! the ,C( in*!rme+ %sers "!%l+ n!t %se r!+%)ts )!ntaining as0est!s a*ter the
internati!nal !rganiFati!ns ha+ +e)i+e+ that as0est!s "as a r!#en )ar)in!gen.
9.117 C!nse-%entl/( "e )!nsi+er that in *a)t the li.eness 0et"een a )hr/s!tile8)ement r!+%)t an+ a
*i0r!8)ement r!+%)t +een+s !n t"! *a)t!rsB :a; the nat%re !* the r!+%)t itsel* an+ :0; the resen)e
!* )hr/s!tile *i0res !r !* PCA( )ell%l!se !r glass *i0res in the r!+%)t.
9.119 Using the )riteria a+!te+ 0/ the Panel an+ the Aellate 3!+/ in )a,an Alcoholic
;e9erages, "e n!te( *irst !* all( that the ES tari** )lassi*i)ati!n :hea+ing 79.11; is the same *!r arti)les
1'5
Eereina*ter =Earm!niFe+ S/stem= !r =ES=.
1'7
As0est!s in its nat%ral state *alls in hea+ing &5.&1. P!l/#in/l al)!h!l *alls in hea+ing 36.'5(
)ell%l!se in 36.1& an+ glass *i0re in 7'.16. We n!te that in )a,an Alcoholic ;e9erages 21!?"4( the Panel
re*erre+ t! the =N!men)lat%re !* the C%st!ms C!!erati!n C!%n)il :CCCN; *!r the )lassi*i)ati!n !* g!!+s in
)%st!ms tari**s=. We als! n!te that the Aellate 3!+/ in )a,an Alcoholic ;e9erages !. )it. . &1 rea**irme+
that that tari** )lassi*i)ati!n( i* s%**i)ientl/ +etaile+( "as a %se*%l 0asis *!r )!n*irming the li.eness !* r!+%)ts.
We n!te that in this )ase the arties 0ase+ themsel#es !n the tari** )lassi*i)ati!n in the Earm!niFe+ S/stem( an+
n!t !n tari** 0in+ings( "hi)h the Aellate 3!+/ %rges sh!%l+ 0e %se+ "ith )a%ti!n. We +! n!t )!nsi+er
h!"e#er( that the arti)%lar )ir)%mstan)es !* this )ase 5%sti*/ that( "hen +etermining the li.eness !r a0sen)e !*
li.eness !* as0est!s( PCA( )ell%l!se an+ glass *i0res( !#erri+ing signi*i)an)e sh!%l+ 0e atta)he+ t! the *a)t that
the r!+%)ts *all in +i**erent tari** hea+ings !* the ES.
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!* as0est!s8)ement( !* )ell%l!se *i0r!8)ement !r the li.e. This hea+ing )!#ers har+ene+ arti)les
)!nsisting essentiall/ !* an intimate miAt%re !* *i0res :*!r eAamle( as0est!s( )ell%l!se !r !ther
#egeta0le *i0res( s/ntheti) !l/mer !r glass *i0res; an+ )ement !r !ther h/+ra%li) 0in+ers( the *i0res
a)ting as strengthening agents. Other r!+%)ts ma/ *all int! +i**erent tari** hea+ings. E!"e#er( man/
!* the r!+%)ts menti!ne+ 0/ Cana+a aear t! *all "ithin this s%0+i#isi!n.
1'7
9.116 We )!nsi+er( m!re!#er( that !ne !* the ,C's main arg%ments against the li.eness 0et"een
*i0r!8)ement an+ )hr/s!tile8)ement r!+%)ts "ith rese)t t! their r!erties( nat%re an+ -%alit/ an+
their en+8%se is 0ase+ !n the ris. ass!)iate+ "ith the )hr/s!tile "hi)h the/ )!ntain. T! the eAtent that
in aragrah 9.13& "e )!n)l%+e+ that the =ris.= )riteri!n )ann!t 0e in)l%+e+ am!ng the )riteria
ali)a0le t! the +eterminati!n !* li.eness %n+er Arti)le IIIB1( "e +! n!t )!nsi+er it ne)essar/ t!
+is)%ss the ali)a0ilit/ !* this )riteri!n "ith rese)t t! )hr/s!tile8)ement r!+%)ts. The same alies
"ith rese)t t! )!ns%mers' tastes an+ ha0its.
9.15' We there*!re )!n)l%+e that )hr/s!tile8*i0re r!+%)ts an+ *i0r!8)ement r!+%)ts are li.e
r!+%)ts "ithin the meaning !* Arti)le IIIB1 !* the <ATT 1661.
:e; Dess *a#!%ra0le treatment !* Cana+ian r!+%)ts
1'9
9.151 With rese)t t! the eAisten)e !* less *a#!%ra0le treatment( Cana+a arg%es that the De)ree
alters the )!n+iti!ns !* )!metiti!n 0et"een( !n the !ne han+( s%0stit%te *i0res an+ r!+%)ts
)!ntaining them !* @ren)h !rigin an+( !n the !ther han+( )hr/s!tile *i0re an+ r!+%)ts )!ntaining it
*r!m Cana+a. The De)ree +!es n!t a**!r+ )hr/s!tile *i0re im!rte+ *r!m Cana+a an+ r!+%)ts
)!ntaining it e**e)ti#e e-%alit/ !* !!rt%nities *!r im!rte+ r!+%)ts in rese)t !* the ali)ati!n !*
la"s( reg%lati!ns an+ re-%irements a**e)ting the internal sale( !**ering *!r sale( %r)hase(
trans!rtati!n( +istri0%ti!n !r %se !* r!+%)ts. N!t !nl/ +!es the 0an al/ !nl/ t! as0est!s *i0re an+
r!+%)ts )!ntaining it 0%t it is ali)a0le !nl/ i* there are r!+%)ts li.e t! )hr/s!tile *i0re !r t! the
r!+%)ts )!ntaining it. Th%s( the De)ree im!ses less *a#!%ra0le treatment in all )ases "here li.e
r!+%)ts eAist. A))!r+ingl/( the De)ree )!nstit%tes de Aure +is)riminati!n 0et"een )hr/s!tile *i0res
an+ r!+%)ts )!ntaining them( !n the !ne han+( an+ li.e r!+%)ts :PCA( )ell%l!se !r glass *i0res an+
*i0r!8)ement r!+%)ts )!ntaining them;( !n the !ther.
9.15& Cana+a als! alleges +e *a)t! +is)riminati!n. The @ren)h PCA *i0res in+%str/ is in 0etter
shae than e#er. 2!re!#er( it is n!t 0e)a%se @ran)e has im!rte+ a marginal a++iti!nal -%antit/ !*
Cana+ian )ell%l!se *i0res that the @ren)h +!mesti) in+%str/ has n!t 0ene*ite+ *r!m the 0an. The
De)ree +!es in+ee+ im!se a )h!i)e !n the @ren)h )!ns%mer "h! is n!" re#ente+ *r!m %sing
)hr/s!tile *i0re !r r!+%)ts )!ntaining it.
9.153 The ,C maintain that the )!nteste+ meas%re a))!r+s "ith the *%n+amental %r!se !*
Arti)le III( "hi)h is t! re#ent r!te)ti!nism( an+ is n!t +is)riminat!r/( neither de Aure n!r +e *a)t!(
inasm%)h as it g%arantees e**e)ti#e e-%alit/ !* !!rt%nities *!r +!mesti) an+ im!rte+ r!+%)ts. The
)!nteAt in "hi)h the De)ree "as a+!te+ an+ its r!#isi!ns sh!" that the intenti!n !* the @ren)h
1'7
In *a)t( the ES ,Alanat!r/ N!tes +es)ri0e the r!+%)ts that *all "ithin hea+ing 79.11 :=Arti)les !*
as0est!s8)ement( !* )ell%l!se *i0r!8)ement !r the li.e=; as *!ll!"sB
=This hea+ing )!#ers har+ene+ arti)les )!nsisting essentiall/ !* an intimate miAt%re !* *i0res :*!r
eAamle( as0est!s( )ell%l!se !r !ther #egeta0le *i0res( s/ntheti) !l/mer( glass !r metalli) *i0res; an+
)ement !r !ther h/+ra%li) 0in+ers( the *i0res a)ting as strengthening agents. >J?
The hea+ing in)l%+es sheets !* all siFes an+ thi).nesses( !0taine+ as +es)ri0e+ a0!#e( an+ als! arti)les
ma+e 0/ )%tting these sheets !r 0/ ressing( m!%l+ing !r 0en+ing them 0e*!re the/ ha#e set(
e.g.( r!!*ing( *a)ing !r artiti!n sheets an+ tilesH sheets *!r ma.ing *%rnit%reH "in+!" sillsH sign8
lates( letters an+ n%m0ersH 0arrier 0arsH )!rr%gate+ sheetsH reser#!irs( tr!%ghs( 0asins( sin.sH t%0ing
5!intsH a).ing "ashers an+ 5!intsH anels imitating )ar#ingH ri+ge tiles( g%tters( "in+!" *ramesH
*l!"er8!tsH #entilati!n !r !ther t%0ing( )a0le )!n+%itsH )himne/ )!"ls( et).
All these arti)les ma/ 0e )!l!%re+ in the mass( #arnishe+( rinte+( enamelle+( +e)!rate+( +rille+( *ile+(
lane+( sm!!the+( !lishe+ !r !ther"ise "!r.e+H the/ ma/ als! 0e rein*!r)e+ "ith metal( et).=
1'9
The arg%ments !* the arties are set !%t in +etail in Se)ti!n III a0!#e.
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a%th!rities "as in n! "a/ t! r!te)t +!mesti) s%0stit%te r!+%)ts 0%t t! r!te)t h%man health against
the ris.s ass!)iate+ "ith as0est!s. The/ als! sh!" that the De)ree ma.es n! +istin)ti!n 0et"een
im!rte+ an+ +!mesti) r!+%)ts( "hether it 0e a -%esti!n !* s%0stit%te !r as0est!s r!+%)ts( an+ that
neither its !05e)t n!r its e**e)t is t! r!te)t +!mesti) r!+%)ti!n. The De)ree +!es n!t )reate an/
+e *a)t! +is)riminati!n( sin)e in @ran)e m!st s%0stit%te r!+%)ts are im!rte+ *r!m #ari!%s thir+
)!%ntries. 2!re!#er( @ran)e has a negati#e tra+e 0alan)e in s%0stit%te r!+%)ts. The 0an !n the %se
!* as0est!s !n %0li) health gr!%n+s has re-%ire+ a ain*%l )hange!#er( in h%man an+ *inan)ial terms(
in)l%+ing the l!ss !* eAternal !%tlets *!r @ren)h in+%str/. @inall/( the De)ree is =ne%tral= in rese)t !*
the )h!i)es that 0%sinesses )an ma.e )!n)erning rela)ement r!+%)ts.
9.151 We n!te that "ith regar+ t! the esta0lishment !* the eAisten)e !* less *a#!%ra0le treatment( it
is *irst ne)essar/ t! +etermine( as "e ha#e +!ne( "hether there is a li.eness 0et"een the im!rte+ an+
the +!mesti) r!+%)ts. A0!#e( 0!th "ith regar+ t! )hr/s!tile *i0res( !n the !ne han+( an+ PCA(
)ell%l!se an+ glass *i0res( !n the !ther
1'6
( an+ "ith regar+ t! r!+%)ts ma+e !* )hr/s!tile8)ement( !n
the !ne han+( an+ *i0r!8)ement( !n the !ther( "e )!n)l%+e+ that the/ "ere =li.e= "ithin the meaning
!* Arti)le IIIB1. With rese)t t! the treatment !* these r!+%)ts as )!mare+ "ith the li.e +!mesti)
r!+%)ts( "e n!te( *irst !* all( that @ran)e +!es r!+%)e s%0stit%tes *!r )hr/s!tile *i0res an+ )hr/s!tile8
)ement r!+%)ts. We neAt n!te that the terms !* the De)ree in themsel#es esta0lish less *a#!%ra0le
treatment *!r as0est!s an+ r!+%)ts )!ntaining as0est!s as )!mare+ "ith s%0stit%te *i0res an+
r!+%)ts )!ntaining s%0stit%te *i0res. Th%s( aragrahs I an+ II !* Arti)le 1 !* the De)ree rea+ as
*!ll!"sB
=I. @!r the %r!se !* r!te)ting "!r.ers( an+ %rs%ant t! Arti)le D. &3187 !* the Da0!%r C!+e( the
man%*a)t%re( r!)essing( sale( im!rt( la)ing !n the +!mesti) mar.et an+ trans*er %n+er an/ title
"hats!e#er !* all #arieties !* as0est!s *i0res shall 0e r!hi0ite+( regar+less !* "hether these s%0stan)es
ha#e 0een in)!r!rate+ int! materials( r!+%)ts !r +e#i)es.
II. @!r the %r!se !* r!te)ting )!ns%mers( an+ %rs%ant t! Arti)le D. &&1.3 !* the C!ns%mer C!+e(
the man%*a)t%re( im!rt( +!mesti) mar.eting( eA!rtati!n( !ssessi!n *!r sale( !**er( sale an+ trans*er
%n+er an/ title "hats!e#er !* all #arieties !* as0est!s *i0res !r an/ r!+%)t )!ntaining as0est!s *i0res
shall 0e r!hi0ite+.=
9.155 Inasm%)h as the De)ree +!es n!t la)e an i+enti)al 0an !n PCA( )ell%l!se !r glass *i0re an+
*i0r!8)ement r!+%)ts )!ntaining PCA( )ell%l!se !r glass *i0res( "e m%st )!n)l%+e that de Aure it
treats im!rte+ )hr/s!tile *i0res an+ )hr/s!tile8)ement r!+%)ts less *a#!%ra0l/ than +!mesti) PCA(
)ell%l!se !r glass *i0re an+ *i0r!8)ement r!+%)ts.
9.157 Ea#ing esta0lishe+ de Aure +is)riminati!n !n the 0asis !* the De)ree an+( m!re!#er( the
,%r!ean C!mm%nities n!t ha#ing s%0mitte+ an/ e#i+en)e that might lea+ %s t! 0elie#e that the
De)ree is alie+ in s%)h a "a/ as n!t t! intr!+%)e less *a#!%ra0le treatment *!r )hr/s!tile *i0res an+
)hr/s!tile8)ement r!+%)ts as )!mare+ "ith PCA( )ell%l!se an+ glass *i0res an+ *i0r!8)ement
r!+%)ts )!ntaining PCA( )ell%l!se !r glass *i0res
11'
( "e +! n!t )!nsi+er it ne)essar/ t! +etermine
"hether there is an/ de facto +is)riminati!n 0et"een these r!+%)ts.
9.157 @!r these reas!ns( "e )!n)l%+e that the De)ree alies t! )hr/s!tile an+ )hr/s!tile8)ement
r!+%)ts a treatment less *a#!%ra0le than that "hi)h it alies t! PCA( )ell%l!se an+ glass *i0res an+
r!+%)ts )!ntaining them( "ithin the meaning !* Arti)le IIIB1.
:*; C!n)l%si!n
1'6
We n!te( in)i+entall/( that Cana+a has n!t ma+e an/ allegati!n )!n)erning the less *a#!%ra0le
treatment !* Cana+ian )hr/s!tile *i0res as )!mare+ "ith +!mesti) )hr/s!tile *i0res. A))!r+ingl/( "e shall n!t
ma.e an/ *in+ing in this rese)t.
11'
See the Re!rt !* the Panel in United States Sections 301-310 of the rade Act of 1!"#, !. )it.(
ara. 7.&7.
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9.159 On the 0asis !* the a0!#e( "e *in+ that the r!#isi!ns !* the De)ree relating t! the r!hi0iting
!* the mar.eting !* )hr/s!tile *i0res an+ )hr/s!tile8)ement r!+%)ts #i!late Arti)le IIIB1 !* the
<ATT 1661.
.. Vioation of (rtice 2I of the G(TT 1114
9.156 In the light !* !%r !0ser#ati!ns !n the ali)a0ilit/ !* Arti)le IIIB1 !* the <ATT 1661 t! the
0!r+er meas%res im!se+ !n )hr/s!tile *i0res an+ )hr/s!tile8)ement r!+%)ts an+ )!nsi+ering !%r
*in+ings "ith regar+ t! the #i!lati!n !* Arti)le IIIB1 0/ the De)ree( "e )!n)l%+e that it is n!t ne)essar/
t! eAamine the Cana+ian arg%ment )!n)erning the #i!lati!n !* Arti)le GIB1 !* the <ATT 1661.
3. (ppica"iit# of (rtice 22 of the G(TT 1114
:a; Arg%ments !* the arties
111
9.17' The ,%r!ean C!mm%nities )!nten+ that the De)ree *alls %n+er the eA)eti!n r!#i+e+ in
Arti)le GG !* the <ATT 1661. Th%s( the De)ree is ne)essar/ t! a)hie#e the @ren)h <!#ernment's
%0li) health g!als %n+er Arti)le GG:0; an+ is n!t alie+ in s%)h a manner as t! )!nstit%te a means
!* ar0itrar/ !r %n5%sti*ia0le +is)riminati!n 0et"een )!%ntries "here the same )!n+iti!ns re#ail !r a
+isg%ise+ restri)ti!n !n internati!nal tra+e( "ithin the meaning !* the intr!+%)t!r/ )la%se !*
Arti)le GG.
9.171 Cana+a n!tes that( in a))!r+an)e "ith anel an+ Aellate 3!+/ ra)ti)e( Arti)le GG ermits
a limite+ an+ )!n+iti!nal eA)eti!n *r!m the !0ligati!ns set !%t in the !ther Arti)les !* the <ATT an+
m%st 0e interrete+ narr!"l/. Alth!%gh the ,%r!ean C!mm%nities assert that the/ ha#e the right t!
esta0lish the le#el !* r!te)ti!n the/ +esire( in s! +!ing the/ m%st )!ml/ "ith their !0ligati!ns. In
this )!nne)ti!n( the Aellate 3!+/ has )!n+emne+ a0%se !* rights %n+er Arti)le GG. 2!re!#er( it is
% t! the ,%r!ean C!mm%nities t! +em!nstrate that the De)ree *alls %n+er Arti)le GG:0;.
9.17& The ,%r!ean C!mm%nities arg%e that as0est!s *i0res an+ r!+%)ts )!ntaining them are a
r!#en haFar+ *!r h%man health. The ris.s lin.e+ t! the %se !* these *i0res are re)!gniFe+ 0!th 0/
s)ientists an+ internati!nal !rganiFati!ns. 3/ r!hi0iting the mar.eting an+ %se !* as0est!s an+
as0est!s8)!ntaining r!+%)ts( the De)ree see.s t! halt the srea+ !* these ris.s( in arti)%lar *!r
e!le !))asi!nall/ an+ !*ten %n"ittingl/ eA!se+ t! as0est!s( an+ there0/ re+%)e the n%m0er !*
+eaths am!ng the @ren)h !%lati!n. It is the !nl/ meas%re )aa0le !* re#enting the srea+ !* the
ris.s +%e t! as0est!s eA!s%re. A))!r+ing t! the ,C( the re#ie" in the light !* Arti)le GG )ann!t 0e
all!"e+ t! %n+ermine the health r!te)ti!n g!al set 0/ the 2em0er )!n)erne+. Its s!le %r!se m%st
0e t! assess "hether the tra+e meas%re a+!te+ is ne)essar/ t! attain that g!al. This test )!n)erns the
tra+e meas%re an+ n!t the le#el !* r!te)ti!n set 0/ the 2em0er.
9.173 Cana+a )!nsi+ers that the !nl/ eA!s%res that )!%l+ 0e a**e)te+ 0/ the De)ree are eA!s%res
t! )hr/s!tile en)as%late+ in high8+ensit/ r!+%)ts. In !r+er t! +etermine "hether there is an e-%all/
e**e)ti#e alternati#e that is less restri)ti#e *!r internati!nal tra+e an+ that is )aa0le !* r!te)ting
h%man li*e !r health 5%st as e**e)ti#el/( the health ris. )an an+ m%st 0e eAamine+. Other"ise an/
)!%ntr/ )!%l+ )ite the ris. L real !r n!t L in s%!rt !* a r!hi0iti!n meas%re.
9.171 Cana+a is !* the !ini!n that the )%rrent %ses !* )hr/s!tile +! n!t )!nstit%te a +ete)ta0le ris.
t! h%man health. A))!r+ing t! Cana+a( the ,%r!ean C!mm%nities +! n!t eAlain that the eA!s%res
!* se)!n+ar/ %sers are essentiall/ t! *ria0le materials( #er/ !*ten )!ntaining amhi0!les( "hi)h are n!
l!nger mar.ete+ an+ ha#e 0een in la)e *!r a l!ng time. C!ntrar/ t! "hat the ,C aear t! 0elie#e(
)!ntr!lle+ %se s%0stantiall/ re+%)es eA!s%re. As a res%lt !* re8*a0ri)ati!n( re8ma)hining( the %se
!* *ittings an+ )!mlian)e "ith "!r. stan+ar+s( "!r.ers are n!t s%05e)te+ t! high le#els !* eA!s%re(
as the ,C )laim.
111
The arg%ments !* the arties are set !%t in +etail in Se)ti!n III a0!#e.
WT/DS135/R
Page 175
9.175 Cana+a )!nsi+ers that( inasm%)h as the !nl/ ris. ass!)iate+ "ith as0est!s is that !* the ast
%se !* amhi0!les an+ the %se !* *ria0le materials( the De)ree( "hi)h r!hi0its the )!ntem!rar/ %ses
!* )hr/s!tile( is n!t =ne)essar/= t! r!te)t h%man li*e !r health *r!m the ris.s ass!)iate+ "ith ast
%ses !* as0est!s. A 0an is n!t =ne)essar/= 0e)a%se high8+ensit/ )hr/s!tile r!+%)ts +! n!t !se an/
+ete)ta0le ris.. On the !ther han+( )!ntr!lle+ %se in+is%ta0l/ )!nstit%tes an alternati#e t! a t!tal 0an
that is signi*i)antl/ less restri)ti#e *!r internati!nal tra+e.
:0; Ar!a)h a+!te+ 0/ the Panel an+ 0%r+en !* r!!*
2i4 Introductor/ remar=s concerning the a,,roach ado,ted b/ the Panel
9.177 At this stage( the Panel "ishes t! !int !%t that( inasm%)h as Arti)le GG r!#i+es *!r a )ertain
n%m0er !* eA)eti!ns t! the r%les !* the <ATT 1661( it is ne)essar/ an+ s%**i)ient t! eAamine the
ali)a0ilit/ !* these eA)eti!ns s!lel/ "ith regar+ t! meas%res
11&
an+ in relati!n t! r!+%)ts *!r
"hi)h a #i!lati!n !* an!ther r!#isi!n !* the <ATT has 0een i+enti*ie+. In the resent )ase "e ha#e
*!%n+ that the De)ree #i!lates Arti)le IIIB1 !* the <ATT 1661 as regar+s the treatment a))!r+e+ t!
im!rte+ )hr/s!tile as0est!s *i0res as )!mare+ "ith PCA( )ell%l!se an+ glass *i0res. We ha#e als!
*!%n+ a #i!lati!n !* Arti)le IIIB1 "ith rese)t t! the treatment !* )hr/s!tile8)ement r!+%)ts as
)!mare+ "ith *i0r!8)ement r!+%)ts )!ntaining PCA( )ell%l!se !r glass *i0res.
9.177 In a))!r+an)e "ith the ar!a)h n!te+ 0/ the Panel in United States 7asoline
113
an+ the
Aellate 3!+/ in United States Im,ort Prohibition of Certain Shrim, and Shrim, Products
111
, "e
"ill *irst eAamine "hether the meas%re *alls "ithin the s)!e !* aragrah :0; !* Arti)le GG( the
r!#isi!n eAressl/ in#!.e+ 0/ the ,%r!ean C!mm%nities.
115
I* "e +e)i+e that it +!es( "e "ill
)!nsi+er "hether( in its ali)ati!n( the De)ree satis*ies the )!n+iti!ns !* the intr!+%)t!r/ )la%se !*
Arti)le GG.
9.179 @irst !* all( as regar+s Arti)le GG:0;( "e *in+ that the r!#isi!ns !* this aragrah rele#ant t!
the resent )ase re-%ire that( s%05e)t t! *%l*ilment !* the )!n+iti!ns !* the intr!+%)t!r/ )la%se !*
Arti)le GG( n!thing in the <ATT 1661 shall 0e )!nstr%e+ t! re#ent the a+!ti!n !r en*!r)ement 0/
an/ 2em0er !* meas%res
=:0; ne)essar/ t! r!te)t h%man J li*e !r health=
9.176 The Panel n!tes that in United States 7asoline( the Panel sti%late+ that "ith rese)t t!
Arti)le GG:0;( the art/ in#!.ing that r!#isi!n m%st r!#eB
:a; That the !li)/ in rese)t !* the meas%res *!r "hi)h Arti)le GG is in#!.e+ *alls
"ithin the range !* !li)ies +esigne+ t! r!te)t h%man li*e !r healthH an+
11&
See the Re!rt !* the Aellate 3!+/ in United States 7asoline, !. )it.( . 11815 an+ 17819. In
the resent )ase( it is the art !* the De)ree relating t! the r!hi0iting !* the la)ement !n the @ren)h mar.et !*
)hr/s!tile as0est!s an+ r!+%)ts )!ntaining it that has 0een *!%n+ )!ntrar/ t! Arti)le IIIB1 !* the <ATT 1661
:see aras. 9.155 an+ 9.159 a0!#e;. It is this same =meas%re= that "e shall eAamine in the light !*
Arti)le GG:0;.
113
O. )it.( ara. 7.&'.
111
A+!te+ 7 N!#em0er 1669( WT/DS59/A3/R( aras. 11981&&.
115
In this )!nne)ti!n( "e n!te that it is n!t *!r the Panel t! eAamine !n its !"n initiati#e the eA)eti!ns
*!r "hi)h Arti)le GG r!#i+es %nless the/ ha#e 0een in#!.e+ :see Re!rt !* the Panel in United States
+estrictions on Im,orts of una, DS&1/R :%na+!te+;( 3 Setem0er 1661( 3ISD 36S/155( ara. 5.&7( )iting the
Re!rt !* the Panel in 00C +egulation on Im,orts of Parts and Com,onents, a+!te+ 17 2a/ 166'( 37S/13&(
ara. 5.11;. E!"e#er( it is !nl/ ne)essar/ t! +etermine that the meas%re in -%esti!n satis*ies the )!n+iti!ns !*
!ne !* the aragrahs !* Arti)le GG an+ the intr!+%)t!r/ )la%se !* the same arti)le *!r that meas%re t! 0e
5%sti*ie+ %n+er Arti)le GG !* the <ATT 1661.
WT/DS135/R
Page 177
:0; the in)!nsistent meas%res *!r "hi)h the eA)eti!n is in#!.e+ are ne)essar/ t! *%l*il
the !li)/ !05e)ti#e.
117
9.17' As regar+s s%0aragrah :a;( "e )!nsi+er that( inasm%)h as the/ in)l%+e the n!ti!n !*
=r!te)ti!n=( the "!r+s =!li)ies +esigne+ t! r!te)t h%man li*e !r health= iml/ the eAisten)e !* a
health ris=% We m%st there*!re +etermine( !n the 0asis !* the rele#ant r%les !* e#i+en)e( "hether
)hr/s!tile8as0est!s( in the #ari!%s *!rms "e ha#e )!nsi+ere+ s! *ar( !ses a ris. t! h%man li*e !r
health.
9.171 This sai+( "e n!te that the anel in United States 7asoline als! ma+e )lear that it +i+ n!t
ha#e t! eAamine the ne)essit/ !* the !li)/ g!al.
117
In !ther "!r+s( "e +! n!t ha#e t! assess the
)h!i)e ma+e 0/ @ran)e t! r!te)t its !%lati!n against )ertain ris.s( n!r the le#el !* r!te)ti!n !*
%0li) health that @ran)e "ishes t! a)hie#e. We m%st siml/ +etermine i* the @ren)h !li)/ !*
r!hi0iting the %se !* )hr/s!tile8as0est!s *alls "ithin the range !* !li)ies +esigne+ t! r!te)t h%man
li*e !r health.
9.17& As regar+s the )riteri!n !* the necessit/ !* the meas%re :s%0aragrah :0; !*
aragrah 9.176;( "e n!te that re#i!%s anels that ha+ t! assess the =ne)essit/= !* a meas%re %n+er
Arti)le GG:0; aear t! ha#e +!ne s! s!lel/ in relati!n t! the eAisten)e !* !ther meas%res )!nsistent
!r less in)!nsistent "ith the <ATT in the light !* the health !05e)ti#e %rs%e+. Th%s( in hailand
Cigarettes( the Panel r%le+ thatB
=The im!rt restri)ti!ns im!se+ 0/ Thailan+ )!%l+ 0e )!nsi+ere+ t! 0e =ne)essar/= in terms !*
Arti)le GG:0; !nl/ i* there "ere n! alternati#e meas%re )!nsistent "ith the <eneral Agreement( !r less
in)!nsistent "ith it( "hi)h Thailan+ )!%l+ reas!na0l/ 0e eAe)te+ t! eml!/ t! a)hie#e its health
!li)/ !05e)ti#es=.
119
9.173 In this arti)%lar )ase( the %0li) health !05e)ti#es %rs%e+ 0/ Thailan+ "ere )!n*irme+ 0/ a
WEO eAert an+ a))ete+ 0/ the arties t! the +is%te. In the resent )ase( Cana+a +!es n!t +en/
that @ran)e's g!al( namel/ t! r!te)t the health !* "!r.ers an+ )!ns%mers( is a %0li) health !05e)ti#e(
0%t it +is%tes the eAisten)e !* a %0li) health r!0lem in relati!n t! )hr/s!tile. Th%s( Cana+a +enies
that )hr/s!tile *i0re !ses a %0li) health ris. in its ali)ati!ns 0e)a%se !n)e in la)e )hr/s!tile8
)ement +!es n!t release an/ *i0res an+ 0e)a%se it is !ssi0le t! "!r. "ith )hr/s!tile8)ement r!+%)ts
in a sa*e !r )!ntr!lle+ *ashi!n.
9.171 @!r the Panel( the assessment !* the ne)essit/ !* a meas%re )!%l+ 0e *!)%se+ !n the eAisten)e
!* !ther meas%res )!nsistent !r less in)!nsistent "ith the <ATT 1661 i*( as in re#i!%s )ases( the
arties "ere agree+ !n the e6istence and e6tent of the health ,roblem associated 5ith chr/sotile. In
this rese)t( "e n!te that Cana+a +!es n!t +is%te that )hr/s!tile *i0res in themsel#es !se health
ris.s. E!"e#er( Cana+a +!es n!t )!nsi+er that an/ ris. is !se+ 0/ )hr/s!tile en)l!se+ in a matriA !*
high8+ensit/ )ement.
9.175 C!nse-%entl/( inasm%)h as the arties +isagree !n the eAtent !* the health ris. !se+ 0/
)hr/s!tile8)ement r!+%)ts( "e )!nsi+er that !%r eAaminati!n !* the eAisten)e !* a general health
!05e)ti#e in the light !* s%0aragrah :a; !* aragrah 9.176 sh!%l+ in)l%+e the -%esti!n !* the
eAisten)e !* a health r!0lem in relati!n :i; t! )hr/s!tile *i0res as s%)h an+ :ii; t! )hr/s!tile8)ement
r!+%)ts.
116
117
Re!rt !* the Panel in United States 7asoline( ara. 7.&'.
117
I0i+.( ara. 7.&&. See als! the Re!rt !* the Panel in United States Section 33", !. )it.( ara. 5.&7
an+ the Re!rt !* the Panel in hailand +estrictions on Im,ortation of and Internal a6es on Cigarettes,
a+!te+ !n 7 N!#em0er 166'( 3ISD 37S/&'' :hereina*ter =hailand Cigarettes&4, ara. 71.
119
O. )it.( ara. 75.
116
O%r ar!a)h +!es n!t a**e)t the !ssi0ilit/ !* ea)h 2em0er +etermining "hat le#el !* ris. it "ishes
t! ass%re. <%aranteeing a #er/ l!" ris. !* eA!s%re "hen the health ris.s are high might re-%ire stri)t
meas%res( 0%t "hen the health ris. is l!" a #er/ l!" le#el !* eA!s%re might 0e !0taina0le "ith less se#ere
WT/DS135/R
Page 177
9.177 This 0eing s!( "e shall ha#e t! ta.e eAressl/ int! a))!%nt the eAtent !* the health r!0lem in
assessing the ne)essit/ !* the meas%re. Th%s( i* "e "ere t! )!n)l%+e that the health haFar+
reresente+ 0/ )hr/s!tile !r )hr/s!tile8)ement "as less than the ,C allege( less #ig!r!%s meas%res
might then 0e 5%sti*ie+.
1&'
2ii4 ;urden of ,roof
<eneral )!nsi+erati!ns
9.177 With regar+ t! the 0%r+en !* r!!*( "e re*er( *irst !* all( t! !%r re#i!%s remar.s )!n)erning
th!se )ases in "hi)h a art/ in#!.es a +e*en)e.
1&1
We )!nsi+er that the reas!ning !* the Aellate
3!+/ in United States Shirts and ;louses from India
1&&
is ali)a0le t! Arti)le GG( inasm%)h as the
in#!)ati!n !* that Arti)le )!nstit%tes a =+e*en)e= in the sense in "hi)h that "!r+ is %se+ in the
a0!#e8menti!ne+ re!rt. It is there*!re *!r the ,%r!ean C!mm%nities t! s%0mit in rese)t !* this
+e*en)e a rima *a)ie )ase sh!"ing that the meas%re is 5%sti*ie+. O* )!%rse( as the Aellate 3!+/
!inte+ !%t in United States 7asoline( the 0%r+en !n the ,%r!ean C!mm%nities )!%l+ #ar/
a))!r+ing t! "hat has t! 0e r!#e+. It "ill then 0e *!r Cana+a t! re0%t that rima *a)ie )ase( i*
esta0lishe+.
9.179 I* "e menti!n this "!r.ing r%le at this stage( it is 0e)a%se it )!%l+ la/ a art in !%r
assessment !* the e#i+en)e s%0mitte+ 0/ the arties. Th%s( the *a)t that a art/ in#!.es Arti)le GG
+!es n!t mean that it +!es n!t nee+ t! s%l/ the e#i+en)e ne)essar/ t! s%!rt its allegati!n.
Similarl/( it +!es n!t release the )!mlaining art/ *r!m ha#ing t! s%l/ s%**i)ient arg%ments an+
e#i+en)e in res!nse t! the )laims !* the +e*en+ing art/. 2!re!#er( "e are !* the !ini!n that it is
n!t *!r the art/ in#!.ing Arti)le GG t! r!#e that the arg%ments %t *!r"ar+ in re0%ttal 0/ the
)!mlaining art/ are in)!rre)t %ntil the latter has 0a).e+ them % "ith s%**i)ient e#i+en)e.
1&3
C!nsi+erati!ns se)i*i) t! the 0%r+en !* r!!* as regar+s the s)ienti*i) ase)ts
9.176 As !inte+ !%t a0!#e( three essential elements m%st 0e )!nsi+ere+ 0/ the Panel "hen
eAamining the 5%sti*i)ati!n !* a meas%re in the light !* Arti)le GG:0;B :a; the eAisten)e !* a ris. *!r
h%man healthH :0; the le#el !* r!te)ti!n "hi)h the 2em0er )!n)erne+ "ishes t! a)hie#eH an+ :); the
eAisten)e !* !ther meas%res )!nsistent !r less in)!nsistent "ith the <ATT 1661 an+ ena0ling the same
!05e)ti#e !* r!te)ting %0li) health t! 0e !0taine+. The Panel )!nsi+ers that its eAaminati!n !* the
s)ienti*i) +ata sh!%l+ 0e eA)l%si#el/ )!n)erne+ "ith !ints :a; an+ :);( inasm%)h as it has l!ng 0een
esta0lishe+ that 2em0ers are *ree t! set the le#el !* r!te)ti!n !* their )h!i)e *!r their !%lati!ns.
1&1
meas%res. This )!mment is ma+e in *%ll a"areness !* the *a)t that arti)%larl/ seri!%s ris.s )an s!metimes 0e
ne%traliFe+ 0/ #er/ simle means.
1&'
In this )ase( the 5%sti*i)ati!n *!r less se#ere meas%res "!%l+ n!t 0e the eAisten)e !* less in)!nsistent
meas%res that meet the !05e)ti#es !riginall/ set 0/ the ,C( 0%t the *a)t that the ris. "as a)t%all/ l!"er than the
,C ha+ estimate+.
1&1
See Se)ti!n CIII.,.1:0; a0!#e.
1&&
O. )it.( . 15817B
=We a).n!"le+ge that se#eral <ATT 1617 an+ WTO anels ha#e re-%ire+ s%)h r!!* !* a art/
in#!.ing a +e*en)e s%)h as th!se *!%n+ in Arti)le GG
1&&
!r Arti)le GIB&:);:i;
1&&
( t! a )laim !* #i!lati!n
!* a <ATT !0ligati!n( s%)h as th!se *!%n+ in Arti)les IB1( IIB1( III !r GIB1. Arti)les GG an+ GIB&:);:i;
are limite+ eA)eti!ns *r!m !0ligati!ns %n+er )ertain !ther r!#isi!ns !* the <ATT 1661( n!t !siti#e
r%les esta0lishing !0ligati!ns in themsel#es. The/ are in the nat%re !* a**irmati#e +e*en)es. It is !nl/
reas!na0le that the 0%r+en !* esta0lishing s%)h a +e*en)e sh!%l+ rest !n the art/ asserting it.=
1&3
See Re!rt !* the Aellate 3!+/ in 0uro,ean Communities 3ormones( !. )it.( ara. 1'1.
1&1
See ara. 9.171 a0!#e. See als! the Re!rt !* the Aellate 3!+/ in United States 7asoline,
!. )it.( . 33%
WT/DS135/R
Page 179
9.19' The Panel has there*!re ha+ t! +etermine h!" it sh!%l+ assess the eAisten)e !* a health ris. in
relati!n t! )hr/s!tile an+( m!re arti)%larl/( )hr/s!tile8)ement an+ the ne)essit/ !* the meas%res in
-%esti!n. The Panel has eAamine+ the ra)ti)e in relati!n t! Arti)le GG !* the <ATT 1661( 0%t als!
in the )!nteAt !* !ther WTO Agreements in "hi)h s)ienti*i) st%+ies are in#!.e+( mainl/ the
Agreement !n Sanitar/ an+ Ph/t!sanitar/ 2eas%res.
1&5
The Panel n!te+ that the SPS Agreement
)!ntains m!re +etaile+ r!#isi!ns than Arti)le GG "ith rese)t t! the s)ienti*i) 5%sti*i)ati!n !* a
sanitar/ !r h/t!sanitar/ meas%re
1&7
an+ that these r!#isi!ns ha#e 0een the s%05e)t !* )lari*i)ati!ns
0/ anels an+ 0/ the Aellate 3!+/.
1&7
E!"e#er( it als! n!te+ that in the *irst +is%te settlement
r!)ee+ings initiate+ %n+er the WTO Agreement )!n)erning Arti)le GG !* the <ATT 1661( the
Aellate 3!+/ ha+ n!t s!%ght t! eAten+ the rin)iles !* the SPS Agreement t! the eAaminati!n !*
the meas%res *!r "hi)h Arti)le GG:0; ha+ 0een in#!.e+ !r e#en t! 0ase itsel* !n them( alth!%gh the
SPS Agreement "as alrea+/ in *!r)e.
1&9
The Panel re*erre+ t! )!n*ine itsel* t! the r!#isi!ns !* the
<ATT 1661 an+ t! the )riteria +e*ine+ 0/ the ra)ti)e relating t! the ali)ati!n !* Arti)le GG.
9.191 In this )!nteAt( in relati!n t! the s)ienti*i) in*!rmati!n s%0mitte+ 0/ the arties an+ the
eAerts( the Panel *eels 0!%n+ t! !int !%t that it is n!t its *%n)ti!n t! settle a s)ienti*i) +e0ate( n!t
0eing )!m!se+ !* eAerts in the *iel+ !* the !ssi0le h%man health ris.s !se+ 0/ as0est!s.
C!nse-%entl/( the Panel +!es n!t inten+ t! set itsel* % as an ar0iter !* the !ini!ns eAresse+ 0/ the
s)ienti*i) )!mm%nit/.
9.19& Its r!le( ta.ing int! a))!%nt the 0%r+en !* r!!*( is t! +etermine "hether there is s%**i)ient
s)ienti*i) e#i+en)e t! )!n)l%+e that there eAists a ris. *!r h%man li*e !r health an+ that the meas%res
ta.en 0/ @ran)e are ne)essar/ in relati!n t! the !05e)ti#es %rs%e+. The Panel there*!re )!nsi+ers that
it sh!%l+ 0ase its )!n)l%si!ns "ith rese)t t! the eAisten)e !* a %0li) health ris. !n the s)ienti*i)
e#i+en)e %t *!r"ar+ 0/ the arties an+ the )!mments !* the eAerts )!ns%lte+ "ithin the )!nteAt !*
the resent )ase. The !ini!ns eAresse+ 0/ the eAerts "e ha#e )!ns%lte+ "ill hel %s t! %n+erstan+
an+ e#al%ate the e#i+en)e s%0mitte+ an+ the arg%ments a+#an)e+ 0/ the arties.
1&6
The same
ar!a)h "ill 0e a+!te+ "ith rese)t t! the ne)essit/ !* the meas%re )!n)erne+.
9.193 In r!)ee+ing "ith this eAer)ise( the Panel "ill ha#e t! ma.e a ragmati) assessment !* the
s)ienti*i) sit%ati!n an+ the meas%res a#aila0le( as "!%l+ the +e)isi!n8ma.ers res!nsi0le *!r the
a+!ti!n !* a health !li)/.
13'
In this )!nne)ti!n( it n!tes that the +eterminati!n !* the eAisten)e !*
!ther meas%res )!nsistent !r less in)!nsistent "ith the <ATT largel/ +een+s !n a s)ienti*i)
assessment !* the ris..
131
In an/ e#ent( this +eterminati!n )ann!t 0e interrete+ as restri)ting the
*ree+!m !* 2em0ers t! ta.e )ertain meas%res rather than !thers %n+er Arti)le GG:0;( in the a0sen)e
!* a meas%re that "!%l+ 0e )!nsistent !r less in)!nsistent "ith the <ATT 1661.
:); Ali)ati!n !* Arti)le GG:0; !* the <ATT 1661 t! the De)ree
2i4 &Protection of human life and health&
1&5
Eereina*ter the =SPS Agreement=.
1&7
See( in arti)%lar( Arti)les &.&( 3 an+ 5 !* the SPS Agreement.
1&7
See( in arti)%lar( the Re!rts !* the Panels an+ Aellate 3!+/ in 0uro,ean Communities
3ormones, !. )it.
1&9
In 0uro,ean Communities 3ormones, !. )it.( ara. 115( the Aellate 3!+/ itsel* eAresse+ its
rel%)tan)e t! a+!t "ithin the )!nteAt !* the SPS Agreement a stan+ar+ !* re#ie" n!t )learl/ r!!te+ in the teAt
!* the SPS Agreement( *!r *ear !* +ist%r0ing the 0alan)e 0et"een the rights an+ !0ligati!ns neg!tiate+.
1&6
Re!rt !* the Aellate 3!+/ in )a,an Agricultural Products, !. )it.( ara. 1&6. At this !int( "e
re)all that the eAerts "ere sele)te+ in )!ns%ltati!n "ith the arties an+ that the latter +i+ n!t )hallenge the
a!intment !* an/ !* them( alth!%gh the/ reser#e+ the right t! )!mment !n their statements. With rese)t t!
the #ari!%s stages in the sele)ti!n an+ )!ns%ltati!n !* the eAerts( see Se)ti!n C.A an+ 3.
13'
See Re!rt !* the Panel in United States 7asoline, !. )it.( ara. 7.&'.
131
See aras. 9.1738177.
WT/DS135/R
Page 176
9.191 In a))!r+an)e "ith the ar!a)h +e*ine+ 0/ the Panel in United States 7asoline( "e m%st
*irst esta0lish "hether the !li)/ in rese)t !* the meas%re *!r "hi)h the r!#isi!ns !* Arti)le GG:0;
"ere in#!.e+ *alls "ithin the range !* !li)ies +esigne+ t! r!te)t h%man li*e !r health. As "e ha#e
alrea+/ !inte+ !%t( the %se !* the "!r+ =r!te)ti!n= imlies the eAisten)e !* a ris.. A))!r+ingl/( "e
m%st 0egin 0/ i+enti*/ing a ris. *!r %0li) health. In the light !* the )!mments !* the anel in
United States 7asoline an+ !%r !"n remar.s in aragrah 9.19&( "e m%st als! ta.e int! a))!%nt the
*a)t that it is a %0li) health !li)/ that "e ha#e t! assess.
9.195 @irst !* all( "e n!te that the ,C arg%e that in r!hi0iting the la)ing !n the mar.et an+ %se !*
as0est!s an+ r!+%)ts )!ntaining it( the De)ree see.s t! halt the srea+ !* the ris.s +%e t! as0est!s(
arti)%larl/ *!r th!se eA!se+ !))asi!nall/ an+ #er/ !*ten %n"ittingl/ t! as0est!s "hen "!r.ing !n
as0est!s8)!ntaining r!+%)ts. @ran)e )!nsi+ers that it )an there0/ re+%)e the n%m0er !* +eaths +%e t!
eA!s%re t! as0est!s *i0res am!ng the @ren)h !%lati!n( "hether 0/ as0est!sis( l%ng )an)er !r
mes!theli!ma.
13&
9.197 In rin)ile( a !li)/ that see.s t! re+%)e eA!s%re t! a ris. sh!%l+ *all "ithin the range !*
!li)ies +esigne+ t! r!te)t h%man li*e !r health( ins!*ar as a ris. eAists. A))!r+ing t! the ,C( the
internati!nal s)ienti*i) )!mm%nit/ aears t! 0e generall/ !* the !ini!n that )hr/s!tile *i0res as s%)h
are )ar)in!gens. In this )!nne)ti!n( "e n!te the ,C's arg%ment that( sin)e 1677( the Internati!nal
Agen)/ *!r Resear)h !n Can)er :IARC; has )lassi*ie+ )hr/s!tile am!ng the r!#en )ar)in!gens.
9.197 Cana+a +!es n!t +is%te that )hr/s!tile as0est!s )a%ses l%ng )an)er. E!"e#er( Cana+a arg%es
that the me)hanism that )!%l+ gi#e rise t! an in)rease+ ris. !* l%ng )an)er has n!t /et 0een *%ll/
eAlaine+ an+ that the lin. "ith )hr/s!tile might !nl/ 0e in+ire)t.
133
This ris. +een+s !n the intensit/
an+ +%rati!n !* the eA!s%re. On the !ther han+( a))!r+ing t! Cana+a( there is a great +eal !*
s)ienti*i) e#i+en)e t! s%!rt the thesis a))!r+ing t! "hi)h )hr/s!tile +!es n!t )a%se
mes!theli!mas.
131
In arti)%lar( the mes!theli!mas lin.e+ t! as0est!s )!%l+ 0e the res%lt !* eA!s%re
t! l!"8+ensit/ r!+%)ts )!ntaining amhi0!les. It has n!t 0een esta0lishe+ that( in their %ses(
)hr/s!tile *i0res !se the same ris. as amhi0!les( "h!se )hemi)al )!m!siti!n( in arti)%lar( is
+i**erent.
9.199 @irst !* all( "e n!te that the )ar)in!geni)it/ !* )hr/s!tile *i0res has 0een a).n!"le+ge+ *!r
s!me time 0/ internati!nal 0!+ies.
135
This )ar)in!geni)it/ "as )!n*irme+ 0/ the eAerts )!ns%lte+ 0/
the Panel( "ith rese)t t! 0!th l%ng )an)ers an+ mes!theli!mas
137
( e#en th!%gh the eAerts aear t!
a).n!"le+ge that )hr/s!tile is less li.el/ t! )a%se mes!theli!mas than amhi0!les.
137
We als! n!te
that the eAerts )!n*irme+ that the t/es !* )an)er )!n)erne+ ha+ a m!rtalit/ rate !* )l!se t!
1'' er )ent.
139
We there*!re )!nsi+er that "e ha#e s%**i)ient e#i+en)e that there is in *a)t a seri!%s
)ar)in!geni) ris. ass!)iate+ "ith the inhalati!n !* )hr/s!tile *i0res. 2!re!#er( in the light !* the
)!mments ma+e 0/ !ne !* the eAerts
136
( the +!%0ts eAresse+ 0/ Cana+a "ith rese)t t! the +ire)t
e**e)ts !* )hr/s!tile !n mes!theli!mas an+ l%ng )an)ers are n!t s%**i)ient t! )!n)l%+e that an !**i)ial
13&
With regar+ t! the gr!% !* ath!l!gies that as0est!s )an )a%se( see Dr. Een+ers!n( ara. 5.&9.
133
See AnneA II( Cana+ian rel/ t! the ,C's -%esti!n N!. 1( ara. 19'.
131
See AnneA II( Cana+ian relies t! the ,C's -%esti!ns n!s. 181( aras. 1758191.
135
Sin)e 1677 0/ the IARC :see :ist of Agents Carcinogenic to 3umans, (9erall 09aluations of
Carcinogenicit/ to 3umans( 2!n!grahs !* the Internati!nal Agen)/ *!r Resear)h !n Can)er( C!l%mes 1873;(
see als! WEO( IPCS 0n9ironmental 3ealth Criteria 2'034 on Chr/sotile( <ene#a :1669;( )ite+ in ara. 5.591
a0!#e. On the +e#el!ment !* .n!"le+ge !* the ris.s ass!)iate+ "ith as0est!s( see Dr. Een+ers!n( ara. 5.565.
137
See( in arti)%lar( Dr. Een+ers!n( aras. 5.&6 t! 5.31H 5.11& t! 5.175H Dr. In*ante( aras. 5.&77(
5.&6'85.&69H Dr. +e Kler.( ara. 5.&99.
137
See( *!r eAamle( the rati!s s%ggeste+ 0/ Dr. Een+ers!n( aras. 5.1'3( 5.111( 5.115( 5.596 an+ his
remar.s( aras. 5.&7585.&77H see als! Dr. +e Kler.( ara. 5.&71H Dr. In*ante( aras. 5.&7785.&79 an+ AnneA CI(
ara. 16 !* the trans)rit !* the meeting "ith eAerts.
139
Dr. Een+ers!n( meeting "ith eAerts( AnneA CI( ara. 19&.
136
See the )!mments ma+e 0/ Dr. Een+ers!n( aras. 5.15385.157 )!n)erning the lin. 0et"een *i0r!sis
an+ l%ng )an)er.
WT/DS135/R
Page 19'
res!nsi0le *!r %0li) health !li)/ "!%l+ *in+ that there "as n!t en!%gh e#i+en)e !* the eAisten)e !*
a %0li) health ris..
9.196 We n!te( h!"e#er( that Cana+a ma.es a +istin)ti!n 0et"een )hr/s!tile *i0res an+ )hr/s!tile
en)as%late+ in a )ement matriA. In *a)t( Cana+a )hallenges the De)ree ins!*ar as it r!hi0its(
inter alia, the %se !* )hr/s!tile8)ement r!+%)ts. In this )!nne)ti!n( "e n!te that the eAerts
)!ns%lte+ 0/ the Panel agree+ that the ris.s !* *i0res 0eing +iserse+ +%e t! the +egra+ati!n !*
)hr/s!tile8)ement "ere limite+. E!"e#er( the eAerts a).n!"le+ge+ that "!r.ing "ith n!n8*ria0le
r!+%)ts )!ntaining )hr/s!tile might res%lt in the +isersi!n !* large -%antities !* *i0res an+ that th!se
*i0res !se a +e*inite health ris..
11'
The eAerts als! n!te+ that e#en th!%gh the ris. might 0e l!"er
than *!r r!+%)ti!n !r r!)essing "!r.ers( it )!n)erne+ a m%)h larger gr!%.
111
9.16' In this rese)t( the Panel n!tes that the ,%r!ean C!mm%nities ha#e state+ that the De)ree is
inten+e+( in arti)%lar( t! r!te)t )ateg!ries !* "!r.ers !r )!ns%mers +!"nstream !* the as0est!s
mining !r r!)essing stage( "hate#er the *re-%en)/ an+ le#el !* their eA!s%re. Cana+a )!nsi+ers
that 0el!" a )ertain eA!s%re thresh!l+ there is n! +ete)ta0le health ris.. A))!r+ingl/( Cana+a
0elie#es that e!le !nl/ !))asi!nall/ eA!se+ are n!t r%nning a +ete)ta0le ris..
9.161 The +ata s%0mitte+ t! the Panel 0/ the ,C sh!" that the %se !* t!!ls n!t se)i*i)all/ +esigne+
t! re#ent the release !* *i0res
11&
( "hi)h )ann!t 0e eA)l%+e+( ese)iall/ in the )ase !* DI4
enth%siasts
113
!r r!*essi!nals "h! "!r. !nl/ !))asi!nall/ in an en#ir!nment "here as0est!s is
resent( )an res%lt in an eA!s%re in eA)ess !* the stat%t!r/ limits %n+er ISO 7337
111
( "hi)h are
themsel#es higher than th!se !* the WEO :'.& *i0re/ml; !r th!se alie+ 0/ @ran)e 0e*!re the 0an
:'.1 *i0re/ml;.
115
The Panel als! n!tes the !siti!n !* the eAerts )!ns%lte+ !n this !int. All agree
that 0%il+ing "!r.ers n!" )!%nt am!ng th!se m!st eA!se+ t! )hr/s!tile *i0res an+ hen)e t! the ris.
!* mes!theli!ma
117
( 0%t the/ als! menti!n )ases !* mes!theli!ma in atients "h! ha+ 0een !nl/
11'
See the relies !* the eAerts t! the Panel's -%esti!n 1.:0;( aras. 5.16785.&'6.
111
See Dr. Een+ers!n( aras. 5.177( 5.193H Dr. +e Kler.( ara. 5.195.
11&
In rel/ t! a -%esti!n 0/ Cana+a :see AnneA II( ara. 177; the ,C in+i)ate+ that the -%esti!n !* the
eA!s%re ass!)iate+ "ith "!r.ing intermittentl/ "ith material s%)h as )hr/s!tile8)ement ha+ 0een anal/se+ in
the re!rt !* the Institut national de la science et de la recherche medicale :INS,R2; entitle+ +a,,ort sur les
effets sur la santE des ,rinci,au6 t/,es dFe6,osition G lFamiante :Re!rt !* the health e**e)ts !* the main t/es !*
eA!s%re t! as0est!s( INS,R2 5!int re!rt( 1667( . 1638&11. The ,C aen+e+ t! their *irst "ritten
s%0missi!n t! the Panel eA!s%re #al%es meas%re+ +%ring s%)h "!r.ing :see <ote de ,rEsentation des
orientations du Conseil su,Erieur de ,rE9ention des ris$ues ,rofessionnels( 3 $%l/ 1665;. The/ als! gi#e the
eAamle !* a r!!*ing "!r.er %sing a grin+er in the !en air t! reair )!rr%gate+ r!!* sheeting ma+e !* as0est!s8
)ement an+ eA!se+ t! a ea. le#el !* 11*/ml. In this )!nne)ti!n( the Panel als! n!tes the re*eren)e 0/
Dr. Een+ers!n( in ara. 5.166 a0!#e( t! a st%+/ 0/ Kam%gai S( Na.a)hi S( K%r%matani N. et al. 0stimation of
Asbestos 06,osure Among Bor=ers +e,airing Asbestos Cement Pi,es Used for Conduits, Sang./! Iga.%
1663H 35.
113
3/ =DI4 enth%siast= :0ri)!le%r; the Panel means s!me!ne "h! +!es small reair an+ ren!#ati!n
5!0s :De N!%#ea% Petit R!0ert :1661;( . &71; "ith!%t engaging in these a)ti#ities in a r!*essi!nal )aa)it/.
111
See Internati!nal OrganiFati!n *!r Stan+ar+iFati!n( ISO 7337 :1691;.
115
See De)ree 67869 !* 7 @e0r%ar/ 1667. The ,%r!ean C!mm%nities( in ara. 3.131( n!te( *!r
eAamle( that in the )ase !* a han+sa" ali)ati!n !* the ISO stan+ar+ lea#es the "!r.er eA!se+ t! a le#el
3' times in eA)ess !* the maAim%m limit !* '.1 */ml. In this )!nne)ti!n( the Panel n!tes that the eAerts agree
that at least s!me !* the *i0res release+ +%ring !erati!ns !n r!+%)ts )!ntaining )hr/s!tile resent the same
)ar)in!geni)it/ as )hr/s!tile *i0res n!t in)!r!rate+ in )ement :see Dr. +e Kler.( ara. 5.&&'H Dr. Een+ers!n(
aras. 5.&&185.&&1H Dr. In*ante( aras. 5.&&5L5.&&7;.
117
See *ull Public +e,ortH Chr/sotile Asbestos Priorit/ 06isting Chemical <o% !( Nati!nal In+%strial
Chemi)als N!ti*i)ati!n an+ Assessment S)heme :NICNAS;( Nati!nal O))%ati!n Eealth an+ Sa*et/
C!mmissi!n :NOESC;( A%stralia 1666 :hereina*ter =NICNAS 66=;( )ite+ 0/ Dr. Een+ers!n( "hi)h sh!"s that
eA!s%re is srea+ing. Originall/ )!n*ine+ t! "!r.ers in the tra+iti!nal in+%stries( eA!s%re t! as0est!s n!"
eAten+s t! r!+%)ts an+ the +!mesti) an+ eAternal en#ir!nment :see ara. 5.176;. Similar !0ser#ati!ns ha#e
0een ma+e in the Unite+ King+!m "ith regar+ t! the atterns !* eA!s%re an+ the res%ltant +iseases
:ara. 5.19';.
WT/DS135/R
Page 191
in)i+entall/ eA!se+( "ith!%t an/ relati!n t! their !))%ati!nal a)ti#it/.
117
The s)ientists )!ns%lte+ 0/
the Panel als! )!nsi+ere+ that the eAisten)e !* a thresh!l+ 0el!" "hi)h eA!s%re +!es n!t resent an/
ris.s ha+ n!t 0een esta0lishe+ *!r an/ !* the +iseases attri0%ta0le t! )hr/s!tile( eA)et erhas *!r
as0est!sis.
119
9.16& The Panel t!!. n!te !* Cana+a's arg%ment a))!r+ing t! "hi)h there has 0een n! st%+/
se)i*i)all/ )!n)erne+ "ith the !))%ati!nal se)t!rs t! "hi)h the ,C re*er.
116
It als! n!tes that
Cana+a +is%tes the rele#an)e !* the +ata !* the st%+ies !* Charlest!n teAtile *a)t!r/ "!r.ers
:Unite+ States;
15'
as )!mare+ "ith the Cana+ian st%+ies !* P%e0e) as0est!s se)t!r miners an+
"!r.ers( "hi)h are sai+ t! sh!" the limite+ ima)t !* )hr/s!tile !n %0li) health.
151
E!"e#er( the
s)ienti*i) eAerts )!ns%lte+ stresse+ the rele#an)e an+ -%alit/ !* the Charlest!n st%+/. On the !ther
han+( +!%0ts "ere eAresse+ "ith regar+ t! the relia0ilit/ !* )ertain eA!s%re +ata in the st%+ies
)arrie+ !%t in !))%ati!nal an+ n!n8!))%ati!nal en#ir!nments in P%e0e) an+ in#!.e+ 0/ Cana+a.
15&
Cana+a als! re*ers t! a st%+/ )!n)erne+ "ith )ar 0ra.e maintenan)e.
153
We n!te that the s)ientists
)!ns%lte+ +re" attenti!n t! the limits !* this st%+/ an+ r!+%)e+ statisti)al +ata "hi)h( !n the
)!ntrar/( )!n*irme+ the ima)t !* )hr/s!tile !n me)hani)s eA!se+ t! that material in a )ar 0ra.e
maintenan)e )!nteAt.
151
9.163 The Panel there*!re )!nsi+ers that the e#i+en)e 0e*!re it ten+s t! sh!" that han+ling
)hr/s!tile8)ement r!+%)ts )!nstit%tes a ris. t! health rather than the !!site. A))!r+ingl/( a
+e)isi!n8ma.er res!nsi0le *!r ta.ing %0li) health meas%res might reas!na0l/ )!n)l%+e that the
resen)e !* )hr/s!tile8)ement r!+%)ts !se+ a ris. 0e)a%se !* the ris.s in#!l#e+ in "!r.ing "ith
th!se r!+%)ts.
9.161 A))!r+ingl/( the Panel )!n)l%+es that the ,C has ma+e a rima *a)ie )ase *!r the eAisten)e !*
a health ris. in )!nne)ti!n "ith the %se !* )hr/s!tile( in arti)%lar as regar+s l%ng )an)er an+
mes!theli!ma in the !))%ati!nal se)t!rs +!"nstream !* r!+%)ti!n an+ r!)essing an+ *!r the %0li)
in general in relati!n t! )hr/s!tile8)ement r!+%)ts. This rima *a)ie )ase has n!t 0een re0%tte+ 0/
Cana+a. 2!re!#er( the Panel )!nsi+ers that the )!mments 0/ the eAerts )!n*irm the health ris.
117
See the eAamle !* the *ireman an+ the le)t%rer "h!se eA!s%re "as n!t )!nne)te+ "ith their
!))%ati!ns( gi#en 0/ Dr. Een+ers!n( ara. &5' !* the trans)rit !* the meeting "ith eAerts.
119
See Dr. Een+ers!n( ara. 5.31&. C!n)erning the !ini!n !* the eAerts "ith regar+ t! the a0sen)e !*
a thresh!l+( see aras. 5.3'7 et se-. an+( m!re arti)%larl/( Dr. In*ante( ara. 5.315.
116
The a0sen)e !* a st%+/ !n the ima)t !* )hr/s!tile !n 0%il+ing "!r.ers "as )!n*irme+ 0/ the
s)ientists )!ns%lte+ 0/ the Panel :see Dr. In*ante( ara. 137H Dr. Een+ers!n( ara. 11'H Dr. 2%s.( ara. &'& !*
the trans)rit !* the meeting "ith eAerts( AnneA CI;. C!n)erning Cana+a's arg%ments an+ the )!mments !* the
eAerts( see the +is)%ssi!n !* the rele#an)e !* the st%+/ !* Charlest!n teAtile *a)t!r/ "!r.ers :hereina*ter
=Charlest!n st%+/=( see *!!tn!te 15'; as )!mare+ "ith the st%+/ !* P%e0e) as0est!s mine an+ mill "!r.ers
:hereina*ter =P%e0e) "!r.ers st%+/=( see *!!tn!te 151;( aras. 135L153 !* the trans)rit !* the meeting "ith
eAerts( AnneA CI.
15'
See( in arti)%lar( Dement $.2.( 3r!"n D.P.( O.%n A.( *ollo5-u, Stud/ of Chr/sotile Asbestos
e6tile Bor=ersH Cohort 1ortalit/ and Case-Control Anal/ses, Am $ In+ 2e+ 1661H &7H Dement $. 2.( 3r!"n
D.P.( :ung Cancer 1ortalit/ among Asbestos e6tile Bor=ersH A +e9ie5 and U,date, Ann O))% E/g
1661H 39.
151
See( in arti)%lar( 2)D!nal+ A.D.( Case 3.W.( Ch%rg A.( et al%( 1esothelioma in Duebec Chr/sotile
1iners and 1illersH 0,idemiolog/ and Aetiolog/, Ann O))% E/g 1667( 11. With rese)t t! n!n8!))%ati!nal
sit%ati!ns( see Cam%s 2.( Siemiat/).i $.( 2ee. 3.( <onoccu,ational 06,osure to Chr/sotile Asbestos and the
+is= of :ung Cancer( Ne" ,nglan+ $!%rnal !* 2e+i)ine 1669( 339.
15&
See the )!mments !* Dr. In*ante !n the P%e0e) "!r.ers st%+/ 0/ 2)D!nal+ et al( ara. 16 !* the
trans)rit !* the meeting "ith eAerts( AnneA CI( an+ th!se !* Dr. Een+ers!n( aras. 5.119 an+ 5.159L5.17&
a0!#e.
153
See W!it!"itF E.$.( RQ+elserger K.( 1esothelioma among Car 1echanicsI Ann O))% E/g(
1661.
151
See Dr. Een+ers!n( aras. 56( 96 an+ 1'1 !* the trans)rit !* the meeting "ith eAerts( AnneA CI.
We n!te that Cana+a has n!t *!rm%late+ a se)i*i) re-%est "ith regar+ t! *ri)ti!n r!+%)ts( s%)h as )ar 0ra.es(
*!r eAamle.
WT/DS135/R
Page 19&
ass!)iate+ "ith eA!s%re t! )hr/s!tile in its #ari!%s %ses. The Panel there*!re )!nsi+ers that the ,C
ha#e sh!"n that the !li)/ !* r!hi0iting )hr/s!tile as0est!s imlemente+ 0/ the De)ree *alls "ithin
the range !* !li)ies +esigne+ t! r!te)t h%man li*e !r health. On the !ther han+( Cana+a has n!t
s%))ee+e+ in re0%tting the res%mti!n esta0lishe+ !n the 0asis !* the e#i+en)e s%0mitte+ 0/ the ,C
an+ )!n*irme+ 0/ the eAerts. The Panel )!n)l%+es there*!re that the @ren)h !li)/ !* r!hi0iting
)hr/s!tile as0est!s *alls "ithin the range !* !li)ies +esigne+ t! r!te)t h%man li*e !r health( "ithin
the meaning !* Arti)le GG:0; !* the <ATT 1661.
9.165 A))!r+ingl/( the Panel "ill n!" t%rn t! the -%esti!n !* "hether the meas%re is =ne)essar/=
"ithin the meaning !* Arti)le GG:0;.
2ii4 &<ecessar/&
The 0an !n )hr/s!tile as0est!s in its #ari!%s *!rms
9.167 A))!r+ing t! the ,%r!ean C!mm%nities( the +anger !* inhaling as0est!s at le#els a0!#e
'.1 *i0re/ml )!n)erns n!t !nl/ the as0est!s mining an+ r!)essing se)t!rs 0%t( m!re ese)iall/(
se)!n+ar/ :teAtile( 0%il+ing an+ a%t!m!0ile in+%str/( *!r eAamle;( ara8!))%ati!nal :ser#i)ing(
maintenan)e; an+ +!mesti) :DI4; "!r.ers "h!m Cana+a menti!ns !nl/ in art !r n!t at all. ,#en in
r!+%)ti!n an+ r!)essing( "hi)h in rin)ile are easier t! m!nit!r( there are limits t! the )!ntr!lle+
!r sa*e %se !* as0est!s( "hi)h +!es n!t halt the srea+ !* the ris.s. S!8)alle+ =)!ntr!lle+= !r =sa*e=
%se is a fortiori )!mletel/ ine**e)ti#e in )ases !* !))asi!nal eA!s%re t! as0est!s. The 1667
INS,R2 re!rt
155
in+i)ates that the ris. !))%rs mainl/ am!ng th!se "h! "!r. "ith materials
)!ntaining as0est!s. The en)as%lati!n !* as0est!s in a matriA )ann!t 0e g%arantee+ t! ma.e
as0est!s8)ement r!+%)ts harmless( inasm%)h as an/ s%0se-%ent "!r.ing !* the r!+%)t "ill release
large n%m0ers !* )ar)in!geni) *i0res in the *!rm !* +%st. C!ntr!lle+ %se is im!ssi0le t! imlement
"here h%n+re+s !* th!%san+s !* e!le are in#!l#e+ in se)t!rs as %nreg%late+ in terms !* health as the
0%il+ing in+%str/. The 1691 ISO stan+ar+ is ina+e-%ate in relati!n t! the @ren)h health !05e)ti#e.
The ,C als! n!te that( !n)e as0est!s is !n the mar.et( there is n! reas!na0le "a/ !* )!ntr!lling its %se
an+( in arti)%lar( !* )!ntr!lling the e#er/+a/ !erati!ns that man/ e!le are li.el/ t! er*!rm.
2!re!#er( the n%mer!%s( arti)%larl/ legal !0sta)les "hi)h )!n*r!nt the #i)tims !* )%rrent eA!s%re
see.ing re+ress in the )!%rts )!nstit%te an a++iti!nal s!)ial 5%sti*i)ati!n *!r res!rting t! a t!tal 0an.
9.167 With regar+ t! the test !* ne)essit/( Cana+a ta.es the same ar!a)h as in )!nne)ti!n "ith
Arti)le &.& T3T
157
( )!nsi+ering that in man/ rese)ts the test !* ne)essit/ is similar in the t"!
r!#isi!ns. A))!r+ing t! Cana+a( the meas%re m%st n!t 0e an eA)essi#e !r !#er8rea)hing means t!
a)hie#e a legitimate en+. The t"! *a)t!rs t! 0e )!nsi+ere+ are( !n the !ne han+( the ris.s that the
a0sen)e !* a te)hni)al reg%lati!n "!%l+ )reate an+( !n the !ther( the eAisten)e !* a less tra+e8
restri)ti#e alternati#e meas%re that "!%l+ ma.e it !ssi0le t! *%l*il the state+ !05e)ti#e. As *ar as the
se)!n+ test is )!n)erne+( Cana+a n!tes that the )!ntr!lle+ %se !* as0est!s *i0res all!"s *%l*ilment !*
the @ren)h !05e)ti#e !* r!te)ting h%man health "hile a%th!riFing )ertain sa*e !r )!ntr!lle+ %ses !*
)hr/s!tile an+ r!+%)ts )!ntaining it. As )!ntr!lle+ %se is a less tra+e8restri)ti#e alternati#e 0ase+ !n
s)ienti*i) +ata an+ ha#ing internati!nal s%!rt( a t!tal 0an !n as0est!s is n!t ne)essar/. Cana+a is !*
the !ini!n that( t!+a/( high8+ensit/ n!n8*ria0le r!+%)ts +! n!t !se a +ete)ta0le ris.. The ris.s
"hi)h eAiste+ in the ast an+ in )ertain )ases still eAist t!+a/ are ass!)iate+ "ith ast %ses( #er/ !*ten
!* amhi0!les in *ria0le materials. In Cana+a's #ie"( the ,C are tr/ing t! mislea+ the Panel 0/
in#!.ing the ris.s !* the as0est!s mining an+ r!)essing in+%str/( e#en th!%gh the/ ha#e alrea+/
re)!gniFe+ that )!ntr!lle+ %se is e**e)ti#e here in eliminating the ris.. The ,C als! sh!" 0a+ *aith in
)iting the ris.s *!r 0%il+ing maintenan)e "!r.ers an+ me)hani)s. The ,C +! n!t eAlain that these
eA!s%res are essentiall/ t! *ria0le materials #er/ !*ten )!ntaining amhi0!les "ith a high ath!geni)
!tential. C!ntr!lle+ %se is e**e)ti#e an+ )an 0e a))ete+ 0/ r!*essi!nals. A))!r+ing t! the +ata !*
155
INS,R2B +a,,ort sur les effets sur la santE des ,rinci,au6 t/,es dFe6,osition G lFamiante(
INS,R2 5!int re!rt( 1667. This re!rt "as s%0mitte+ 0/ the ,%r!ean C!mm%nities as !ne !* the
%n+erinnings !* the meas%re a+!te+ 0/ @ran)e.
157
See Cana+a's arg%ments( aras. 3.&76 et se$ a0!#e.
WT/DS135/R
Page 193
the United States (ccu,ational Safet/ J 3ealth Administration :OSEA;( the instit%ti!n !* )!ntr!l
meas%res l!"ers the a#erage eA!s%res !* "!r.ers han+ling as0est!s8)ement ies t! '.''&53 */ml
an+ th!se !* "!r.ers han+ling as0est!s8)ement sheets t! '.''7&7 */ml. The a#erage eA!s%re !*
me)hani)s han+ling *ri)ti!n r!+%)ts is '.''&61 */ml. 2!re!#er( the %se !* re8ma)hine+ arts an+
*ittings has 0een a 0ig s%))ess. It re+%)es *iel+ a)ti#ities an+( at the same time( eA!s%re rates.
9.169 We n!te that in hailand Cigarettes the Panel +e*ine+ the test !* ne)essit/ ali)a0le %n+er
Arti)le GG:0;B
=The im!rt restri)ti!ns im!se+ 0/ Thailan+ )!%l+ 0e )!nsi+ere+ t! 0e 'ne)essar/' in terms !*
Arti)le GG:0; !nl/ i* there "ere n! alternati#e meas%re )!nsistent "ith the <eneral Agreement( !r less
in)!nsistent "ith it( "hi)h Thailan+ )!%l+ reas!na0l/ 0e eAe)te+ t! eml!/ t! a)hie#e its health
!li)/ !05e)ti#es.=
157
9.166 This test has 0een alie+ in !ther +is%tes
159
( in !r+er t! al/ the test +e*ine+ in hailand
Cigarettes, "e m%st :a; esta0lish the sco,e !* the health !li)/ !05e)ti#es %rs%e+ 0/ @ran)e an+
:0; )!nsi+er the eAisten)e !* meas%res )!nsistent( !r less in)!nsistent( "ith the <ATT 1661.
9.&'' @irst !* all( "e n!te that the ris. +%e t! )hr/s!tile is im!rtant t! the eAtent that( as )!n*irme+
in the re#i!%s se)ti!n( it )an generate l%ng )an)ers an+ mes!theli!mas "hi)h are still +i**i)%lt t! )%re
!r e#en in)%ra0le.
156
The !%lati!ns !tentiall/ at ris. in @ran)e are #er/ n%mer!%s( sin)e r!+%)ts
)!ntaining )hr/s!tile( in arti)%lar( )hr/s!tile8)ement( ha#e man/ ali)ati!ns in in+%strial(
)!mmer)ial an+ resi+ential 0%il+ings. The *iel+s !* a)ti#it/ )!n)erne+ in)l%+e 0%il+ing "!r.ers
:se#eral h%n+re+ th!%san+; an+ DI4 enth%siasts
17'
These are areas in "hi)h health )!ntr!ls are
+i**i)%lt t! al/( as the )!mments !* the eAerts ha#e sh!"n.
171
9.&'1 The eAerts als! )!n*irme+ that the intensi#e %se !* as0est!s :in @ran)e( mainl/ )hr/s!tile;
!#er se#eral +e)a+es has res%lte+ in the ris.s !* eA!s%re 0eing +isla)e+ *r!m the mining an+
r!)essing in+%str/ t!"ar+s !ther se)t!rs *%rther +!"nstream an+( in+ee+( the general %0li).
17&
In
this )!nteAt( the Panel *in+s that the ,%r!ean C!mm%nities ha#e sh!"n that a ris. eAists *!r a #er/
0r!a+ se)t!r !* the @ren)h !%lati!n.
9.&'& The Panel n!tes that the eA!s%re !* these gr!%s is generall/ l!"er. E!"e#er( the eAerts
)!n*irm the !siti!n !* the ,%r!ean C!mm%nities a))!r+ing t! "hi)h it has n!t 0een !ssi0le t!
i+enti*/ an/ thresh!l+ 0el!" "hi)h eA!s%re t! )hr/s!tile "!%l+ ha#e n! e**e)t.
173
The eAerts are
als! agree+ that the linear relati!nshi m!+el( "hi)h +!es n!t i+enti*/ an/ minim%m eA!s%re
thresh!l+( is ar!riate *!r assessing the eAisten)e !* a ris..
171
We *in+ there*!re that n! minim%m
thresh!l+ !* le#el !* eA!s%re !r +%rati!n !* eA!s%re has 0een i+enti*ie+ "ith regar+ t! the ris. !*
ath!l!gies ass!)iate+ "ith )hr/s!tile( eA)et *!r as0est!sis. C!nse-%entl/( the !ssi0ilit/ remains
that l!" eA!s%re !#er a *airl/ l!ng eri!+ !* time )!%l+ lea+ t! l%ng )an)er !r mes!theli!ma.
Similarl/( high8le#el eA!s%re !#er a sh!rt eri!+ )!%l+ als! res%lt in l%ng )an)er !r mes!theli!ma.
157
3ISD 37S/&''( ara. 75.
159
See( *!r eAamle( the Re!rt !* the Panel in United States Section 33"( !. )it.( ara. 5.&7( an+ the
Re!rt !* the Panel in United States 7asoline, !. )it.( ara. 7.&1.
156
See Dr. Een+ers!n( ara. 5.&6 an+ the trans)rit !* the meeting "ith eAerts( AnneA CI( en+ !*
ara. 19&.
17'
See Dr. In*ante( ara. 5.193H Dr. +e Kler.( ara. 5.195.
171
See Dr. In*ante *!r the Unite+ States :ara. 171 !* the trans)rit !* the meeting "ith eAerts;H
Dr. +e Kler. an+ Dr. Een+ers!n *!r A%stralia :aras. &&& an+ &&5( rese)ti#el/( !* the trans)rit !* the meeting
"ith eAerts;.
17&
See Dr. Een+ers!n( aras. 5.171L5.191H Dr. In*ante( aras. 5.19&85.193( 5.16'.
173
See Dr. Een+ers!n( ara. 5.31&H Dr. In*ante( aras. 5.31385.315.
171
See Dr. +e Kler.( ara. 5.317H Dr. Een+ers!n( ara. 5.319H Dr. In*ante( aras. 5.3&185.3&3H
Dr. 2%s.( ara. 5.3&1.
WT/DS135/R
Page 191
These t"! !ssi0ilities "ere )!n*irme+ 0/ the eAerts.
175
The Panel there*!re )!n)l%+es that e#en
th!%gh s!me tra+es !r the @ren)h !%lati!n in general are !nl/ intermittentl/ eA!se+ t! l!" le#els
!* as0est!s( a +e)isi!n8ma.er res!nsi0le *!r %0li) health !li)/ might reas!na0l/ )!n)l%+e that
there "as ne#ertheless a real ris. *!r these )ateg!ries.
9.&'3 In the light !* the a0!#e( the Panel )!n)l%+es that( in a++iti!n t! the ris. resente+ 0/ l!"8
+ensit/ *ria0le r!+%)ts( there is an %n+enia0le %0li) health ris. in relati!n t! the )hr/s!tile
)!ntaine+ in high8+ensit/ )hr/s!tile8)ement r!+%)ts. This ris. eAists e#en at l!" !r intermittent
eA!s%re le#els an+ )an a**e)t a 0r!a+ se)ti!n !* the !%lati!n.
9.&'1 We als! n!te that @ran)e's !05e)ti#e is t! halt the srea+ !* this ris. "hi)h( )!nsi+ering the
ris. i+enti*ie+ an+ its eAtent( )!%l+ in rin)ile 5%sti*/ stri)t meas%res. E!"e#er( it is ne)essar/ t!
)!nsi+er "hether there is n!t( as Cana+a alleges( a meas%re that "!%l+ 0e )!nsistent( !r less
in)!nsistent( "ith the <ATT 1661 an+ "!%l+ all!" the !05e)ti#e %rs%e+ 0/ @ran)e t! 0e a)hie#e+.
Cana+a re*ers t! the !ssi0ilit/ !* )!ntr!lle+ %se "hi)h )!nsists in ta.ing re)a%ti!nar/ meas%res t!
restri)t the release !* *i0res :%se !* se)ial t!!ls( high8+ensit/ r!+%)ts an+ se)ial meth!+s !*
han+ling as0est!s r!+%)ts; an+ r!te)t the air"a/s an+ in a+!ting meth!+s !* +e)!ntaminating
e-%iment an+ "!r. )l!thing. This )!ntr!lle+ !r sa*e %se "!%l+ 0e 0ase+ !n internati!nal stan+ar+s.
9.&'5 We n!te that( a))!r+ing t! the ,C( )!ntr!lle+ %se +!es n!t "!r. in )ertain !))%ati!nal
se)t!rs s%)h as th!se )!nne)te+ "ith 0%il+ing.
177
2!re!#er( i* the internati!nal stan+ar+s s%ggeste+
0/ Cana+a :in arti)%lar( ISO 7337; "ere alie+( the eA!s%re rate "!%l+ still 0e higher than the
le#el !* ris. that @ran)e )!nsi+ers a))eta0le.
177
The ,C als! stress that the )!nsistent !r less
in)!nsistent meas%res m%st 0e =te)hni)all/ an+ e)!n!mi)all/ *easi0le.=
179
9.&'7 We n!te that the ,C +! n!t +is%te that )!ntr!lle+ %se )!%l+ )!nstit%te a meas%re )!nsistent(
!r less in)!nsistent( "ith the <ATT 1661. The/ ne#ertheless )!nsi+er that it "!%l+ n!t all!" the
%0li) health !05e)ti#es %rs%e+ 0/ @ran)e t! 0e a)hie#e+. Ins!*ar as Cana+a re*ers s!lel/ t!
)!ntr!lle+ !r sa*e %se as an alternati#e t! !%tright r!hi0iti!n( "e "ill *!)%s !%r attenti!n !n this
!ssi0ilit/.
176
E!"e#er( 0e*!re )!ntin%ing "ith !%r anal/sis !* "hether meas%res )!nsistent( !r less
in)!nsistent( "ith the <ATT are a#aila0le in the resent )ase( "e )!nsi+er it ertinent( in the light !*
the )!ntra+i)t!r/ arg%ments %t *!r"ar+ 0/ the arties( t! ret%rn t! the -%esti!n !* the ali)a0ilit/ !*
the *easi0ilit/ test s%ggeste+ 0/ the ,C.
9.&'7 We n!te that in United States Section 33", the Panel state+ thatB
=A )!ntra)ting art/ )ann!t 5%sti*/ a meas%re in)!nsistent "ith an!ther <ATT r!#isi!n as 'ne)essar/'
in terms !* Arti)les GG:+; i* an alternati#e meas%re 5hich it could reasonabl/ be e6,ected to em,lo/
an+ "hi)h is n!t in)!nsistent "ith !ther <ATT r!#isi!ns is a#aila0le t! it. 3/ the same t!.en( in
)ases "here a meas%re )!nsistent "ith !ther <ATT r!#isi!ns is not reasonabl/ a9ailable( a
)!ntra)ting art/ is 0!%n+ t! %se( among the measures reasonabl/ a9ailable to it( that "hi)h entails the
least +egree !* in)!nsisten)/ "ith !ther <ATT r!#isi!ns.=
17'
We there*!re *in+ that in !r+er t! +etermine "hether a meas%re is ne)essar/ it is im!rtant t!
assess "hether )!nsistent !r less in)!nsistent meas%res are reasonabl/ a#aila0le. The term
175
See( *!r eAamle( Dr. In*ante( ara. 5.3'1.
177
See( in arti)%lar( AnneA II( rel/ 0/ the ,C t! Cana+a's -%esti!n N!. 7( ara. 179
177
See AnneA II( rel/ 0/ the ,C t! Cana+a's -%esti!n N!. 5( ara. 177.
179
The ,%r!ean C!mm%nities re*er t! Arti)le 5.7 !* the Agreement !n the Ali)ati!n !* Sanitar/ an+
Ph/t!sanitar/ 2eas%res. The/ )!nsi+er that the rin)ile in)!r!rate+ in that r!#isi!n sh!%l+ als! 0e alie+
in the )!nteAt !* Arti)le GG.
176
In this rese)t( "e n!te that the eAerts li.e"ise +i+ n!t menti!n an/ alternati#es !ther than
)!ntr!lle+ %se. 2!re!#er( in the light !* the ar!a)h +e*ine+ 0/ the Aellate 3!+/ in Australia Salmon(
!. )it. :see Se)ti!n CIII ,.1.:0; a0!#e;( "e )!nsi+er that "e +! n!t nee+ t! as)ertain "hether !ther meas%res
"ere !ssi0le.
17'
O. )it.( ara. 5.&7.
WT/DS135/R
Page 195
=reas!na0l/= has n!t 0een +e*ine+ as s%)h 0/ the anels that ha#e re*erre+ t! it in the )!nteAt !*
Arti)le GG. It s%ggests( h!"e#er( that the a#aila0ilit/ !* a meas%re sh!%l+ n!t 0e eAamine+
the!reti)all/ !r in a0s!l%te terms. Ne#ertheless( in the light !* the reas!ning !* these anels( "e *in+
the "!r+ =reas!na0l/= sh!%l+ n!t 0e interrete+ l!!sel/ either. The *a)t that( a+ministrati#el/( !ne
meas%re ma/ 0e easier t! imlement than an!ther +!es n!t mean that the !ther meas%re is n!t
reas!na0l/ a#aila0le.
171
We )!nsi+er that the eAisten)e !* a reas!na0l/ a#aila0le meas%re m%st 0e
assesse+ in the light !* the e)!n!mi) an+ a+ministrati#e realities *a)ing the 2em0er )!n)erne+ 0%t
als! 0/ ta.ing int! a))!%nt the *a)t that the State m%st r!#i+e itsel* "ith the means !* imlementing
its !li)ies. Th%s( the Panel )!nsi+ers that it is legitimate t! eAe)t a )!%ntr/ s%)h as @ran)e "ith
a+#an)e+ la0!%r legislati!n an+ se)ialiFe+ a+ministrati#e ser#i)es t! +el!/ a+ministrati#e res!%r)es
r!!rti!nate t! its %0li) health !05e)ti#es an+ t! 0e reare+ t! in)%r the ne)essar/ eAen+it%re.
9.&'9 A*ter )lari*/ing this !int( "e "ill n!" r!)ee+ t! eAamine "hether )!ntr!lle+ %se :a; is
s%**i)ientl/ e**e)ti#e in the light !* @ran)e's health !li)/ !05e)ti#es an+ :0; "hether it )!nstit%tes a
reas!na0l/ a#aila0le meas%re.
9.&'6 In relati!n t! the *irst !* these )!nsi+erati!ns( "e n!te( *irst !* all( that alth!%gh )!ntr!lle+ %se
is alie+ in s!me )!%ntries( s%)h as the Unite+ States !r Cana+a( an+ has als! 0een alie+ 0/
@ran)e( in general in )ertain se)t!rs its e**i)a)it/ still remains t! 0e +em!nstrate+. This is )!n*irme+
0/ a n%m0er !* st%+ies
17&
( as "ell as 0/ the )!mments !* the eAerts.
173
Th%s( e#en th!%gh it seems
!ssi0le t! al/ )!ntr!lle+ %se s%))ess*%ll/ %stream :mining an+ man%*a)t%ring; !r +!"nstream
:rem!#al an+ +estr%)ti!n; !* r!+%)t %se( it "!%l+ seem t! 0e m%)h less eas/ t! al/ it in the
0%il+ing se)t!r( "hi)h is !ne !* the areas m!re arti)%larl/ targete+ 0/ the meas%res )!ntaine+ in the
De)ree. The Panel there*!re )!n)l%+es that( in #ie" !* the +i**i)%lties !* ali)ati!n !* )!ntr!lle+
%se( an !**i)ial in )harge !* %0li) health !li)/ might reas!na0l/ )!nsi+er that )!ntr!lle+ %se +i+ n!t
r!#i+e r!te)ti!n that "as a+e-%ate in relati!n t! the !li)/ !05e)ti#es.
9.&1' 2!re!#er( Cana+a re*ers t! the eAisten)e !* internati!nal stan+ar+s *!r the r!te)ti!n !*
"!r.ers in )!nta)t "ith )hr/s!tile.
171
@irst !* all( "e *in+ that the internati!nal stan+ar+s )!#er !nl/
the re)a%ti!ns t! 0e ta.en i* a "!r.er has t! han+le as0est!s. The/ )!ntain neither a g%arantee !*
*ree a))ess *!r as0est!s n!r an in)enti#e t! %se as0est!s. On the )!ntrar/( the internati!nal
)!n#enti!ns s%ggest that( as *ar as !ssi0le( as0est!s sh!%l+ 0e rela)e+ 0/ less haFar+!%s
materials.
175
NeAt( "e n!te that the le#els !* r!te)ti!n !0taine+ 0/ *!ll!"ing internati!nal stan+ar+s(
"hether it 0e the ISO stan+ar+ !r the WEO C!n#enti!n( are l!"er than th!se esta0lishe+ 0/ @ran)e(
in)l%+ing th!se ali)a0le 0e*!re the intr!+%)ti!n !* the De)ree. C!nsi+ering the high le#el !* ris.
i+enti*ie+( @ran)e's !05e)ti#e L "hi)h the Panel )ann!t -%esti!n 8
177
5%sti*ies the a+!ti!n !* eA!s%re
)eilings l!"er than th!se *!r "hi)h the internati!nal )!n#enti!ns r!#i+e. We there*!re *in+ that
)!ntr!lle+ %se 0ase+ !n internati!nal stan+ar+s "!%l+ n!t seem t! ma.e it !ssi0le t! a)hie#e the
le#el !* r!te)ti!n s!%ght 0/ @ran)e.
9.&11 The Panel is a"are that in s!me se)t!rs )!ntr!lle+ !r sa*e %se )!%l+ 0e en#isage+ "ith greater
)ertaint/ that it "!%l+ r!#e e**e)ti#e. E!"e#er( as )!n*irme+ 0/ the eAerts
177
( the )ir)%mstan)es !*
171
See United States 7asoline( !. )it.( aras. 7.&7 t! 7.&9.
17&
See Pet! et alH Continuing Increase in 1esothelioma 1ortalit/ in ;ritain, he :ancet, #!l%me 315(
5358536 :1665;. See als! Dr. Een+ers!n( )iting ,EC &'3( aras. 5.37585.379H Dr. In*ante( aras. 5.35185.35&
an+ 5.376.
173
See the )!mments !* the eAerts !n )!ntr!lle+ %se an+ its *easi0ilit/( aras. 5.33585.373.
171
See( *!r eAamle( ISO 7337.
175
See Internati!nal Da0!%r OrganiFati!n( <ene#a( C!n#enti!n C!n)erning Sa*et/ in the Use !*
As0est!s :hereina*ter =C!n#enti!n 17&=( a+!te+ !n &1 $%ne 1697;.
177
See United States 7asoline( !. )it%, ara. 7.&&. The Panel als! n!tes that GG:0; +!es n!t im!se
the same )!nstraints as Arti)le 3.3 !* the SPS Agreement !n 2em0ers "ishing t! al/ meas%res that in#!l#e a
le#el !* r!te)ti!n higher than that "hi)h "!%l+ 0e !0taine+ "ith meas%res 0ase+ !n the rele#ant internati!nal
stan+ar+s.
177
Dr. Een+ers!n( aras. 5.33785.311.
WT/DS135/R
Page 197
%se m%st 0e )!ntr!lla0le. These )ir)%mstan)es are eAtremel/ #arie+ an+ "e n!te that the sa*et/
meas%res that "!%l+ ma.e !ssi0le res%lts at least e-%i#alent t! the eA!s%re le#el :'.1 */ml; alie+
0/ @ran)e 0e*!re the 0an :restri)ti!ns !n the n%m0er !* "!r.ers an+ "!r.ing areas an+ t!tal
)!ntainment !* the r!+%)t; eA)ee+ the re-%irements !* the internati!nal stan+ar+s an+ )!nsi+era0l/
limit the n%m0er !* in+%strial se)t!rs that )!%l+ al/ them.
179
,#en in these )ases( a))!r+ing t! !ne
!* the eAerts( the le#el !* eA!s%re is still high en!%gh *!r there t! 0e a signi*i)ant resi+%al ris. !*
+e#el!ing as0est!s8relate+ +iseases.
176
A))!r+ing t! an!ther( it is n!t !ssi0le t! g%arantee that *i0re
)!n)entrati!ns "ill ne#er eA)ee+ '.1 */ml.
19'
In a++iti!n( "e n!te that *!r the ali)ati!n !* )!ntr!lle+
%se t! satis*/ @ran)e's %0li) health !05e)ti#es( mine+ !r r!)esse+ r!+%)ts sh!%l+ ne#er 0e han+le+
0/ an/!ne !%tsi+e the mining an+ r!)essing in+%stries. I* these r!+%)ts "ere s%0se-%entl/ t! 0e
han+le+ 0/ %nr!te)te+ ers!ns( the *a)t that the/ )!%l+ 0e mine+ an+ r!)esse+ an+ then +estr!/e+
%sing )!ntr!lle+ %se te)hni-%es "!%l+ n!t 0e s%**i)ient t! meet th!se !05e)ti#es. We there*!re *in+
that a +e)isi!n8ma.er res!nsi0le *!r esta0lishing a health !li)/ might ha#e reas!na0le +!%0ts a0!%t
the !ssi0ilit/ !* ens%ring the a)hie#ement !* @ran)e's health !li)/ !05e)ti#es 0/ rel/ing !n
)!ntr!lle+ %se( e#en in se)t!rs "hi)h might len+ themsel#es m!re rea+il/ t! these ra)ti)es.
191
9.&1& A fortiori an+ *!r the *!ll!"ing reas!ns( "e )!nsi+er that )!ntr!lle+ %se is n!t a reas!na0l/
a#aila0le alternati#e in all the !ther se)t!rs in "hi)h "!r.ers ma/ 0e eA!se+ t! )hr/s!tile.
9.&13 The Panel n!tes that Cana+a's arg%ments %n+er Arti)le IIIB1 are limite+ t! )hr/s!tile an+
)hr/s!tile8)ement r!+%)ts. In *a)t( )hr/s!tile8)ement is mainl/ %se+ in the 0%il+ing se)t!r. As the
eAerts ha#e )!n*irme+( 0e)a%se !* the m!0ilit/ !* the "!r.ers an+ their s!metimes ina+e-%ate
training( as "ell as the large n%m0er !* sites an+ there*!re !* e!le lia0le t! eA!s%re( it is #er/
+i**i)%lt t! im!se !n the 0%il+ing se)t!r s!histi)ate+ !))%ati!nal sa*et/ ra)ti)es !* the t/e that
)an 0e alie+ in se)t!rs "ith smaller n%m0ers !* "!r.ers )!n)entrate+ in "ell8+e*ine+ areas.
19&
9.&11 2!re!#er( "hile )!ntr!lle+ %se ma/ seem +i**i)%lt t! al/ in the 0%il+ing se)t!r( it is e#en
less *easi0le in the )ase !* DI4 enth%siasts !r %n+e)lare+ "!r.ers !erating !%tsi+e an/ r!er
*rame"!r. !r s/stem !* )!ntr!ls. @ran)e's !05e)ti#e is t! halt the srea+ !* the ris.s ass!)iate+ "ith
)hr/s!tile. At least as *ar as DI4 enth%siasts are )!n)erne+( )!ntr!lle+ %se is n!t a reas!na0l/
a#aila0le !ti!n. In this )!nteAt( the *a)t that )!ntr!lle+ %se might 0e reas!na0l/ a#aila0le in !ther
se)t!rs is irrele#ant. Eere( "e are )!n)erne+ "ith a r!+%)t that )!%l+ 0e installe+ in e!le's h!mes(
n!t !ne limite+ t! a restri)te+ %se in areas in "hi)h !nl/ r!*essi!nals "!%l+ 0e re-%ire+ t! "!r..
Ins!*ar as( !n)e the r!+%)ts ha#e 0een installe+( it is im!ssi0le t! g%arantee that the/ "ill n!t 0e
han+le+ 0/ s!me!ne "h! "ill n!t *!ll!" )!ntr!lle+ %se ra)ti)es( it seems t! %s that a +e)isi!n8ma.er
res!nsi0le *!r a+!ting a health !li)/ might "ell )!n)l%+e that there "as still a *la" in the health
r!te)ti!n s/stem i* !nl/ )!ntr!lle+ %se meas%res "ere alie+.
193
9.&15 Cana+a als! !ints !%t that( e#en th!%gh their %se might n!t 0e limite+ t! !))%ati!nal
a)ti#ities( s!me r!+%)ts "ill ne#er 0e han+le+ 0/ %n-%ali*ie+ e!le. The Panel n!tes( h!"e#er(
that( as it *!%n+ in aragrahs 9.&''89.&'& a0!#e( eA!s%re t! as0est!s *i0res is n!t restri)te+
eA)l%si#el/ t! "!r.ers !r DI4 enth%siasts. Others resent "hile the "!r. is g!ing !n( in s!me )ases
179
I0i+%( aras. 5.33785.336.
176
Dr. In*ante( ara. 5.313 re*erring t! an !ini!n gi#en 0/ the Unite+ States O))%ati!nal Sa*et/ an+
Eealth A+ministrati!n :OSEA;. See als! Dr. In*ante( aras. 5.35985.37&.
19'
Dr. Een+ers!n( aras. 5.35585.357.
191
In an/ e#ent( in the light !* the !ini!n !* !ne !* the eAerts :Dr. Een+ers!n( ara 5.759 an+
*!!tn!te;( the se)t!rs in "hi)h e**e)ti#e )!ntr!lle+ %se is *easi0le aear t! 0e eAtremel/ *e" an+ )!n)ern
ali)ati!ns *!r "hi)h( at this stage( there are n! )hr/s!tile s%0stit%tes( an area in "hi)h the De)ree r!#i+es *!r
eA)eti!ns t! the r!hi0iti!n !n the %se !* )hr/s!tile.
19&
We n!te that the eAerts' )!mments relate t! )!%ntries "ith a le#el !* e)!n!mi) +e#el!ment
e-%i#alent t! that !* @ran)e an+ "ith similar a+ministrati#e res!%r)es.
193
See the eAerts' )!mments !n this s%05e)tB Dr. +e Kler.( ara. 5.335H Dr. Een+ers!n( ara. 5.311H
Dr. In*ante( ara 5.313.
WT/DS135/R
Page 197
e#en s!%ses( )!%l+ 0e +ire)tl/ !r in+ire)tl/ a**e)te+.
191
As !ne !* the eAerts has sh!"n( eA!s%re t!
as0est!s ma/ 0e the res%lt !* %re )han)e.
195
9.&17 2!re!#er( the Panel n!tes that r!+%)ts )!ntaining )hr/s!tile ma/ remain in la)e *!r #er/
l!ng eri!+s !* time. Th%s( e#er/ time the/ are han+le+( the han+ler )!%l+ 0e eA!se+. The
)!ntin%e+ mar.eting !* r!+%)ts )!ntaining )hr/s!tile as0est!s m%ltilies the sit%ati!ns in "hi)h
"!r.ers are r!%tinel/ eA!se+ an+ eA!ses them t! )!n)entrati!ns !* as0est!s "hi)h ha#e alrea+/
0een relate+ t! ath!l!gies in h%mans.
197
In !ther "!r+s( e#en i* the eA!s%re rates are #er/ l!"( the
m%ltili)ati!n !* s!%r)es !* eA!s%re ma/ lea+ t! )!n)entrati!ns alrea+/ *!%n+ t! ha#e )a%se+
+isease.
9.&17 We there*!re )!n)l%+e that the ,%r!ean C!mm%nities ha#e sh!"n that )!ntr!lle+ %se is
neither e**e)ti#e n!r reas!na0l/ a#aila0le( at least in the 0%il+ing se)t!r an+ *!r DI4 enth%siasts.
A))!r+ingl/( )!ntr!lle+ %se +!es n!t )!nstit%te a reas!na0le alternati#e t! the 0anning !* )hr/s!tile
as0est!s that might 0e )h!sen 0/ a +e)isi!n8ma.er res!nsi0le *!r +e#el!ing %0li) health meas%res(
0earing in min+ the !05e)ti#es %rs%e+ 0/ @ran)e.
Re)!%rse t! s%0stit%te *i0res an+ r!+%)ts
9.&19 Cana+a arg%es that @ran)e is )reating a *alse sense !* se)%rit/ 0/ re-%iring )hr/s!tile( "h!se
e**e)ts are "ell .n!"n( t! 0e rela)e+ 0/ r!+%)ts "h!se e**e)ts !n health are %n)ertain.
9.&16 The ,%r!ean C!mm%nities arg%e that the De)ree +!es n!t re)!mmen+ the in+is)riminate %se
!* s%0stit%te r!+%)ts. It lea#es it t! 0%sinesses t! rela)e as0est!s 0/ "hi)he#er r!+%)t the/ )h!!se.
In #ie" !* the r!)e+%re lai+ +!"n in Arti)le & !* the De)ree( the rela)ement !* as0est!s *i0res 0/
s%0stit%te *i0res is the res%lt !* a reas!na0le an+ 5%sti*ie+ r!)ess.
9.&&' The Panel n!tes( *irst !* all( that the ris. !se+ 0/ )hr/s!tile is re)!gniFe+ internati!nall/
197
(
"hi)h in itsel* ma/ 5%sti*/ the ta.ing !* meas%res t! restri)t its %se. On the !ther han+( "e *in+ that
the s%0stit%te *i0res eAamine+ in the )!nteAt !* this )ase :PCA( )ell%l!se an+ glass; are n!t )lassi*ie+
0/ the WEO at the same le#el !* ris. as )hr/s!tile. 2!re!#er( the eAerts )!ns%lte+ 0/ the Panel "h!
)!mmente+ in +etail !n the ris.s ass!)iate+ "ith the s%0stit%te *i0res eAamine+ in the )!nteAt !* this
)ase :PCA( )ell%l!se an+ glass; an+ !ther *i0res( :in arti)%lar arami+ an+ )erami); )!n*irme+ that
these *i0res +i+ n!t resent the same ris. t! health as )hr/s!tile.
199
In arti)%lar( animal st%+ies +! n!t
sh!" the *i0res in -%esti!n t! 0e )ar)in!geni).
196
9.&&1 Cana+a's ar!a)h seems t! 0e 0ase+ !n the *a)t that )hr/s!tile )an 0e %se+ sa*el/. As "e
ha#e alrea+/ )!n)l%+e+( this +!es n!t aear t! 0e a reas!na0l/ a#aila0le !ssi0ilit/( at least as *ar as
0%il+ing "!r.ers an+ DI4 enth%siasts are )!n)erne+. I* "e "ere t! *!ll!" Cana+a's reas!ning( then
s%0stit%te *i0res )!%l+ n!t 0e %se+ %ntil a +egree !* )ertaint/ e-%i#alent t! that "hi)h eAists "ith
rese)t t! )hr/s!tile ha+ 0een esta0lishe+. In the !ini!n !* the Panel( t! ma.e the a+!ti!n !* health
meas%res )!n)erning a +e*inite ris. +een+ %!n esta0lishing "ith )ertaint/ a ris. alrea+/ assesse+ as
0eing l!"er than that )reate+ 0/ )hr/s!tile "!%l+ ha#e the e**e)t !* re#enting an/ !ssi0ilit/ !*
legislating in the *iel+ !* %0li) health. In *a)t( it "!%l+ mean "aiting %ntil s)ienti*i) )ertaint/( "hi)h
is !*ten +i**i)%lt t! a)hie#e( ha+ 0een esta0lishe+ !#er the "h!le !* a arti)%lar *iel+ 0e*!re %0li)
health meas%res )!%l+ 0e imlemente+.
191
See the st%+ies )ite+ 0/ Dr. In*ante( ara. 5.3'1.
195
See the eAamles !* the le)t%rer an+ the *ireman menti!ne+ 0/ Dr. Een+ers!n +%ring the meeting
"ith eAerts( ara. &5'( AnneA CI.
197
See Dr. In*ante( ara. 5.315.
197
See IARC )lassi*i)ati!n( !. )it.
199
See Dr. +e Kler.( aras. 5.37585.377H Dr. Een+ers!n( ara. 5.395H Dr. In*ante( ara. 5.399.
196
See Dr. 2%s.( ara. 5.36'.
WT/DS135/R
Page 199
C!n)l%si!n
9.&&& In the light !* @ran)e's %0li) health !05e)ti#es as resente+ 0/ the ,%r!ean C!mm%nities(
the Panel )!n)l%+es that the ,C has ma+e a rima *a)ie )ase *!r the n!n8eAisten)e !* a reas!na0l/
a#aila0le alternati#e t! the 0anning !* )hr/s!tile an+ )hr/s!tile8)ement r!+%)ts an+ re)!%rse t!
s%0stit%te r!+%)ts. Cana+a has n!t re0%tte+ the res%mti!n esta0lishe+ 0/ the ,C. We als!
)!nsi+er that the ,C's !siti!n is )!n*irme+ 0/ the )!mments !* the eAerts )!ns%lte+ in the )!%rse !*
this r!)ee+ing.
9.&&3 At this stage( "e )!n)l%+e that the De)ree satis*ies the )!n+iti!ns !* Arti)le GG:0; !* the
<ATT 1661.
:+; Ali)ati!n !* the intr!+%)t!r/ )la%se :)haea%; !* Arti)le GG !* the <ATT 1661 t! the
ali)ati!n !* the De)ree
2i4 &1eans of arbitrar/ or unAustifiable discrimination bet5een countries 5here the same
conditions ,re9ail&
9.&&1 With regar+ t! the intr!+%)t!r/ )la%se !* Arti)le GG( the ,C !int !%t that it alies t! the
manner in "hi)h the meas%re is alie+. In the resent )ase there is n!thing t! s%!rt the )!ntenti!n
that @ran)e a)te+ =in 0a+ *aith= !r in an =%nreas!na0le=( =imr!er= !r =a0%si#e= manner in eAer)ising
its right %n+er Arti)le GG:0;. The 0an is n!t a means !* im!sing ar0itrar/ !r %n5%sti*ia0le
+is)riminati!n 0et"een )!%ntries "here the same )!n+iti!ns re#ail. It )!#ers r!+%)ts !riginating in
an/ )!%ntr/( in)l%+ing @ran)e( "here the same )!n+iti!ns re#ail. The ,%r!ean C!mm%nities
)!nsi+er that( as the De)ree +!es n!t meet the +e*initi!n !* +is)riminati!n lai+ +!"n 0/ the Aellate
3!+/( it )ann!t 0e alie+ in s%)h a manner as t! )!nstit%te a means !* ar0itrar/ !r %n5%sti*ia0le
+is)riminati!n 0et"een )!%ntries "here the same )!n+iti!ns re#ail.
9.&&5 Cana+a )laims that it has alrea+/ sh!"n( in rese)t !* Arti)le IIIB1( that the initial De)ree "as
+is)riminat!r/. The De)ree is als! ar0itrar/ an+ %n5%sti*ie+ 0e)a%se it is n!t m!ti#ate+ 0/ the
!05e)ti#e !* r!te)ting h%man li*e !r health 0%t rather 0/ the +esire t! reass%re a ani).e+ !%lati!n.
9.&&7 The Panel n!tes that %n+er the *irst !* the alternati#es menti!ne+ in the intr!+%)t!r/ )la%se !*
Arti)le GG it is re-%ire+ t! eAamine "hether the a,,lication !* the De)ree )!nstit%tes a means !*
ar0itrar/ !r %n5%sti*ia0le +is)riminati!n 0et"een )!%ntries "here the same )!n+iti!ns re#ail.
16'
The
Panel )!nsi+ers that( "ithin the )!nteAt !* this alternati#e( its *irst ste sh!%l+ 0e t! +etermine "hether
the meas%re is =+is)riminat!r/= in its ali)ati!n.
161
I* the ali)ati!n !* the meas%re is *!%n+ t! 0e
+is)riminat!r/( it still remains t! 0e seen "hether it is arbitrar/ an+/!r unAustifiable 0et"een
)!%ntries "here the same )!n+iti!ns re#ail. It is in this )!nteAt( an+ n!t in the stage !* the eAisten)e
!* +is)riminati!n L "hi)h is an !05e)ti#e *a)t( that "e shall +etermine "hether the meas%res *alling
"ithin the arti)%lar eA)eti!ns !* Arti)le GG:0; L in this )ase the initial De)ree as alie+ L ha#e
0een alie+ reas!na0l/( "ith +%e regar+ t! 0!th the legal +%ties !* the art/ )laiming the eA)eti!n
an+ the legal rights !* the !ther arties )!n)erne+.
16&
16'
See the Re!rts !* the Aellate 3!+/ in United States 7asoline( !. )it%, . &5( an+
United States Shrim,, !. )it%, ara. 115.
161
The Panel )!nsi+ers that "hat is r!hi0ite+ 0/ the intr!+%)t!r/ )la%se t! Arti)le GG is a arti)%lar
*!rm !* +is)riminati!n :that "hi)h is ar0itrar/ !r %n5%sti*ia0le 0et"een )!%ntries "here the same )!n+iti!ns
re#ail; an+ n!t all *!rms !* +is)riminati!n. I* the meas%re is n!t +is)riminat!r/ in general in its ali)ati!n(
then a fortiori it )ann!t )!nstit%te ar0itrar/ !r %n5%sti*ia0le +is)riminati!n 0et"een )!%ntries "here the same
)!n+iti!ns re#ail. See als! the Re!rt !* the Panel in United States Im,orts of Certain Automoti9e S,ring
Assemblies( a+!te+ !n &7 2a/ 1693( 3ISD 3'S/1'7 :hereina*ter =United States Automoti9e S,rings=;(
ara. 55.
16&
Re!rt !* the Aellate 3!+/ in United States 7asoline( !. )it.( . &&.
WT/DS135/R
Page 196
9.&&7 The Panel als! n!tes that( in United States 7asoline( the Aellate 3!+/ state+ that the
"!r+ =+is)riminati!n= in the intr!+%)t!r/ )la%se !* Arti)le GG )!#ers 0!th +is)riminati!n 0et"een
r!+%)ts *r!m +i**erent s%lier )!%ntries an+ +is)riminati!n 0et"een +!mesti) an+ im!rte+
r!+%)ts. @inall/( in the same )ase( the Aellate 3!+/ r%le+ that =the r!#isi!ns !* the )haea% >!*
Arti)le GG ? )ann!t l!gi)all/ re*er t! the same stan+ar+:s; 0/ "hi)h a #i!lati!n !* a s%0stanti#e r%le
has 0een +etermine+ t! ha#e !))%rre+.=
163
In !ther "!r+s( "e )ann!t )!n)l%+e that +is)riminati!n
eAists !n the 0asis !* the #i!lati!n !* Arti)le IIIB1 i+enti*ie+ a0!#e. This means that the less
*a#!%ra0le treatment !* as0est!s as )!mare+ "ith s%0stit%te *i0res i+enti*ie+ 0/ Cana+a is n!t
rele#ant *!r esta0lishing the eAisten)e !* +is)riminati!n %n+er Arti)le GG. The -%esti!n is there*!re
)!n*ine+ t! the s%liers !* as0est!s( "hether +!mesti) !r *!reign. E!"e#er( "e %n+erstan+ that
an!ther *!rm !* +is)riminati!n( *!r eAamle 0et"een s%lier )!%ntries( n!t in#!.e+ 0/ Cana+a as its
rin)ial arg%ment( )!%l+ 0e ta.en int! )!nsi+erati!n %n+er the intr!+%)t!r/ )la%se !* Arti)le GG. It
is !n this +%al 0asis that "e shall eAamine "hether the meas%re is 0eing alie+ in a =+is)riminat!r/=
manner.
9.&&9 The Panel n!tes that the ,%r!ean C!mm%nities )!nsi+er the De)ree t! )!n)ern r!+%)ts
!riginating in an/ )!%ntr/( in)l%+ing @ran)e( "here the same )!n+iti!ns re#ail. The teAt !* the
De)ree as s%)h aears t! )!n*irm this. Onl/ the r!+%)t in -%esti!n is menti!ne+( "ith!%t an/
re*eren)e t! its !rigin. ,#en Arti)les & an+ 3( "hi)h )!n)ern the esta0lishment an+ a+ministrati!n !*
eA)eti!ns( +! n!t )!ntain an/ eAressl/ +is)riminat!r/ r!#isi!n. It sh!%l+ 0e 0!rne in min+(
h!"e#er( that the intr!+%)t!r/ )la%se !* Arti)le GG )!n)erns the ali)ati!n !* the meas%re. It "!%l+
there*!re 0e !ssi0le *!r Cana+ian eA!rts !* )hr/s!tile !r r!+%)ts )!ntaining it t! re)ei#e less
*a#!%ra0le treatment than im!rts *r!m !ther )!%ntries !r @ren)h r!+%)ti!n "ith rese)t t! the "a/
in "hi)h the eA)eti!ns are a+ministere+ 0/ the @ren)h a%th!rities. @!r eAamle( the minister
res!nsi0le might %se the !"ers !* n!ti)e %n+er Arti)le 3BIII !* the De)ree t! +is)riminate against an
!erat!r -%ali*/ing *!r an eA)eti!n "h! im!rts )hr/s!tile *i0res *r!m Cana+a. E!"e#er( "e n!te
that Cana+a has n!t arg%e+ that this "as !r ha+ 0een the )ase. Cana+a merel/ re)alls that it has
+em!nstrate+ the eAisten)e !* +is)riminati!n %n+er Arti)le IIIB1. @!r the reas!ns set !%t a0!#e( "e
)!nsi+er that this +em!nstrati!n is n!t rele#ant in terms !* the intr!+%)t!r/ )la%se !* Arti)le GG.
9.&&6 We there*!re )!n)l%+e that( alth!%gh this is a hea#ier tas. than that in#!l#e+ in sh!"ing that
an eA)eti!n *alling "ithin !ne !* the aragrahs !* Arti)le GG en)!masses the meas%re at iss%e( the
,C ha#e ma+e a rima *a)ie )ase *!r their arg%ment that the De)ree +!es n!t )!nstit%te( in its
ali)ati!n( ar0itrar/ !r %n5%sti*ia0le +is)riminati!n. We +! n!t )!nsi+er that Cana+a has re0%tte+ the
res%mti!n esta0lishe+ 0/ the rima *a)ie )ase ma+e 0/ the ,C( a))!r+ing t! "hi)h the De)ree +!es
n!t intr!+%)e +is)riminati!n.
9.&3' In a))!r+an)e "ith !%r ar!a)h( sin)e +is)riminati!n has n!t 0een esta0lishe+ in relati!n t!
the ali)ati!n !* the De)ree( there is n! nee+ t! )!nsi+er the -%esti!n !* its ar0itrariness !r
%n5%sti*ia0ilit/.
2ii4 &8isguised restriction on international trade&
9.&31 A))!r+ing t! the ,C( the De)ree +!es n!t )!nstit%te a =+isg%ise+ restri)ti!n !n internati!nal
tra+e=. The ,C )!nsi+er that the *a)t that the De)ree is n!t alie+ in a manner "hi)h "!%l+
)!nstit%te a means !* ar0itrar/ !r %n5%sti*ia0le +is)riminati!n is r!!* en!%gh that it is n!t 0eing
alie+ in a manner "hi)h )!nstit%tes a +isg%ise+ restri)ti!n !n internati!nal tra+e. In arti)%lar( the
,C !int !%t that the restri)ti!n "as %0lishe+( that man/ !ther 2em0ers !* the WTO als! al/
restri)ti!ns !n these r!+%)ts an+ that the restri)ti!n ta.es internati!nal stan+ar+s as a 0ase. An/
!ther ar!a)h "!%l+ iml/ that all legislati!n !n as0est!s an+ as0est!s8)!ntaining r!+%)ts( in s! *ar
as it im!ses restri)ti!ns( am!%nts t! a =+isg%ise+ restri)ti!n !n internati!nal tra+e=.
163
I0i+%
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9.&3& Cana+a )!nsi+ers that the De)ree is a =+isg%ise+ restri)ti!n !n internati!nal tra+e=. The
Aellate 3!+/ has eA)l%+e+ a narr!" rea+ing !* the term =+isg%ise+ restri)ti!n=. The *a)t that the
meas%re "as %0lishe+ +!es n!t re#ent it *r!m 0eing a +isg%ise+ restri)ti!n !n internati!nal tra+e.
The De)ree is )!ntrar/ t! the intr!+%)t!r/ )la%se !* Arti)le GG in the sense that( %n+er the )!#er !* a
%0li) health +e)isi!n( it *a#!%rs the @ren)h nati!nal in+%str/ !* s%0stit%te r!+%)ts *!r )hr/s!tile an+
r!+%)ts )!ntaining it.
9.&33 The Panel n!tes( *irst !* all( that the a)t%al s)!e !* the "!r+s =+isg%ise+ restri)ti!n !n
internati!nal tra+e= has n!t 0een )learl/ +e*ine+. Un+er the <ATT 1617( anels seem mainl/ t! ha#e
)!nsi+ere+ that a +isg%ise+ restri)ti!n !n internati!nal tra+e "as a restri)ti!n that ha+ n!t 0een ta.en
in the *!rm !* a tra+e meas%re !r ha+ n!t 0een ann!%n)e+ 0e*!rehan+
161
!r *!rme+ the s%05e)t !* a
%0li)ati!n( !r e#en ha+ n!t 0een the s%05e)t !* an in#estigati!n.
165
9.&31 In United States 7asoline, the Aellate 3!+/ )!nsi+ere+ =that )!n)eale+ !r %nann!%n)e+
restri)ti!n J in internati!nal tra+e +!es n!t eAha%st the meaning !* '+isg%ise+ restri)ti!n'.= This
seems t! iml/ that a meas%re that "as n!t %0lishe+ "!%l+ n!t satis*/ the re-%irements !* the se)!n+
r!!siti!n !* the intr!+%)t!r/ )la%se !* Arti)le GG. We n!te that the De)ree "as %0lishe+ in the
O**i)ial $!%rnal !* the @ren)h Re%0li) !n &7 De)em0er 1667 an+ entere+ int! *!r)e !n 1 $an%ar/
1667. We als! n!te that it alies %ne-%i#!)all/ t! internati!nal tra+e( sin)e as *ar as as0est!s is
)!n)erne+ 0!th im!rtati!n an+ eA!rtati!n are r!hi0ite+. In this sense( the )riteria +e#el!e+ in
United States una 21!?'4 an+ in United States Automoti9e S,rings ha#e alrea+/ 0een satis*ie+.
9.&35 E!"e#er( the remar. ma+e 0/ the Aellate 3!+/ in United States 7asoline als! imlies
that the eAressi!n =+isg%ise+ restri)ti!n !n internati!nal tra+e= )!#ers !ther re-%irements. In the
same )ase( the Aellate 3!+/ menti!ns that ='+isg%ise+ restri)ti!n' in)l%+es +isg%ise+
discrimination in internati!nal tra+e=. This aears t! signi*/ that the "!r+ =restri)ti!n= sh!%l+ n!t 0e
gi#en a narr!" meaning. In aragrah 9.&&6 a0!#e( "e *!%n+ that the De)ree +i+ n!t )!nstit%te
+is)riminati!n "ithin the meaning !* the *irst )!n+iti!n !* the intr!+%)t!r/ )la%se !* Arti)le GG. We
)!nsi+er that !%r )!n)l%si!n )an als! 0e %se+ *!r +etermining "hether the De)ree )!nstit%tes a
+isg%ise+ restri)ti!n. In this rese)t( "e n!te that in the a0!#e8menti!ne+ )ase the Aellate 3!+/
)!nsi+ere+ thatB
161
The Re!rt !* the Panel in United States Prohibition of Im,orts of una and una Products from
Canada, a+!te+ !n && @e0r%ar/ 169&( 3ISD &6S/61 :hereina*ter =United States una 21!?'4&4, states( in
ara. 1.9B
=>The Panel? *%rtherm!re *elt that the Unite+ States a)ti!n sh!%l+ n!t 0e )!nsi+ere+ t! 0e a +isg%ise+
restri)ti!n !n internati!nal tra+e( n!ting that the Unite+ States r!hi0iti!n !* im!rts !* t%na an+ t%na
r!+%)ts *r!m Cana+a ha+ 0een ta.en as a tra+e meas%re an+ %0li)l/ ann!%n)e+ as s%)h. The Panel
there*!re )!nsi+ere+ it ar!riate t! eAamine *%rther the Unite+ States im!rt r!hi0iti!n !* t%na an+
t%na r!+%)e *r!m Cana+a in the light !* the list !* se)i*i) t/es !* meas%res )!ntaine+ in Arti)le GG
an+ n!ta0l/ in Arti)le GG:g;.=
165
The Re!rt !* the Panel in United States Automoti9e S,rings, !. )it.( states in ara. 57B
=The Panel then )!nsi+ere+ "hether !r n!t the eA)l%si!n !r+er "as =alie+ in a manner "hi)h "!%l+
)!nstit%te J a +isg%ise+ restri)ti!n !n internati!nal tra+e=. The Panel n!te+ that the ream0le !*
Arti)le GG ma+e it )lear that it "as the ali)ati!n !* the meas%re an+ n!t the meas%re itsel* that
nee+e+ t! 0e eAamine+. N!ti)e !* the eA)l%si!n !r+er "as %0lishe+ in the @e+eral Register an+ the
!r+er "as en*!r)e+ 0/ the Unite+ States )%st!ms at the 0!r+er. The Panel als! n!te+ that the ITC
r!)ee+ings in this arti)%lar )ase "ere +ire)te+ against the im!rtati!n !* a%t!m!ti#e sring
assem0lies r!+%)e+ in #i!lati!n !* a #ali+ Unite+ States atent an+ that( 0e*!re an eA)l%si!n !r+er
)!%l+ 0e iss%e+ %n+er Se)ti!n 337( 0!th the #ali+it/ !* the atent an+ its in*ringement 0/ a *!reign
man%*a)t%rer ha+ t! 0e )learl/ esta0lishe+. @%rtherm!re( the eA)l%si!n !r+er "!%l+ n!t r!hi0it the
im!rtati!n !* a%t!m!ti#e sring assem0lies r!+%)e+ 0/ an/ r!+%)er !%tsi+e the Unite+ States "h!
ha+ a li)en)e *r!m K%hlman C!r!rati!n t! r!+%)e these g!!+s. C!nse-%entl/( the Panel *!%n+ that
the eA)l%si!n !r+er ha+ n!t 0een alie+ in a manner "hi)h )!nstit%te+ a +isg%ise+ restri)ti!n !n
internati!nal tra+e.=
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='+isg%ise+ restri)ti!n'( "hate#er else it )!#ers( ma/ r!erl/ 0e rea+ as em0ra)ing restri)ti!ns
am!%nting t! ar0itrar/ !r %n5%sti*ia0le +is)riminati!n in internati!nal tra+e ta.en %n+er the g%ise !* a
meas%re *!rmall/ "ithin the terms !* an eA)eti!n liste+ in Arti)le GG. P%t in a s!me"hat +i**erent
manner( the .in+s !* )!nsi+erati!ns ertinent in +e)i+ing "hether the ali)ati!n !* a arti)%lar
meas%re am!%nts t! 'ar0itrar/ !r %n5%sti*ia0le +is)riminati!n'( ma/ als! 0e ta.en int! a))!%nt in
+etermining the resen)e !* a '+isg%ise+ restri)ti!n' !n internati!nal tra+e. The *%n+amental theme is t!
0e *!%n+ in the %r!se an+ !05e)t !* a#!i+ing a0%se !r illegitimate %se !* the eA)eti!ns t! s%0stanti#e
r%les a#aila0le in Arti)le GG.=
167
9.&37 Re*erring als! t! the remar. ma+e 0/ the Aellate 3!+/ in the same )ase a))!r+ing t! "hi)h
=the r!#isi!ns !* the )haea% >!* Arti)le GG? )ann!t l!gi)all/ re*er t! the same stan+ar+:s; 0/ "hi)h
a #i!lati!n !* the s%0stanti#e r%le has 0een +etermine+ t! ha#e !))%rre+=( "e )!nsi+er that the .e/ t!
%n+erstan+ing "hat is )!#ere+ 0/ =+isg%ise+ restri)ti!n !n internati!nal tra+e= is n!t s! m%)h the
"!r+ =restri)ti!n=( inasm%)h as( in essen)e( an/ meas%re *alling "ithin Arti)le GG is a restri)ti!n !n
internati!nal tra+e( 0%t the "!r+ =+isg%ise+=. In a))!r+an)e "ith the ar!a)h +e*ine+ in Arti)le 31
!* the Cienna C!n#enti!n( "e n!te that( as !r+inaril/ %n+erst!!+( the #er0 =t! +isg%ise= imlies an
intention. Th%s( =t! +isg%ise= :dEguiser; means( in arti)%lar( =)!n)eal 0eneath +e)eti#e
aearan)es( )!%nter*eit=( =alter s! as t! +e)ei#e=( =misreresent=( =+issim%late=.
167
A))!r+ingl/( a
restri)ti!n "hi)h *!rmall/ meets the re-%irements !* Arti)le GG:0; "ill )!nstit%te an a0%se i* s%)h
)!mlian)e is in *a)t !nl/ a +isg%ise t! )!n)eal the %rs%it !* tra+e8restri)ti#e !05e)ti#es. E!"e#er(
as the Aellate 3!+/ a).n!"le+ge+ in )a,an Alcoholic ;e9erages( the aim !* a meas%re ma/ n!t
0e easil/ as)ertaine+.
169
Ne#ertheless( "e n!te that( in the same )ase( the Aellate 3!+/ s%ggeste+
that the r!te)ti#e ali)ati!n !* a meas%re )an m!st !*ten 0e +is)erne+ *r!m its +esign( ar)hite)t%re
an+ re#ealing str%)t%re.
166
9.&37 It is !n this 0asis that "e shall anal/se Cana+a's arg%ment a))!r+ing t! "hi)h the De)ree
*a#!%rs the @ren)h +!mesti) in+%str/ r!+%)ing s%0stit%tes *!r )hr/s!tile an+ )hr/s!tile8)!ntaining
r!+%)ts.
&''
We ha#e alrea+/ *!%n+ that the De)ree "as ne)essar/ t! a)hie#e a %0li) health !05e)ti#e
an+ +i+ n!t( in its ali)ati!n( )!nstit%te ar0itrar/ !r %n5%sti*ia0le +is)riminati!n. We re)all that in
United States 7asoline( the Aellate 3!+/ )!nsi+ere+ that the .in+s !* )!nsi+erati!ns ertinent in
+e)i+ing "hether the ali)ati!n !* a arti)%lar meas%re am!%nts t! =ar0itrar/ !r %n5%sti*ia0le
+is)riminati!n= ma/ als! 0e ta.en int! a))!%nt in +etermining the resen)e !* a =+isg%ise+
restri)ti!n= !n internati!nal tra+e. Sin)e "e ha#e n!t i+enti*ie+ +is)riminati!n( "e )!nsi+er it is
%nne)essar/ t! +etermine "hether "e are *a)e+ "ith +is)riminati!n that might )!nstit%te a +isg%ise+
restri)ti!n !n internati!nal tra+e.
9.&39 As *ar as the +esign( ar)hite)t%re an+ re#ealing str%)t%re !* the De)ree are )!n)erne+( "e *in+
n!thing that might lea+ %s t! )!n)l%+e that the De)ree has r!te)ti!nist !05e)ti#es. Cana+a imli)itl/
a+mits as m%)h "hen it asserts that the De)ree is a res!nse !* the @ren)h a%th!rities t! ani).e+
%0li) !ini!n an+ !ther health s)ares imli)ating !**i)ials an+ mem0ers !* the g!#ernment.
&'1
I* this
"as the )ase( it seems +i**i)%lt t! re)!n)ile the De)ree 0eing a+!te+ in great haste "ith the i+ea that
it "as the res%lt !* a reme+itate+ intenti!n t! r!te)t @ren)h in+%str/.
167
United States 7asoline, !. )it.( . &5.
167
Petit Dar!%sse Ill%strM :1697;( . &6&H De N!%#ea% Petit R!0ert :1661;( . 57&.
169
O. )it%, . 31.
166
I0i+% Alth!%gh this ar!a)h "as +e#el!e+ in relati!n t! Arti)le IIIB1 !* the <ATT 1661( "e see n!
reas!n "h/ it sh!%l+ n!t 0e ali)a0le in !ther )ir)%mstan)es "here it is ne)essar/ t! +etermine "hether a
meas%re is 0eing alie+ *!r r!te)ti#e %r!ses.
&''
In this rese)t( "e )!nsi+er the ,C t! ha#e satis*ie+ the 0%r+en !* r!!* as regar+s the intr!+%)t!r/
)la%se !* Arti)le GG. We shall there*!re treat Cana+a's arg%ment as an attemt t! re0%t the res%mti!n
esta0lishe+ in *a#!%r !* the ,C.
&'1
See Cana+a's arg%ments( ara. 3.&7. Cana+a re*ers t! a st%+/ entitle+ :Famiante dans
lFen9ironnement, ses consE$uences et son a9enir( O**i)e arlementaire +'M#al%ati!n +es )h!iA s)ienti*i-%es et
te)hn!l!gi-%es( Nati!nal Assem0l/ N!. 3&6/Senate N!. 11( . 57.
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9.&36 A+mitte+l/( there is al"a/s the !ssi0ilit/ that meas%res s%)h as th!se )!ntaine+ in the
De)ree might ha#e the e**e)t !* *a#!%ring the +!mesti) s%0stit%te r!+%)t man%*a)t%rers. This is a
nat%ral )!nse-%en)e !* r!hi0iting a gi#en r!+%)t an+ in itsel* )ann!t 5%sti*/ the )!n)l%si!n that the
meas%re has a r!te)ti!nist aim( as l!ng as it remains "ithin )ertain limits. In *a)t( the in*!rmati!n
ma+e a#aila0le t! the Panel +!es n!t s%ggest that the im!rt 0an has 0ene*ite+ the @ren)h s%0stit%te
*i0re in+%str/( t! the +etriment !* thir+ )!%ntr/ r!+%)ers( t! s%)h an eAtent as t! lea+ t! the
)!n)l%si!n that the De)ree has 0een s! alie+ as t! )!nstit%te a +isg%ise+ restri)ti!n !n internati!nal
tra+e.
&'&
9.&1' C!nse-%entl/( "e )!n)l%+e that the De)ree satis*ies the )!n+iti!ns !* the intr!+%)t!r/ )la%se
!* Arti)le GG.
$. %oncusion
9.&11 In the light !* the a0!#e( the Panel )!n)l%+es that the r!#isi!ns !* the De)ree "hi)h #i!late
Arti)le IIIB1 !* the <ATT 1661 are 5%sti*ie+ %n+er Arti)le GG:0;.
<. ADD,<ATION O@ NUDDI@ICATION OR I2PAIR2,NT O@ A 3,N,@IT UND,R ARTICD, GGIIIB1:0; O@ TE,
<ATT 1661
1. (rgu!ents of the parties
*4.
9.&1& Ea#ing +etermine+ that the De)ree "as 5%sti*ie+ in the light !* Arti)le GG:0; !* the <ATT
1661 an+ )!nsistent in its ali)ati!n "ith the intr!+%)t!r/ r!#isi!ns !* that Arti)le( "e m%st n!"
eAamine Cana+a's allegati!ns an+ arg%ments 0ase+ !n Arti)le GGIIIB:0; !* the <ATT 1661.
9.&13 The main arg%ments !* the arties "ith regar+ t! the eAisten)e !* n!n8#i!lati!n n%lli*i)ati!n
!r imairment !* a 0ene*it :hereina*ter =n!n8#i!lati!n n%lli*i)ati!n=; )an 0e s%mmariFe+ as *!ll!"s.
9.&11 Cana+a )!nsi+ers that( in a))!r+an)e "ith anel ra)ti)e %n+er the <ATT 1617( as )!n*irme+
in )a,an 1easures Affecting Consumer Photogra,hic *ilm and Pa,er
&'1
( three )!n+iti!ns m%st 0e
met *!r a )ase !* n!n8#i!lati!n n%lli*i)ati!nB :i; the neg!tiati!n !* a tari** )!n)essi!nH :ii; the
s%0se-%ent a+!ti!n !* a g!#ernmental meas%re that %n*a#!%ra0l/ +isr%ts )!n+iti!ns !* )!metiti!n
0et"een the im!rte+ r!+%)t *!r "hi)h the )!n)essi!ns "ere grante+ an+ the li.e !r +ire)tl/
)!metiti#e +!mesti) r!+%)tsH an+ :iii; the *a)t that the a+!ti!n !* the meas%re in -%esti!n )!%l+
n!t reas!na0l/ ha#e 0een *!reseen at the time !* the tari** )!n)essi!n neg!tiati!ns.
9.&15 Cana+a )!nsi+ers that these three )!n+iti!ns are resent in this )ase. As0est!s an+ man/
as0est!s8)!ntaining r!+%)ts are s%05e)t t! tari** )!n)essi!ns 0/ @ran)e an+ the ,%r!ean
C!mm%nities starting in 1617 an+ 167'81671( rese)ti#el/( as "ell as +%ring the Ur%g%a/ R!%n+
neg!tiati!ns. 3/ esta0lishing a t!tal 0an( the De)ree +isr%te+ the )!metiti#e relati!nshi in the
@ren)h mar.et 0et"een( !n the !ne han+( )hr/s!tile as0est!s *i0re an+ r!+%)ts )!ntaining it an+( !n
the !ther( li.e an+ )!metiti#e @ren)h r!+%)ts( th%s )reating a m!n!!l/ *!r s%0stit%te *i0res.
@inall/( at the time the tari** )!n)essi!ns )!n)erning as0est!s "ere neg!tiate+( Cana+a )!%l+ n!t
reas!na0l/ ha#e *!reseen that @ran)e "as g!ing t! a0an+!n its !li)/ !* )!ntr!lle+ %se an+
)!mr!mise the #al%e !* its )!mmitments 0/ imlementing a t!tal 0an !n )hr/s!tile an+ an/ !ssi0le
%se there!* 0/ means !* a meas%re as eA)essi#e as the De)ree. @%rtherm!re( this meas%re "as
in)!nsistent "ith the t/e !* reg%lat!r/ inter#enti!n then in la)e an+ still in e**e)t t!+a/ )!n)erning
r!+%)ts e-%all/ harm*%l( i* n!t m!re harm*%l( than )hr/s!tile. Cana+a's eAe)tati!ns "ere that this
t/e !* meas%re "!%l+ n!t 0e a+!te+ %nless there "ere eA)eti!nal )ir)%mstan)es( 0%t there ha+
0een n! ne" s)ienti*i) +e#el!ments that ha+ )hange+ an/thing in terms !* managing the ris.s !r the
&'&
See( in arti)%lar( the rel/ !* the ,%r!ean C!mm%nities t! the Panel's -%esti!n N!. 3'( aras. 1138
115( AnneA II.
&'3
The arg%ments !* the arties are set !%t in +etail in Se)ti!n III a0!#e.
&'1
A+!te+ !n && Aril 1669( WT/SD11/R( hereina*ter =)a,an *ilm&%
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e**e)ts ass!)iate+ "ith )hr/s!tile. @inall/( Cana+a arg%es that it )!%l+ n!t reas!na0l/ ha#e eAe)te+
that )hr/s!tile "!%l+ 0e 0anne+ in *a#!%r !* s%0stit%te r!+%)ts "ith!%t th!se r!+%)ts ha#ing 0een
s%05e)te+ t! a rig!r!%s r!)ess !* eAaminati!n t! r!#e that their %se satis*ie+ the %0li) health
!05e)ti#es in#!.e+ 0/ @ran)e.
9.&17 3/ "a/ !* a reliminar/ remar.( the ,%r!ean C!mm%nities !int !%t that in the )!nteAt !* a
n!n8#i!lati!n allegati!n the 0%r+en !* r!!* is ese)iall/ !ner!%s as a res%lt !*( in arti)%lar(
Arti)le GGCIB1:a; !* the Un+erstan+ing. The/ als! n!te that in )a,an *ilm( the Panel state+ that
Arti)le GGIIIB1:0; !* the <ATT 1661 sh!%l+ 0e ar!a)he+ "ith )a%ti!n an+ that n!n8#i!lati!n
n%lli*i)ati!n !r imairment !* 0ene*its sh!%l+ 0e treate+ as an eA)eti!nal )!n)et.
&'5
The ,%r!ean
C!mm%nities als! )laim that the r%les !n n!n8#i!lati!n n%lli*i)ati!n !r imairment al/ !nl/ i* the
meas%re in -%esti!n +!es n!t *all %n+er !ther r!#isi!ns !* the <ATT an+ that( "hile there ma/ 0e
=legitimate eAe)tati!ns= in )!nne)ti!n "ith a %rel/ )!mmer)ial meas%re( there )an 0e n! s%)h
eAe)tati!ns "ith rese)t t! a meas%re ta.en t! r!te)t h%man health an+ "hi)h )an there*!re 0e
5%sti*ie+ "ith regar+ t! Arti)le GGB:0; !* the <ATT 1661.
9.&17 The ,%r!ean C!mm%nities maintain that Cana+a *ails t! +em!nstrate h!" the @ren)h
meas%re )!%l+ n!t reas!na0l/ ha#e 0een anti)iate+. In s%0stan)e( a))!r+ing t! the ,%r!ean
C!mm%nities( sin)e 1677( )hr/s!tile has 0een )lassi*ie+ as a )ateg!r/ I )ar)in!geni) r!+%)t 0/ the
WEO. Th%s( "hen the tari** neg!tiati!ns t!!. la)e( Cana+a .ne" that there "as a +anger that the
r!+%)t %n+er neg!tiati!n )!%l+ at an/ time 0e r!hi0ite+ 0/ 2em0ers !* the WTO( arti)%larl/ i*
n!n8haFar+!%s !r less haFar+!%s s%0stit%tes )!%l+ 0e %se+. In 1697( IDO C!n#enti!n 17& !n as0est!s
state+ that nati!nal legislati!n sh!%l+ r!#i+e "here#er !ssi0le *!r the rela)ement !* as0est!s !r !*
)ertain t/es !* as0est!s !r r!+%)ts )!ntaining as0est!s 0/ !ther materials !r r!+%)ts !r the %se !*
alternati#e te)hn!l!g/( s)ienti*i)all/ e#al%ate+ 0/ the )!metent a%th!rit/ as harmless !r less harm*%l.
Sin)e 166'( the ,%r!ean C!mm%nities( %n+er Dire)ti#e 6'/361/,,C( has r!#i+e+ *!r the
rela)ement !* as0est!s. This Dire)ti#e re)!mmen+s the rin)ile !* rela)ing a +anger!%s s%0stan)e
!r r!)ess "ith a n!n8+anger!%s !r less +anger!%s s%0stan)e !r r!)ess( "here !ne eAists. In 1693(
WTO 2em0ers 0egan t! 0an the %se !* as0est!s( in)l%+ing )hr/s!tile. Am!ng ,C 2em0ers( A%stria
0anne+ )hr/s!tile in 166'( *!ll!"e+ 0/ @inlan+ an+ Ital/ in 166&( an+ <erman/ in 1663. Cana+a
might ha#e eAe)te+ @ran)e t! *!ll!" s%it.
9.&19 @%rtherm!re( the ,%r!ean C!mm%nities assert that there are n! r!#isi!ns in the <ATT !r
the T3T Agreement re-%iring )!nsisten)/ in the ali)ati!n !* health meas%res against s%0stan)es
that !se a )ar)in!geni) ris. *!r h%man health. A))eting Cana+a's arg%ment that it )!%l+ n!t
legitimatel/ ha#e anti)iate+ the 0an im!se+ 0/ the De)ree 0e)a%se @ran)e +i+ n!t sim%ltane!%sl/
0an !ther !tentiall/ +anger!%s s%0stan)es :s%)h as lea+ an+ )!er; "!%l+ 0e e-%i#alent t!
re#enting 2em0ers entirel/ *r!m ta.ing meas%res t! r!te)t h%man health !n their territ!r/.
9.&16 2!re!#er( a))!r+ing t! the ,%r!ean C!mm%nities( Cana+a )ann!t )laim a legitimate
eAe)tati!n !* =imr!#e+= mar.et a))ess "ith rese)t t! a r!+%)t "hi)h entails ris.s *!r h%man
health "hen( as the *a)ts sh!"( the ten+en)/ is *!r eA!rts t! the in+%strialiFe+ )!%ntries t! *all.
Cana+a m%st gi#e +etaile+ reas!ns as t! "h/ it )!%l+ legitimatel/ ha#e eAe)te+ that @ran)e "!%l+
n!t a+!t meas%res restri)ting !r eliminating the %se !* an/ as0est!s r!+%)t a*ter the Ur%g%a/ R!%n+
neg!tiati!ns( gi#en the gr!"ing s)ienti*i) e#i+en)e that all t/es !* as0est!s an+ as0est!s8)!ntaining
r!+%)ts are )ar)in!geni) t! h%mans.
9.&5' The ,%r!ean C!mm%nities then arg%e that Cana+a *ails t! +em!nstrate h!" the De)ree
%sets the )!metiti#e relati!nshi 0et"een as0est!s an+ *i0r!%s !r n!n8*i0r!%s s%0stit%te r!+%)ts. It
has n!t esta0lishe+ a =)lear )!rrelati!n= 0et"een the t"!. The iss%e is n!t "hether e-%alit/ !*
)!metiti#e )!n+iti!ns eAists 0%t "hether the relati#e )!n+iti!ns !* )!metiti!n "hi)h eAiste+
0et"een +!mesti) an+ *!reign r!+%)ts as a )!nse-%en)e !* the rele#ant tari** )!n)essi!ns ha#e 0een
%set. The ,C )!nsi+er that the r!+%)ts *!r "hi)h the )!metiti#e )!n+iti!ns m%st 0e eAamine+ are
&'5
I0i+.( ara. 1'.37.
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th!se )!#ere+ 0/ the tari** )!n)essi!n. I* a tari** )!n)essi!n is grante+ *!r as0est!s( the )!metiti#e
)!n+iti!ns t! 0e eAamine+ are th!se )!n)erning Cana+ian as0est!s an+ @ren)h as0est!s. It is
irrele#ant t! )!mare )hr/s!tile "ith @ren)h s%0stit%te r!+%)ts 0e)a%se s%)h r!+%)ts )ann!t 0e
)!nsi+ere+ in terms !* the same rele#ant tari** )!n)essi!n.
9.&51 Cana+a re5e)ts the ,C's )laim that an eAaminati!n !* the ima)t !* the De)ree's e**e)t !n
)!metiti#e )!n+iti!ns m%st 0e limite+ t! Cana+ian as0est!s an+ @ren)h as0est!s. This ar!a)h is
)!ntra+i)te+ 0/ t"! anel re!rts "hi)h ha#e )learl/ esta0lishe+ that Arti)le GGIIIB1:0; )an 0e
in#!.e+ in the )ase !* a meas%re "hi)h %sets the )!metiti#e relati!nshi 0et"een t"! n!n8i+enti)al
r!+%)ts.
&'7
4. (na#sis "# the )ane
:a; Preliminar/ iss%es
2i4 Duestions before the Panel
9.&5& Arti)le GGIIIB1:0; !* the <ATT 1661 :N%lli*i)ati!n !r imairment; rea+s as *!ll!"sB
=1. I* an/ )!ntra)ting art/ sh!%l+ )!nsi+er that an/ 0ene*it a))r%ing t! it +ire)tl/ !r in+ire)tl/
%n+er this Agreement is 0eing n%lli*ie+ !r imaire+ !r that the attainment !* an/ !05e)ti#e !* the
Agreement is 0eing ime+e+ as the res%lt !*
>J?
:0; the ali)ati!n 0/ an!ther )!ntra)ting art/ !* an/ meas%re( "hether !r n!t it )!n*li)ts "ith
the r!#isi!ns !* this Agreement(
>J?
the )!ntra)ting art/ ma/( "ith a #ie" t! the satis*a)t!r/ a+5%stment !* the matter( ma.e "ritten
reresentati!ns !r r!!sals t! the !ther )!ntra)ting art/ !r arties "hi)h it )!nsi+ers t! 0e )!n)erne+.
An/ )!ntra)ting art/ th%s ar!a)he+ shall gi#e s/matheti) )!nsi+erati!n t! the reresentati!ns !r
r!!sals ma+e t! it.=
9.&53 The Panel n!tes( *irst !* all( that the ,C ha#e %t *!r"ar+ t"! arg%ments "hi)h( i* "ell8
*!%n+e+( sh!%l+ lea+ %s t! )!n)l%+e that Arti)le GGIIIB1:0; +!es n!t al/ t! the *a)ts in this )ase. I*
"e *in+ that these arg%ments are n!t ertinent( "e shall eAamine the s%0stan)e !* the Cana+ian
)!mlaint.
9.&51 The ,C's t"! arg%ments "hi)h )!%l+ +etermine the ali)a0ilit/ !* Arti)le GGIIIB1:0; are as
*!ll!"sB
9.&55 @irstl/( the ,C )laim that the r%les !n n!n8#i!lati!n n%lli*i)ati!n al/ !nl/ i* the meas%re in
-%esti!n +!es n!t *all %n+er !ther r!#isi!ns !* the <ATT 1661. Arti)le GGIIIB1:0; is ali)a0le !nl/
i* the Panel rea)hes the )!n)l%si!n that the De)ree is )!nsistent "ith Arti)le III !* the <ATT 1661.
Other"ise there )ann!t 0e =n!n8#i!lati!n=. In the light !* the intr!+%)t!r/ )la%se !* Arti)le GG !* the
<ATT 1661( the ,%r!ean C!mm%nities )!n)l%+e that i* the @ren)h meas%re is )!nsi+ere+
=ne)essar/= *!r the r!te)ti!n !* h%man health 0/ the Panel an+ hen)e i* se)i*i) r%les ha#e 0een
alie+ in this rese)t( the r!#isi!ns !* Arti)le GGIIIB1:0; !* the <ATT are inali)a0le.
&'7
Cana+a re*ers t! the Re!rt !* the W!r.ing Part/ !n Australian Subsid/ on Ammonium Sul,hate(
a+!te+ !n 3 Aril 165'( II/199 an+ t! the Re!rt !* the Panel !n C!mlaints in reatment b/ 7erman/ of
Im,orts of Sardines( :hereina*ter =7erman/ Sardines=;( a+!te+ !n 31 O)t!0er 165&( 3ISD 1S/53.
WT/DS135/R
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9.&57 Cana+a relies that the )ases Urugua/ +ecourse to Article KKIII
'0"
an+ United States
rade 1easures Affecting <icaragua
'0?
+! n!t s%!rt the ,C's interretati!n. 2!re!#er( inasm%)h as
Arti)le &7B1:0; !* the Un+erstan+ing r!#i+es *!r the granting !* )!mensati!n rather than the
"ith+ra"al !* a meas%re( re)!%rse in n!n8#i!lati!n a**e)ts neither the a+!ti!n n!r the ali)ati!n !*
the )!nteste+ meas%re.
9.&57 The ,C's se)!n+ arg%ment is that "hile it is !ssi0le t! ha#e legitimate eAe)tati!ns in
)!nne)ti!n "ith a %rel/ )!mmer)ial meas%re( it is n!t !ssi0le t! )laim legitimate eAe)tati!ns "ith
rese)t t! a meas%re that is ta.en t! r!te)t h%man health an+ )an there*!re 0e 5%sti*ie+( arti)%larl/ in
the light !* Arti)le GG:0; !* the <ATT 1661. The r!te)ti!n !* h%man health is a *%n+amental +%t/
an+ )ann!t 0e )!mr!mise+ !r restri)te+ 0/ the )!n)et !* n!n8#i!lati!n.
9.&59 @!r Cana+a( the +istin)ti!n ma+e 0/ the ,C 0et"een meas%res !* a %rel/ )!mmer)ial nat%re
an+ meas%res "hi)h ha#e health8r!te)ti!n relate+ ase)ts has n! 0asis either in the teAts !* the WTO
Agreement !r in )ase8la". A legitimate eAe)tati!n +!es n!t in an/ "a/ )!n)ern a arti)%lar meas%re
a+!te+ 0/ a 2em0er( 0%t rather the !!rt%nities *!r )!metiti!n agree+ +%ring m%ltilateral tra+e
neg!tiati!ns !n a gi#en r!+%)t. The C!mm%nit/ reas!ning is als! "r!ng 0e)a%se it +!es n!t )!n)%r
"ith the rearat!r/ "!r. !n the <ATT 1617( "hi)h sh!"s that the !05e)ti#e !* Arti)le GGIIIB1:0; is
t! re#ent a0%se !* the r!#isi!ns !* the <eneral Agreement.
9.&56 The ,C )!nsi+er that Cana+a has ta.en a sele)ti#e l!!. at the rearat!r/ +!)%ments. As the
Aellate 3!+/ !inte+ !%t in the United States Shrim, )ase( the )!n+iti!ns lai+ +!"n in the
)haea% !* Arti)le GG:0; are meant re)isel/ t! a++ress sit%ati!ns in "hi)h a 2em0er alies in 0a+
*aith an+ in an a0%si#e manner the eA)eti!ns lai+ +!"n in Arti)le GG. There )ann!t 0e t"! sets !*
r!#isi!ns "hi)h a++ress the same r!0lem t"i)e.
2ii4 he 0CFs argument according to 5hich the rules on non-9iolation nullification a,,l/ onl/ if
the measure in $uestion does not fall under other ,ro9isions of the 7A%
9.&7' The ,C seem t! 0elie#e that the *a)t that a meas%re is =5%sti*ie+= !n the 0asis !* Arti)le GG
)reates a legal sit%ati!n +i**erent( !n the !ne han+( *r!m the sit%ati!n in "hi)h the meas%re #i!lates a
r!#isi!n !* the <ATT 1661 an+( !n the !ther( *r!m the sit%ati!n in "hi)h the meas%re +!es n!t *all
%n+er the r!#isi!ns !* the <ATT 1661. In s%!rt !* their !siti!n( the ,C )ite a assage *r!m the
Panel Re!rt in )a,an *ilm "hi)h menti!ns that Arti)le GGIIIB1:0; r!#i+es =the means t! re+ress
g!#ernment a)ti!ns n!t !ther"ise reg%late+ 0/ <ATT r%les J =. The C!mm%nities als! re*er t! the
intr!+%)t!r/ )la%se !* Arti)le GG "hi)h states that =n!thing in this Agreement shall 0e )!nstr%e+ t!
re#ent the a+!ti!n !r en*!r)ement 0/ an/ )!ntra)ting art/ !* meas%res= ne)essar/ t! r!te)t
h%man li*e !r health.
9.&71 The Panel re)alls( *irst !* all( that 0!th the ream0le t! Arti)le &7.1 !* the Un+erstan+ing an+
Arti)le GGIIIB1:0; %se the "!r+s =meas%re( 5hether or not it conflicts 5ith the ,ro9isions >!* the
arti)%lar agreement?= :emhasis a++e+;. T! 0egin "ith( it sh!%l+ 0e n!te+ that the "!r+ing !*
Arti)le GGIIIB1:0; sh!"s %ne-%i#!)all/ that this r!#isi!n alies 0!th in sit%ati!ns in "hi)h a
meas%re )!n*li)ts an+ in sit%ati!ns in "hi)h it +!es n!t )!n*li)t "ith the r!#isi!ns !* the <ATT
1661. A0!#e( "e *!%n+ that the treatment a))!r+e+ 0/ the De)ree t! )hr/s!tile as0est!s *i0res
#i!late+ Arti)le IIIB1 !* the <ATT 1661 as s%)h( in as m%)h as these r!+%)ts "ere li.e the s%0stit%te
*i0res menti!ne+ 0/ the arties an+ the treatment !* r!+%)ts )!ntaining )hr/s!tile as0est!s an+
r!+%)ts )!ntaining the s%0stit%te *i0res menti!ne+ 0/ the arties "as +is)riminat!r/. A))!r+ingl/(
the De)ree conflicts "ith the r!#isi!ns !* Arti)le IIIB1( in the sense in "hi)h that "!r+ is %se+ in
Arti)le GGIIIB1:0;.
&'6
E!"e#er( "e n!te that the intr!+%)t!r/ )la%se !* Arti)le GG states that
&'7
A+!te+ !n 17 N!#em0er 167&( 3ISD 11S/65.
&'9
D/7'53 :1697;( %na+!te+.
&'6
This remar. is ma+e "ith!%t re5%+i)e t! Cana+a's allegati!ns 0ase+ !n Arti)le GGIIIB1:a; :see
Se)ti!n CIII.A.&:a; a0!#e;.
WT/DS135/R
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=n!thing in this Agreement shall 0e )!nstr%e+ t! re#ent the a+!ti!n !r en*!r)ement 0/ an/
)!ntra)ting art/ !* meas%res= ne)essar/ t! r!te)t h%man li*e !r health( "hi)h might s%ggest that a
r!#isi!n )!nsistent "ith the re-%irements !* Arti)le GG n! l!nger )!n*li)ts "ith Arti)le IIIB1(
0e)a%se Arti)le IIIB1 )ann!t 0e )!nstr%e+ as re#enting this .in+ !* meas%re. E!"e#er( "hether a
meas%re Austified !n the 0asis !* Arti)le GG !* the <ATT 1661 is )!nsi+ere+ still t! 0e in )!n*li)t "ith
Arti)le IIIB1 !r is )!nsi+ere+ n! l!nger t! )!n*li)t "ith Arti)le IIIB1 0e)a%se 5%sti*ie+ %n+er
Arti)le GG( %n+er the terms !* Arti)le GGIIIB1:0; the latter )!ntin%es t! 0e ali)a0le t! it.
9.&7& We als! n!te( *irstl/( that the intr!+%)t!r/ )la%se t! Arti)le GG( t! "hi)h the ,C re*er(
)!n)erns the ado,tion or enforcement !* meas%res ne)essar/ t! r!te)t health. The ali)ati!n !*
Arti)le GGIIIB1:0; +!es n!t re#ent either the a+!ti!n !r the en*!r)ement !* the De)ree )!n)erne+.
Arti)le &7B1:0; sti%lates that e#en "here a meas%re has 0een *!%n+ t! n%lli*/ !r imair 0ene*its
%n+er( !r ime+e the attainment !* !05e)ti#es( !* the <ATT 1661 "ith!%t #i!lati!n there!*( there is n!
!0ligati!n t! "ith+ra" the meas%re. A))!r+ingl/( there is n! )!ntra+i)ti!n 0et"een the in#!)ati!n !*
Arti)le GG an+ the ali)ati!n !* Arti)le GGIIIB1:0;. E!"e#er( that Arti)le m%st 0e alie+ in s%)h a
"a/ as t! r!te)t the 0alan)e !* rights an+ +%ties neg!tiate+.
&1'
A))!r+ingl/( "e +! n!t )!nsi+er that
the teAt !* Arti)le GGIIIB1:0; !r that !* Arti)le GG !r( *inall/( that !* Arti)le &7.1 !* the
Un+erstan+ing s%!rts the ,C's interretati!n.
9.&73 Se)!n+l/( "e +! n!t )!nsi+er that the assage *r!m the )a,an *ilm re!rt )ite+ 0/ the ,C
s%!rts its interretati!n either. A+mitte+l/( the "!r+s %se+ 0/ the anel( ta.en in is!lati!n( might at
*irst glan)e aear t! )!n*irm the ,C's !siti!n( ins!*ar as it re*ers t! =g!#ernment a)ti!ns n!t
!ther"ise regulated 0/ <ATT r%les= :emhasis a++e+;. The %se !* the "!r+ =reg%late+= )!%l+ signi*/
that the *iel+ !* ali)ati!n !* Arti)le GGIIIB1:0; )!#ere+ !nl/ sit%ati!ns in "hi)h n! r!#isi!n !* the
<ATT "as a,,licable. @irst !* all( it is !%r !ini!n that the *a)t that a meas%re +!es n!t #i!late
Arti)le IIIB1 +!es n!t ne)essaril/ mean that the latter is n!t ali)a0le t! it. Arti)le IIIB1 alies t! an/
la"( reg%lati!n !r re-%irement a**e)ting the internal sale( !**ering *!r sale( %r)hase( trans!rtati!n(
+istri0%ti!n !r %se !* im!rte+ r!+%)ts an+ li.e r!+%)ts !* nati!nal !rigin. C!nse-%entl/( e#en i*
the ,C's interretati!n "ere )!rre)t( it "!%l+ n!t al/ in the resent )ase ins!*ar as Arti)le IIIB1
)!ntin%es t! 0e ali)a0le t! the De)ree. NeAt( it sh!%l+ 0e n!te+ that the anel in )a,an *ilm
re*ers( in the *!!tn!te at the en+ !* the senten)e )ite+ 0/ the ,,C
&11
( t! the 00C (ilseeds re!rt
"hi)h states( in arti)%lar( thatB
=the Panel n!te+ that these r!#isi!ns( as )!n)ei#e+ 0/ the +ra*ters an+ alie+ 0/ the
CONTRACTIN< PARTI,S( ser#e mainl/ t! r!te)t the 0alan)e !* tari** )!n)essi!ns. >*!!tn!te
!mitte+? The i+ea %n+erl/ing them is that the imr!#e+ )!metiti#e !!rt%nities that )an legitimatel/
0e eAe)te+ *r!m a tari** )!n)essi!n )an 0e *r%strate+ n!t !nl/ 0/ meas%res r!s)ri0e+ 0/ the <eneral
Agreement 0%t als! 0/ meas%res )!nsistent "ith that Agreement=.
&1&
9.&71 We )!nsi+er that a =meas%re "hi)h is n!t !ther"ise reg%late+ 0/ <ATT r%les=( that is t! sa/
t! "hi)h the <ATT +!es n!t al/( is( a fortiori( =n!t in )!n*li)t= "ith the <ATT "ithin the meaning
!* Arti)le GGIIIB1:0; !r =)!nsistent= "ithin the meaning !* the 00C (ilseeds re!rt.
C!nse-%entl/( "e *in+ that the assage in the )a,an *ilm re!rt )ite+ 0/ the ,C( *ar *r!m
&1'
See the Re!rt !* the Panel in 00C Pa/ments and Subsidies Paid to Processors and Producers of
(ilseeds and +elated Animal-feed Proteins( a+!te+ !n &5 $an%ar/ 166'( 3ISD 37S/97 :hereina*ter =00C
(ilseeds=( ara.119( "here the Panel )!nsi+ere+ thatB
=J the re)!gniti!n !* the legitima)/ !* an eAe)tati!n relating t! the %se !* r!+%)ti!n s%0si+ies
there*!re in n! "a/ re#ents a )!ntra)ting art/ *r!m %sing r!+%)ti!n s%0si+ies )!nsistentl/ "ith the
<eneral Agreement( it merel/ +elineates the s)!e !* the r!te)ti!n !* a neg!tiate+ 0alan)e !*
)!n)essi!ns.=
We als! n!te that the Aellate 3!+/ in United States 7asoline, !. )it.( . &5( state+( "ith regar+ t!
the ali)ati!n !* Arti)le GG( that =the meas%res *alling "ithin the arti)%lar eA)eti!ns m%st 0e alie+
reas!na0l/( "ith +%e regar+ 0!th t! the legal +%ties !* the Part/ )laiming the eA)eti!n an+ the legal rights !* the
!ther Parties )!n)erne+=.
&11
See )a,an *ilm( ara. 1'.5'( *!!tn!te 1&11.
&1&
00C (ilseeds, !. )it.( ara. 111.
WT/DS135/R
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s%!rting their !siti!n( )!n*irms the !ini!n a))!r+ing t! "hi)h Arti)le GGIIIB1:0; alies t! a
meas%re "hether it is )!nsistent "ith the <ATT 0e)a%se the <ATT +!es n!t al/ t! it !r is 5%sti*ie+
0/ Arti)le GG.
&13
9.&75 @!r these reas!ns( "e +! n!t all!" the ,C's *irst arg%ment.
2iii4 he 0CFs argument according to 5hich there cannot be a &legitimate e6,ectation& in the case
of a measure that concerns the ,rotection of human health%
9.&77 With regar+ t! the ,C's se)!n+ arg%ment( "e n!te( *irst !* all( that neither the teAt !*
Arti)le GGIIIB1:0; !* the <ATT 1661 n!r that !* Arti)le &7B1 !* the Un+erstan+ing eAressl/
in)!r!rates the searati!n s%ggeste+ 0/ the ,C 0et"een meas%res !* a %rel/ )!mmer)ial nat%re an+
meas%res +esigne+ t! r!te)t h%man health. Alth!%gh these arti)les re-%ire the eAisten)e !* a
measure L "hi)h neither !* the Parties +is%tes 8 the/ +! n!t +isting%ish 0et"een +i**erent t/,es !*
meas%res. We ha#e als! *!%n+( !n the 0asis !* Arti)le GG( that the ali)ati!n !* the latter +!es n!t
a ,riori eA)l%+e the ali)ati!n !* Arti)le GGIIIB1:0;.
&11
We there*!re *in+ that the terms an+ the
)!nteAt !* Arti)le GGIIIB1:0; +! n!t s%!rt the interretati!n r!!se+ 0/ the ,C.
9.&77 Cana+a )ites the rearat!r/ "!r. !n the <ATT 1617. On the 0asis !* Arti)le 3& !* the
Cienna C!n#enti!n( "e )!nsi+er that it is n!t ne)essar/ t! ha#e re)!%rse t! the rearat!r/ "!r.
%nless( in arti)%lar( the interretati!n 0ase+ !n the )riteria !* Arti)le 31 lea#es the meaning !* the
terms am0ig%!%s !r !0s)%re !r lea+s t! a mani*estl/ a0s%r+ !r %nreas!na0le res%lt. S%)h is n!t the
)ase. E!"e#er( re)!%rse t! the rearat!r/ "!r. als! ma.es it !ssi0le t! )!n*irm the meaning
res%lting *r!m the ali)ati!n !* Arti)le 31.
9.&79 In this rese)t( "e n!te that the ,C )!nsi+er that Cana+a's rea+ing !* the rearat!r/ "!r. is
sele)ti#e. A))!r+ing t! them( the !tential r!0lems !* a0%se an+ 0a+ *aith t! "hi)h Cana+a all%+es
are a+e-%atel/ )!#ere+ 0/ the )haea% !* Arti)le GG. @!r the ,C( there )ann!t 0e t"! sets !*
r!#isi!ns "hi)h a++ress the same r!0lem t"i)e.
9.&76 Alth!%gh it is n!t ne)essar/ t! ta.e a !siti!n !n the )!ntent !* the rearat!r/ "!r.( "e
)!nsi+er that the ,C's arg%ment ten+s t! )!n*%se t"! ase)tsB the *irst is a0%se res%lting *r!m the
ali)ati!n !* a meas%re *alling "ithin !ne !* the aragrahs !* Arti)le GG. I* a meas%re ne)essar/ t!
r!te)t h%man health is alie+ in a manner that )!n*li)ts "ith the r!#isi!ns !* the intr!+%)t!r/
)la%se !* Arti)le GG( the meas%re "ill still 0e in )!n*li)t "ith the r!#isi!ns !* the <ATT "h!se
#i!lati!n Arti)le GG is s%!se+ t! 5%sti*/. This ase)t is #er/ +i**erent *r!m the sit%ati!n in "hi)h a
meas%re is er*e)tl/ 5%sti*ie+ in itsel* in relati!n t! the <ATT :as in the )ase !* a meas%re "hi)h
satis*ies all the )!n+iti!ns !* Arti)le GG;( 0%t "hi)h( #ie"e+ in a gi#en )!nteAt( )!%l+ gi#e rise t! a
sit%ati!n !* n%lli*i)ati!n !r imairment !* a 0ene*it %n+er a tari** )!n)essi!n.
&13
In this )!nne)ti!n( "e n!te that in the )!nteAt !* the eAaminati!n !* a Unite+ States meas%re grante+
a "ai#er %n+er Arti)le GGC !* the <ATT 1617( the Panel in United States +estrictions on the Im,ortation of
Sugar and Sugar-containing Products a,,lied under the 1!-- Bai9er and under the 3eadnote to the Schedule
of ariff Concessions( a+!te+ !n 7 N!#em0er 166'( 3ISD 37S/&&9( n!te+( in ara.5.&1( thatB
=J Arti)le GGIIIB1:0; alies "hether !r n!t the meas%re at iss%e )!n*li)ts "ith the <eneral
Agreement an+ that there*!re( the -%esti!n !* "hether a meas%re in)!nsistent "ith Arti)le GIB1 remains
in)!nsistent "ith the <eneral Agreement e#en i* )!#ere+ 0/ a "ai#er )ann!t( 0/ itsel*( +etermine
"hether it n%lli*ies !r imairs 0ene*its a))r%ing %n+er the <eneral Agreement "ithin the meaning !*
that r!#isi!n=.
&11
In this rese)t( "e n!te that anel ra)ti)e )ann!t 0e regar+e+ as *alling "ithin Arti)le 31.3:a; !r :0;
!* the Cienna C!n#enti!n :see Arti)le 3.& !* the Un+erstan+ing( Arti)le IGB & !* the Agreement ,sta0lishing the
WTO an+ the Re!rt !* the Aellate 3!+/ in )a,an Alcoholic ;e9erages, !. )it.( .1385;. 2!re!#er( the
<ATT 1617 an+ WTO anels ha#e ne#er +is)%sse+ the sit%ati!n "ith rese)t t! a meas%re +esigne+ t! r!te)t
%0li) health. All re#i!%s )ases ha#e )!n)erne+ sit%ati!ns in "hi)h a meas%re !* a %rel/ )!mmer)ial nat%re
"as a+!te+ %rs%ant t! the neg!tiati!n !* a )!n)essi!n.
WT/DS135/R
Page 169
9.&7' It remains( h!"e#er( *!r %s t! +is)%ss the ,C's arg%ment t! the e**e)t that the *%n+amental
+%t/ t! r!te)t h%man health )ann!t 0e )!mr!mise+ !r restri)te+ 0/ the )!n)et !* n!n8#i!lati!n
n%lli*i)ati!n. We m%st 0egin 0/ a).n!"le+ging that all the )ases eAamine+ 0/ anels s! *ar ha#e
)!n)erne+ sit%ati!ns in "hi)h the meas%re a+!te+ *!ll!"ing the neg!tiati!n !* a )!n)essi!n "as
%rel/ )!mmer)ial in nat%re( generall/ a s%0si+/( a tari** re*eren)e !r a meas%re relating t! r!+%)t
+istri0%ti!n.
&15
A))!r+ingl/( "e ha#e n! re)e+ents t! g%i+e %s. E!"e#er( a reliminar/ remar.(
similar t! that ma+e in aragrah 9.&7& a0!#e( is )alle+ *!r. A *in+ing 0ase+ !n Arti)le GGIIIB1:0; !*
the <ATT 1661 an+ Arti)le &7.1 !* the Un+erstan+ing ne#er res%lts in an !0ligati!n n!t t! al/ !r t!
"ith+ra" the meas%re in -%esti!n. The 2em0er )!n)erne+ )an !nl/ 0e as.e+ t! ma.e =a m%t%all/
satis*a)t!r/ a+5%stment=. Arti)le &7B1:0; als! se)i*ies that )!mensati!n ma/ 0e art !* a m%t%all/
satis*a)t!r/ a+5%stment as *inal settlement !* the +is%te.
&17
The 2em0er a+!ting a %0li) health
r!te)ti!n meas%re is t!tall/ *ree t! )!ntin%e t! al/ the meas%re )!n)erne+ as it stan+s "hile
!**ering in eA)hange )!mensati!n *!r the 0ene*its n%lli*ie+ !r imaire+.
&17
9.&71 The Panel als! )!nsi+ers( as +i+ the anel in )a,an *ilm
'1?
, that n!n8#i!lati!n sh!%l+ 0e
ar!a)he+ "ith )a%ti!n an+ treate+ as an eA)eti!nal instr%ment !* +is%te settlement. It aears
that 2em0ers "hi)h ha#e neg!tiate+ a set !* rights an+ !0ligati!ns "!%l+ !nl/ eA)eti!nall/ eAe)t
t! 0e )hallenge+ *!r a)ti!ns n!t in )!ntra#enti!n !* th!se rights !r !0ligati!ns.
9.&7& 2!re!#er( the Panel is !* the !ini!n that e#en i* the 5%sti*i)ati!n !* a meas%re 0/ Arti)le GG
+!es n!t( in rin)ile( ma.e it im!ssi0le t! in#!.e Arti)le GGIIIB1:0; in relati!n t! the ali)ati!n !*
the meas%re 5%sti*ie+( the sit%ati!n !* a meas%re *alling %n+er Arti)le GG "ith rese)t t!
Arti)le GGIIIB1:0; )ann!t 0e -%ite the same as that !* a meas%re )!nsistent "ith an!ther r!#isi!n !*
the <ATT 1661. This is 0e)a%se Arti)le GG( "hi)h is hea+e+ =<eneral ,A)eti!ns=( is inten+e+( in
arti)%lar( t! ens%re the r!te)ti!n !* %0li) health !r( as state+ 0/ the Aellate 3!+/ in
United States 7asoline, t! =ermit im!rtant State interests L in)l%+ing the r!te)ti!n !* h%man
health J t! *in+ eAressi!n=.
&16
The Panel )!nsi+ers that in a))eting the WTO Agreement 2em0ers
als! a))et a ,riori( thr!%gh the intr!+%)ti!n !* these general eA)eti!ns( that 2em0ers "ill 0e a0le(
at s!me !int( t! ha#e re)!%rse t! these eA)eti!ns.
&&'
2!re!#er( 2em0ers ha#e atta)he+ t! the %se !*
these eA)eti!ns a )ertain n%m0er !* )!n+iti!ns )!ntaine+ either in aragrahs :a; t! :5; !r in the
&15
Aart *r!m )a,an *ilm, !. )it.( the )ases in "hi)h "!r.ing arties !r anels ha#e eAamine+ the
s%0stan)e !* )!mlaints *!rm%late+ %n+er Arti)le GGIIIB1:0; are as *!ll!"sB W!r.ing Part/ Re!rt in
Australian Subsid/ on Ammonium Sul,hate, a+!te+ !n 3 Aril 165'( 3ISD II/199( Panel Re!rt in 7erman/
Sardines( !. )it.H Urugua/ +ecourse( a+!te+ !n 17 N!#em0er 167&( 3ISD 11S/65H W!r.ing Part/ Re!rt in
0uro,ean Communities ariff reatment on Im,orts of Citrus Products from Certain Countries in the
1editerranean +egion 2&0C Citrus Products&4( <ATT +!)%ment D/5577( +ate+ 7 @e0r%ar/ 1695 :%na+!te+;H
Panel Re!rt in 00C Production Aids 7ranted on Canned Peaches, Canned Pears, Canned *ruit Coc=tail and
8ried 7ra,es 2&00C Canned *ruit&4( <ATT +!)%ment D/5779( +ate+ &' @e0r%ar/ 1695 :%na+!te+;H )a,an
Semi-Conductors( re!rt a+!te+ !n 1 2a/ 1699( 3ISD 35S/117H 00C (ilseeds( re!rt a+!te+ !n
&5 $an%ar/ 166'( 3ISD 37S/97H United States Agricultural Bai9er( a+!te+ !n 7 N!#em0er 166'( 3ISD
37S/&&9.
&17
See Re!rt !* the Aellate 3!+/ in India Patent Protection for Pharmaceutical and Agricultural
Chemical Products, a+!te+ !n 17 $an%ar/ 1669( WT/DS/5'/A3/R :hereina*ter =India Patents
2United States4&, en+ !* ara. 11.
&17
See Re!rt !* the Panel in 00C (ilseeds, !. )it.( aras. 1178119.
&19
O. )it., ara. 1'.37. Re*erring t! the Re!rt !* the Panel in 00C (ilseeds, *!!tn!te 1&'5( the
Panel in )a,an *ilm n!te+ the *!ll!"ingB
=In 00C (ilseeds, the Unite+ States state+ that it )!n)%rre+ in the r!!siti!n that n!n8#i!lati!n
n%lli*i)ati!n !r imairment sh!%l+ remain an eA)eti!nal )!n)et. Alth!%gh this )!n)et ha+ 0een in
the teAt !* Arti)le GGIII !* the <eneral Agreement *r!m the !%tset( a )a%ti!%s ar!a)h sh!%l+
)!ntin%e t! 0e ta.en in al/ing the )!n)et. 00C (ilseeds, 3ISD 37S/97( 119( ara. 111. The ,,C
in that )ase state+ that re)!%rse t! the =n!n8#i!lati!n= )!n)et %n+er Arti)le GGIIIB1:0; sh!%l+ remain
eA)eti!nal( sin)e !ther"ise the tra+ing "!rl+ "!%l+ 0e l%nge+ int! a state !* re)ari!%sness an+
%n)ertaint/. I0i+.( ara. 113.=
&16
See the Re!rt !* the Aellate 3!+/ in United States 7asoline( !. )it%, . 3'. See als! the
Re!rt !* the Panel Canada 1easures affecting e6,orts of un,rocessed herring and salmon, !. )it.( ara. 1.7
an+ the Re!rt !* the Aellate 3!+/ in United States 7asoline, !. )it., . 19.
WT/DS135/R
Page 166
intr!+%)t!r/ )la%se !* Arti)le GG. These )!n+iti!ns ha#e generall/ 0een narr!"l/ interrete+.
&&1
The
res%lt is that
:a; 0!th the inten+e+ !05e)ti#e !* these eA)eti!ns :%rs%it !* interests re)!gniFe+ a
,riori as 0eing !* greater im!rtan)e than 2em0ers' )!mmer)ial interests( sin)e the/
)an !%t"eigh the latter; an+
:0; the se)i*i) )!n+iti!ns that m%st 0e satis*ie+ 0/ 2em0ers in#!.ing these eA)eti!ns
mean that( "hile re)!gniFing that Arti)le GGIIIB1:0; alies t! meas%res that *all %n+er Arti)le GG(
"e are 5%sti*ie+ in treating re)!%rse t! Arti)le GIIIB1:0; as arti)%larl/ eA)eti!nal in relati!n t!
meas%res 5%sti*ie+ 0/ Arti)le GG:0;.
9.&73 All this lea+s the Panel t! )!nsi+er that( in ra)ti)e( e#en i* in a arti)%lar )ase a m%t%all/
satis*a)t!r/ a+5%stment ma/ 0e ma+e %n+er Arti)le GGIIIB1:0;( in general( the ris. !* an e**e)ti#e
in)rease in the )!st !* meas%res ne)essar/ t! r!te)t %0li) health 0e)a%se !* the ali)a0ilit/ !*
Arti)le GGIIIB1:0; t! meas%res 5%sti*ie+ %n+er Arti)le GG )an !nl/ 0e #er/ marginal. In *a)t(
)!nsi+ering the )riteria menti!ne+ in the re#i!%s aragrah( #er/ *e" meas%res !* this .in+ )!%l+
gi#e rise t! the ali)ati!n !* Arti)le GGIIIB1:0;.
9.&71 @!r these reas!ns "e +! n!t s%0s)ri0e t! the interretati!n r!!se+ 0/ the ,%r!ean
C!mm%nities. A))!r+ingl/( "e "ill )!ntin%e !%r eAaminati!n !* the meas%re in the light !*
Arti)le GIIIB1:0; !* the <ATT 1661.
:0; ,Aaminati!n !* the s%0stantial ase)ts !* Cana+a's arg%ments %n+er Arti)le GGIIIB1:0; !* the
<ATT 1661
2i4 ;urden of ,roof
9.&75 The Panel has alrea+/ +is)%sse+ the -%esti!n !* the 0%r+en !* r!!* in general in
Se)ti!n CIII.,.1:0; a0!#e. E!"e#er( it is im!rtant( in the light !* the arg%ments !* the arties( t!
)lari*/ the ali)ati!n !* the 0%r+en !* r!!* in the )!nteAt !* n!n8#i!lati!n n%lli*i)ati!n !r
imairment !* a 0ene*it.
9.&77 Where the ali)ati!n !* Arti)le GGIIIB1:0; is )!n)erne+( Arti)le &7.1:a; !* the
Un+erstan+ing an+ anel ra)ti)e in the )!nteAt !* the WTO Agreement an+ the <ATT 1617 )!n*irm
that this is an eA)eti!nal )!%rse !* a)ti!n re-%iring the )!mlaining art/ t! )arr/ the 0%r+en !*
resenting a +etaile+ 5%sti*i)ati!n in s%!rt !* its )!mlaint. Th%s( Arti)le &7.1:a; sti%lates thatB
=Where the r!#isi!ns !* aragrah 1:0; !* Arti)le GGIII !* the <ATT 1661 are ali)a0le t! a )!#ere+
agreement( a anel !r the Aellate 3!+/ ma/ !nl/ ma.e r%lings an+ re)!mmen+ati!ns "here a art/
t! the +is%te )!nsi+ers that an/ 0ene*it a))r%ing t! it +ire)tl/ !r in+ire)tl/ %n+er the rele#ant )!#ere+
agreement is 0eing n%lli*ie+ !r imaire+ !r the attainment !* an/ !05e)ti#e !* that Agreement is 0eing
ime+e+ as a res%lt !* the ali)ati!n 0/ a 2em0er !* an/ meas%re( "hether !r n!t it )!n*li)ts "ith the
r!#isi!ns !* that Agreement. Where an+ t! the eAtent that s%)h art/ )!nsi+ers an+ the anel !r the
Aellate 3!+/ +etermines that a )ase )!n)erns a meas%re that +!es n!t )!n*li)t "ith the r!#isi!ns !*
a )!#ere+ agreement t! "hi)h the r!#isi!ns !* aragrah 1:0; !* Arti)le GGIII !* the <ATT 1661 are
ali)a0le( the r!)e+%res in this Un+erstan+ing shall al/( s%05e)t t! the *!ll!"ingB
&&'
In hailand Cigarettes( !. )it.( ara. 73( the anel )!nsi+ere+ that Arti)le GG =)learl/ all!"e+
)!ntra)ting arties t! gi#e ri!rit/ t! h%man health !#er tra+e li0eraliFati!n=.
&&1
See( in arti)%lar( United States Article 33"( !. )it., ara. 5.6H Canada *oreign In9estment
+e9ie5 Act, a+!te+ !n 7 @e0r%ar/ 1691( 3ISD 3'S/11'( ara. 5.&'( an+ United States Prohibition of Im,orts
of una( !. )it.( ara. 5.&&.
WT/DS135/R
Page &''
:a; the )!mlaining art/ shall resent a +etaile+ 5%sti*i)ati!n in s%!rt !* an/ )!mlaint relating
t! a meas%re "hi)h +!es n!t )!n*li)t "ith the rele#ant )!#ere+ agreementH=
9.&77 In )a,an *ilm( the Panel se)i*ie+ h!" the 0%r+en !* r!!* sh!%l+ 0e alie+ in this
)!nteAtB
=C!nsistent "ith the eAli)it terms !* the DSU an+ esta0lishe+ WTO/<ATT 5%risr%+en)e( an+
re)alling the Aellate 3!+/ r%ling that 're)isel/ h!" m%)h an+ re)isel/ "hat .in+ !* e#i+en)e "ill
0e re-%ire+ t! esta0lish J a res%mti!n >that "hat is )laime+ is tr%e? "ill ne)essaril/ #ar/ *r!m J
r!#isi!n t! r!#isi!n'( "e th%s )!nsi+er that the Unite+ States( "ith rese)t t! its )laim !* n!n8
#i!lati!n n%lli*i)ati!n !r imairment %n+er Arti)le GGIIIB1:0;( 0ears the 0%r+en !* r!#i+ing a +etaile+
5%sti*i)ati!n *!r its )laim in !r+er t! esta0lish a res%mti!n that "hat is )laime+ is tr%e. It "ill 0e *!r
$aan t! re0%t an/ s%)h res%mti!n.=
&&&
9.&79 We )!n)l%+e that( "ith rese)t t! its )laims !* n!n8#i!lati!n( Cana+a 0ears the rimar/
0%r+en !* resenting a +etaile+ 5%sti*i)ati!n *!r its )laims.
&&3
9.&76 Cana+a maintains that( "hen a )!mlainant r!#es that it en5!/s a tari** )!n)essi!n an+ the
res!n+ent s%0se-%entl/ a+!ts a meas%re that a**e)ts the #al%e !* this )!n)essi!n( the )!mlainant
0ene*its *r!m the res%mti!n that it )!%l+ n!t reas!na0l/ anti)iate that this )!n)essi!n "!%l+ 0e
n%lli*ie+ !r !ther"ise imaire+ 0/ this meas%re. In s%)h )ir)%mstan)es( it is % t! the res!n+ent t!
r!#e that the )!mlainant sh!%l+ ha#e anti)iate+ the !ssi0ilit/ !* s%)h a meas%re 0eing a+!te+.
Cana+a re*ers t! the Aellate 3!+/ re!rt in India Patent 2United States4
''#
an+ t! the Panel re!rt
in )a,an *ilm.
&&5
9.&9' We +! n!t )!nsi+er that Cana+a has )!rre)tl/ interrete+ the Panel re!rt in )a,an *ilm%
@irst !* all( the res%mti!n t! "hi)h the Panel re*ers is that( i* it is sh!"n that a meas%re has 0een
intr!+%)e+ a*ter the )!n)l%si!n !* the tari** neg!tiati!ns in -%esti!n( then the )!mlainant sh!%l+ n!t
0e )!nsi+ere+ as ha#ing anti)iate+ that meas%re( "hi)h is !nl/ !ne !* the tests alie+ 0/ the Panel.
2!re!#er( i* the interretati!n !* the 0%r+en !* r!!* s%ggeste+ 0/ Cana+a "ere *!ll!"e+( the
!0ligati!n t! resent a +etaile+ 5%sti*i)ati!n *!r "hi)h Arti)le &7.1:a; r!#i+es might in )ertain )ases
0e e#a+e+. A))!r+ingl/( "e +! n!t *!ll!" the interretati!n r!!se+ 0/ Cana+a 0%t the r%le lai+
+!"n in )a,an *ilm%
9.&91 @%rtherm!re( in the light !* !%r reas!ning in aragrah 9.&7& a0!#e( "e )!nsi+er that the
se)ial sit%ati!n !* meas%res 5%sti*ie+ %n+er Arti)le GG( ins!*ar as the/ )!n)ern n!n8)!mmer)ial
interests "h!se im!rtan)e has 0een re)!gniFe+ a ,riori 0/ 2em0ers( re-%ires se)ial treatment. 3/
)reating the right t! in#!.e eA)eti!ns in )ertain )ir)%mstan)es( 2em0ers ha#e re)!gniFe+ a ,riori
the !ssi0ilit/ that the 0ene*its the/ +eri#e *r!m )ertain )!n)essi!ns ma/ e#ent%all/ 0e n%lli*ie+ !r
imaire+ at s!me *%t%re time *!r reas!ns re)!gniFe+ as 0eing !* !#erri+ing im!rtan)e. This sit%ati!n
is +i**erent *r!m that in "hi)h a 2em0er ta.es a meas%re !* a )!mmer)ial !r e)!n!mi) nat%re s%)h
as( *!r eAamle( a s%0si+/ !r a +e)isi!n !rganiFing a se)t!r !* its e)!n!m/( *r!m "hi)h it eAe)ts a
%rel/ e)!n!mi) 0ene*it. In this latter )ase( the meas%re remains "ithin the *iel+ !* internati!nal
tra+e. 2!re!#er( the nat%re an+ im!rtan)e !* )ertain meas%res *alling %n+er Arti)le GG )an als!
5%sti*/ their 0eing ta.en at an/ time( "hi)h militates in *a#!%r !* a stri)ter treatment !* a)ti!ns
0r!%ght against them !n the 0asis !* Arti)le GGIIIB1:0;.
9.&9& C!nse-%entl/( the Panel )!n)l%+es that 0e)a%se !* the im!rtan)e )!n*erre+ !n them a ,riori
0/ the <ATT 1661( as )!mare+ "ith the r%les g!#erning internati!nal tra+e( sit%ati!ns that *all %n+er
Arti)le GG 5%sti*/ a stri)ter 0%r+en !* r!!* 0eing alie+ in this )!nteAt t! the art/ in#!.ing
&&&
)a,an *ilm, !. )it%( ara. 1'.3&.
&&3
Pre#i!%s Panels ha#e n!t +e*ine+ the re)ise s)!e !* the )!n)et !* +etaile+ 5%sti*i)ati!n.
&&1
O. )it%, ara. 11.
&&5
O. )it%, ara. 1'.76.
WT/DS135/R
Page &'1
Arti)le GGIIIB1:0;( arti)%larl/ "ith regar+ t! the eAisten)e !* legitimate eAe)tati!ns an+ "hether !r
n!t the initial De)ree )!%l+ 0e reas!na0l/ anti)iate+.
2ii4 06amination of the conditions
9.&93 As re)alle+ 0/ the Panel in )a,an *ilm( the teAt !* Arti)le GGIIIB1:0; esta0lishes three
elements "h!se eAisten)e a )!mlainant m%st r!#e in !r+er t! 0e a0le legitimatel/ t! in#!.e that
r!#isi!n( namel/B :1; the ali)ati!n !* a meas%re 0/ a 2em0er !* the WTOH :&; the eAisten)e !* a
0ene*it a))r%ing %n+er the ali)a0le agreementH an+ :3; the n%lli*i)ati!n !r imairment !* a 0ene*it
as a res%lt !* the ali)ati!n !* the meas%re.
9.&91 The eAisten)e !* a measure is n!t in +is%te. In this arti)%lar )ase( the meas%re in -%esti!n is
De)ree N!. 6781133 !* &1 De)em0er 1667 "hi)h( m!re!#er( *!rms the s%05e)t !* a #i!lati!n
)!mlaint !n the art !* Cana+a an+ "hi)h "e ha#e eAamine+ in this rese)t in re#i!%s se)ti!ns.
We als! n!te that( aart *r!m stressing that its !05e)ti#e is t! r!te)t h%man health( the ,%r!ean
C!mm%nities +! n!t )laim that the nat%re !* the meas%re :an im!rt an+ mar.eting 0an; is s%)h that it
is n!t )!#ere+ 0/ the +e*initi!n !* the term =meas%re= in Arti)le GGIIIB1:0;. We there*!re )!n)l%+e
that a =meas%re= eAists.
9.&95 With regar+ t! the eAisten)e !* a benefit, "e n!te that the Panel in )a,an *ilm re)alle+ that(
"ith !nl/ !ne eA)eti!n( in all the re#i!%s )ases in "hi)h Arti)le GGIIIB1:0; "as in#!.e+ the 0ene*it
)laime+ )!nsiste+ in the legitimate eAe)tati!n !* imr!#e+ mar.et a))ess !!rt%nities res%lting
*r!m the rele#ant tari** )!n)essi!ns. We *irst nee+ t! .n!" "hat 0ene*it Cana+a )!%l+ legitimatel/
ha#e eAe)te+ *r!m the C!mm%nit/ )!n)essi!ns !n )hr/s!tile as0est!s. We n!te( h!"e#er( that
re#i!%s anels ar!a)he+ the -%esti!n +i**erentl/( ins!*ar as the/ aear t! ha#e ass%me+ the
eAisten)e !* a 0ene*it in the *!rm !* imr!#e+ mar.et a))ess !!rt%nities an+ then )!nsi+ere+
"hether a art/ )!%l+ ha#e ha+ a legitimate e6,ectation !* a gi#en 0ene*it.
9.&97 In the resent )!nteAt( there "!%l+ 0e a )ertain l!gi) in ma.ing a +istin)ti!n 0et"een the
)!n)et !* legitimate eAe)tati!n !* a 0ene*it an+ that !* the reas!na0le *!reseea0ilit/ !* a meas%re.
&&7
In *a)t( it )!%l+ 0e arg%e+ that( in the )ir)%mstan)es( Cana+a's eAe)tati!ns "ith regar+ t! the 0ene*its
it )!%l+ +eri#e *r!m the )!n)essi!n )!%l+ n!t 0e as high as *!r a r!+%)t that !se+ n! .n!"n ris. t!
health. In s%)h a )!nteAt( in "hi)h it might 0e arg%e+ that( at 0est( Cana+a )!%l+ anti)iate a gra+%al
+e)line in its )hr/s!tile eA!rts( an =%setting !* the )!metiti#e relati!nshi= as a res%lt !* the
meas%re in -%esti!n "!%l+ seem t! 0e m!re +i**i)%lt t! esta0lish. The sit%ati!n is n!t !ne in "hi)h
m!re !r less r!mising r!se)ts !* mar.et a))ess +isaear( as in the re#i!%s )ases )!nsi+ere+( 0%t
!* a mar.et in +e)line( as )!n*irme+ 0/ the tren+ in the am!%nts r!+%)e+ an+ the n%m0er !* )!%ntries
"hi)h( in the last &5 /ears( ha#e restri)te+ !r 0anne+ the %se !* )hr/s!tile
&&7
an+ 0/ the in)reasing
relian)e !n s%0stit%te r!+%)ts. In these )ir)%mstan)es( the De)ree )!%l+ n!t 0e )!nsi+ere+ t! ha#e
u,set the )!metiti#e relati!nshi 0et"een )hr/s!tile an+ r!+%)ts )!ntaining it( !n the !ne han+( an+
s%0stit%te *i0res an+ r!+%)ts )!ntaining them !n the !ther.
9.&97 E!"e#er( as this element "!%l+ 0e +i**i)%lt t! -%anti*/ an+ in the light !* !%r reas!ning in
aragrahs 9.&7& an+ 9.&9& a0!#e( "e )!nsi+er it m!re ar!riate t! +is)%ss the )ir)%mstan)es
"hi)h le+ @ran)e t! a+!t a meas%re 5%sti*ie+ %n+er Arti)le GG in the )!nteAt !* the eAaminati!n !*
the -%esti!n !* "hether Cana+a )!%l+ reas!na0l/ ha#e anti)iate+ the @ren)h meas%re. These
elements seem t! relate m!re arti)%larl/ t! the meas%re at iss%e. We "ill there*!re n!" r!)ee+ t!
eAamine the )riteria +e#el!e+ 0/ re#i!%s anels.
&&7
See the ar!a)h *!ll!"e+ in the Re!rt !* the Panel in 00C Canned *ruit, !. )it%, aras. 51
an+ 5&. See als! the Re!rt !* the Panel in 00C (ilseeds, !. )it.( ara. 111.
&&7
See ara. 3.&& in "hi)h the ,%r!ean C!mm%nities !int !%t that "!rl+ r!+%)ti!n !* as0est!s
rea)he+ a ea. !* 5.& milli!n t!nnes( sin)e "hen r!+%)ti!n has stea+il/ +e)line+( *alling t! 1.6& milli!n t!nnes
in 1667. With regar+ t! the )!%ntries that ha#e restri)te+ !r 0anne+ the %se !* as0est!s( see the +es)riti!n
gi#en 0/ the ,%r!ean C!mm%nities in aras. 3.31 et se$% a0!#e.
WT/DS135/R
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9.&99 A))!r+ing t! the )riteria +e#el!e+ in re#i!%s )ases( :a; the De)ree m%st ha#e ha+ the e**e)t
!* %setting the )!metiti#e relati!nshi 0et"een Cana+ian as0est!s an+ r!+%)ts )!ntaining it( !n the
!ne han+( an+ s%0stit%te *i0res an+ r!+%)ts )!ntaining them( !n the !ther( an+ :0; the Cana+ian
<!#ernment m%st n!t ha#e 0een a0le reas!na0l/ t! anti)iate the De)ree "hen it "as neg!tiating the
#ari!%s tari** )!n)essi!ns )!#ering the r!+%)ts )!n)erne+.
&&9
9.&96 At this stage( the Panel *in+s it ar!riate t! )!nsi+er that in #ie" !* the t/e !* meas%re in
-%esti!n the =%setting !* the )!metiti#e relati!nshi= )an 0e ass%me+. 3/ its #er/ nat%re( an im!rt
0an )!nstit%tes a +enial !* an/ !!rt%nit/ *!r )!metiti!n( "hate#er the im!rt #!l%me that eAiste+
0e*!re the intr!+%)ti!n !* the 0an. We "ill there*!re )!n)entrate !n the -%esti!n !* "hether the
meas%re )!%l+ reas!na0l/ ha#e 0een anti)iate+ 0/ the Cana+ian <!#ernment at the time that it "as
neg!tiating the #ari!%s tari** )!n)essi!ns )!#ering the r!+%)ts )!n)erne+.
9.&6' With regar+ t! the tari** )!n)essi!ns t! 0e ta.en int! a))!%nt in assessing the =re+i)ta0ilit/=
!* the meas%re( the Panel n!tes that Cana+a re*ers eAressl/ t! the )!n)essi!ns ma+e 0/ @ran)e in
1617( 0/ the ,%r!ean ,)!n!mi) C!mm%nit/ in 167& an+ 0/ the ,%r!ean C!mm%nities at the en+ !*
the Ur%g%a/ R!%n+.
&&6
Cana+a n!tes( in arti)%lar( that the )!n)essi!ns in)l%+e+ in the 167& Pr!t!)!l
ha#e 0een rene"e+ %ntil n!". The ,%r!ean C!mm%nities +! n!t +is%te the in*!rmati!n s%0mitte+
0/ Cana+a( 0%t re)all that the Panel in )a,an *ilm !inte+ !%t that the esta0lishment !* a )ase 0ase+
!n eAe)tati!ns *r!m r!%n+s )!n)l%+e+ 19 !r 3' /ears ag! might 0e +i**i)%lt. The ,C )!nsi+er that
Cana+a sh!%l+ r!#i+e +etaile+ eAlanati!ns !* "h/ it )!%l+ legitimatel/ ha#e eAe)te+ that @ran)e
"!%l+ n!t a+!t meas%res restri)ting the %se !* an/ as0est!s r!+%)t a*ter the Ur%g%a/ R!%n+
neg!tiati!ns( gi#en the gr!"ing s)ienti*i) e#i+en)e that all t/es !* as0est!s "ere )ar)in!geni) t!
h%mans.
9.&61 With regar+ t! the *a)t!rs t! 0e ta.en int! a))!%nt +etermining "hether the meas%re in
-%esti!n )!%l+ reas!na0l/ ha#e 0een anti)iate+( re#i!%s anels *!%n+ that a n%m0er !* elements
"ere n!t rele#ant. We )!nsi+er it ne)essar/ t! assess their ali)a0ilit/ in relati!n t! the
)ir)%mstan)es !* the resent )ase.
:a; @irst !* all( "e n!te that the re!rts in )a,an *ilm an+ 00C (ilseeds )!n)l%+e+
that a se)i*i) meas%re )!%l+ n!t 0e )!nsi+ere+ *!reseea0le s!lel/ 0e)a%se it "as
)!nsistent "ith !r a )!ntin%ati!n !* a ast general g!#ernment !li)/. E!"e#er( "e
n!te that( in )!ntrast t! the t"! )ases menti!ne+ a0!#e( @ran)e ha+ alrea+/ +e#el!e+
a se)i*i) !li)/ in res!nse t! the health r!0lems )reate+ 0/ as0est!s 0e*!re the
a+!ti!n !* the De)ree. This *a)t!r m%st )ertainl/ 0e ta.en int! a))!%nt in !%r
anal/sis.
&3'
:0; The Panel in )a,an *ilm, als! )!n)l%+e+ that it "!%l+ n!t 0e ar!riate t! )harge
the Unite+ States "ith ha#ing reas!na0l/ anti)iate+ all <ATT8)!nsistent meas%res.
&&9
The Panel +!es n!t )!nsi+er that the ,C's arg%ment 0ase+ !n a )!maris!n 0et"een r!+%)ts
)!rres!n+ing t! the same tari** line are rele#ant. The )!n)et !* )!metiti!n is n!t limite+ t! r!+%)ts that *all
in the same tari** hea+ing an+ "as esta0lishe+ in the earliest )ases 0ase+ !n Arti)le GGIIIB1:0;. See( in
arti)%lar( the Re!rt !* the W!r.ing Part/ !n Australian Subsid/ on Ammonium Sul,hate, a+!te+ !n
3 Aril 165'( II/199( ara. 1&( the Re!rt !* the Panel !n C!mlaints in the )ase 7erman/ Sardines( !. )it.(
ara. 17( an+ the Re!rt !* the Panel in )a,an *ilm( !. )it.( ara. 1'.73.
&&6
The )!n)essi!ns )!n)erne+ +! n!t seem t! ha#e 0een a**e)te+ 0/ the enlargement !* the ,%r!ean
C!mm%nities t! in)l%+e A%stria( @inlan+ an+ S"e+en in 1667.
&3'
In !%r !ini!n( there is a +i**eren)e 0et"een( !n the !ne han+( an im!rt 0an *!ll!"ing %!n a series
!* nati!nal meas%res gra+%all/ rein*!r)ing( sin)e 1677( the meas%res ta.en t! r!te)t %0li) health against the
e**e)ts !* as0est!s an+( !n the !ther( the relati!nshi "hi)h the ,C trie+ t! esta0lish in 00C (ilseeds 0et"een
the eAisten)e in 167& !* !il8see+s s%0si+ies in )ertain mem0er States !* the ,%r!ean C!mm%nities an+ the
+e#el!ment !* a s%0si+/ r!gramme ins%lating !il8see+ r!+%)ers *r!m )!metiti!n *r!m im!rts :see
ara. 116 !* the anel re!rt;.
WT/DS135/R
Page &'3
C!nse-%entl/( "e +! n!t )!nsi+er that Cana+a reas!na0l/ anti)iate+ all <ATT8
)!nsistent meas%res( !r e#en !ssi0le meas%res 5%sti*ia0le %n+er Arti)le GG.
:); @inall/( ins!*ar as the De)ree !st+ates the m!st re)ent tari** neg!tiati!ns( "e )!%l+
al/ the res%mti!n alie+ 0/ the Panel in )a,an *ilm, a))!r+ing t! "hi)h
n!rmall/ Cana+a sh!%l+ n!t 0e )!nsi+ere+ t! ha#e anti)iate+ a meas%re intr!+%)e+
a*ter the tari** )!n)essi!n ha+ 0een neg!tiate+. E!"e#er( "e +! n!t )!nsi+er s%)h a
res%mti!n t! 0e )!nsistent "ith the stan+ar+ !* r!!* that "e *!%n+ t! 0e ali)a0le
in aragrah 9.&7& a0!#e in the )ase !* an allegati!n !* n!n8#i!lati!n n%lli*i)ati!n
)!n)erning meas%res *alling %n+er Arti)le GG !* the <ATT 1661.
2!re!#er( the )ir)%mstan)es !* the resent )ase seem t! %s t! 0e +i**erent *r!m the
sit%ati!n en#isage+ in )a,an *ilm. In that )ase( the meas%res in -%esti!n
)!n)erne+ the !rganiFati!n !* the $aanese +!mesti) mar.et. The/ "ere there*!re
e)!n!mi) meas%res !* a .in+ that a thir+ )!%ntr/ might *in+ s%rrising an+(
a))!r+ingl/( +i**i)%lt t! anti)iate. Eere( it is a -%esti!n !* meas%res t! r!te)t %0li)
health %n+er Arti)le GG:0;( that is t! sa/( meas%res "h!se a+!ti!n is eAressl/
en#isage+ 0/ the <ATT 1661. We there*!re )!nsi+er that the res%mti!n alie+ in
)a,an *ilm is n!t ali)a0le t! the resent )ase.
9.&6& Cana+a menti!ns( *irst !* all( the )!n)essi!ns ma+e 0/ @ran)e in 1617 an+ 0/ the ,,C in
167&. E!"e#er( "e )!nsi+er that in #ie" !* the time that elase+ 0et"een th!se )!n)essi!ns an+ the
a+!ti!n !* the De)ree :0et"een 5' an+ 35 /ears;( Cana+a )!%l+ n!t ass%me that( !#er s%)h a l!ng
eri!+( there "!%l+ n!t 0e a+#an)es in me+i)al .n!"le+ge "ith the ris. that !ne +a/ a r!+%)t "!%l+
0e 0anne+ !n health gr!%n+s. @!r this reas!n( t!!( "e als! )!nsi+er that the res%mti!n alie+ in
)a,an *ilm )ann!t 0e alie+ t! the )!n)essi!ns grante+ in 1617 an+ 167&. An/ !ther interretati!n
"!%l+ eAten+ the s)!e !* the )!n)et !* n!n8#i!lati!n n%lli*i)ati!n "ell 0e/!n+ that en#isage+ 0/
the Panel in )a,an *ilm. On the )!ntrar/( it is *!r Cana+a t! resent +etaile+ e#i+en)e sh!"ing
"h/ it )!%l+ legitimatel/ eAe)t the 1617 an+ 167& )!n)essi!ns n!t t! 0e a**e)te+ an+ )!%l+ n!t
reas!na0l/ anti)iate that @ran)e might a+!t meas%res restri)ting the %se !* all as0est!s r!+%)ts 5'
an+ 35 /ears( rese)ti#el/( a*ter the neg!tiati!n !* the )!n)essi!ns )!n)erne+. In the resent )ase( the
0%r+en !* r!!* m%st 0e all the hea#ier inasm%)h as the inter#ening eri!+ has 0een s! l!ng. In+ee+(
it is #er/ +i**i)%lt t! anti)iate "hat a 2em0er "ill +! in 5' /ears time. It "!%l+ there*!re 0e eas/ *!r
a 2em0er t! esta0lish that he )!%l+ n!t reas!na0l/ anti)iate the a+!ti!n !* a meas%re i* the 0%r+en
!* r!!* "ere n!t ma+e hea#ier.
9.&63 In the resent )ase( "e +! n!t )!nsi+er that Cana+a has r!#i+e+ a +etaile+ eAlanati!n !*
"h/ it )!%l+ reas!na0l/ eAe)t @ran)e n!t t! a+!t meas%res restri)ting the %se !* an/ as0est!s
r!+%)t 5' an+ 35 /ears rese)ti#el/( a*ter the )!n)essi!ns )!n)erne+.
9.&61 We there*!re n!" t%rn t! the -%esti!n !* "hether( at the )!n)l%si!n !* the Ur%g%a/ R!%n+(
Cana+a )!%l+ reas!na0l/ ha#e eAe)te+ @ran)e :a; n!t t! a+!t a meas%re restri)ting the %se !*
as0est!s an+ :0; n!t t! +! s! 0/ intr!+%)ing a t!tal 0an.
9.&65 As "e ha#e *!%n+ :in aragrah 9.&9;( the res%mti!n alie+ 0/ the Panel in )a,an *ilm
)ann!t 0e alie+ t! the resent )ase.
&31
Unli.e Cana+a( "hi)h )laims that n! re)ent s)ienti*i)
+e#el!ment )!%l+ ha#e ma+e the meas%re *!reseea0le( "e )!nsi+er that there is e#i+en)e t! sh!"
that reg%lati!ns restri)ting the %se !* as0est!s )!%l+ ha#e 0een anti)iate+. @irst !* all( the haFar+!%s
nat%re !* )hr/s!tile has l!ng 0een .n!"n. Th%s( sin)e 1677( )hr/s!tile has 0een )lassi*ie+ 0/ the
WEO as a )ateg!r/ I )ar)in!gen. In 1697( IDO C!n#enti!n 17& re-%ire+ nati!nal legislat!rs t! ma.e
r!#isi!n( "hene#er !ssi0le( *!r the rela)ement !* as0est!s !r !* )ertain t/es !* as0est!s !r !*
r!+%)ts )!ntaining as0est!s 0/ !ther materials !r r!+%)ts !r the %se !* alternati#e te)hn!l!g/(
&31
,#en i* it "ere ali)a0le( "e )!nsi+er that the ,C re0%tte+ this res%mti!n 0/ their re*eren)es t!
the s/stems esta0lishe+ at internati!nal an+ C!mm%nit/ le#el )!n)erning the %se !* as0est!s.
WT/DS135/R
Page &'1
s)ienti*i)all/ e#al%ate+ 0/ the )!metent a%th!rit/ as harmless !r less harm*%l. In 166'( the
,%r!ean C!mm%nities iss%e+ Dire)ti#e 6'/361/,,C r!#i+ing *!r the rela)ement !* as0est!s. This
Dire)ti#e a+#!)ates the rin)ile that a +anger!%s agent !r r!)e+%re sh!%l+ 0e rela)e+ 0/ a
harmless !r less harm*%l agent !r r!)e+%re ins!*ar as !ne eAists.
9.&67 2!re!#er( in the light !* the in*!rmati!n s%0mitte+ 0/ the arties an+ the eAerts( "e )!nsi+er
that the st%+/ !* the +iseases ass!)iate+ "ith the inhalati!n !* as0est!s is a *iel+ !* s)ien)e in "hi)h
an/ !ssi0le )!n)l%si!n "!%l+ aear t! 0e 0ase+ !n the !0ser#ati!n !* ath!l!gi)al )ases +a/ 0/
+a/. In the Panel's !ini!n( the n%mer!%s )!nstraints %n+er "hi)h the s)ientists m%st "!r.( s%)h as
the nee+ t! limit themsel#es t! a gi#en n%m0er !* in+i#i+%als( the esta0lishment !* the hist!r/ !*
eA!s%re an+ the eri!+ !#er "hi)h the health e**e)ts !* as0est!s +e#el!( ma.e the ima)t !* these
st%+ies largel/ relati#e. It is the a))%m%lati!n !* +ata that gra+%all/ esta0lishes s)ienti*i) )ertaint/.
This imressi!n is )!n*irme+ 0/ the eAerts )!ns%lte+ 0/ the Panel "h!se !ini!ns are 0ase+ !n a
large n%m0er !* st%+ies( in)l%+ing re)ent !nes. C!nse-%entl/( e#en s%!sing that there has 0een n!
ma5!r re)ent +is)!#er/( Cana+a )ann!t arg%e that it )!%l+ n!t anti)iate the a+!ti!n !* a meas%re
restri)ting the %se !* as0est!s.
9.&67 On the !ther han+( the a))%m%lati!n !* internati!nal an+ C!mm%nit/ +e)isi!ns )!n)erning
the %se !* as0est!s( e#en i* it +i+ n!t ne)essaril/ ma.e it )ertain that the %se !* as0est!s "!%l+ 0e
0anne+ 0/ @ran)e( )!%l+ n!t +! !ther than )reate a climate "hi)h sh!%l+ ha#e le+ Cana+a t!
anti)iate a )hange in the attit%+e !* the im!rting )!%ntries( ese)iall/ in #ie" !* the l!ng8
esta0lishe+ tren+ t!"ar+s e#er tighter restri)ti!ns !n the %se !* as0est!s. We als! n!te that the %se !*
)hr/s!tile as0est!s "as 0anne+ 0/ 2em0ers !* the WTO "ell 0e*!re it "as 0anne+ 0/ @ran)e.
A+mitte+l/( in )a,an *ilm the Panel )!nsi+ere+ that the a+!ti!n in !ther 2em0ers' mar.ets !*
meas%res similar t! the meas%res in -%esti!n )!%l+ n!t ma.e the latter *!reseea0le. E!"e#er( here
again it "as a -%esti!n !* )!mmer)ial meas%res. We )!nsi+er that in the resent )ase the sit%ati!n is
+i**erent sin)e it )!n)erns %0li) health an+ the )!metent internati!nal !rganiFati!ns ha#e alrea+/
ta.en a !siti!n !n the -%esti!n. The a+!ti!n( in an alrea+/ restri)ti#e )!nteAt( !* %0li) health
meas%res 0/ !ther States( *a)e+ "ith a s!)ial an+ e)!n!mi) sit%ati!n similar t! that in @ran)e( )reates
an en#ir!nment in "hi)h the a+!ti!n !* similar meas%res 0/ @ran)e( is n! l!nger %n*!reseea0le.
9.&69 2!re!#er( as n!te+ a0!#e( at the en+ !* the Ur%g%a/ R!%n+ @ran)e alrea+/ ha+ in la)e a
n%m0er !* meas%res reg%lating the %se !* as0est!s. These in)l%+e+( in arti)%lar( meas%res relating t!
the eA!s%re !* "!r.ers ta.en a*ter as0est!s "as re)!gniFe+ as a )ar)in!gen 0/ the IARC
:De)ree 778616 !* 17 A%g%st 1677; an+ the a+!ti!n !* IDO C!n#enti!n 17&( as "ell as *!r the
%r!se !* imlementing C!mm%nit/ +ire)ti#es ali)a0le. The Panel als! n!tes that De)ree 998177
!* &9 Aril 1699 !n r!+%)ts )!ntaining as0est!s ha+ r!hi0ite+ the %se !* )hr/s!tile as0est!s in the
man%*a)t%re !* )ertain r!+%)ts.
&3&
9.&66 In these )ir)%mstan)es( it is +i**i)%lt *!r Cana+a t! )laim that it ha+ legitimate eAe)tati!ns !*
maintaining !r e#en +e#el!ing its eA!rts !* )hr/s!tile an+ r!+%)ts )!ntaining it. I* there "as an/
0ene*it *!r Cana+a( the Panel +!es n!t )!nsi+er Cana+a t! ha#e resente+ a +etaile+ 5%sti*i)ati!n t!
sh!" that that 0ene*it "as an/thing !ther than re)ari!%s.
9.3'' We th%s )!n)l%+e that at the )!n)l%si!n !* the Ur%g%a/ R!%n+ Cana+a )!%l+ reas!na0l/ ha#e
anti)iate+ that @ran)e might( in the sh!rt term( a+!t m!re restri)ti#e meas%res !n the %se !*
as0est!s.
9.3'1 The -%esti!n that remains t! 0e +e)i+e+ is "hether Cana+a )!%l+ reas!na0l/ ha#e anti)iate+
the intr!+%)ti!n !* a ban !n )hr/s!tile as0est!s 0/ @ran)e. We )!nsi+er that the s)ienti*i) literat%re
an+ the internati!nal reg%lati!ns( as "ell as 2em0ers' %0li) !li)/
&33
( ga#e n%mer!%s in+i)ati!ns
&3&
See AnneA II( rel/ !* the ,%r!ean C!mm%nities t! the Panel's -%esti!n N!. 1 at the Se)!n+
2eeting "ith the Parties( aras. &51 t! &71.
&33
The %se !* )hr/s!tile "as 0anne+ in S"e+en an+ Denmar. in 1697( in A%stria in 166'( in the
Netherlan+s in 1661( in @inlan+ an+ Ital/ in 166& an+ in <erman/ in 1663 :see ara. 3.3& a0!#e;. Dire)ti#e
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Page &'5
s%)h as t! )reate a )!nteAt in "hi)h Cana+a )!%l+ n!t reas!na0l/ n!t ha#e anti)iate+ that s!!ner !r
later )hr/s!tile "!%l+ 0e 0anne+ 0/ @ran)e. We als! re)all that the legitima)/ !* meas%res 5%sti*ie+
%n+er Arti)le GG 5%sti*ies a stri)ter 0%r+en !* r!!* !n the art/ in#!.ing Arti)le GGIIIB1:0;. In the
resent )ase( Cana+a has n!t resente+ a +etaile+ 5%sti*i)ati!n in s%!rt !* its )laim that it )!%l+ n!t
reas!na0l/ ha#e anti)iate+ that @ran)e "!%l+( in the light !* +e#el!ments in the s)ienti*i) e#i+en)e
an+ the )h!i)es ma+e 0/ !ther 2em0ers( als! +e)i+e t! al/ a t!tal 0an !n as0est!s !n its mar.et in
the sh!rt term.
9.3'& We n!te Cana+a's arg%ment a))!r+ing t! "hi)h it )!%l+ n!t reas!na0l/ ha#e anti)iate+ the
a+!ti!n !* the De)ree 0/ @ran)e ins!*ar as @ran)e *aile+ t! +isla/ the ne)essar/ )!nsisten)/ in its
ar!a)h t! )hr/s!tile an+ !ther haFar+!%s r!+%)ts( s%)h as lea+ an+ )!er. We +! n!t )!nsi+er this
a ertinent arg%ment. Alth!%gh it is tr%e that lea+ an+ )!er( li.e as0est!s( are haFar+!%s an+ that
@ran)e has n!t /et ta.en an/ meas%re "ith rese)t t! lea+ an+ )!er( essentiall/ this means that
Cana+a )ann!t legitimatel/ eAe)t the lea+ mar.et n!t t! 0e the s%05e)t !* s!me %0li) health
meas%re( e#en th!%gh @ran)e has n!t /et ta.en an/ s%)h meas%re. It is !%r !ini!n that ea)h 2em0er
is *ree t! a+!t the health !li)ies it +eems ar!riate an+ t! gi#e ea)h s%)h !li)/ the ri!rit/ it
+eems ne)essar/. T! a))et Cana+a's arg%ment "!%l+ n!t !nl/ )!n*li)t "ith that rin)ile 0/
re-%iring an =all !r n!thing= ar!a)h im!ssi0le t! realiFe in ra)ti)e 0%t "!%l+ )!nsi+era0l/
*a)ilitate the tas. !* a 2em0er in#!.ing Arti)le GGIIIB1:0; an+ re-%ire+ t! r!#e the eAisten)e !* a
legitimate eAe)tati!n. Th%s( it "!%l+ 0e s%**i)ient t! i+enti*/ a r!+%)t "hi)h ha+ n!t /et 0een
reg%late+ e#en th!%gh it "as re)!gniFe+ as 0eing haFar+!%s. There "!%l+ then 0e n! nee+ t! r!#i+e
+etaile+ e#i+en)e !* the eAisten)e !* n!n8#i!lati!n n%lli*i)ati!n !r imairment.
9.3'3 In the resent )ase( "e +! n!t )!nsi+er that Cana+a has resente+ a +etaile+ 5%sti*i)ati!n !*
"h/ it )!%l+ legitimatel/ ha#e eAe)te+ that @ran)e "!%l+ n!t a+!t meas%res restri)ting the %se !*
an/ as0est!s r!+%)t in a )!nteAt in "hi)h meas%res t! limit the %se !* as0est!s "ere 0eing r!!se+
at the internati!nal le#el an+ "hen )!%ntries at the same le#el !* s!)ial an+ e)!n!mi) +e#el!ment as
@ran)e ha+ alrea+/ 0anne+ the %se !* )hr/s!tile as0est!s 0/ the en+ !* the Ur%g%a/ R!%n+.
:); C!n)l%si!n
9.3'1 On the 0asis !* the a0!#e( "e )!n)l%+e that Cana+a has n!t esta0lishe+ the eAisten)e !*
n%lli*i)ati!n !r imairment !* a 0ene*it "ithin the meaning !* Arti)le GGIIIB1:0; !* the <ATT 1661 as
a res%lt !* the ali)ati!n !* the meas%re in -%esti!n.
IIIIIIIIIIIIIIIIIIII
61/756/,,C !* 3 De)em0er 1661( O$ 1661( D 373( . 37( ha+ 0anne+ the %se !* as0est!s *!r *!%rteen se)i*i)
)ateg!ries !* r!+%)t :see ara. 3.31 a0!#e;.
WT/DS135/R
Page &'7
I2. %5N%67SI5NS
6.1 In the light !* the a0!#e( the Panel )!n)l%+es as *!ll!"sB
:a; On the 0asis !* its *in+ings in Se)ti!n CIII.D a0!#e( the Panel )!n)l%+es that the
=r!hi0iti!n= art !* the De)ree +!es n!t *all "ithin the s)!e !* the T3T Agreement.
The art !* the De)ree relating t! =eA)eti!ns= +!es *all "ithin the s)!e !* the T3T
Agreement. E!"e#er( as Cana+a has n!t ma+e an/ )laim )!n)erning the
)!mati0ilit/ "ith the T3T Agreement !* the art !* the De)ree relating t!
eA)eti!ns( the Panel re*rains *r!m rea)hing an/ )!n)l%si!n "ith regar+ t! the latter.
:0; On the 0asis !* its *in+ings in Se)ti!n CIII.,.& a0!#e( the Panel )!n)l%+es that
)hr/s!tile as0est!s *i0res as s%)h an+ *i0res that )an 0e s%0stit%te+ *!r them as s%)h
are li.e r!+%)ts "ithin the meaning !* Arti)le IIIB1 !* the <ATT 1661. Similarl/( the
Panel )!n)l%+es that the as0est!s8)ement r!+%)ts an+ the *i0r!8)ement r!+%)ts *!r
"hi)h s%**i)ient in*!rmati!n has 0een s%0mitte+ t! the Panel are li.e r!+%)ts "ithin
the meaning !* Arti)le IIIB1 !* the <ATT 1661.
:); With rese)t t! the r!+%)ts *!%n+ t! 0e li.e( the Panel )!n)l%+es that the De)ree
#i!lates Arti)le IIIB1 !* the <ATT 1661.
:+; E!"e#er( !n the 0asis !* its *in+ings in Se)ti!n CIII.,.1 a0!#e( the Panel )!n)l%+es
that the De)ree( ins!*ar as it intr!+%)es a treatment !* these r!+%)ts that is
+is)riminat!r/ %n+er Arti)le IIIB1( is 5%sti*ie+ as s%)h an+ in its imlementati!n 0/ the
r!#isi!ns !* aragrah :0; an+ the intr!+%)t!r/ )la%se !* Arti)le GG !* the
<ATT 1661.
:e; @inall/( the Panel )!n)l%+es( !n the 0asis !* its *in+ings in Se)ti!n CIII.@ a0!#e( that
Cana+a has n!t esta0lishe+ that it s%**ere+ n!n8#i!lati!n n%lli*i)ati!n !r imairment
!* a 0ene*it "ithin the meaning !* Arti)le GGIIIB1:0; !* the <ATT 1661.
IIIIIIIIIIIIIIIIIIIIIII