WORLD TRADE ORGANIZATION

WT/DS27/AB/RW2/ECU WT/DS27/AB/RW/USA 26 November 2008

(08-5797)

Original: English

EUROPEAN COMMUNITIES REGIME FOR THE IMPORTATION, SALE AND DISTRIBUTION OF BANANAS SECOND RECOURSE TO ARTICLE 21.5 OF THE DSU BY ECUADOR
AB-2 !-!

EUROPEAN COMMUNITIES REGIME FOR THE IMPORTATION, SALE AND DISTRIBUTION OF BANANAS RECOURSE TO ARTICLE 21.5 OF THE DSU BY THE UNITED STATES
AB-2 !-"

Reports of the Appellate Body

N#$%& The Appella e !o"# iss$es he above %o repor s in he &orm o& a single "o'$men 'ons i $ ing %o separa e Appella e !o"# (epor s: )T*+,27*A!*()2*E-. an" )T*+,27*A!*()*.,A/ The 'over page0 preliminar# pages0 ,e' ions 1 o 2110 an" he anne3es are 'ommon o he %o (epor s/ The page hea"er hro$gho$ he "o'$men bears %o "o'$men s#mbols0 )T*+,27*A!*()2*E-. an" )T*+,27*A!*()*.,A0 %i h he e3'ep ion o& ,e' ion 2111 on pages E-.-464 o E-.-4650 %hi'h bears he "o'$men s#mbol &or an" 'on ains he Appella e !o"#6s &in"ings an" 'on'l$sions in he Appella e !o"# (epor )T*+,27*A!*()2*E-.0 an" %i h he e3'ep ion o& ,e' ion 2111 on pages .,A-464 an" .,A-4620 %hi'h bears he "o'$men s#mbol &or an" 'on ains he Appella e !o"#6s &in"ings an" 'on'l$sions in he Appella e !o"# (epor )T*+,27*A!*()*.,A/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age i

11/ 1n ro"$' ion 4 111/ Arg$men s o& he 7ar i'ipan s an" he Thir" 7ar i'ipan s////////////////////////////////////////////////////45 A/ -laims o& Error b# he E$ropean -omm$ni ies 8 Appellan ///////////////////////////////////45 !/ Arg$men s o& E'$a"or 8 Appellee an" Thir" 7ar i'ipan /////////////////////////////////////////52 -/ Arg$men s o& he .ni e" , a es 8 Appellee an" Thir" 7ar i'ipan //////////////////////////58 +/ -laims o& Error b# E'$a"or 8 O her Appellan ////////////////////////////////////////////////////////97 E/ Arg$men s o& he E$ropean -omm$ni ies 8 Appellee /////////////////////////////////////////////50 :/ Arg$men s o& he Thir" 7ar i'ipan s/////////////////////////////////////////////////////////////////////////52 1;/ 1ss$es (aise" in he Appeal o& he E'$a"or 7anel (epor ////////////////////////////////////////////////////69 ;/ 1ss$es (aise" in he Appeal o& he ., 7anel (epor /////////////////////////////////////////////////////////////65 ;1/ Ar i'le 9/5 o& he +,. 8 <armoni=a ion o& Time ables (E'$a"or an" .ni e" , a es)/////////66 ;11/ >egal E&&e' o& he .n"ers an"ings on !ananas (E'$a"or an" .ni e" , a es)///////////////////70 ;111/ ,'ope o& Ar i'le 24/5 7ro'ee"ings 8 ?eas$re Ta@en o -ompl# (.ni e" , a es)//////////////84 12/ (epeal o& he -hallenge" ?eas$re (.ni e" , a es)//////////////////////////////////////////////////////////////94 2/ The E$ropean -omm$ni ies6 No i'e o& Appeal (.ni e" , a es)////////////////////////////////////////////96 21/ Ar i'le 2111 o& he AATT 4999 (E'$a"or an" .ni e" , a es)//////////////////////////////////////////////99 A/ The Original 7ro'ee"ings an" he :irs E'$a"or Ar i'le 24/5 7anel ///////////////////////99 !/ ?eas$re Ta@en o -ompl#/////////////////////////////////////////////////////////////////////////////////////404 -/ The -$rren Ar i'le 24/5 7ro'ee"ings////////////////////////////////////////////////////////////////////402 +/ -laims an" Arg$men s on Appeal//////////////////////////////////////////////////////////////////////////406 E/ Anal#sis o& he Appeale" :in"ings o& he 7anel $n"er Ar i'le 2111 o& he AATT 4999///////////////////////////////////////////////////////////////////////////////////////////////////////////////408 211/ Ar i'le 11 o& he AATT 4999 (E'$a"or)////////////////////////////////////////////////////////////////////////////425 A/ The -$rren Ar i'le 24/5 7ro'ee"ings////////////////////////////////////////////////////////////////////429 !/ -laims an" Arg$men s rela ing o he E$ropean -omm$ni ies6 Appeal/////////////////426 -/ Anal#sis o& he E$ropean -omm$ni ies6 Appeal////////////////////////////////////////////////////426 +/ -laims an" Arg$men s rela ing o E'$a"or6s O her Appeal///////////////////////////////////458 E/ Anal#sis o& E'$a"or6s O her Appeal///////////////////////////////////////////////////////////////////////459 2111/ N$lli&i'a ion or 1mpairmen (.ni e" , a es)////////////////////////////////////////////////////////////////////459 A/ The Original 7ro'ee"ings///////////////////////////////////////////////////////////////////////////////////////459 !/ The -$rren Ar i'le 24/5 7ro'ee"ings////////////////////////////////////////////////////////////////////459

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age ii -/ -laims an" Arg$men s on Appeal//////////////////////////////////////////////////////////////////////////455 +/ The 7anel6s :in"ings $n"er Ar i'le 5/8 o& he +,.////////////////////////////////////////////////456 21;/ :in"ings an" -on'l$sions in he Appella e !o"# (epor )T*+,27*A!*()2*E-. (E'$a"or)////////////////////////////////////////////////////////////////////////////////////////////////////////////////////465 2111/ 2111/ :in"ings an" -on'l$sions in he Appella e !o"# (epor )T*+,27*A!*()2*E-. (E'$a"or)///////////////////////////////////////////////////////////////////////////////////////////////////////////E-.-464 :in"ings an" -on'l$sions in he Appella e !o"# (epor )T*+,27*A!*()*.,A (.ni e" , a es)///////////////////////////////////////////////////////////////////////////////////////////////////.,A-464

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age iii ANNE2 1 No i&i'a ion o& an Appeal b# he E$ropean -omm$ni ies (E'$a"or 7anel (epor )0 )T*+,27*89 No i&i'a ion o& an Appeal b# he E$ropean -omm$ni ies (., 7anel (epor )0 )T*+,27*90 No i&i'a ion o& an O her Appeal b# E'$a"or0 )T*+,27*94 7ro'e"$ral ($ling b# he Appella e !o"# o& 48 ,ep ember 2008 o allo% p$bli' observa ion o& he oral hearing +oha Ar i'le 1 )aiver0 )T*?1N(04)*45B )T*>*956 E3'erp s &rom ,e' ions 1-A an" 1-! o& 7ar 1 o& he E$ropean -omm$ni ies6 ,'he"$le >222 :rame%or@ Agreemen on !ananas anne3e" o he E$ropean -omm$ni ies6 ,'he"$le >222

ANNE2 11 ANNE2 111 ANNE2 1; ANNE2 ; ANNE2 ;1 ANNE2 ;11

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age iv -A,E, -1TE+ 1N T<1, (E7O(T

S'#($ $)$*% Argentina Hides and Leather F+** ,-.% $)$*% -/0 ,)$-$)#/ 7anel (epor 0 Argentina Measures Affecting the Export of Bovine Hides and Import of Finished Leather0 )T*+,455*( an" -orr/40 a"op e" 46 :ebr$ar# 20040 +,( 2004:;0 4779 7anel (epor 0 Argentina !efinitive Anti !umping !uties on Poultry from Bra"il0 )T*+,294*(0 a"op e" 49 ?a# 20050 +,( 2005:;0 4727 7anel (epor 0 Australia #u$sidies Provided to Producers and Exporters of Automotive Leather0 )T*+,426*(0 a"op e" 46 C$ne 49990 +,( 4999:1110 954 AATT 7anel (epor 0 Belgian Family Allo%ances( A*520 a"op e" 7 November 49520 !1,+ 4,*59 Appella e !o"# (epor 0 )anada )ertain Measures Affecting the Automotive Industry0 )T*+,459*A!*(0 )T*+,492*A!*(0 a"op e" 49 C$ne 20000 +,( 2000:;10 2985 Appella e !o"# (epor 0 )hile Price Band #ystem and #afeguard Measures *elating to )ertain Agricultural Products0 )T*+,207*A!*(0 a"op e" 25 O' ober 20020 +,( 2002:;1110 50950 an" -orr/4 7anel (epor 0 )hile Price Band #ystem and #afeguard Measures *elating to )ertain Agricultural Products0 )T*+,207*(0 a"op e" 25 O' ober 20020 as mo"i&ie" b# Appella e !o"# (epor 0 )T*+,207A!*(0 +,( 2002:;1110 5427 Appella e !o"# (epor 0 )hile Price Band #ystem and #afeguard Measures *elating to )ertain Agricultural Products *ecourse to Article +,-. of the !#/ $y Argentina0 )T*+,207*A!*()0 a"op e" 22 ?a# 2007 Appella e !o"# (epor 0 !ominican *epu$lic Measures Affecting the Importation and Internal #ale of )igarettes0 )T*+,502*A!*(0 a"op e" 49 ?a# 20050 +,( 2005:2;0 7567 7anel (epor 0 European )ommunities Measures Affecting the Approval and Mar0eting of Biotech Products0 )T*+,294*(0 )T*+,292*(0 )T*+,295*(0 -orr/40 an" A""/4 o A""/90 a"op e" 24 November 20060 +,( 2006:1110 897 Appella e !o"# (epor 0 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas0 )T*+,27*A!*(0 a"op e" 25 ,ep ember 49970 +,( 4997:110 594 7anel (epor 0 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas( )omplaint $y Ecuador0 )T*+,27*(*E-.0 a"op e" 25 ,ep ember 49970 as mo"i&ie" b# Appella e !o"# (epor 0 )T*+,27*A!*(0 +,( 4997:1110 4085 7anel (epor 0 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas( )omplaint $y 1uatemala and Honduras0 )T*+,27*(*AT?0 )T*+,27*(*<N+0 a"op e" 25 ,ep ember 49970 as mo"i&ie" b# Appella e !o"# (epor 0 )T*+,27*A!*(0 +,( 4997:110 695 7anel (epor 0 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas( )omplaint $y Mexico0 )T*+,27*(*?E20 a"op e" 25 ,ep ember 49970 as mo"i&ie" b# Appella e !o"# (epor 0 )T*+,27*A!*(0 +,( 4997:110 805

Argentina Poultry Anti !umping !uties Australia Automotive Leather II Belgium Family Allo%ances &allocations familiales' )anada Autos

)hile Price Band #ystem

)hile Price Band #ystem

)hile Price Band #ystem &Article +,-. Argentina' !ominican *epu$lic Import and #ale of )igarettes E) Approval and Mar0eting of Biotech Products E) Bananas III

E) Bananas III &Ecuador'

E) Bananas III &1uatemala and Honduras'

E) Bananas III &Mexico'

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age v

S'#($ $)$*% E) Bananas III &/#'

F+** ,-.% $)$*% -/0 ,)$-$)#/ 7anel (epor 0 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas( )omplaint $y the /nited #tates0 )T*+,27*(*.,A0 a"op e" 25 ,ep ember 49970 as mo"i&ie" b# Appella e !o"# (epor 0 )T*+,27*A!*(0 +,( 4997:110 995 A%ar" o& he Arbi ra or0 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas Ar$itration under Article +,-2&c' of the !#/0 )T*+,27*450 7 Can$ar# 49980 +,( 4998:10 5 7anel (epor 0 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas *ecourse to Article +,-. of the !#/ $y the European )ommunities0 )T*+,27*()*EE-0 42 April 49990 an" -orr/40 $na"op e"0 +,( 4999:110 785 7anel (epor 0 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas *ecourse to Article +,-. of the !#/ $y Ecuador0 )T*+,27*()*E-.0 a"op e" 6 ?a# 49990 +,( 4999:110 805 7anel (epor 0 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas #econd *ecourse to Article +,-. of the !#/ $y Ecuador0 )T*+,27*()2*E-.0 'ir'$la e" o )TO ?embers 7 April 2008 7anel (epor 0 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas *ecourse to Article +,-. of the !#/ $y the /nited #tates0 )T*+,27*()*.,A an" -orr/40 'ir'$la e" o )TO ?embers 49 ?a# 2008 +e'ision b# he Arbi ra ors0 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas *ecourse to Ar$itration $y the European )ommunities under Article ++-3 of the !#/0 )T*+,27*A(!*E-.0 29 ?ar'h 20000 +,( 2000:;0 2257 +e'ision b# he Arbi ra ors0 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas *ecourse to Ar$itration $y the European )ommunities under Article ++-3 of the !#/0 )T*+,27*A(!0 9 April 49990 +,( 4999:110 725 Appella e !o"# (epor 0 European )ommunities )ustoms )lassification of Fro"en Boneless )hic0en )uts0 )T*+,269*A!*(0 )T*+,286*A!*(0 a"op e" 27 ,ep ember 20050 an" -orr/40 +,( 2005:2120 9457 Appella e !o"# (epor 0 European )ommunities Export #u$sidies on #ugar0 )T*+,265*A!*(0 )T*+,266*A!*(0 )T*+,285*A!*(0 a"op e" 49 ?a# 20050 +,( 2005:21110 6565 7anel (epor 0 European )ommunities Export #u$sidies on #ugar( )omplaint $y Australia0 )T*+,265*(0 a"op e" 49 ?a# 20050 as mo"i&ie" b# Appella e !o"# (epor 0 )T*+,265*A!*(0 )T*+,266*A!*(0 )T*+,285*A!*(0 +,( 2005:21110 6999 7anel (epor 0 European )ommunities Export #u$sidies on #ugar( )omplaint $y Bra"il0 )T*+,266*(0 a"op e" 49 ?a# 20050 as mo"i&ie" b# Appella e !o"# (epor 0 )T*+,265*A!*(0 )T*+,266*A!*(0 )T*+,285*A!*(0 +,( 2005:21;0 6795 7anel (epor 0 European )ommunities Export #u$sidies on #ugar( )omplaint $y 4hailand0 )T*+,285*(0 a"op e" 49 ?a# 20050 as mo"i&ie" b# Appella e !o"# (epor 0 )T*+,265*A!*(0 )T*+,266*A!*(0 )T*+,285*A!*(0 +,( 2005:21;0 7074

E) Bananas III &Article +,-2&c'' E) Bananas III &Article +,-. E)'

E) Bananas III &Article +,-. Ecuador' E) Bananas III &Article +,-. Ecuador II' E) Bananas III &Article +,-. /#'

E) Bananas III &Ecuador' &Article ++-3 E)'

E) Bananas III &/#' &Article ++-3 E)'

E) )hic0en )uts

E) Export #u$sidies on #ugar E) Export #u$sidies on #ugar &Australia'

E) Export #u$sidies on #ugar &Bra"il'

E) Export #u$sidies on #ugar &4hailand'

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age vi

S'#($ $)$*% E) Poultry

F+** ,-.% $)$*% -/0 ,)$-$)#/ Appella e !o"# (epor 0 European )ommunities Measures Affecting the Importation of )ertain Poultry Products0 )T*+,69*A!*(0 a"op e" 25 C$l# 49980 +,( 4998:;0 2054 Appella e !o"# (epor 0 European )ommunities #elected )ustoms Matters0 )T*+,545*A!*(0 a"op e" 44 +e'ember 2006 A%ar" o& he Arbi ra or0 European )ommunities 4he A)P E) Partnership Agreement *ecourse to Ar$itration Pursuant to the !ecision of ,5 6ovem$er +77,0 )T*>*6460 4 A$g$s 20050 +,( 2005:221110 44669 A%ar" o& he Arbi ra or0 European )ommunities 4he A)P E) Partnership Agreement #econd *ecourse to Ar$itration Pursuant to the !ecision of ,5 6ovem$er +77,0 )T*>*6250 27 O' ober 20050 +,( 2005:221110 44705 AATT 7anel (epor 0 EE) Import *egime for Bananas0 +,58*(0 44 :ebr$ar# 49990 $na"op e" AATT 7anel (epor 0 European Economic )ommunity Imports of Beef from )anada0 >*50990 a"op e" 40 ?ar'h 49840 !1,+ 28,*92 AATT 7anel (epor 0 EE) Programme of Minimum Import Prices( Licences and #urety !eposits for )ertain Processed Fruits and 8egeta$les 0 >*96870 a"op e" 48 O' ober 49780 !1,+ 25,*68 AATT 7anel (epor 0 Panel on 6e%sprint0 >*56800 a"op e" 20 November 49890 !1,+ 54,*449 7anel (epor 0 India Measures Affecting the Automotive #ector0 )T*+,496*(0 )T*+,475*( an" -orr/40 a"op e" 5 April 20020 +,( 2002:;0 4827 7anel (epor 0 India 9uantitative *estrictions on Imports of Agricultural( 4extile and Industrial Products0 )T*+,90*(0 a"op e" 22 ,ep ember 49990 $phel" b# Appella e !o"# (epor 0 )T*+,90*A!*(0 +,( 4999:;0 4799 7anel (epor 0 Indonesia )ertain Measures Affecting the Automo$ile Industry0 )T*+,59*(0 )T*+,55*(0 )T*+,59*(0 )T*+,69*( an" -orr/4 an" 20 a"op e" 25 C$l# 49980 an" -orr/ 5 an" 90 +,( 4998:;10 2204 Appella e !o"# (epor 0 :apan 4axes on Alcoholic Beverages0 )T*+,8*A!*(0 )T*+,40*A!*(0 )T*+,44*A!*(0 a"op e" 4 November 49960 +,( 4996:10 97 Appella e !o"# (epor 0 :apan Measures Affecting the Importation of Apples0 )T*+,295*A!*(0 a"op e" 40 +e'ember 20050 +,( 2005:120 9594 AATT 7anel (epor 0 :apan 4rade in #emi )onductors0 >*65090 a"op e" 9 ?a# 49880 !1,+ 55,*446 AATT 7anel (epor 0 )anada;:apan 4ariff on Imports of #pruce( Pine( Fir &#PF' !imension Lum$er0 >*69700 a"op e" 49 C$l# 49890 !1,+ 56,*467 AATT 7anel (epor 0 #pain 4ariff 4reatment of /nroasted )offee0 >*54550 a"op e" 44 C$ne 49840 !1,+ 28,*402 7anel (epor 0 4ur0ey *estrictions on Imports of 4extile and )lothing Products0 )T*+,59*(0 a"op e" 49 November 49990 as mo"i&ie" b# Appella e !o"# (epor 0 )T*+,59*A!*(0 +,( 4999:;10 2565 Appella e !o"# (epor 0 /nited #tates Import Measures on )ertain Products from the European )ommunities0 )T*+,465*A!*(0 a"op e" 40 Can$ar# 20040 +,( 2004:10 575

E) #elected )ustoms Matters E) 4he A)P E) Partnership Agreement E) 4he A)P E) Partnership Agreement II EE) Bananas II EE) Imports of Beef EE) Minimum Import Prices EE) 6e%sprint India Autos India 9uantitative *estrictions Indonesia Autos

:apan Alcoholic Beverages II :apan Apples :apan #emi )onductors :apan #PF !imension Lum$er #pain /nroasted )offee 4ur0ey 4extiles

/# )ertain E) Products

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age vii

S'#($ $)$*% /# )orrosion *esistant #teel #unset *evie% /# )ountervailing Measures on )ertain E) Products /# F#) &Article +,-. E) II' /# 1am$ling

F+** ,-.% $)$*% -/0 ,)$-$)#/ Appella e !o"# (epor 0 /nited #tates #unset *evie% of Anti !umping !uties on )orrosion *esistant )ar$on #teel Flat Products from :apan0 )T*+,299*A!*(0 a"op e" 9 Can$ar# 20090 +,( 2009:10 5 Appella e !o"# (epor 0 /nited #tates )ountervailing Measures )oncerning )ertain Products from the European )ommunities0 )T*+,242*A!*(0 a"op e" 8 Can$ar# 20050 +,( 2005:10 5 Appella e !o"# (epor 0 /nited #tates 4ax 4reatment for <Foreign #ales )orporations< #econd *ecourse to Article +,-. of the !#/ $y the European )ommunities0 )T*+,408*A!*()20 a"op e" 49 ?ar'h 2006 Appella e !o"# (epor 0 /nited #tates Measures Affecting the )ross Border #upply of 1am$ling and Betting #ervices0 )T*+,285*A!*(0 a"op e" 20 April 20050 +,( 2005:2110 56650 an" -orr/4 AATT 7anel (epor 0 /nited #tates !enial of Most Favoured 6ation 4reatment as to 6on *u$$er Foot%ear from Bra"il( +,48*(0 a"op e" 49 C$ne 49920 !1,+ 59,*428 Appella e !o"# (epor 0 /nited #tates )ontinued !umping and #u$sidy =ffset Act of +7770 )T*+,247*A!*(0 )T*+,259*A!*(0 a"op e" 27 Can$ar# 20050 +,( 2005:10 575 Appella e !o"# (epor 0 /nited #tates Final )ountervailing !uty !etermination %ith *espect to )ertain #oft%ood Lum$er from )anada *ecourse $y )anada to Article +,-. of the !#/0 )T*+,257*A!*()0 a"op e" 20 +e'ember 20050 +,( 2005:221110 44557 AATT 7anel (epor 0 /nited #tates *estrictions on Imports of #ugar0 >*65490 a"op e" 22 C$ne 49890 !1,+ 56,*554 AATT 7anel (epor 0 /nited #tates *estrictions on the Importation of #ugar and #ugar )ontaining Products Applied under the ,?.. >aiver and under the Headnote to the #chedule of 4ariff )oncessions0 >*66540 a"op e" 7 November 49900 !1,+ 57,*228 AATT 7anel (epor 0 /nited #tates 4axes on Petroleum and )ertain Imported #u$stances0 >*64750 a"op e" 47 C$ne 49870 !1,+ 59,*456 Appella e !o"# (epor 0 /nited #tates #u$sidies on /pland )otton0 )T*+,267*A!*(0 a"op e" 24 ?ar'h 20050 +,( 2005:10 5 Appella e !o"# (epor 0 /nited #tates #u$sidies on /pland )otton *ecourse to Article +,-. of the !#/ $y Bra"il0 )T*+,267*A!*()0 a"op e" 20 C$ne 2008 7anel (epor 0 /nited #tates Measure Affecting Imports of >oven >ool #hirts and Blouses from India0 )T*+,55*(0 a"op e" 25 ?a# 49970 $phel" b# Appella e !o"# (epor 0 )T*+,55*A!*(0 +,( 4997:10 595

/# MF6 Foot%ear

/# =ffset Act &Byrd Amendment ' /# #oft%ood Lum$er I8 &Article +,-. )anada'

/# #ugar /# #ugar >aiver

/# #uperfund /# /pland )otton /# /pland )otton &Article +,-. Bra"il' /# >ool #hirts and Blouses

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age viii E- (EA.>AT1ON, -1TE+ 1N T<1, (E7O(T

S'#($ $)$*% EE- (eg$la ion 909*95 F+** $)$*% #1 R%2+*-$)#/ -/0 ,)$-$)#/ -o$n'il (eg$la ion (EE-) No/ 909*95 o& 45 :ebr$ar# 4995 on he 'ommon organisa ion o& he mar@e in bananas0 =fficial :ournal of the European )ommunities0 > ,eries0 No/ 97 (25 :ebr$ar# 4995) 4 -ommission (eg$la ion (EE-) No/ 4992*95 o& 40 C$ne 4995 la#ing "o%n "e aile" r$les &or he appli'a ion o& he arrangemen s &or impor ing bananas in o he -omm$ni #0 =fficial :ournal of the European /nion0 > ,eries0 No/ 492 (42 C$ne 4995) 6 -o$n'il (eg$la ion (E-) No/ 4657*98 o& 20 C$l# 4998 amen"ing -o$n'il (eg$la ion (EE-) No/ 909*95 on he 'ommon organisa ion o& he mar@e in bananas0 =fficial :ournal of the European )ommunities0 > ,eries0 No/ 240 (28 C$l# 4998) 28 -ommission (eg$la ion (E-) No/ 2562*98 o& 28 O' ober 4998 la#ing "o%n "e aile" r$les &or he implemen a ion o& -o$n'il (eg$la ion (EE-) No/ 909*95 regar"ing impor s o& bananas in o he -omm$ni #0 =fficial :ournal of the European )ommunities0 > ,eries0 No/ 295 (28 O' ober 4998) 52 -o$n'il (eg$la ion (E-) No/ 246*2004 o& 29 Can$ar# 2004 amen"ing (eg$la ion (EE-) No/ 909*95 on he 'ommon organisa ion o& he mar@e in bananas0 =fficial :ournal of the European )ommunities0 > ,eries0 No/ 54 (2 :ebr$ar# 2004) 2 -o$n'il (eg$la ion (E-) No/ 2587*2004 o& 49 +e'ember 2004 amen"ing (eg$la ion (EE-) No/ 909*95 on he 'ommon organisa ion o& he mar@e in bananas0 =fficial :ournal of the European )ommunities0 > ,eries0 No/ 595 (29 +e'ember 2004) 45 -o$n'il (eg$la ion (E-) No/ 4969*2005 o& 29 November 2005 on he ari&& ra es &or bananas0 =fficial :ournal of the European /nion0 > ,eries0 No/ 546 (2 +e'ember 2005) 4 -ommission (eg$la ion (E-) No/ 2049*2005 o& 9 +e'ember 2005 on li'en'es $n"er he arrangemen s &or impor ing bananas in o he -omm$ni # in respe' o& bananas release" in o &ree 'ir'$la ion a he 'ommon '$s oms ari&& ra e o& "$ #0 =fficial :ournal of the European /nion0 > ,eries0 No/ 529 (40 +e'ember 2005) 5 -ommission (eg$la ion (E-) No/ 2045*2005 o& 9 +e'ember 2005 on impor s "$ring Can$ar# an" :ebr$ar# 2006 o& bananas origina ing in A-7 'o$n ries $n"er he ari&& D$o a opene" b# -o$n'il (eg$la ion (E-) No/ 4969*2005 on he ari&& ra es &or bananas0 =fficial :ournal of the European /nion0 > ,eries0 No/ 529 (40 +e'ember 2005) 5 -ommission (eg$la ion (E-) No/ 2499*2005 o& 25 +e'ember 2005 &i3ing he re"$' ion 'oe&&i'ien s o be applie" o appli'a ions &or impor li'en'es &or bananas origina ing in he A-7 'o$n ries &or he mon hs o& Can$ar# an" :ebr$ar# 20060 =fficial :ournal of the European /nion0 > ,eries0 No/ 592 (29 +e'ember 2005) 49 -ommission (eg$la ion (E-) No/ 249*2006 o& 8 :ebr$ar# 2006 opening an" provi"ing &or he a"minis ra ion o& he ari&& D$o a &or bananas &alling $n"er -N 'o"e 0805 00 49 origina ing in A-7 'o$n ries &or he perio" 4 ?ar'h o 54 +e'ember 20060 =fficial :ournal of the European /nion0 > ,eries0 No/ 58 (9 :ebr$ar# 2006) 22

EE- (eg$la ion 4992*95

E- (eg$la ion 4657*98

E- (eg$la ion 2562*98

E- (eg$la ion 246*2004

E- (eg$la ion 2587*2004

E- (eg$la ion 4969*2005

E- (eg$la ion 2049*2005

E- (eg$la ion 2045*2005

E- (eg$la ion 2499*2005

E- (eg$la ion 249*2006

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age i3

S'#($ $)$*% E- (eg$la ion 525*2006

F+** $)$*% #1 R%2+*-$)#/ -/0 ,)$-$)#/ -ommission (eg$la ion (E-) No/ 525*2006 o& 25 :ebr$ar# 2006 &i3ing he re"$' ion 'oe&&i'ien o be applie" o appli'a ions &or impor li'en'es &or bananas origina ing in he A-7 'o$n ries &or he perio" 4 ?ar'h o 54 +e'ember 20060 =fficial :ournal of the European /nion0 > ,eries0 No/ 59 (29 :ebr$ar# 2006) 8 -ommission (eg$la ion (E-) No/ 566*2006 o& 6 April 2006 on amen"ing an" "eroga ing &rom (eg$la ion (E-) No/ 2049*2005 on li'en'es $n"er he arrangemen s &or impor ing bananas in o he -omm$ni # in respe' o& bananas release" in o &ree 'ir'$la ion a he 'ommon '$s oms ari&& ra e o& "$ # an" amen"ing (eg$la ion (E-) No/ 249*2006 opening an" provi"ing &or he a"minis ra ion o& ari&& D$o a &or bananas &alling $n"er -N 'o"e 0805 00 49 origina ing in A-7 'o$n ries &or he perio" 4 ?ar'h o 54 +e'ember 20060 =fficial :ournal of the European /nion0 > ,eries0 No/ 99 (7 April 2006) 6 -ommission (eg$la ion (E-) No/ 966*2006 o& 29 C$ne 2006 amen"ing (eg$la ion (E-) No/ 249*2006 opening an" provi"ing &or he a"minis ra ion o& he ari&& D$o a &or bananas &alling $n"er -N 'o"e 0805 00 49 origina ing in A-7 'o$n ries &or he perio" 4 ?ar'h o 54 +e'ember 20060 =fficial :ournal of the European /nion0 > ,eries0 No/ 476 (50 C$ne 2006) 24 -ommission (eg$la ion (E-) No/ 4264*2006 o& 25 A$g$s 2006 amen"ing (eg$la ion (E-) No/ 249*2006 opening an" provi"ing &or he a"minis ra ion o& he ari&& D$o a &or bananas &alling $n"er -N 'o"e 0805 00 49 origina ing in A-7 'o$n ries &or he perio" 4 ?ar'h o 54 +e'ember 20060 =fficial :ournal of the European /nion0 > ,eries0 No/ 250 (29 A$g$s 2006) 5 -ommission (eg$la ion (E-) No/ 4599*2006 o& 47 O' ober 2006 amen"ing Anne3 1 o -o$n'il (eg$la ion (EE-) No/ 2658*87 on he ari&& an" s a is i'al nomen'la $re an" he -ommon -$s oms Tari&&0 O&&i'ial Co$rnal o& he E$ropean .nion0 54*40*2006 -ommission (eg$la ion (E-) No/ 4789*2006 o& 5 +e'ember 2006 opening an" provi"ing &or he a"minis ra ion o& he ari&& D$o a &or he impor o& bananas &alling $n"er -N 'o"e 0805 00 49 origina ing in A-7 'o$n ries &or he perio" 4 Can$ar# o 54 +e'ember 20070 =fficial :ournal of the European /nion0 > ,eries0 No/ 559 (6 +e'ember 2006) 5 -ommission (eg$la ion (E-) No/ 59*2007 o& 46 Can$ar# 2007 &i3ing he allo'a ion 'oe&&i'ien o be applie" o appli'a ions &or impor li'en'es &or bananas origina ing in he A-7 'o$n ries &or he perio" o 54 +e'ember 20070 =fficial :ournal of the European /nion0 > ,eries0 No/ 40 (47 Can$ar# 2007) 9 -ommission (eg$la ion (E-) No/ 97*2007 o& 49 Can$ar# 2007 amen"ing (eg$la ion (E-) No/ 59*2007 &i3ing he allo'a ion 'oe&&i'ien o be applie" o appli'a ions &or impor li'en'es &or bananas origina ing in he A-7 'o$n ries &or he perio" o 54 +e'ember 2007 -o$n'il (eg$la ion (E-) No/ 4528*2007 o& 20 +e'ember 2007 appl#ing he arrangemen s &or pro"$' s origina ing in 'er ain s a es %hi'h are par o& he A&ri'an0 -aribbean an" 7a'i&i' (A-7) Aro$p o& , a es provi"e" &or in agreemen s es ablishing0 or lea"ing o he es ablishmen o&0 E'onomi' 7ar nership Agreemen s0 =fficial :ournal of the European /nion0 > ,eries0 No/ 598 (54 +e'ember 2007) 4

E- (eg$la ion 566*2006

E- (eg$la ion 966*2006

E- (eg$la ion 4264*2006

E- (eg$la ion 4599*2006

E- (eg$la ion 4789*2006

E- (eg$la ion 59*2007

E- (eg$la ion 97*2007

E- (eg$la ion 4528*2007

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 3 A!!(E;1AT1ON, .,E+ 1N T<1, (E7O(T A33(%4)-$)#/ A-7 Anti !umping Agreement !ananas :rame%or@ Agreemen A&ri'an0 -aribbean0 7a'i&i' Agreement on Implementation of Article 8I of the 1eneral Agreement on 4ariffs and 4rade ,??5 Anne3e" o bo h E- ,'he"$le >222 an" E- ,'he"$le -2>0 originall# nego ia e" in 4999 b# he E$ropean -omm$ni ies %i h -olombia0 -os a (i'a0 Ni'arag$a0 an" ;ene=$ela (repro"$'e" in Anne3 ;11 o his (epor ) 7ar nership Agreemen be %een he ?embers o& he A&ri'an0 -aribbean an" 7a'i&i' Aro$p o& , a es o& he one par 0 an" he E$ropean -omm$ni # an" i s ?ember , a es o& he o her par 0 signe" in -o ono$0 !enin on 25 C$ne 2000 :o$r h ,ession o& he ?inis erial -on&eren'e hel" in +oha0 E$ropean -omm$ni ies 8 The A-7-E- 7ar nership Agreemen 0 +e'ision o& 49 November 20040 )T*?1N(04)*45B )T*>*956 (7anel E3hibi s .,-5 an" E--2 (E'$a"or)) (Anne3 ; o his (epor ) :o$r h ,ession o& he ?inis erial -on&eren'e hel" in +oha0 E$ropean -omm$ni ies 8 Transi ional (egime &or he E- A$ onomo$s Tari&& (a e E$o as on 1mpor s o& !ananas0 +e'ision o& 49 November 20040 )T*?1N(04)*46B )T*>*957 (7anel E3hibi .,-5) +isp$ e ,e lemen !o"# /nderstanding on *ules and Procedures 1overning the #ettlement of !isputes !ananas impor regime he E$ropean -omm$ni ies ha" in pla'e be %een 4 Can$ar# 2006 an" 54 +e'ember 2007 #ee list a$ove 7anel (epor 0 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas #econd *ecourse to Article +,-. of the !#/ $y Ecuador0 )T*+,27*()2*E-. ,'he"$le >222 o& he E$ropean -omm$ni ies0 Final Act Em$odying the *esults of the /ruguay *ound of Multilateral 4rade 6egotiations 0 "one a ?arra@esh0 45 April 4999 7anel in European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas *ecourse to Article +,-. of the !#/ $y Ecuador 1eneral Agreement on 4rade in #ervices 1eneral Agreement on 4ariffs and 4rade ,??5 1n erna ional >a% -ommission D%1)/)$)#/

-o ono$ Agreemen

+oha Ar i'le 1 )aiver

+oha Ar i'le 2111 )aiver

+,! +,. E- !ananas 1mpor (egime E-*EE- (eg$la ion FG E'$a"or 7anel (epor

E$ropean -omm$ni ies6 ,'he"$le o& -on'essions :irs E'$a"or Ar i'le 24/5 panel AAT, AATT 4999 1>-

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 3i

A33(%4)-$)#/ >omH )aiver

D%1)/)$)#/ The :o$r h A-7-EE- -onven ion o& >omH0 +e'ision o& he -ONT(A-T1NA 7A(T1E, o& 9 +e'ember 49990 >*76090 49 +e'ember 4999B e3 en"e" b# E- 8 The :o$r h A-7-EE-onven ion o& >omH0 E3 ension o& )aiver0 +e'ision o& he )TO Aeneral -o$n'il o& 49 O' ober 49960 )T*>*4860 48 O' ober 4996 ?os -&avo$re" na ion ?o"ali ies &or he Es ablishmen o& ,pe'i&i' !in"ing -ommi men s0 No e b# he -hairman o& he ?ar@e A''ess Aro$p0 ?TN/ANA*?A*)*290 20 +e'ember 4995 ?e ri' onne 7anel in European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas &Ecuador' &1uatemala and Honduras' &Mexico' and &/#' 7anels in European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas #econd *ecourse to Article +,-. of the !#/ $y Ecuador an" European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas *ecourse to Article +,-. of the !#/ $y the /nited #tates Agreement on #u$sidies and )ountervailing Measures Agreement on 4rade *elated Aspects of Intellectual Property *ights .n"ers an"ing on !ananas be %een he E$ropean -omm$ni ies an" he .ni e" , a es signe" on 44 April 2004 ()T*+,27*590 A*-*)*270B )T*+,27*580 En'los$re 4)B an" .n"ers an"ing on !ananas be %een he E$ropean -omm$ni ies an" E'$a"or signe" on 50 April 2004 ()T*+,27*600 A*-*)*279B )T*+,27*580 En'los$re 2) 7anel (epor 0 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas *ecourse to Article +,-. of the !#/ $y the /nited #tates0 )T*+,27*()*.,A an" -orr/4 8ienna )onvention on the La% of 4reaties0 "one a ;ienna0 25 ?a# 49690 4455 .NT, 554B 8 1n erna ional >egal ?a erials 679 >or0ing Procedures for Appellate *evie%0 )T*A!*)7*50 9 Can$ar# 2005 )orl" Tra"e Organi=a ion Marra0esh Agreement Esta$lishing the >orld 4rade =rgani"ation

?:N ?o"ali ies 7aper

m Original panel

7anel

#)M Agreement 4*IP# Agreement .n"ers an"ings on !ananas

., 7anel (epor

8ienna )onvention >or0ing Procedures )TO >4= Agreement

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 4 )O(>+ T(A+E O(AAN1IAT1ON A77E>>ATE !O+J E+(#5%-/ C#66+/)$)%. R%2)6% 1#( $'% I65#($-$)#/, S-*% -/0 D).$()3+$)#/ #1 B-/-/-. ,e'on" (e'o$rse o Ar i'le 24/5 o& he +,. b# E'$a"or E+(#5%-/ C#66+/)$)%. R%2)6% 1#( $'% I65#($-$)#/, S-*% -/0 D).$()3+$)#/ #1 B-/-/-. (e'o$rse o Ar i'le 24/5 o& he +,. b# he .ni e" , a es E$ropean -omm$ni ies0 Appellant;Appellee E'$a"or0 =ther Appellant;Appellee;4hird Participant .ni e" , a es0 Appellee;4hird Participant !eli=e0 4hird Participant !ra=il0 4hird Participant -ameroon0 4hird Participant -olombia0 4hird Participant -K e "61voire0 4hird Participant +omini'a0 4hird Participant +omini'an (ep$bli'0 4hird Participant Ahana0 4hird Participant 4 Camai'a0 4hird Participant Capan0 4hird Participant ?e3i'o0 4hird Participant 2 Ni'arag$a0 4hird Participant 7anama0 4hird Participant ,ain >$'ia0 4hird Participant ,ain ;in'en an" he Arena"ines0 4hird Participant ,$riname0 4hird Participant I. 4/ I/$(#0+,$)#/ The E$ropean -omm$ni ies an" E'$a"or ea'h appeals 'er ain iss$es o& la% an" legal A!-2008-8

A!-2008-9

7resen : !ap is a0 7resi"ing ?ember Oshima0 ?ember .n erhal er0 ?ember

in erpre a ions "evelope" in he 7anel (epor 0 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas #econd *ecourse to Article +,-. of the !#/ $y Ecuador 4 ( he LE'$a"or 7anel (epor L)/ The E$ropean -omm$ni ies appeals 'er ain iss$es o& la% an" legal in erpre a ions "evelope" in he 7anel (epor 0 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas *ecourse to Article +,-. of the !#/ $y the /nited #tates 2 ( he L., 7anel (epor L)/
4 2

1n he E'$a"or 'ase onl#/ 1n he .ni e" , a es 'ase onl#/ 4 )T*+,27*()2*E-.0 7 April 2008/ 2 )T*+,27*()*.,A an" -orr/40 49 ?a# 2008/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 2 2/ T%o panels %ere es ablishe"5 p$rs$an o Ar i'le 24/5 o& he /nderstanding on *ules and

Procedures 1overning the #ettlement of !isputes ( he L+,.L) o 'onsi"er 'omplain s b# E'$a"or 9 an" b# he .ni e" , a es 5 'on'erning he 'onsis en'# %i h he 1eneral Agreement on 4ariffs and 4rade ,??5 ( he LAATT 4999L) o& 'er ain meas$res a@en b# he E$ropean -omm$ni ies in ro"$'ing a ne% regime &or he impor a ion o& bananas/ 6 The E'$a"or 7anel %as es ablishe" on 20 ?ar'h 2007 an" he .ni e" , a es 7anel %as es ablishe" on 42 C$l# 2007/ !o h E'$a"or an" he .ni e" , a es reD$es e" ha he ma er be re&erre"0 i& possible0 o he original panel in E) Bananas III0 p$rs$an o Ar i'le 24/5 o& he +,./ T%o o& he hree panelis s &rom he original pro'ee"ings %ere available o serve in he presen pro'ee"ings/ As he &inal 'omposi ion o& bo h 7anels %as i"en i'al0 in his (epor %e re&er o bo h 7anels 'olle' ivel# as he L7anelL/ 5/ Ta@en oge her0 he panel reD$es s i"en i&ie" he &ollo%ing meas$res as being in'onsis en

%i h he E$ropean -omm$ni ies6 obliga ions $n"er he AATT 4999: -o$n'il (eg$la ion (EE-) No/ 909*95 o& 45 :ebr$ar# 49957 (LEE- (eg$la ion 909*95L)0 as amen"e" b# -o$n'il (eg$la ion (E-) No/ 246*2004 o& 29 Can$ar# 20048 (LE- (eg$la ion 246*2004L)B -o$n'il (eg$la ion (E-) No/ 4969*2005 o& 29 November 20059 (LE- (eg$la ion 4969*2005L)B implemen ing meas$res0 an" o her rela e" meas$res/ 40 an" an# amen"men s0 E- (eg$la ion 4969*2005 amen"e"

EE- (eg$la ion 909*95 an" in ro"$'e" a ne% regime &or he impor a ion o& bananas/ The ne% s#s em en ere" in o &or'e on 4 Can$ar# 2006 an" es ablishe": (i) a single ari&& ra e o& M476 per me ri' onne (Lm L) &or bananas o& all origins (mos -&avo$re" na ion (L?:NL) bananas) 44B an" (ii) a ari&& D$o a o& 7750000 m s$bNe' o a =ero-"$ # ra e &or impor s o& bananas origina ing in A&ri'an0 -aribbean0 an" 7a'i&i' (LA-7L) 'o$n ries/42
)T*+,27*82B )T*+,27*89/ (eD$es &or he Es ablishmen o& a 7anel b# E'$a"or0 )T*+,27*80/ 5 (eD$es &or he Es ablishmen o& a 7anel b# he .ni e" , a es0 )T*+,27*85/ 6 E'$a"or 7anel (epor 0 para/ 2/4B ., 7anel (epor 0 para/ 2/4/ The re'ommen"a ions an" r$lings o& he +,! res$l e" &rom he a"op ion on 25 ,ep ember 49970 b# he +,!0 o& he Appella e !o"# (epor 0 )T*+,27*A!*(0 an" he 7anel (epor s0 )T*+,27*(*E-.0 )T*+,27*(*AT?0 )T*+,27*(*<N+0 )T*+,27*(*?E20 an" )T*+,27*(*.,A0 in E) Bananas III/ 1n his (epor 0 %e re&er o he panel ha 'onsi"ere" he original 'omplain as he Loriginal panelLB %e re&er o he panel ha 'onsi"ere" he &irs 'omplian'e pro'ee"ings bro$gh b# E'$a"or as he L&irs E'$a"or Ar i'le 24/5 panelLB an" %e re&er o he panels in he %o presen Ar i'le 24/5 pro'ee"ings 'olle' ivel# as he L7anelL/ 7 -o$n'il (eg$la ion (EE-) No/ 909*95 o& 45 :ebr$ar# 4995 on he 'ommon organisa ion o& he mar@e in bananas0 =fficial :ournal of the European )ommunities0 > ,eries0 No/ 97 (25 :ebr$ar# 4995) 4/ 8 -o$n'il (eg$la ion (E-) No/ 246*2004 o& 29 Can$ar# 2004 amen"ing (eg$la ion (EE-) No/ 909*95 on he 'ommon organisa ion o& he mar@e in bananas0 =fficial :ournal of the European )ommunities 0 > ,eries0 No/ 54 (2 :ebr$ar# 2004) 2/ 9 -o$n'il (eg$la ion (E-) No/ 4969*2005 o& 29 November 2005 on he ari&& ra es &or bananas0 =fficial :ournal of the European /nion0 > ,eries0 No/ 546 (2 +e'ember 2005) 4 (7anel E3hibi s E-.-4 an" .,-4)/ 40 (eD$es &or he Es ablishmen o& a 7anel b# E'$a"or0 )T*+,27*800 p/ 9B (eD$es &or he Es ablishmen o& a 7anel b# he .ni e" , a es0 )T*+,27*850 pp/ 2-5/ 44 E- (eg$la ion 4969*20050 Ar i'le 4/4/ 42 E- (eg$la ion 4969*20050 Ar i'le 4/2/
9 5

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 5 9/ 1n he original E) Bananas III pro'ee"ings0 E'$a"or0 A$a emala0 <on"$ras0 ?e3i'o0 an"

he .ni e" , a es 'hallenge" he E$ropean -omm$ni ies6 bananas impor regime in &or'e a ha ime/ The original panel an" he Appella e !o"# in he original "isp$ e r$le" ha he allo'a ion o& ari&& D$o a shares $n"er EE- (eg$la ion 909*95 %as in'onsis en %i h Ar i'le 2111 o& he AATT 4999 an" %as no N$s i&ie" b# ei her he L!ananas :rame%or@ Agreemen L 450 anne3e" o he E$ropean -omm$ni ies6 ,'he"$le0 or he Agreement on Agriculture/
49

The Appella e !o"# &o$n" ha

he

L>omH )aiverL "i" no appl# o viola ions o& Ar i'le 2111 o& he AATT 4999/ The Appella e !o"# an" he original panel also &o$n" ha li'en'e allo'a ion pro'e"$res viola e" Ar i'les 1:4 an" 111:9 o& he AATT 4999 an" Ar i'les 11 an" 2;11 o& he 1eneral Agreement on 4rade in #ervices ( he LAAT,L)/45 On 25 ,ep ember 49970 he +isp$ e ,e lemen !o"# ( he L+,!L) a"op e" he 7anel an" Appella e !o"# (epor s in E) Bananas III an" re'ommen"e" ha he E$ropean -omm$ni ies bring i s meas$res in o 'on&ormi # %i h he 'overe" agreemen s/ On 20 C$l# 49980 he E$ropean -omm$ni ies a"op e" -o$n'il (eg$la ion (E-) No/ 4657*9846 (LE- (eg$la ion 4657*98L) amen"ing EE- (eg$la ion 909*95 an"0 on 28 O' ober 49980 a"op e" -ommission (eg$la ion (E-) No/ 2562*9847 (LE- (eg$la ion 2562*98L) repealing -ommission (eg$la ion (EE-) No/ 4992*95 o& 40 C$ne 499548 (LEE- (eg$la ion 4992*95L)/

:rame%or@ Agreemen on !ananas0 anne3e" o bo h E- ,'he"$le >222 an" E- ,'he"$le -2>0 originall# nego ia e" in 4999 b# he E$ropean -omm$ni ies %i h -olombia0 -os a (i'a0 Ni'arag$a0 an" ;ene=$ela (repro"$'e" in Anne3 ;11 a a'he" o his (epor )/ 49 The :o$r h A-7-EE- -onven ion o& >omH0 +e'ision o& he -ONT(A-T1NA 7A(T1E, o& 9 +e'ember 49990 >*76090 49 +e'ember 4999 ( he L>omH )aiverL)B e3 en"e" b# E- 8 The :o$r h A-7-EE-onven ion o& >omH0 E3 ension o& )aiver0 +e'ision o& he )TO Aeneral -o$n'il o& 49 O' ober 49960 )T*>*4860 48 O' ober 4996/ 45 Appella e !o"# (epor 0 E) Bananas III0 para/ 225/ The original panel an" he Appella e !o"# &o$n" ha his viola ion o& Ar i'le 1:4 %as no N$s i&ie" b# he >omH )aiver &rom Ar i'le 10 be'a$se i %as no reD$ire" b# he Lom@ )onvention/ 46 -o$n'il (eg$la ion (E-) No/ 4657*98 o& 20 C$l# 4998 amen"ing -o$n'il (eg$la ion (EE-) No/ 909*95 on he 'ommon organisa ion o& he mar@e in bananas0 =fficial :ournal of the European )ommunities0 > ,eries0 No/ 240 (28 C$l# 4998) 28/ 47 -ommission (eg$la ion (E-) No/ 2562*98 o& 28 O' ober 4998 la#ing "o%n "e aile" r$les &or he implemen a ion o& -o$n'il (eg$la ion (EE-) No/ 909*95 regar"ing impor s o& bananas in o he -omm$ni #0 =fficial :ournal of the European )ommunities0 > ,eries0 No/ 295 (28 O' ober 4998) 52/ 48 -ommission (eg$la ion (EE-) No/ 4992*95 o& 40 C$ne 4995 la#ing "o%n "e aile" r$les &or he appli'a ion o& he arrangemen s &or impor ing bananas in o he -omm$ni #0 =fficial :ournal of the European /nion0 > ,eries0 No/ 492 (42 C$ne 4995) 6/

45

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 9 5/ On 48 +e'ember 49980 E'$a"or reD$es e" pro'ee"ings p$rs$an o Ar i'le 24/5 o& he +,.0 he meas$res a@en b# he E$ropean -omm$ni ies &aile" o implemen he +,!6s

alleging ha

re'ommen"a ions an" r$lings/ The &irs 'omplian'e panel reD$es e" b# E'$a"or ( he L&irs E'$a"or Ar i'le 24/5 panelL) &o$n" ha he meas$res a@en b# he E$ropean -omm$ni ies o implemen he +,!6s re'ommen"a ions an" r$lings %ere in'onsis en %i h Ar i'les 1 an" 2111 o& he AATT 4999 an" Ar i'les 11 an" 2;11 o& he AAT,/ The &irs E'$a"or Ar i'le 24/5 panel repor %as no appeale" an" %as a"op e" b# he +,! on 6 ?a# 4999/49 6/ 7$rs$an o Ar i'le 49/4 o& he +,.0 he &irs E'$a"or Ar i'le 24/5 panel s$gges e" ha he

E$ropean -omm$ni ies 'o$l" bring i s meas$res in o 'on&ormi # b#: (i) appl#ing a ari&&-onl# s#s em %i ho$ a ari&& D$o a ha 'o$l" in'l$"e a pre&eren'e &or A-7 'o$n ries 'overe" b# a %aiver or a &ree ra"e agreemen 'onsis en %i h Ar i'le 221; o& he AATT 4999B (ii) appl#ing a ari&&-onl# s#s em %i h a pre&eren ial ari&& D$o a &or A-7 'o$n ries 'overe" b# a s$i able %aiverB or (iii) main aining i s bo$n" an" a$ onomo$s ?:N ari&& D$o as0 ei her %i ho$ allo'a ing 'o$n r#-spe'i&i' shares or b# allo'a ing s$'h shares b# agreemen %i h all s$bs an ive s$ppliers 'onsis en l# %i h Ar i'le 2111:2 o& he AATT 4999/ The ?:N ari&& D$o a 'o$l" be 'ombine" %i h he e3 ension o& "$ #-&ree rea men o A-7 'o$n ries 'overe" b# he >omH )aiver &rom Ar i'le 1 o& he AATT 4999 or %i h a pre&eren ial ari&& D$o a &or A-7 'o$n ries0 provi"e" a %aiver &rom Ar i'le 2111 o& he AATT 4999 %as ob aine"/20 7/ 1n an arbi ra ion p$rs$an o Ar i'le 22/6 o& he +,. involving he .ni e" , a es an" he

E$ropean -omm$ni ies0 he arbi ra ors "e ermine"0 as a preliminar# ma er0 ha he revise" bananas impor regime o& he E$ropean -omm$ni ies %as in'onsis en %i h Ar i'les 1 an" 2111 o& he AATT 4999 an" Ar i'les 11 an" 2;11 o& he AAT,/24 :ollo%ing he e3pir# o& he reasonable perio" o& ime &or he E$ropean -omm$ni ies o 'ompl# %i h he +,!6s re'ommen"a ions an" r$lings in E) Bananas III0 he .ni e" , a es reD$es e" an" ob aine" a$ hori=a ion o s$spen" 'on'essions p$rs$an o Ar i'le 22 o& he +,./ 7$rs$an o arbi ra ions on he level o& s$spension o& 'on'essions an" o her obliga ions in he #ears 4999 an" 20000 he +,! a$ hori=e" he .ni e" , a es o s$spen" 'on'essions or o her obliga ions $p o an amo$n o& .,O494/9 million per #ear0 an" E'$a"or $p o an amo$n o& .,O204/6 million per #ear/ 22 The .ni e" , a es s$spen"e" ari&& 'on'essionsB E'$a"or0 ho%ever0 "i" no e3er'ise i s righ s o s$spen" 'on'essions an" o her obliga ions $n"er he AATT 49990 he AAT,0 or he Agreement on 4rade *elated Aspects of Intellectual Property *ights ( he L4*IP# Agreement L)/
7anel (epor 0 E) Bananas III &Article +,-. Ecuador'0 para/ 7/4/ 7anel (epor 0 E) Bananas III &Article +,-. Ecuador'0 paras/ 6/456-6/458/ 24 +e'ision b# he Arbi ra ors0 E) Bananas III &/#' &Article ++-3 E)'0 paras/ 9/8 an" 5/96-5/98/ 22 +e'ision b# he Arbi ra ors0 E) Bananas III &/#' &Article ++-3 E)'0 para/ 8/4B +e'ision b# he Arbi ra ors0 E) Bananas III &Ecuador' &Article ++-3 E)'0 para/ 475(a)/
20 49

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 5 8/ On 44 April an" 50 April 20040 he E$ropean -omm$ni ies signe" %o separa e

.n"ers an"ings on !ananas: one %i h he .ni e" , a es an" one %i h E'$a"or/ On 22 C$ne 20040 he E$ropean -omm$ni ies no i&ie" bo h .n"ers an"ings o he +,! as a Lm$ $all# agree" sol$ ionL %i hin he meaning o& Ar i'le 5/6 o& he +,./25 On 2 an" 9 C$l# 20040 he .ni e" , a es an" E'$a"or iss$e" separa e 'omm$ni'a ions s a ing ha 0 %hile he .n"ers an"ings i"en i&ie" he means b# %hi'h he long-s an"ing "isp$ e over he E$ropean -omm$ni ies6 bananas impor regime 'o$l" be solve"0 he .n"ers an"ings "i" no in hemselves 'ons i $ e a Lm$ $all# agree" sol$ ionL p$rs$an Ar i'le 5/6 o& he +,./29 9/ 7aragraphs ! an" - (E'$a"or an" .ni e" , a es) an" A (E'$a"or) o& he .n"ers an"ings on o

!ananas provi"e: !/ 1n a''or"an'e %i h Ar i'le 46(4) o& (eg$la ion No/ (EE-) 909*95 (as amen"e" b# (eg$la ion No/ (E-) 246*2004)0 he E$ropean -omm$ni ies (E-) %ill in ro"$'e a Tari&& Onl# regime &or impor s o& bananas no la er han 4 Can$ar# 2006/ F///25G 1n he in erim0 he E- %ill implemen an impor regime on he basis o& his ori'al li'ensing as &ollo%s : 4/ E&&e' ive 4 C$l# 20040 he E- %ill implemen an impor regime on he basis o& his ori'al li'ensing as se o$ in Anne3 4/ E&&e' ive as soon as possible herea& er0 s$bNe' o -o$n'il an" E$ropean 7arliamen approval an" o a"op ion o& he Ar i'le 2111 %aiver re&erre" o in paragraph :0 he E- %ill implemen an impor regime on he basis o& his ori'al li'ensing as se o$ in Anne3 2/ The -ommission %ill see@ o ob ain he implemen a ion o& s$'h an impor regime as soon as possible/

-/

2/

A/

The E- an" E'$a"or 'onsi"er ha his .n"ers an"ing 'ons i $ es a m$ $all# agree" sol$ ion o he bananas "isp$ e/

E) Bananas III0 No i&i'a ion o& ?$ $all# Agree" ,ol$ ion0 )T*+,27*58/ E) Bananas III0 -omm$ni'a ion &rom he .ni e" , a es0 )T*+,27*590 A*-*)*270B E) Bananas III0 .n"ers an"ing on !ananas be %een E'$a"or an" he E-0 )T*+,27*600 A*-*)*279/ 25 1n he .n"ers an"ing %i h E'$a"or0 paragraph ! in'l$"e" he &ollo%ing sen en'e: LAATT Ar 2;111 nego ia ions shall be ini ia e" in goo" ime o ha e&&e' 0 re'ogni=ing E'$a"or as he prin'ipal s$pplier in hese nego ia ions/L
29

25

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 6 40/ On 49 November 20040 he ?inis erial -on&eren'e mee ing in +oha a"op e" %o %aivers

'on'erning he E$ropean -omm$ni ies6 bananas impor regime/ The &irs %aiver0 &rom Ar i'le 1:4 o& he AATT 4999 ( he L+oha Ar i'le 1 )aiverL26)0 %as ne'essar# o permi he E$ropean -omm$ni ies o provi"e pre&eren ial ari&& rea men &or pro"$' s origina ing in A-7 s a es as reD$ire" b# he relevan provisions o& he so-'alle" L-o ono$ Agreemen L/ 27 The se'on" %aiver0 &rom Ar i'le 2111 o& he AATT 4999 ( he L+oha Ar i'le 2111 )aiverL28)0 'on'erne" he E$ropean -omm$ni ies6 separa e ari&& D$o a o& 7500000 m &or bananas o& A-7 origin/ The +oha Ar i'le 2111 )aiver %as gran e" $n il 54 +e'ember 20050 h$s 'overing he perio" $n il he en r# in o &or'e o& he E$ropean -omm$ni ies6 ari&&-onl# regime on 4 Can$ar# 20060 as &oreseen b# he .n"ers an"ings on !ananas/ 44/ The +oha Ar i'le 1 )aiver 'on aine" a separa e LAnne3 on !ananasL0 %hi'h se o$ a

spe'ial pro'e"$re &or he rebin"ing o& he E$ropean -omm$ni ies6 ari&& on bananas/ This pro'e"$re in'l$"e" a spe'ial %o-s age arbi ra ion o "e ermine %he her he E$ropean -omm$ni ies propose" rebin"ing %o$l" res$l Lin a leas main aining o al mar@e a''ess &or ?:N s$ppliersL/ The Anne3 on !ananas also provi"e" ha 0 s$bNe' o he &$l&ilmen o& he reD$iremen s o& he spe'ial rebin"ing pro'e"$re0 he +oha Ar i'le 1 )aiver applie" in he 'ase o& bananas $n il 54 +e'ember 2007/ 42/ On 24 Can$ar# 20020 he E$ropean -omm$ni ies in&orme" he +,! o& he a"op ion o& he agen"a i em rela ing o he

-o$n'il (eg$la ion (E-) No/ 2587*200429 (LE- (eg$la ion 2587*2004L)/ A he +,! mee ing hel" on 4 :ebr$ar# 20020 he E$ropean -omm$ni ies reD$es e" ha implemen a ion o& he +,!6s re'ommen"a ions an" r$lings 'on'erning he E$ropean -omm$ni ies6

:o$r h ,ession o& he ?inis erial -on&eren'e hel" in +oha0 E$ropean -omm$ni ies 8 The A-7-E7ar nership Agreemen 0 +e'ision o& 49 November 20040 )T*?1N(04)*45B )T*>*956 (a a'he" as Anne3 ; o his (epor B his "o'$men %as also s$bmi e" as 7anel E3hibi s .,-5 an" E--2 (E'$a"or))/ The +oha Ar i'le 1 )aiver e3pire" on 54 +e'ember 2007 in respe' o& A-7 pro"$' s o her han bananas/ 27 The 7ar nership Agreemen be %een he ?embers o& he A&ri'an0 -aribbean an" 7a'i&i' Aro$p o& , a es o& he one par 0 an" he E$ropean -omm$ni # an" i s ?ember , a es o& he o her par 0 signe" in -o ono$0 !enin on 25 C$ne 2000/ 28 :o$r h ,ession o& he ?inis erial -on&eren'e hel" in +oha0 E$ropean -omm$ni ies 8 Transi ional (egime &or he E- A$ onomo$s Tari&& (a e E$o as on 1mpor s o& !ananas0 +e'ision o& 49 November 20040 )T*?1N(04)*46B )T*>*957 (7anel E3hibi .,-5)/ The +oha Ar i'le 2111 )aiver e3pire" on 54 +e'ember 2005/ 29 -o$n'il (eg$la ion (E-) No/ 2587*2004 o& 49 +e'ember 2004 amen"ing (eg$la ion (EE-) No/ 909*95 on he 'ommon organisa ion o& he mar@e in bananas0 =fficial :ournal of the European )ommunities0 > ,eries0 No/ 595 (29 +e'ember 2004) 45/ Ar i'les 48/4-48/9 o& E- (eg$la ion 2587*2004 'hange" he D$o as in he &ollo%ing %a#s: (i) D$o a A o& 2/2 million m &or impor s &rom hir" 'o$n ries %as main aine"B (ii) D$o a ! %as in'rease" o 9550000 m &or impor s &rom hir" 'o$n riesB (iii) %i hin D$o as A an" !0 bananas &rom hir" 'o$n ries %ere s$bNe' o a '$s oms "$ # o& M75*m 0 %hile impor s o& pro"$' s origina ing in he A-7 'o$n ries %ere s$bNe' o a =ero "$ #B an" (iv) D$o a -0 open o impor s onl# &rom A-7 'o$n ries an" s$bNe' o a =ero "$ #0 %as "e'rease" o 7500000 m / An o$ -o&-D$o a ari&& pre&eren'e o& M500*m %as es ablishe" &or bananas origina ing in A-7 'o$n ries/

26

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 7 45/ bananas impor regime be %i h"ra%n &rom he +,! agen"a/ A his +,! mee ing0 E'$a"or he .n"ers an"ing on !ananas L'ons i $ e" a so$n" basis &or he E- o implemen a his regime L'on aine" vario$s

s a e" ha

ransi ional banana impor regime so ha b# 4 Can$ar# 20060 a he la es 0 a )TO-'ompa ible ari&&onl# regime %o$l" be p$ in o pla'e/L 50 E'$a"or also no e" ha Ar i'le 24/5 o& he +,./ 49/ A he same +,! mee ing0 he .ni e" , a es s a e" ha i L%as please" o no e ha he Ephases0 s ages an" elemen s o be implemen e"/L 54 E'$a"or also s a e" ha i reserve" i s righ s $n"er

ha" in'rease" he D$o a &or >a in Ameri'an banana e3por ing 'o$n ries b# 4000000 onnes e&&e' ive &rom 4 Can$ar# 2002L an" ha LF Ghe .ni e" , a es ha"0 here&ore0 ermina e" he s$spension o& 'on'essions in e&&e' sin'e 4999/L 52 The .ni e" , a es also sai" i L%o$l" 'on in$e o %or@ 'losel# %i h he E- an" o her ?embers o a""ress an# iss$es ha migh arise as he E- move" o a ari&&-base" s#s em &or bananas an" implemen e" he erms o& he bila eral .n"ers an"ing on !ananas/L55 45/ On 54 Can$ar# 20050 he E$ropean -omm$ni ies no i&ie" he )orl" Tra"e Organi=a ion ( he

L)TOL) p$rs$an o Ar i'le 22;111 o& he AATT 49990 ha i in en"e" o rebin" i s ari&& 'on'ession &or bananas in'l$"e" in E- ,'he"$le -2> (i em 0805 00 49) a he level o& M250*m / 59 1n he same 'omm$ni'a ion0 he E$ropean -omm$ni ies also spe'i&ie" ha he no i&i'a ion 'ons i $ e" he anno$n'emen o& he rebin"ing o& i s bananas ari&& $n"er he erms o& he Anne3 on !ananas/ On 50 ?ar'h 20050 !ra=il0 -olombia0 -os a (i'a0 E'$a"or0 A$a emala0 <on"$ras0 Ni'arag$a0 7anama0 an" ;ene=$ela reD$es e" arbi ra ion p$rs$an o he Anne3 on !ananas in respe' o& he E$ropean -omm$ni ies6 propose" rebin"ing o& i s ari&& on bananas/ 46/ On 4 A$g$s 20050 he arbi ra or "e ermine" ha he rebin"ing o& he E$ropean

-omm$ni ies6 ari&& &or bananas a he level o& M250*m %o$l" no res$l in a leas main aining o al mar@e a''ess &or ?:N banana s$ppliers0 a@ing in o a''o$n all )TO mar@e -a''ess 'ommi men s o& he E$ropean -omm$ni ies rela ing o bananas0 as reD$ire" $n"er he Anne3 on !ananas/ 55 On 27 O' ober 20050 in a se'on" arbi ra ion p$rs$an o he same r$les $n"er he Anne30 he arbi ra or rea'he" he same 'on'l$sion %i h respe' o he E$ropean -omm$ni ies6 se'on" propose" rebin"ing0 'onsis ing o& a ?:N ari&& ra e &or bananas o& M487*m an" a 7750000 m "$ #-&ree ari&& D$o a &or impor s o& bananas o& A-7 origin/ The arbi ra or0 here&ore0 &o$n" ha he E$ropean -omm$ni ies
?in$ es o& he +,! mee ing hel" on 4 :ebr$ar# 20020 )T*+,!*?*4490 para/ 5/ ?in$ es o& he +,! mee ing hel" on 4 :ebr$ar# 20020 )T*+,!*?*4490 para/ 5/ 52 ?in$ es o& he +,! mee ing hel" on 4 :ebr$ar# 20020 )T*+,!*?*4490 para/ 8/ 55 ?in$ es o& he +,! mee ing hel" on 4 :ebr$ar# 20020 )T*+,!*?*4490 para/ 8/ 59 -omm$ni'a ion &rom he E$ropean -omm$ni ies o& 54 Can$ar# 20050 Ar i'le 22;111:5 Nego ia ions0 ,'he"$le -2> 8 E$ropean -omm$ni ies0 A""en"$m0 A*,E-(ET*22*A""/4/ 55 A%ar" o& he Arbi ra or0 E) 4he A)P Partnership Agreement0 )T*>*6460 4 A$g$s 2005/
54 50

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 8 ha" &aile" o re' i&# he ma er in a''or"an'e %i h he &i& h ire o& he Anne3 on !ananas0 %hi'h reD$ire" ha s$ppliers/ 47/
56

he rebin"ing res$l in a leas main aining o al mar@e a''ess &or ?:N banana

:ollo%ing he se'on" arbi ra ion p$rs$an

o he Anne3 on !ananas0 he E$ropean

-omm$ni ies mo"i&ie" i s regime &or

he impor a ion o& bananas an" a"op e"0 inter alia0

E- (eg$la ion 4969*20050 he meas$re a iss$e in he presen "isp$ e (hereina& er0 he LE- !ananas 1mpor (egimeL)/ This (eg$la ion es ablishe" an ?:N ari&& ra e o& M476*m &or bananas/ 1n a""i ion0 i es ablishe" a pre&eren ial ari&& D$o a o& 7750000 m &or "$ #-&ree impor s o& bananas origina ing in A-7 'o$n ries/57 On 20 +e'ember 20070 he E$ropean -omm$ni ies a"op e" -o$n'il (eg$la ion (E-) No/ 4528*200758 (LE- (eg$la ion 4528*2007L)0 %hi'h repeale" EE- (eg$la ion 909*95 an" mo"i&ie" E- (eg$la ion 4969*20050 elimina ing he pre&eren ial ari&& D$o a o& 7750000 m a =ero "$ # &or A-7 'o$n ries/ 48/ On 25 :ebr$ar# 20070 E'$a"or reD$es e"0 &or he se'on" ime0 he es ablishmen o& a panel

p$rs$an o Ar i'le 24/5 o& he +,. 'on'erning he allege" in'onsis en'# o& he meas$res a"op e" b# he E$ropean -omm$ni ies0 in par i'$lar0 E- (eg$la ion 4969*2005 an" rela e" meas$res/ 59 On 29 C$ne 20070 he .ni e" , a es reD$es e" he es ablishmen o& an Ar i'le 24/5 panel o e3amine he same meas$res a@en b# he E$ropean -omm$ni ies/

A%ar" o& he Arbi ra or0 E) 4he A)P Partnership Agreement II0 )T*>*6250 27 O' ober 2005/ ,ee supra0 &oo no e Error: (e&eren'e so$r'e no &o$n"/ 58 -o$n'il (eg$la ion (E-) No/ 4528*2007 o& 20 +e'ember 2007 appl#ing he arrangemen s &or pro"$' s origina ing in 'er ain s a es %hi'h are par o& he A&ri'an0 -aribbean an" 7a'i&i' (A-7) Aro$p o& , a es provi"e" &or in agreemen s es ablishing0 or lea"ing o he es ablishmen o&0 E'onomi' 7ar nership Agreemen s0 =fficial :ournal of the European /nion0 > ,eries0 No/ 598 (54 +e'ember 2007) 4/ 59 E'$a"or 7anel (epor 0 paras/ 2/92-2/99B ., 7anel (epor 0 paras/ 2/59 an" 2/90/ The implemen ing reg$la ions a"op e" b# he E$ropean -omm$ni ies p$rs$an o -o$n'il (eg$la ion (E-) No/ 4969*2005 o& 29 November 2005 on he ari&& ra es &or bananas0 =fficial :ournal of the European /nion0 > ,eries0 No/ 546 (2 +e'ember 2005) 40 in'l$"e he &ollo%ing: -ommission (eg$la ion (E-) No/ 2049*2005 o& 9 +e'ember 2005B -ommission (eg$la ion (E-) No/ 2045*2005 o& 9 +e'ember 2005B -ommission (eg$la ion (E-) No/ 2499*2005 o& 25 +e'ember 2005B -ommission (eg$la ion (E-) No/ 249*2006 o& 8 :ebr$ar# 2006B -ommission (eg$la ion (E-) No/ 525*2006 o& 25 :ebr$ar# 2006B -ommission (eg$la ion (E-) No/ 566*2006 o& 6 April 2006B -ommission (eg$la ion (E-) No/ 966*2006 o& 29 C$ne 2006B -ommission (eg$la ion (E-) No/ 4264*2006 o& 25 A$g$s 2006B -ommission (eg$la ion (E-) No/ 4789*2006 o& 5 +e'ember 2006B -ommission (eg$la ion (E-) No/ 59*2007 o& 46 Can$ar# 2007B -ommission (eg$la ion (E-) No/ 97*2007 o& 49 Can$ar# 2007B as %ell as -ommission (eg$la ion (E-) No/ 4599*2006 o& 47 O' ober 2006/
57

56

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 9 49/ 1n he 'o$rse o& he pro'ee"ings0 he E$ropean -omm$ni ies reD$es e" he 7anel o

harmoni=e he ime able o& he %o 'ases/ The 7anel "e'i"e" no o mo"i&# he ime able i ha" a"op e" an" s a e" ha harmoni=a ion o& he ime ables L%o$l" have mos li@el# involve" a "ela# in he pro'ee"ings reD$es e" b# E'$a"orL 900 an" ha harmoni=ing he ime ables &or he panel pro'ess %as par i'$larl# "i&&i'$l be'a$se o& he %o-mon h gap be %een he "a es on %hi'h he %o panels ha" beg$n heir respe' ive %or@/ The 7anel no e" ha he )TO +ire' or-Aeneral 'ompose" he panel reD$es e" b# E'$a"or on 48 C$ne 2007 an" he panel reD$es e" b# he .ni e" , a es on 45 A$g$s 2007/ The 7anel &$r her s a e" ha i ha" a@en in o a''o$n in i s "e'ision he &a' ha E'$a"or0 Las he 'omplaining par # in hose pro'ee"ings0 s rongl# obNe' e" o an# 'hanges in he ime able ha %o$l" res$l in e3 en"ing he pro'ee"ings &$r her be#on" he 90-"a# perio" envisage" in Ar i'le 24/5 o& he +,./L94 <o%ever0 in he E'$a"or 7anel (epor 0 he panel no e" ha Liss$an'e o& he in erim repor %as "ela#e" b# he 7anel in or"er o ens$re ha replies o D$es ions an" 'ommen s on replies in he pro'ee"ings reD$es e" b# he .ni e" , a es ha" been re'eive" b# ha panel0 be&ore he in erim repor in he '$rren pro'ee"ings %as iss$e"/L 92 20/ The E'$a"or 7anel (epor %as 'ir'$la e" o )TO ?embers on 7 April 2008B he ., 7anel

(epor %as 'ir'$la e" o )TO ?embers on 49 ?a# 2008/ A he Noin reD$es s o& he par ies in bo h 'ases0 he +,! agree": a he +,! mee ing hel" on 2 C$ne 20080 o e3 en" he "a e &or he a"op ion o& he E'$a"or 7anel (epor o 29 A$g$s 2008B an" a he +,! mee ing hel" on 29 C$ne 20080 o e3 en" he "a e &or a"op ion o& he ., 7anel (epor also o 29 A$g$s 2008/ 95 24/ The &ollo%ing &in"ings an" 'on'l$sions o& he E'$a"or 7anel are relevan &or his appeal: 1n ligh o& he &in"ings above0 he 7anel reNe' s he preliminar# iss$e raise" b# he E$ropean -omm$ni ies ha E'$a"or is preven e" &rom 'hallenging he E$ropean -omm$ni ies6 '$rren impor regime &or bananas0 in'l$"ing he pre&eren'e &or A-7 'o$n ries0 be'a$se o& he .n"ers an"ing on !ananas0 signe" b# bo h ?embers in April 2004/ 99 (') The E$ropean -omm$ni ies6 '$rren banana impor regime0 in par i'$lar i s pre&eren ial ari&& D$o a reserve" &or A-7 'o$n ries0 is in'onsis en %i h Ar i'le 2111:40 %i h he 'hapea$ o& Ar i'le 2111:20 an" %i h Ar i'le 2111:2(") o& he AATT 4999B

., 7anel (epor 0 para/ 7/7/ ., 7anel (epor 0 para/ 7/9/ 92 E'$a"or 7anel (epor 0 &oo no e 298 o para/ 7/40/ 95 )T*+,27*87B ?in$ es o& he +,! mee ing hel" on 2 C$ne 20080 )T*+,!*?*2540 para/ 5B )T*+,27*88B ?in$ es o& he +,! mee ing hel" on 29 C$ne 20080 )T*+,!*?*2550 para/ 54/ 99 E'$a"or 7anel (epor 0 para/ 8/4/
94

90

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 40 (") The ari&& applie" b# he E$ropean -omm$ni ies o ?:N impor s o& bananas0 se a M476*m 0 %i ho$ 'onsi"era ion o& he ari&& D$o a &or 2/2 million m bo$n" a an in-D$o a ari&& ra e o& M75*m 0 is an or"inar# '$s oms "$ # in e3'ess o& ha se &or h an" provi"e" &or in 7ar 1 o& he E$ropean -omm$ni ies6 ,'he"$le/ This ari&& is here&ore in'onsis en %i h he &irs sen en'e o& Ar i'le 11:4(b) o& he AATT 4999B ///95 The 7anel re'ommen"s ha he +isp$ e ,e lemen !o"# reD$es he E$ropean -omm$ni ies o bring he in'onsis en meas$res in o 'on&ormi # %i h i s obliga ions $n"er he AATT 4999/96 22/ appeal: (b) The E$ropean -omm$ni ies has no s$''ee"e" in ma@ing a prima &a'ie 'ase ha he .ni e" , a es is preven e" &rom 'hallenging he E$ropean -omm$ni ies6 '$rren impor regime &or bananas0 in'l$"ing he pre&eren'e &or A-7 'o$n ries0 be'a$se o& he !ananas .n"ers an"ing0 signe" be %een he .ni e" , a es an" he E$ropean -omm$ni ies in April 2004B an" (') The E$ropean -omm$ni ies has &aile" in ma@ing a 'ase ha he .ni e" , a es6 'omplain $n"er Ar i'le 24/5 o& he +,. sho$l" be reNe' e"0 be'a$se he E$ropean -omm$ni ies6 '$rren impor regime &or bananas0 in'l$"ing he pre&eren'e &or A-7 'o$n ries0 is no a Lmeas$re a@en o 'ompl#L %i h he re'ommen"a ions an" r$lings o& he +,! in he original pro'ee"ings/97 (') The E$ropean -omm$ni ies6 '$rren banana impor regime0 in par i'$lar i s pre&eren ial ari&& D$o a reserve" &or A-7 'o$n ries0 is also in'onsis en %i h Ar i'le 2111:4 an" Ar i'le 2111:2 o& he AATT 4999/98 FTGhe 7anel 'on'l$"es ha 0 o he e3 en ha he '$rren E$ropean -omm$ni ies bananas impor regime 'on ains meas$res in'onsis en %i h vario$s provisions o& he AATT 49990 i has n$lli&ie" or impaire" bene&i s a''r$ing o he .ni e" , a es $n"er ha Agreemen /99 ,in'e he original +,! re'ommen"a ions an" r$lings in his "isp$ e remain opera ive hro$gh he res$l s o& he '$rren 'omplian'e pro'ee"ings0 he 7anel ma@es no ne% re'ommen"a ion/ 50 The &ollo%ing &in"ings an" re'ommen"a ions in he ., 7anel (epor are relevan &or his

95 96

E'$a"or 7anel (epor 0 para/ 8/2(') an" (")/ E'$a"or 7anel (epor 0 para/ 8/5/ 97 ., 7anel (epor 0 para/ 8/4(b) an" (')/ 98 ., 7anel (epor 0 para/ 8/5(')/ 99 ., 7anel (epor 0 para/ 8/42/ 50 ., 7anel (epor 0 para/ 8/45/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 44 25/ On 28 A$g$s 20080 he E$ropean -omm$ni ies no i&ie" he +,!0 p$rs$an o Ar i'les 46/9

an" 47 o& he +,.0 o& i s in en ion o appeal 'er ain iss$es o& la% an" legal in erpre a ions 'overe" in he E'$a"or an" he ., 7anel (epor s an" &ile" %o No i'es o& Appeal 540 p$rs$an o ($le 20 o& he >or0ing Procedures for Appellate *evie%52 ( he L>or0ing ProceduresL)/ 29/ 1n a le er o he par i'ipan s an" hir" par i'ipan s "a e" 4 ,ep ember 20080 he Appella e

!o"# +ivision hearing hese appeals s a e" ha 0 in he in eres s o& L&airness an" or"erl# pro'e"$reL0 as re&erre" o in ($le 46(4) o& he >or0ing Procedures0 an" a& er 'ons$l a ions %i h he par i'ipan s0 he appella e pro'ee"ings in respe' o& he E$ropean -omm$ni ies6 appeals o& he E'$a"or an" ., 7anel (epor s %o$l" be 'onsoli"a e" "$e o he s$bs an ial overlap in he 'on en o& he "isp$ es/ A single +ivision %o$l" hear an" "e'i"e he appeals0 an" a single oral hearing %o$l" be hel" b# he +ivision/ The +ivision invi e" all hir" par ies in bo h 'ases o a en" he single oral hearing in he 'onsoli"a e" appeals/ <o%ever0 i emphasi=e" ha 0 in heir %ri en s$bmissions an" oral s a emen s0 he hir" par i'ipan s %ere o a""ress onl# he iss$es appeale" in he "isp$ e(s) o %hi'h he# %ere a hir" par # in he panel pro'ee"ings/ The .ni e" , a es an" E'$a"or reD$es e" he Appella e !o"# o iss$e separa e repor s0 ei her in he &orm o& %o separa e "o'$men s0 or one "o'$men %i h separa e 'on'l$sions pages/ 25/ On 9 ,ep ember 20080 he E$ropean -omm$ni ies &ile" an appellan 6s s$bmission in ea'h o&

he appeals/55 On 9 ,ep ember 20080 E'$a"or no i&ie" he +,!0 p$rs$an o Ar i'le 46/9 o& he +,.0 o& i s in en ion o appeal 'er ain iss$es o& la% an" legal in erpre a ions 'overe" in he E'$a"or 7anel (epor an" &ile" a No i'e o& O her Appeal 590 p$rs$an Procedures/ o ($le 25(4) an" (2) o& he >or0ing On On 45 ,ep ember 20080 E'$a"or &ile" an o her appellan 6s s$bmission/ 55

22 ,ep ember 20080 E'$a"or0 he .ni e" , a es0 an" he E$ropean -omm$ni ies ea'h &ile" an appellee6s s$bmission/56 26/ On 22 ,ep ember 20080 !eli=e0 -ameroon0 -o e "61voire0 +omini'a0 he +omini'an !eli=e0 +omini'a0 he +omini'an (ep$bli'0

(ep$bli'0 Camai'a0 ,ain >$'ia0 ,ain ;in'en an" he Arena"ines0 an" ,$riname &ile" a Noin hir" par i'ipan s6 s$bmission in he .ni e" , a es 'aseB Camai'a0 ,ain >$'ia0 ,ain ;in'en an" he Arena"ines0 an" ,$riname &ile" a Noin hir" par i'ipan s6 s$bmission in he E'$a"or 'aseB -ameroon0 -o e "61voire0 an" Ahana &ile" a Noin hir" par i'ipan s6 s$bmission in he E'$a"or 'aseB -olombia &ile" a hir" par i'ipan 6s s$bmission in he E'$a"or 'aseB
54 52

)T*+,27*89 (a a'he" as Anne3 1 o his (epor )B )T*+,27*90 (a a'he" as Anne3 11 o his (epor )/ )T*A!*)7*50 9 Can$ar# 2005/ 55 7$rs$an o ($le 24 o& he >or0ing Procedures/ 59 )T*+,27*94 (a a'he" as Anne3 111 o his (epor )/ 55 7$rs$an o ($le 25(5) o& he >or0ing Procedures/ 56 7$rs$an o ($les 22 an" 25(9) o& he >or0ing Procedures/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 42 Capan &ile" a hir" par i'ipan 6s s$bmission in ea'h 'aseB 7anama an" Ni'arag$a &ile" a Noin hir" par i'ipan s6 s$bmission in ea'h 'aseB E'$a"or &ile" a hir" par i'ipan 6s s$bmission in he .ni e" , a es 'aseB an" he .ni e" , a es &ile" a hir" par i'ipan 6s s$bmission in he E'$a"or 'ase/ 57 On he same "a#0 !ra=il an" ?e3i'o ea'h no i&ie" he Appella e !o"# ,e're aria o& i s in en ion o appear a he oral hearing as a hir" par i'ipan /58 27/ ha E'$a"or0 he E$ropean -omm$ni ies0 an" he .ni e" , a es reD$es e"0 on 29 A$g$s 20080 he +ivision a$ hori=e p$bli' observa ion o& he oral hearing/ The# s$bmi e" ha p$bli'

observa ion o& he oral hearing is no pre'l$"e" b# he +,.0 he >or0ing Procedures0 or he *ules of )onduct for the /nderstanding on *ules and Procedures 1overning the #ettlement of !isputes /59 The par i'ipan s e3presse" a pre&eren'e &or sim$l aneo$s 'lose"-'ir'$i elevision broa"'as o a separa e room/ 28/ On 4 ,ep ember 20080 he +ivision invi e" he hir" par i'ipan s o 'ommen in %ri ing on

he par i'ipan s6 reD$es o open he hearing o p$bli' observa ion/ The +ivision as@e" he hir" par i'ipan s o provi"e heir vie%s on0 in par i'$lar0 he permissibili # o& opening he hearing &or p$bli' observa ion $n"er he +,. an" he >or0ing Procedures0 an"0 i& he# so %ishe"0 on he spe'i&i' logis i'al arrangemen s propose" in he reD$es s/ -ommen s %ere re'eive" on 5 ,ep ember 2008 &rom -olombia0 on 9 ,ep ember 2008 &rom 7anama an" Ni'arag$a0 an" on 40 ,ep ember 2008 &rom !ra=il0 Camai'a0 an" Capan/ -olombia0 Camai'a0 Capan0 Ni'arag$a0 an" 7anama raise" no obNe' ion o he reD$es o& he par i'ipan s/ !ra=il 'onve#e" he vie% ha he +,. e3pressl# "isallo%s p$bli' hearings a he appella e s age: a''or"ing o !ra=il0 opening he oral hearing in hese pro'ee"ings o p$bli' observa ion %o$l" r$n 'o$n er o he obliga ion o& 'on&i"en iali # impose" b# Ar i'le 47/40 o& he +,./ 29/ On 48 ,ep ember 20080 he +ivision iss$e" a 7ro'e"$ral ($ling in %hi'h i a$ hori=e" he

p$bli' observa ion o& he oral hearing an" a"op e" a""i ional pro'e"$res &or ha p$rpose in a''or"an'e %i h ($le 46(4) o& he >or0ing Procedures/60 No i'e o& he opening o& he hearing o p$bli' observa ion an" regis ra ion ins r$' ions %ere provi"e" on he )TO %ebsi e/

7$rs$an o ($le 29(4) o& he >or0ing Procedures/ 7$rs$an o ($le 29(2) o& he >or0ing Procedures/ 59 The *ules of )onduct0 as a"op e" b# he +,! on 5 +e'ember 4996 (see )T*+,!*(-*4)0 are in'orpora e" in o he >or0ing Procedures as Anne3 11 here o (see )T*+,!*(-*20 )T*A!*)7*)*2)/ 60 The 7ro'e"$ral ($ling is a a'he" as Anne3 1; o his (epor /
58

57

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 45 50/ The oral hearing in hese appeals %as hel" on 46-47 O' ober 2008/ The par i'ipan s an"

hir" par i'ipan s presen e" oral arg$men s (%i h he e3'ep ion o& ?e3i'o) an" respon"e" o D$es ions pose" b# he +ivision hearing he appeals/ 7$bli' observa ion oo@ pla'e via sim$l aneo$s 'lose"'ir'$i elevision broa"'as o a separa e room/ 7$rs$an o he a""i ional pro'e"$res a"op e" b# he +ivision0 no hir" par i'ipan reD$es e" ha i s oral s a emen s an" responses o D$es ions remain 'on&i"en ial an" no be s$bNe' o p$bli' observa ion/ II. A(2+6%/$. #1 $'% P-($),)5-/$. -/0 $'% T')(0 P-($),)5-/$. A/ )laims of Error $y the European )ommunities Appellant 4/ 4/ Ar i'le 9/5 o& he +,.

The E$ropean -omm$ni ies alleges ha he 7anel a' e" in'onsis en l#0 in bo h 'ases0 %i h

Ar i'le 9/5 o& he +,. b# &ailing o harmoni=e he ime ables o& he pro'ee"ings in he E'$a"or an" .ni e" , a es 'ases/ The E$ropean -omm$ni ies reD$es s ha he 7anel6s &ail$re o harmoni=e he ime ables0 as %ell as he 7anel6s &ail$re o provi"e reasons &or no harmoni=ing he ime ables o& he %o pro'ee"ings a he ime he "e'ision %as a@en an" 'omm$ni'a e" o he par ies0 Lbe reverse"L/ 4 2/ The E$ropean -omm$ni ies s$bmi s ha he $se o& he %or" LshallL in Ar i'le 9/5 in"i'a es

an Labsol$ e an" $nD$ali&ie"L obliga ion &or panels o harmoni=e ime ables0 %hi'h L"oes no allo% panels an# "is're ionL in "e'i"ing %he her ime ables sho$l" be harmoni=e"/ 2 :$r her0 he E$ropean -omm$ni ies main ains ha he %or"s L o he grea es e3 en possibleL in Ar i'le 9/5 Lonl# appl# o he provision ha 6 he same persons shall serve as panelis s6L an" sho$l" no be rea" o 'over also he obliga ion ha L he ime able &or he panel pro'ess shall be harmoni=e"L/ 5 The E$ropean -omm$ni ies asser s ha 'on&li' s o& in eres s an" personal reasons ma# preven an in"ivi"$al &rom serving as a panelis 0 an" ha he phrase L o he grea es e3 en possibleL in Ar i'le 9/5 is a@en in o a''o$n in his respe' / <o%ever0 he E$ropean -omm$ni ies asser s ha here are no similar reasons ha 'o$l" N$s i&# he appli'a ion o& ha phrase o he obliga ion o harmoni=e he ime ables &or he panel pro'ess/ Je 0 he E$ropean -omm$ni ies 'on en"s ha 0 i&0 arguendo0 he phrase L o he grea es e3 en possibleL "i" rela e also o a panel6s obliga ion o harmoni=e he ime ables0 he panel 'o$l" re&$se o harmoni=e he ime ables onl# %here harmoni=a ion %as vir $all# LimpossibleL/ 9 The E$ropean -omm$ni ies &$r her s$bmi s ha he ime ables Lm$s absol$ el# be harmoni=e" a some s age o& he pro'ee"ingL0 an" ha he phrase L o he grea es e3 en possibleL is onl# mean o allo% a
E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 55 (.,)/ ,ee also E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 56 (E'$a"or)/ 2 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 24 (E'$a"or)0 para/ 20 (.,)/ 5 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 22 (E'$a"or)0 para/ 24 (.,)/ 9 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 25 (E'$a"or)0 para/ 22 (.,)/
4

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 49 panel o a@e no e o& 'er ain pro'e"$ral a' s ha ma# have alrea"# been 'omple e" in one 'ase0 he o''$rren'e o& %hi'h ma@es i LimpossibleL o harmoni=e he ime able o& ha 'ase %i h he ime able o& ano her 'ase/5 5/ 1n a""i ion0 he E$ropean -omm$ni ies asser s ha 0 i& a panel "e'i"es no o harmoni=e he

ime ables o& %o pro'ee"ings0 i m$s provi"e an obNe' ive N$s i&i'a ion &or i s "e'ision/ Je 0 he E$ropean -omm$ni ies main ains ha he LN$s i&i'a ionsL provi"e" b# he 7anel in i s (epor s "o no s$ppor i s "e'ision/ The E$ropean -omm$ni ies arg$es ha he 7anel a rib$ e" oo m$'h %eigh o E'$a"or6s obNe' ion o harmoni=e he ime ables hereb# pro e' ing he in eres s o& E'$a"or more han he in eres s o& he E$ropean -omm$ni ies/ :$r her0 b# obliging he E$ropean -omm$ni ies o provi"e i s %ri en s$bmission o he .ni e" , a es in one pro'ee"ing be&ore he .ni e" , a es ha" s$bmi e" i s o%n &irs %ri en s$bmission in he o her pro'ee"ing0 he 7anel allo%e" he .ni e" , a es an a"van age a @no%ing %ha "e&en'es an" arg$men s he E$ropean -omm$ni ies %o$l" $se in he la er pro'ee"ing0 an" hereb# a' e" 'on rar# o Ar i'le 42/6 o& he +,./ 2/ 4/ >egal E&&e' o& he .n"ers an"ings on !ananas he 7anel erre" in &in"ing ha

The E$ropean -omm$ni ies alleges in bo h 'ases ha

E'$a"or an" he .ni e" , a es %ere no pre'l$"e" &rom ini ia ing Ar i'le 24/5 pro'ee"ings "espi e he .n"ers an"ings on !ananas he# ea'h ha" agree" o %i h he E$ropean -omm$ni ies in 2004/ The E$ropean -omm$ni ies re&ers o hree reasons relie" $pon b# he 7anel in s$ppor o& i s &in"ing ha he .n"ers an"ings on !ananas 'o$l" no legall# bar he 'omplainan s &rom bringing hese 'omplian'e pro'ee"ings/ 2/ The &irs reason given b# he 7anel is ha he .n"ers an"ings on !ananas "o no 'ons i $ e

in hemselves a sol$ ion0 b$ provi"e onl# &or he means0 ha is0 a series o& &$ $re s eps &or resolving an" se ling he "isp$ e/ 1n his respe' 0 he E$ropean -omm$ni ies arg$es ha Ar i'le 5 o& he +,. "oes no provi"e ha onl# agreemen s re'or"ing meas$res ha ha" alrea"# been implemen e" sho$l" D$ali&# as Lm$ $all# agree" sol$ ionsL/ The E$ropean -omm$ni ies s$bmi s ha 0 ra her0 in vir $all# ever# ins an'e %here he par ies o a "isp$ e rea'h a se lemen 0 meas$res o implemen se lemen %ill be a@en a& er he 'on'l$sion o& he se lemen / 6 ha

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 25 (.,)/ ,ee also E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 29 (E'$a"or)/ 6 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 99 (E'$a"or)0 para/ 75 (.,)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 45 5/ The se'on" reason relie" $pon b# he 7anel in s$ppor o& i s &in"ing ha he .n"ers an"ings he 'omplainan s &rom bringing hese 'omplian'e pro'ee"ings is ha he

'o$l" no preven

.n"ers an"ings %ere agree" o s$bseD$en o he re'ommen"a ions0 r$lings0 an" s$gges ions ma"e b# he +,! in he original pro'ee"ings an" previo$s 'omplian'e pro'ee"ings/ 1n his respe' 0 he E$ropean -omm$ni ies arg$es ha 0 $n"er he 7anel6s reasoning0 a se lemen %o$l" D$ali&# as a Lm$ $all# agree" sol$ ionL onl# i& i %ere 'on'l$"e" be&ore he +,! ma"e re'ommen"a ions an" r$lings/ 1n he E$ropean -omm$ni ies6 vie%0 no hing in he +,. s$ppor s s$'h a res ri' ion on )TO ?embers o en er in o m$ $all# agree" sol$ ions/ On he 'on rar#0 he E$ropean -omm$ni ies s$bmi s ha Ar i'les 22/2 an" 22/8 o& he +,. e3pressl# provi"e &or se lemen agreemen s ha 'an be en ere" in o &ollo%ing re'ommen"a ions an" r$lings b# he +,!/ 7 9/ Thir"l#0 he 7anel relie" on he &a' ha he par ies ha" ma"e 'on&li' ing 'omm$ni'a ions o

he +,! regar"ing he legal na $re o& he .n"ers an"ings on !ananas a& er hese .n"ers an"ings ha" been signe"/ The E$ropean -omm$ni ies alleges ha 0 b# rel#ing on hese s a emen s0 he 7anel e&&e' ivel# allo%e" a signa or# o a se lemen o n$lli&# he agreemen 6s erms a& er having signe" an" reape" he bene&i s o& i 0 simpl# b# re&$sing o ma@e a Noin no i&i'a ion o he +,!/ :$r hermore0 he E$ropean -omm$ni ies arg$es ha here is no reD$iremen in he +,. &or a m$ $all# agree" sol$ ion o be no i&ie" o he +,! b# one par # or b# bo h par ies Noin l#/ A''or"ing o he E$ropean -omm$ni ies0 Ar i'le 5/6 o& he +,. "oes no a a'h an# legal signi&i'an'e o he 'omplaining par #6s a' ion or ina' ion in he +,! %hen he agreemen is no i&ie"/ 5/ 1n a""i ion0 he E$ropean -omm$ni ies 'hallenges he 7anel6s &in"ing ha he

.n"ers an"ings on !ananas 'o$l" pre'l$"e he 'omplainan s L&rom bringing F heseG 'omplian'e 'hallengeFsG onl# i& he .n"ers an"ingFsG 'ons i $ eF"G a posi ive sol$ ion an" e&&e' ive se lemen o he "isp$ e in D$es ionL an" he 7anel6s 'on'l$sion ha his %as no he 'ase/ The E$ropean -omm$ni ies arg$es ha he 7anel in ro"$'e" an erroneo$s limi a ion on he #pes o& o her legall# bin"ing arrangemen s ha 'an be en&or'eable in he )TO legal or"er/ 8 A''or"ing o he E$ropean -omm$ni ies0 here are agreemen s be %een )TO ?embers ha "o no 'ons i $ e a posi ive sol$ ion an" e&&e' ive se lemen o a "isp$ e0 #e 0 he# are given &$ll legal e&&e' b# he )TO "isp$ e se lemen s#s em/ As e3amples o& s$'h agreemen s0 he E$ropean -omm$ni ies men ions0 inter alia0 agreemen s o "ispense %i h he +,. reD$iremen o hol" 'ons$l a ions be&ore ma@ing a reD$es &or he es ablishmen o& a panel0 agreemen s o e3 en" he "ea"lines &or he a"op ion o& panel repor s b# he +,!0 an" LseD$en'ing agreemen sL/ 9 The E$ropean -omm$ni ies s$bmi s ha he 7anel6s

7 8

E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 98 (E'$a"or)0 para/ 79 (.,)/ E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 55 (E'$a"or)0 para/ 87 (.,)/ 9 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 56 (E'$a"or)0 para/ 88 (.,)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 46 approa'h in ro"$'es $n'er ain # as o he legal e&&e' s o& agreemen s rea'he" be %een )TO ?embers0 an" sho$l" here&ore be reverse"/ 6/ The E$ropean -omm$ni ies &$r her arg$es ha he 7anel erre" in i s in erpre a ion an"

appli'a ion o& he prin'iple o& goo" &ai h enshrine" in Ar i'le 5/40 o& he +,./ A''or"ing o he E$ropean -omm$ni ies0 he 7anel oo@ he erroneo$s vie% ha an obNe' ion base" on he prin'iple o& goo" &ai h 'o$l" be s$''ess&$l onl# i& he E$ropean -omm$ni ies ha" ma"e o$ a prima facie 'ase &or he allege" viola ion o& Ar i'le 5/400 an" also &or Lsome hing more han mere viola ionL o& ha provision/40 The E$ropean -omm$ni ies arg$es ha he 7anel "i" no provi"e an# N$s i&i'a ion &or i s 'on'l$sion ha he E$ropean -omm$ni ies ha" no es ablishe" a prima facie 'ase o& a viola ion o& Ar i'le 5/40/ The E$ropean -omm$ni ies s$bmi s ha i ha" presen e" a n$mber o& arg$men s o he 7anel0 #e 0 he 7anel "i" no provi"e an# reasons &or %h# i reNe' e" hose arg$men s/ The E$ropean -omm$ni ies s$bmi s ha he 7anel hereb# a' e" in'onsis en l# %i h i s obliga ions $n"er he +,.0 in'l$"ing Ar i'le 44 o& he +,./ :$r hermore0 he E$ropean -omm$ni ies 'ri i'i=es he 7anel &or a@ing he vie% ha he prin'iple o& goo" &ai h 'o$l" onl# be invo@e" as an La""-onL 44 o he viola ion o& ano her )TO r$le an" 'o$l" no 0 b# i sel&0 be he so$r'e o& righ s an" obliga ions o& )TO ?embers/ The E$ropean -omm$ni ies asser s ha '$s omar# in erna ional la% re'ogni=es ha he prin'iple o& goo" &ai h 'an i sel& be he so$r'e o& righ s an" obliga ions/ 42 The E$ropean -omm$ni ies &$r her s$bmi s ha 0 given ha he 'omplainan s have signe" he .n"ers an"ings on !ananas in he presen 'ase0 he appli'a ion o& he prin'iple o& goo" &ai h pre'l$"e" hem &rom 'hallenging he E- !ananas 1mpor (egime a iss$e in his "isp$ e/ 7/ :inall#0 he E$ropean -omm$ni ies s$bmi s ha he 7anel %as in'oheren in i s reasoning

be'a$se0 having &o$n" a L'lear reD$iremen &or F he 'hallenge" meas$reG o be 'onsis en %i h he 'overe" agreemen sL450 i sho$l" hen have gone on o anal#=e he 'onsis en'# %i h he 'overe" agreemen s o& he erms o& he .n"ers an"ings on !ananas an" he 'onsis en'# o& he E$ropean -omm$ni ies6 meas$res %i h he erms o& he .n"ers an"ings/ <o%ever0 a''or"ing o he E$ropean -omm$ni ies0 he 7anel "i" nei her/ 5/ 4/ ?eas$re Ta@en o -ompl#

1n he .ni e" , a es 'ase0 he E$ropean -omm$ni ies appeals he 7anel6s &in"ing ha he

E- !ananas 1mpor (egime %as a Lmeas$re a@en o 'ompl#L %i h he re'ommen"a ions an" r$lings
E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 60 (E'$a"or) (re&erring o E'$a"or 7anel (epor 0 para/ 7/454)0 para/ 92 (.,) (re&erring o ., 7anel (epor 0 para/ 7/462)/ 44 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 67 (E'$a"or)0 para/ 98 (.,)/ 42 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 68 (E'$a"or)0 para/ 99 (.,) (re&erring o 1n erna ional -o$r o& C$s i'e0 Australia v/ France &6uclear 4ests )ase'0 1-C (epor s (4979) 2550 a 268)/ 45 E'$a"or 7anel (epor 0 para/ 7/77B ., 7anel (epor 0 para/7/408/
40

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 47 o& he +,! in he original E) Bananas III "isp$ e an" ha 0 here&ore0 he .ni e" , a es ha" properl# bro$gh his "isp$ e $n"er Ar i'le 24/5 o& he +,./ The E$ropean -omm$ni ies arg$es ha he .ni e" , a es6 a''ep an'e o have i s re alia ion righ s ermina e" $pon implemen a ion o& he ari&& D$o a-base" impor regime "es'ribe" in s$bparagraph -/2 o& he .n"ers an"ing on !ananas 'on&irme" ha he .ni e" , a es an" he E$ropean -omm$ni ies agree" ha his 'ons i $ e" Limplemen a ionL o& he original +,! re'ommen"a ions an" r$lings/ The E$ropean -omm$ni ies s$bmi s ha L he .ni e" , a es6 re en ion o& he righ o re-impose re alia or# meas$res onl# i& he F ari&& D$o a-base"G regime 6F"i"G no en er in o &or'e b# 4 Can$ar# 20026L49 "emons ra e" he impor an'e pla'e" b# he .ni e" , a es i sel& on he ari&& D$o a impor regime0 an" &$r her s$ppor e" he 'on'l$sion ha se le"/ 2/ The E$ropean -omm$ni ies presen s a n$mber o& &$r her arg$men s in s$ppor o& i s he .ni e" , a es an" he E$ropean -omm$ni ies ha" agree" ha 0 %i h he in ro"$' ion o& he ari&& D$o a-base" regime as he Lmeas$re a@en o 'ompl#L0 he "isp$ e %o$l" be

posi ion/ :irs 0 he E$ropean -omm$ni ies alleges ha he 7anel &aile" o a@e in o a''o$n ha here %as Lno lin@L be %een he original +,! re'ommen"a ions an" r$lings an" he poli i'al "e'ision o& he E$ropean -omm$ni ies o in ro"$'e a ari&&-onl# impor regime b# 4 Can$ar# 2006/ The E$ropean -omm$ni ies a@es iss$e %i h he 7anel6s &in"ing ha L he &a' ha he original re'ommen"a ions an" r$lings "i" no explicitly reD$ire he E$ropean -omm$ni ies o bring i sel& in o 'omplian'e spe'i&i'all# hro$gh he in ro"$' ion o& a ari&&-onl# impor regime is irrelevan &or es ablishing %he her he '$rren FE- !ananas 1mpor (egime %asG a meas$re a@en o 'ompl#L/ 45 The E$ropean -omm$ni ies arg$es ha a Llin@L e3is s be %een a meas$re an" he +,! re'ommen"a ions r$lings in he original pro'ee"ings %hen he in ro"$' ion o& he 'on es e" meas$re is ne'essar# o a""ress a spe'i&i' &in"ing o& in'onsis en'# %i h he 'overe" agreemen s/ Je 0 he E$ropean -omm$ni ies arg$es ha here %as no &in"ing in he original E) Bananas III "isp$ e ha 'o$l" be a""resse" or implemen e" onl# hro$gh a ari&&-onl# regime/ There&ore0 he E$ropean -omm$ni ies s$bmi s ha he reD$ire" Llin@L o he +,! re'ommen"a ions an" r$lings in E) Bananas III %as missing in he presen "isp$ e an" ha 'ompl#L/ 5/ ,e'on"l#0 he E$ropean -omm$ni ies a@es iss$e %i h he 7anel6s &in"ing ha La @e# he E- !ananas 1mpor (egime %as here&ore no a Lmeas$re a@en o

elemen o& he meas$re being revie%e" an" &o$n" in'onsis en in he original pro'ee"ings %as he pre&eren ial rea men b# he E$ropean -omm$ni ies o& banana impor s &rom A-7 'o$n riesL an" ha

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 94 (.,)/ E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 95 (.,) (D$o ing ., 7anel (epor 0 para/ 7/970)/ (emphasis a""e" b# he E$ropean -omm$ni ies)
45

49

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 48 he E- !ananas 1mpor (egime a iss$e also Lmain ainFe"G a pre&eren'e &or A-7 banana impor s/L 46 The E$ropean -omm$ni ies 'on es s he 7anel6s 'on'l$sion ha he E- !ananas 1mpor (egime %as L'losel# rela e"L o he meas$re revie%e" an" &o$n" in'onsis en in he original pro'ee"ings an" ha i %as 'losel# rela e" o he original +,! re'ommen"a ions an" r$lings a"op e" in 4997/ 9/ Thir"l#0 he E$ropean -omm$ni ies asser s ha he 7anel %as %rong in rel#ing on o her

panel repor s 'on'erning "i&&eren par ies in %hi'h he same D$es ions o& )TO la% ha" arisen0 an" on repor s iss$e" in o her pro'ee"ings be %een he same par ies on "i&&eren ma ers0 be'a$se hese repor s %ere no bin"ing on he par i'ipan s in his "isp$ e/ The E$ropean -omm$ni ies s$bmi s ha he 7anel a' e" in'onsis en l# %i h Ar i'le 44 o& he +,. %hen i oo@ in o 'onsi"era ion he &in"ings o& he panel in E) Bananas III &Article +,-. Ecuador)0 in'l$"ing he in ro"$' or# lang$age47 o& he s$gges ions ma"e b# ha panel0 %hile no a@ing in o a''o$n he s$gges ions hemselves/ ?oreover0 he E$ropean -omm$ni ies alleges ha he 7anel %as %rong in rel#ing on s a emen s b# he panel in E) Bananas III &Article +,-. E)'0 be'a$se ha panel "i" no ma@e an# s$bs an ive &in"ings0 an" be'a$se he repor o& ha panel %as never a"op e" b# he +,!/ 1n a""i ion0 he E$ropean -omm$ni ies 'laims ha he 7anel %as %rong in rel#ing on he "e'ision b# he arbi ra ors in E) Bananas III &/#' &Article ++-3 E)'0 be'a$se he man"a e o& arbi ra ors $n"er Ar i'le 22/6 o& he +,. is "i&&eren &rom he man"a e o& a 'omplian'e panel $n"er Ar i'le 24/5 o& he +,./ 5/ :inall#0 he E$ropean -omm$ni ies 'on en"s ha he 7anel erroneo$sl# in erpre e" he

+oha Ar i'le 1 )aiver as s$ppor ing he 'on'l$sion ha he 'on es e" meas$re %as a Lmeas$re a@en o 'ompl#L/ The E$ropean -omm$ni ies s$bmi s ha he &a' ha a par i'$lar meas$re ma# nee" o be 'overe" b# a )TO %aiver is irrelevan &or he "e ermina ion o& %he her ha meas$re is a Lmeas$re a@en o 'ompl#L %i h prior +,! re'ommen"a ions an" r$lings/

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 97 (.,) (D$o ing ., 7anel (epor 0 para/ 7/525)/ 47 The 7anel no e" ha he &irs E'$a"or Ar i'le 24/5 panel provi"e" he &ollo%ing in ro"$' ion o i s s$gges ion: L)hile Mem$ers remain free to choose ho% they implement !#B recommendations and rulings0 i seems appropria e0 a& er one implemen a ion a emp has proven o be a leas par l# $ns$''ess&$l0 ha an Ar i'le 24/5 panel ma@e s$gges ions %i h a vie% o%ar" promp l# bringing he "isp$ e o an en"/ 1n ligh o& o$r &in"ings an" 'on'l$sions %i h respe' o Ar i'les 1 an" 2111 o& AATT0 he reD$iremen s o& he >omH -onven ion an" he 'overage o& he >omH %aiver0 above0 in o$r vie%0 the European )ommunities has at least the follo%ing options for $ringing its $anana import regime into conformity %ith >4= rules/L (., 7anel (epor 0 para/ 7/966 (D$o ing 7anel (epor 0 E) Bananas III &Article +,-. Ecuador'0 paras/ 6/459 an" 6/455) (emphasis a""e" b# he '$rren 7anel))

46

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 49 9/ 4/ (epeal o& he -hallenge" ?eas$re

1n he .ni e" , a es 'ase0 he E$ropean -omm$ni ies 'laims ha 0 b# &ailing o a@e in o

'onsi"era ion he repeal o& he meas$re 'hallenge" in his "isp$ e0 he 7anel &aile" o anal#=e properl# he &a' s o& he 'ase an" hereb# viola e" Ar i'les 5/90 5/70 an" 44 o& he +,./ ?oreover0 he E$ropean -omm$ni ies s$bmi s ha he 7anel erre" in ma@ing a re'ommen"a ion o he +,! in rela ion o a meas$re ha no longer e3is e"/ 2/ :irs 0 he E$ropean -omm$ni ies arg$es ha he 7anel &aile" o ma@e an obNe' ive

assessmen o& he ma er be&ore i 0 as reD$ire" b# Ar i'le 44 o& he +,.0 b# &ailing o a@e in o a''o$n ha he ari&& D$o a o& 7750000 m &or impor s o& A-7 bananas 'ease" o e3is prior o he iss$an'e o& he ., 7anel (epor /48 5/ ,e'on"l#0 he E$ropean -omm$ni ies 'on en"s ha he 7anel6s &ail$re o a@e in o

'onsi"era ion he repeal o& he 'hallenge" meas$re is in'onsis en %i h Ar i'les 5/9 an" 5/7 o& he +,.0 be'a$se i &ails o La'hieve a sa is&a' or# se lemen o& he ma erL as reD$ire" b# Ar i'le 5/90 an" also be'a$se i &ails o Lse'$re a posi ive sol$ ion o he "isp$ eL p$rs$an o Ar i'le 5/7/ The E$ropean -omm$ni ies &$r her s$bmi s ha he 7anel erre" in "e'laring ina"missible he evi"en'e s$bmi e" b# he E$ropean -omm$ni ies regar"ing he a"op ion o& E- (eg$la ion 4528*20070 b# means o& %hi'h he meas$re 'hallenge" in his "isp$ e %as repeale"/ The E$ropean -omm$ni ies asser s ha he 7anel "i" no properl# "is ing$ish be %een &a' $al evi"en'e s$ppor ing a 'laim an" evi"en'e rela ing o he e3is en'e o& he 'on es e" meas$re i sel&/ 9/ Thir"l#0 he E$ropean -omm$ni ies 'laims ha he 7anel erre" in ma@ing a

re'ommen"a ion %i h respe' o a meas$re ha ha" 'ease" o e3is b# he ime he 7anel iss$e" i s (epor / The E$ropean -omm$ni ies alleges ha he 7anel provi"e" a L'on'eale"L re'ommen"a ion b# s a ing ha he original +,! re'ommen"a ions an" r$lings Lremaine" opera iveL/ 49 The E$ropean -omm$ni ies s$bmi s ha 0 sin'e he ari&& ra e D$o a reserve" &or A-7 impor s %as repeale" b# E- (eg$la ion 4528*2007 prior o he iss$an'e o& he 7anel (epor 0 here %as no re'ommen"a ion ha 'o$l" be ma"e or ha 'o$l" Lremain opera iveL/ 5/ 4/ Ar i'le 11 o& he AATT 4999

1n he E'$a"or 'ase0 he E$ropean -omm$ni ies reD$es s he Appella e !o"# o reverse he

7anel6s &in"ings ha he +oha Ar i'le 1 )aiver Lmo"i&ie" he ,'he"$le o& he E$ropean -omm$ni ies

48 49

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 480 (.,)/ E$ropean -omm$ni ies6 appellan 6s s$bmission0 paras/ 490 an" 494 (.,)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 20 an" e3 en"e" he "$ra ion o& he 'on'ession &or he ari&& D$o a be#on" +e'ember 540 2002L 200 an" he 7anel6s 'onseD$en ial &in"ing ha L he E$ropean -omm$ni ies has brea'he" Ar i'le 11 o& he AATTL/24 2/ The E$ropean -omm$ni ies agrees %i h he 7anel ha he ari&& D$o a o& 2/2 million m in

he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions 'o$l" no be rea" in isola ion &rom he Anne3 o he ,'he"$le ( he !ananas :rame%or@ Agreemen ) an" ha i %as s$bNe' o he erms0 'on"i ions0 an" D$ali&i'a ions se o$ in he Anne3/ The E$ropean -omm$ni ies0 here&ore0 agrees %i h he 7anel6s 'on'l$sion ha in o he ,'he"$le/ 5/ The E$ropean -omm$ni ies0 ho%ever0 'laims ha he 7anel erre" in &in"ing ha he +oha he ari&& D$o a 'on'ession %as L$neD$ivo'all# in en"e" o e3pire on 54 +e'ember 2002L220 in a''or"an'e %i h he erms o& he !ananas :rame%or@ Agreemen in'orpora e"

Ar i'le 1 )aiver %as a Ls$bseD$en agreemen L o he E$ropean -omm$ni ies6 ,'he"$le0 %hi'h "eal %i h he provisions o& he ,'he"$le0 an" ha he )aiver 'o$l" be in erpre e" as an agreemen b# )TO ?embers L o e3 en" he "$ra ion o& he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas be#on" 54 +e'ember 2002L/25 The E$ropean -omm$ni ies also 'laims ha he 7anel ma"e &$r her errors o& legal in erpre a ion in rel#ing on he .r$g$a# (o$n" L?o"ali ies 7aperL 29 an" he E$ropean -omm$ni ies6 ini ia ion o& nego ia ions p$rs$an o Ar i'le 22;111 o& he AATT 4999 as s$pplemen ar# means o& in erpre a ion/ 9/ The E$ropean -omm$ni ies arg$es ha he +oha Ar i'le 1 )aiver is no an in erna ional

agreemen 0 b$ a "e'ision o& he )TO/ The E$ropean -omm$ni ies s$bmi s ha he 7anel 'on&$se" a "e'ision a@en b# he ?inis erial -on&eren'e p$rs$an o Ar i'le 12 o& he Marra0esh Agreement Esta$lishing the >orld 4rade =rgani"ation ( he L>4= AgreementL) %i h an Lin erna ional agreemen L/25 A''or"ing o he E$ropean -omm$ni ies0 he +oha Ar i'le 1 )aiver0 %hi'h %as a"op e" b# L'onsens$sL %i h no ?ember presen a he mee ing &ormall# obNe' ing o he propose" "e'ision0 "oes no sa is&# he 'on"i ions reD$ire" b# Ar i'les 6 ff o& he 8ienna )onvention on the La% of 4reaties 26 ( he L8ienna )onventionL) &or an in erna ional agreemen o 'ome in o e3is en'e/ As s$'h0 he +oha Ar i'le 1 )aiver 'anno be assimila e" o an in erna ional agreemen 0 %hi'h L%o$l" reD$ire ha all par ies 'on'l$"e he agreemen a''or"ing o heir 'ons i $ ional reD$iremen s an"
E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 469 (E'$a"or)/ E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 485 (E'$a"or)/ 22 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 497 (E'$a"or) (D$o ing E'$a"or 7anel (epor 0 para/ 7/956)/ 25 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 498 (E'$a"or)/ 29 ?o"ali ies &or he Es ablishmen o& ,pe'i&i' !in"ing -ommi men s0 No e b# he -hairman o& he ?ar@e A''ess Aro$p0 ?TN/ANA*?A*)*290 20 +e'ember 4995/ 25 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 454 (E'$a"or)/ 26 +one a ;ienna0 25 ?a# 49690 4455 .NT, 554B 8 1n erna ional >egal ?a erials 679/
24 20

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 24 posi ivel# e3press 'onsen o be bo$n" b# he agreemen L/ 27 ?oreover0 he E$ropean -omm$ni ies 'on en"s ha he 'on'essions on ra"e in goo"s in'l$"e" in )TO ?embers6 AATT ,'he"$les 'an onl# be mo"i&ie" hro$gh agreemen s 'on'l$"e" &ollo%ing he pro'e"$res o& Ar i'le 22;1110 an" ha he +oha Ar i'le 1 )aiver is no an agreemen ha %as rea'he" &ollo%ing hese pro'e"$res/ 5/ The E$ropean -omm$ni ies 'laims ha he +oha Ar i'le 1 )aiver 'anno be 'onsi"ere" a

Lpl$rila eral agreemen L be'a$se he legal basis o& he ?inis erial +e'ision re&ers e3'l$sivel# o Ar i'le 12 o& he >4= Agreement an" he o her )TO provisions rela ing o he gran ing o& %aivers/ ?oreover0 he )aiver L"oes no have an# o& he 'hara' eris i's ha 6pl$rila eral6 agreemen s 'onsis en l# haveL/28 The E$ropean -omm$ni ies no es ha ,'he"$le/ The E$ropean -omm$ni ies poin s o$ ha he +oha Ar i'le 1 )aiver "oes no e3pli'i l# s a e ha i %as in en"e" o mo"i&# he bananas 'on'ession in he E$ropean -omm$ni ies6 here has never been an e3ample o& an Limplie"L agreemen o mo"i&# he 'on'essions in he ,'he"$les o& )TO ?embers par i'ipa ing in a Lpl$rila eralL agreemen / ?oreover0 he E$ropean -omm$ni ies highligh s ha none o& he par ies o his "isp$ e ever arg$e" or even men ione"0 a an# s age o& he pro'ee"ings0 an# hing similar o he 7anel6s erroneo$s &in"ing ha he +oha Ar i'le 1 )aiver e3 en"e" he ari&& D$o a 'on'ession in he E$ropean -omm$ni ies6 ,'he"$le/ 6/ The E$ropean -omm$ni ies s$bmi s ha he 7anel 'on&$se" Ar i'le 12 %i h Ar i'le 2 o& he o Ar i'le 2 o& he >4= Agreement b$ 0 ra her0 a "e'ision a@en on he basis o&

>4= Agreement0 an" ha he +oha Ar i'le 1 )aiver is no a "e'ision amen"ing he )TO agreemen s a@en p$rs$an Ar i'le 12 o& he >4= Agreement0 %hi'h 'anno be $se" o amen" he o her )TO agreemen s0 in'l$"ing he ,'he"$les o& -on'essions/ ?oreover0 he E$ropean -omm$ni ies 'on en"s ha 0 in he 'ase o& he +oha Ar i'le 1 )aiver0 he pro'e"$res pres'ribe" b# Ar i'le 2 &or he amen"men o& he )TO agreemen s0 s$'h as "eposi ing an ins r$men o& a''ep an'e0 %ere no &ollo%e"/ A''or"ing o he E$ropean -omm$ni ies0 his 'on&irme" ha no )TO ?ember ever 'onsi"ere" he +oha Ar i'le 1 )aiver o be a "e'ision amen"ing he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions an" hereb# e3 en"ing he "$ra ion o& he ari&& D$o a 'on'ession/ 7/ The E$ropean -omm$ni ies &$r her arg$es ha he 7anel erre" in rea"ing in o he +oha here is no

Ar i'le 1 )aiver an agreemen o e3 en" he ari&& D$o a 'on'ession ha is no hereB

re&eren'e in he )aiver o s$'h an agreemen 0 an" he )aiver L"oes no even men ion he E$ropean -omm$ni ies6 ,'he"$leL/29 The E$ropean -omm$ni ies 'on en"s ha he re&eren'e in he preamble o& he +oha Ar i'le 1 )aiver o he ari&& D$o a appl#ing L$n il he en r# in o &or'e o& he E- ari&&27 28

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 452 (E'$a"or)/ E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 455 (E'$a"or)/ 29 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 466 (E'$a"or)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 22 onl# regimeL "oes no s$ppor he 7anel6s in erpre a ion0 be'a$se he preamble $ses he %or" L notingL0 %hi'h is no he same as L"e'i"ingL0 an" be'a$se his iss$e is no a""resse" in he main bo"# o& he )aiver/ The E$ropean -omm$ni ies &$r her 'on en"s ha 0 even i& i %ere ass$me" ha hro$gh he +oha Ar i'le 1 )aiver i ha" a''ep e" o appl# he ari&& ra e o& M75 o 2/2 million m o& bananas &rom ?:N 'o$n ries0 no hing in he e3 o& he )aiver es ablishe" ha ?embers in en"e" o $rn his applie" ari&& ra e in o a bo$n" 'on'ession in he E$ropean -omm$ni ies6 ,'he"$le/ 1n his respe' 0 he E$ropean -omm$ni ies no es ha 0 %hile i s L $ound 'on'ession in he ,'he"$le %as &or a D$an i # o& 2/2 million ons o& bananasL0 i Lapplied he ari&& o& M75 per on o he ari&& D$o as A an" !0 %hi'h ha" a o al vol$me o& more han 2/55 million ons in 2004L 500 %hen he +oha Ar i'le 1 )aiver %as a"op e"/ 8/ :$r hermore0 a''or"ing o he E$ropean -omm$ni ies0 he 7anel &aile" o re'on'ile i s he +oha Ar i'le 1 )aiver e3pire" an" L'anno e3 en" o he FE- !ananas 1mpor

&in"ing ha

(egimeG in ro"$'e" &rom 4 Can$ar# 2006L54 %i h he &in"ing ha 0 hro$gh he +oha Ar i'le 1 )aiver0 )TO ?embers agree" o e3 en" he "$ra ion o& he E$ropean -omm$ni ies6 ari&& D$o a 'on'essions $n il he 'omple ion o& he Ar i'le 22;111 nego ia ions/52 9/ The E$ropean -omm$ni ies s$bmi s ha 0 even i& he +oha Ar i'le 1 )aiver 'o$l" be

in erpre e" as an agreemen be %een )TO ?embers e3 en"ing he "$ra ion o& he ari&& D$o a 'on'ession &or ?:N s$ppliers in he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions0 he pro'e"$ral s eps reD$ire" o in'orpora e s$'h mo"i&i'a ion in o ha ,'he"$le %ere no 'omple e"/ 1n par i'$lar0 he E$ropean -omm$ni ies poin s o$ ha he 7anel i sel& 'on&irme" ha Lno %i h"ra%al or mo"i&i'a ion o& he original E$ropean -omm$ni ies6 s'he"$le has so &ar been 'er i&ie"L 55 an" ha an#

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 474 (E'$a"or)/ (original emphasis) E'$a"or 7anel (epor 0 para/ 7/200/ 52 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 472 (E'$a"or)/ The E$ropean -omm$ni ies also s$bmi s ha he 7anel &aile" o re'on'ile i s &in"ing ha he erm L he ne% E- Tari&& regimeL $se" in he &i& h ire o& he Anne3 on !ananas o he +oha Ar i'le 1 )aiver applies o he bananas impor regime ins i $ e" hro$gh E- (eg$la ion 4969*2005 on 4 Can$ar# 20060 %i h i s &in"ing ha he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession o& 2/2 million m a he in-D$o a ari&& ra e o& M75*m %o$l" e3 en" be#on" 4 Can$ar# 20060 be'a$se0 as no e" in he preamble o& he +oha Ar i'le 1 )aiver0 i %o$l" appl# L$n il he en r# in o &or'e o& he ne% E- ari&& regimeL/ (E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 475 (E'$a"or)) 55 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 479 (E'$a"or)/
54

50

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 25 40/ allege" mo"i&i'a ions agree" hro$gh he +oha Ar i'le 1 )aiver Lhave no #e a@en 6 formal

effect6 an" are no #e 6provided in6 he ,'he"$le ha Ar i'le 11 o& he AATT obliges he E$ropean -omm$ni ies o respe' /L59 The E$ropean -omm$ni ies 'on'l$"es0 here&ore0 ha i s allege" &ail$re o gran he erms o& he ari&& D$o a o he ?:N s$ppliers 'anno 'ons i $ e a viola ion o& Ar i'le 11 o& he AATT/ 44/ The E$ropean -omm$ni ies s$bmi s ha he 7anel erre" in D$ali&#ing he +oha Ar i'le 1

)aiver as a Ls$bseD$en agreemen L %i hin he meaning o& Ar i'le 54(5)(a) o& he 8ienna )onvention0 %hi'h applies o s$bseD$en agreemen s L regarding the interpretation of the treaty L/55 6The E$ropean -omm$ni ies no es ha LFaGn agreemen modifying he erms o& he original rea # "oes no D$ali&# as a 6s$bseD$en agreemen 6 &or p$rposes o& Ar i'le 54(5)(a)0 be'a$se s$'h an agreemen "oes no 6regar" he in erpre a ion6 o& he erms o& he original rea #B i simpl# 'hanges hose erms &or he &$ $re/L 56 42/ The E$ropean -omm$ni ies also 'hallenges he 7anel6s relian'e on (i) he .r$g$a# (o$n"

?o"ali ies 7aper &or agri'$l $ral mar@e a''ess nego ia ions an" (ii) he ini ia ion o& nego ia ions $n"er Ar i'le 22;111 o& he AATT 4999 b# he E$ropean -omm$ni ies o mo"i&# i s bananas ari&& 'on'essions0 as s$pplemen ar# means o& in erpre a ion/ The E$ropean -omm$ni ies arg$es ha he 7anel erre" in rel#ing on he ?o"ali ies 7aper be'a$se ha "o'$men e3pressl# provi"es ha i 'anno be invo@e" in "isp$ e se lemen 0 %hi'h %as also 'on&irme" b# he Appella e !o"# in E) Export #u$sidies on #ugar/57 The E$ropean -omm$ni ies &$r her s$bmi s ha he ?o"ali ies 7aper rela e" o he agreemen s 'on'l$"e" a he en" o& he .r$g$a# (o$n" an"0 even ass$ming ha i 'o$l" be $se" as s$pplemen ar# means o& in erpre a ion0 i 'o$l" onl# be $se" o in erpre )TO ?embers in 2004/ 45/ :inall#0 he E$ropean -omm$ni ies arg$es ha he &a' ha i ha" ini ia e" nego ia ions The E$ropean -omm$ni ies no es ha he E$ropean -omm$ni ies6 .r$g$a# (o$n" ,'he"$le an" no he +oha Ar i'le 1 )aiver0 %hi'h %as a"op e" b#

$n"er Ar i'le 22;111 "oes no es ablish ha i %as he 'ommon in en ion o& all )TO ?embers o e3 en" he ari&& D$o a 'on'ession &or ?:N s$ppliers/
58

nego ia ions $n"er Ar i'le 22;111 are LreD$ire"L even %here he propose" 'hanges "o no a&&e' he AATT righ s o& o her 'o$n ries or are p$rel# &ormal/ There&ore0 he propose" re"$' ion b# he

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 480 (E'$a"or)/ (original emphasis) E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 486 (E'$a"or)/ (original emphasis) 56 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 487 (E'$a"or)/ (original emphasis) (D$o ing Ar i'le 54(5)(a) o& he 8ienna )onvention)/ 57 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 499 (E'$a"or) (re&erring o Appella e !o"# (epor 0 E) Export #u$sidies on #ugar0 para/ 499)/ 58 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 499 (E'$a"or) (re&erring o AATT 7anel (epor 0 EE) 6e%sprint0 para/ 50)/
55

59

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 29 E$ropean -omm$ni ies o& i s bo$n" ra es a fortiori N$s i&ie" he ini ia ion o& Ar i'le 22;111 nego ia ions0

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 25 49/ 'onsi"ering ha i %as no o& a p$rel# legal &orm an" ha" he po en ial o& a&&e' ing he

si $a ion o& o her )TO ?embers0 s$'h as he A-7 'o$n ries/ ?oreover0 he E$ropean -omm$ni ies arg$es ha 0 %hen i agree" %i h E'$a"or in he .n"ers an"ing on !ananas on nego ia ions p$rs$an o Ar i'le 22;1110 he o$ 'ome o& hose nego ia ions %as no 'lear0 ha is o sa#0 Lno one 'o$l" ell %he her he ne% ari&& ra e %as going o be above M 680 e$ros or belo%L/59 45/ :or all he above reasons0 he E$ropean -omm$ni ies reD$es s he Appella e !o"# o

reverse he 7anel6s &in"ing an" o &in"0 ins ea"0 ha he ari&& D$o a 'on'ession e3pire" a''or"ing o he erms o& he !ananas :rame%or@ Agreemen in 2004 an" has no been e3 en"e" hro$gh he +oha Ar i'le 1 )aiver/ 6/ Ar i'le 2111 o& he AATT 4999 (a) 4/ ,$gges ions p$rs$an o Ar i'le 49/4 o& he +,.

The E$ropean -omm$ni ies reD$es s he Appella e !o"# o reverse he 7anel6s &in"ings in

he E'$a"or 7anel (epor ha L6 he &a' ha a ?ember a"op s a meas$re o implemen a s$gges ion p$rs$an o Ar i'le 49/46 "oes no 6preven ano her ?ember &rom 'hallenging0 p$rs$an o Ar i'le 24/50 he 'omplian'e o& s$'h meas$re %i h he 'overe" agreemen s6L an" ha 0 LFeGven i& here %as a pres$mp ion o& he legali # o& meas$res a@en o implemen a s$gges ion p$rs$an o Ar i'le 49/40 here is no hing in he +,. s$gges ing ha he allege" FilGlegali # o& s$'h meas$res 'o$l" no be revie%e" b# a 'omplian'e panelL/90 2/ The E$ropean -omm$ni ies "oes no arg$e on appeal ha he E- !ananas 1mpor (egime

in pla'e be %een 4 Can$ar# 2006 an" 54 +e'ember 2007 'omplie" &$ll# %i h he se'on" s$gges ion o& he &irs Ar i'le 24/5 panel reD$es e" b# E'$a"or/ <o%ever0 he E$ropean -omm$ni ies 'on en"s ha he 7anel "evelope" 'er ain legal in erpre a ions ha are %rong an" 'rea e s#s emi' problems &or he proper in erpre a ion an" appli'a ion o& he +,./ 5/ The E$ropean -omm$ni ies arg$es ha 0 %hile a panel6s s$gges ions as o ho% he

respon"en ma# p$ i sel& in 'omplian'e %i h he )TO r$les "o no have bin"ing &or'e &or he respon"en 0 his "oes no mean ha s$gges ions are Len irel# "evoi" o& legal signi&i'an'eL/ 94 A''or"ing o he E$ropean -omm$ni ies0 he 'onsis en'# o& a panel6s s$gges ions %i h he 'overe" agreemen s ma# be 'hallenge" b# he par ies be&ore he Appella e !o"#0 b$ 0 LFoGn'e he legali # o& he s$gges ions has been es ablishe" &ollo%ing heir a"op ion b# he +,!L0 he# 'anno be &$r her
E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 204 (E'$a"or)/ E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 80 (E'$a"or) (D$o ing E'$a"or 7anel (epor 0 para/ 7/254)/ 94 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 85 (E'$a"or)/
90 59

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 26 'hallenge" or revisi e" be&ore an Ar i'le 24/5 panel be'a$se o& he par ies6 obliga ion o

L$n'on"i ionall# a''ep L he +,!6s re'ommen"a ions an" r$lings Lin'l$"ing he s$gges ions 'on aine" in hem0 as provi"e" in Ar i'le 47/49 in 'ombina ion %i h Ar i'le 46/9 o& he +,.L/92 The E$ropean -omm$ni ies arg$es ha here is no hing in he +,. ha %o$l" allo% a 'omplainan o have an a""i ional oppor $ni # o 'hallenge be&ore a 'omplian'e panel he legali # o& he implemen ing meas$res s$gges e" b# he original panel/ 9/ The E$ropean -omm$ni ies 'on en"s ha 0 i& a respon"en 'laims ha i s meas$res

'hallenge" be&ore an Ar i'le 24/5 panel L%ere s$gges e" b# a previo$s panel as a means o a'hieve 'omplian'e %i h i s )TO obliga ionsL0 he Ar i'le 24/5 panel m$s Le3amine %he her he 'hallenge" meas$res are in"ee" he meas$res s$gges e" b# he original panelL0 an"0 i& i rea'hes his 'on'l$sion0 Li sho$l" &in" ha he# are 'onsis en %i h he 'overe" agreemen s %i ho$ an# &$r her anal#sisL/ 95 A''or"ing o he E$ropean -omm$ni ies0 in he presen 'ase0 he 7anel sho$l" have &irs 'on&irme" he 'hara' eris i's ha an impor regime sho$l" have in or"er o sa is&# he s$gges ions ma"e b# he &irs E'$a"or Ar i'le 24/5 panel in 49990 an" hen e3amine" %he her he E- !ananas 1mpor (egime ha" he s$gges e" 'hara' eris i's/ 1& he 7anel &o$n" ha he E- !ananas 1mpor (egime implemen e" he s$gges ions ma"e in 49990 L hen he 7anel sho$l" have reNe' e" E'$a"or6s 'laims $n"er Ar i'le 2111 %i ho$ an# &$r her anal#sisL/99 The E$ropean -omm$ni ies 'on en"s &$r her ha he 7anel 'o$l" have e3amine" he 'onsis en'# o& he E- !ananas 1mpor (egime %i h Ar i'le 2111 o& he AATT 4999 onl# i& i ha" 'on'l$"e" ha ha regime "i" no implemen he s$gges ions ma"e in 4999/ The E$ropean -omm$ni ies arg$es ha he 7anel erre" be'a$se i "e'line" L o assess %he her he E$ropean -omm$ni ies Fha"G e&&e' ivel# implemen e" an# o& he s$gges ions o& he &irs 'omplian'e panel reD$es e" b# E'$a"orL95 in 4999 an" 'onsi"ere" ha E'$a"or6s "isagreemen %as s$&&i'ien o reNe' he E$ropean -omm$ni ies6 arg$men ha he E- !ananas 1mpor (egime ha" he 'hara' eris i's s$gges e" in 4999/ (b) 4/ 1n erpre a ion o& Ar i'le 2111 o& he AATT 4999

The E$ropean -omm$ni ies reD$es s he Appella e !o"# o reverse0 in bo h 'ases0 he

7anel6s in erpre a ion o& Ar i'le 2111 o& he AATT 4999 an" he 7anel6s 'onseD$en ial &in"ings in he 7anel (epor s ha he E- !ananas 1mpor (egime %as in'onsis en %i h Ar i'le 2111:4 an" 2 o& he AATT 4999/

92 95

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 88 (E'$a"or)/ E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 90 (E'$a"or)/ 99 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 92 (E'$a"or)/ 95 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 95 (E'$a"or)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 27 2/ The E$ropean -omm$ni ies arg$es ha he 7anel6s error lea"s o $nreasonable res$l s/

A''or"ing o he 7anel0 i& he E$ropean -omm$ni ies ha" o&&ere" o he A-7 'o$n ries an $nlimi e" ra"e pre&eren'e0 i s meas$re %o$l" have been 'onsis en %i h Ar i'le 2111B ho%ever0 i& i pro e' e" he in eres s o& ?:N s$ppliers b# limi ing he D$an i # o& A-7 banana impor s ha 'an bene&i &rom ha ra"e pre&eren'e0 i %o$l" a$ oma i'all# brea'h Ar i'le 2111/ A''or"ing o he E$ropean -omm$ni ies0 his erroneo$s legal in erpre a ion b# he 7anel %o$l" ren"er limi a ions on ra"e pre&eren'es o&&ere" b# "evelope" 'o$n ries o "eveloping 'o$n ries $n"er he LEnabling -la$seL 96 in'onsis en %i h Ar i'le 21110 hereb# raising "o$b s as o he legali # o& )TO ?embers6 ,'he"$les an" 'rea ing legal 'on&$sion an" $n'er ain #/ The E$ropean -omm$ni ies arg$es ha his in erpre a ion 'o$l" lea" o signi&i'an 'ons rain s in he appli'a ion o& he Enabling -la$se/ +evelope" 'o$n ries migh 'hoose no o gran ra"e pre&eren'es i& he onl# op ion he# have is o gran pre&eren'es &or $nres ri' e" D$an i ies/ 5/ The E$ropean -omm$ni ies 'laims ha he 7anel "evelope" a heor# p$rs$an o %hi'h a

lo%er ari&& o&&ere" o one ?ember be'omes a$ oma i'all# a LD$an i a ive res ri' ionL on all o her ?embers %hen i is o&&ere" in respe' o& onl# some0 an" no all0 D$an i ies e3por e" b# he bene&i'iar#/ The E$ropean -omm$ni ies 'on en"s ha an a"van age gran e" o one ?ember is no he same as a meas$re imposing a Lprohibi ion or res ri' ionL on ano her ?ember0 an" ha he no ion o& Lless &avo$rable rea men L $n"er Ar i'le 1:4 o& he AATT 4999 is no he same as he no ion o& Lprohibi ion or res ri' ionL $n"er Ar i'le 2111/ The E$ropean -omm$ni ies also arg$es ha 0 i& he 7anel6s in erpre a ion %as 'orre' 0 hen an# ari&& pre&eren'e %o$l" D$ali&# as a res ri' ion $n"er Ar i'le 21110 be'a$se LFaGn# s$'h pre&eren'e %o$l" gran a 6bene&i 6 o he bene&i'iar# an"0 here&ore0 %o$l" opera e as a 6"isa"van age6 &or all o her 'o$n ries0 nega ivel# a&&e' ing he D$an i # o& pro"$' s he# 'an e3por /L97 A''or"ing o he E$ropean -omm$ni ies0 his in erpre a ion %o$l" "eprive Ar i'le 1:4 o& an# val$e/ 9/ The E$ropean -omm$ni ies highligh s Limpor an in'onsis en'iesL 98 in he reasoning o& he

7anel $n"er Ar i'le 2111/ The E$ropean -omm$ni ies arg$es ha he 7anel6s reasoning ha he A-7 pre&eren'e %o$l" be a LD$an i a ive res ri' ionL &or p$rposes o& Ar i'le 2111 even i& i %as $nlimi e" in D$an i #990 'anno be re'on'ile" %i h he 7anel6s reasoning ha a meas$re 'an D$ali&# as a D$an i a ive res ri' ion $n"er Ar i'le 2111 onl# %hen i has a D$an i a ive limi / 50 The E$ropean -omm$ni ies
AATT 4979 +e'ision on +i&&eren ial an" ?ore :avo$rable Trea men 0 (e'ipro'i #0 an" :$ller 7ar i'ipa ion o& +eveloping -o$n ries0 >*99050 28 November 49790 !1,+ 26,*205/ 97 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 444 (E'$a"or)0 para/ 428 (.,)/ 98 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 442 (E'$a"or)0 para/ 429 (.,)/ 99 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 442 (E'$a"or) (re&erring o E'$a"or 7anel (epor 0 paras/ 7/552 an" 7/559)0 para/ 429 (.,) (re&erring o ., 7anel (epor 0 paras/ 7/679 an" 7/684)/ 50 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 442 (E'$a"or) (re&erring o E'$a"or 7anel (epor 0 para/ 7/556)0 para/ 429 (.,) (re&erring o ., 7anel (epor 0 para/ 7/685)/
96

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 28 'on en"s ha 0 LFeGi her %a#0 he 7anel has misin erpre e" he no ion o& 6D$an i a ive res ri' ion6 &or p$rposes o& Ar i'le 2111 o& he AATT/L54 5/ The E$ropean -omm$ni ies 'laims ha he 7anel erre" in in erpre ing Ar i'le 2111 as

'overing an impor regime %here impor s &rom all ?:N s$ppliers are s$bNe' o a simple ari&& an" no D$an i a ive res ri' ions0 an" %here here is a pre&eren ial ari&& o&&ere" o some ?embers0 %hi'h is applie" onl# o par o& he bene&i'iaries6 impor s/ A''or"ing o he E$ropean -omm$ni ies0 as here %as no res ri' ion on he D$an i ies ha E'$a"or an" he o her ?:N s$ppliers 'o$l" e3por o he E$ropean -omm$ni ies0 Ar i'le 2111 %as no appli'able0 be'a$se no D$an i a ive res ri' ions %ere impose" on he impor s &rom he allege"l# aggrieve" ?ember/ As a 'onseD$en'e0 he E$ropean -omm$ni ies 'on en"s ha here %as Lno basis ha %o$l" allo% an e3amina ion o& %he her 6similar6 D$an i a ive res ri' ions are also impose" on all o her 'o$n ries/L 52 6/ The E$ropean -omm$ni ies &$r her arg$es ha Ar i'le 2111 "oes no in ro"$'e an L?:N

r$leL an"0 a''or"ingl#0 "oes no reD$ire he E$ropean -omm$ni ies o e3 en" he ari&& pre&eren'e i gran s o A-7 'o$n ries o all o her )TO ?embers0 %he her or no his pre&eren'e is s$bNe' o limi a ions/ The E$ropean -omm$ni ies s$bmi s ha he 7anel misin erpre e" an" misapplie" he &in"ings o& he Appella e !o"# in he original E) Bananas III pro'ee"ings/ The impor regime e3amine" in he original pro'ee"ings %as ver# "i&&eren &rom he E- !ananas 1mpor (egime a iss$e in he presen pro'ee"ings: all impor s %ere s$bNe' o ari&& D$o asB ea'h gro$p o& s$ppliers %as allo'a e" a ari&& D$o a %i h "i&&eren ermsB an" some 'o$n ries %ere allo'a e" 'o$n r#-spe'i&i' allo'a ions0 %hile some ?:N 'o$n ries ha" a''ess onl# o a general allo'a ion/ The repor o& he Appella e !o"# in he original pro'ee"ings "oes no s$ppor e3 en"ing he appli'a ion o& Ar i'le 2111:4 o 'over si $a ions o& simple ari&& "is'rimina ion %here pre&eren ial rea men is o&&ere" onl# o par o& he bene&i'iaries6 e3por s/ 7/ The E$ropean -omm$ni ies 'on en"s ha he 7anel &aile" o &ollo% 'onsis en AATT an" ha L he an i-"is'rimina ion r$les o& Ar i'le 2111 are aime" a
55

)TO pra' i'e

D$an i a ive

"is'rimina ion0 %hile ari&& "is'rimina ion is he e3'l$sive preserve o& Ar i'le 1/L

A''or"ing o he

E$ropean -omm$ni ies0 his pra' i'e is L'on'or"an 0 'ommon an" 'onsis en L0 an" i 0 here&ore0 &alls %i hin he no ion o& Ls a e pra' i'eL re&erre" o in Ar i'le 54(5)(b) o& he 8ienna )onvention/59 The E$ropean -omm$ni ies re&ers o several e3amples o& %aivers &rom Ar i'le 1:4 ha 'overe" ari&& pre&eren'es gran e" b# means o& ari&& D$o as0 %hereb# he pre&eren ial rea men %as s$bNe'
54 52

E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 442 (E'$a"or)0 para/ 429 (.,)/ E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 446 (E'$a"or)0 para/ 455 (.,)/ 55 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 449 (E'$a"or)0 para/ 456 (.,)/ 59 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 420 (E'$a"or)0 para/ 457 (.,)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 29 D$an i a ive limi a ions/55 The E$ropean -omm$ni ies 'laims ha his 'onsis en pra' i'e es ablishes he 'ommon $n"ers an"ing on he par o& he AATT -on ra' ing 7ar ies an" )TO ?embers ha e3'l$sion &rom a pre&eren ial ari&& D$o a "oes no 'ons i $ e an in&ringemen o& Ar i'le 2111/ 8/ (egar"ing Ar i'le 2111:2 o& he AATT 49990 he E$ropean -omm$ni ies arg$es ha his o a simple ari&& an" no o an# D$an i a ive

provision "oes no appl# o he E$ropean -omm$ni ies6 r$les governing impor s &rom E'$a"or an" he .ni e" , a es0 be'a$se hese impor s are s$bNe' res ri' ion or ari&& D$o a/ A''or"ing o he E$ropean -omm$ni ies0 he 7anel &aile" o in erpre an" appl# properl# Ar i'le 2111:20 %hi'h is 'on'erne" solel# %i h D$an i a ive res ri' ions impose" on he aggrieve" ?ember0 an" no %i h o her meas$res impose" on ha ?ember s$'h as simple ari&&s/ The E$ropean -omm$ni ies &in"s s$ppor &or i s arg$men in he i le o& Ar i'le 2111 an" in he &a' ha L he &o$r s$b-paragraphs o& Ar i'le 2111:2 are en irel# &o'$se" on he s'ope an" in ernal "is rib$ ion o& he D$an i a ive res ri' ionL an" L"o no "eal %i h an# meas$res ha &all o$ si"e he D$o a0 or ari&& D$o aL/56 9/ :inall#0 he E$ropean -omm$ni ies no es ha he .ni e" , a es has never been a banana

s$pplier o he E$ropean -omm$ni ies an" is no li@el# o be'ome a banana s$pplier in he &$ $re/ There&ore0 he A-7 pre&eren'e 'o$l" no be 'onsi"ere" in'onsis en %i h he 'hapea$ o& Ar i'le 2111:2 be'a$se0 even in he absen'e o& s$'h pre&eren'e0 he .ni e" , a es6 share in he E$ropean -omm$ni ies6 bananas mar@e %o$l" approa'h as 'losel# as possible he .ni e" , a es6 e3is ing share0 %hi'h is =ero/ (') 4/ N$lli&i'a ion or 1mpairmen %i h respe' o E'$a"or he 7anel reNe' e" %i ho$ an# anal#sis i s

The E$ropean -omm$ni ies arg$es ha

arg$men s ha he limi on he D$an i ies o& A-7 banana impor s ha 'o$l" bene&i &rom pre&eren ial rea men "i" no 'a$se an# n$lli&i'a ion or impairmen o& bene&i s a''r$ing o E'$a"or $n"er he 'overe" agreemen s/ 2/ The E$ropean -omm$ni ies s$bmi s ha he 7anel &o$n" ha L6 he 'ompe i ive

oppor $ni ies6 o& some ?embers 'an be nega ivel# a&&e' e" onl# %here here is a 6 $enefit6 gran e" o some o her ?embersL57 an"0 &or he 7anel6s reasoning o s an"0 L he D$an i # limi impose" on he A-7 pre&eren'e m$s be bo h /// he elemen ha riggere" he viola ion o& Ar i'le 2111 o& he AATT an" /// he 6bene&i 6 ha 'o$l" nega ivel# a&&e' he 6'ompe i ive oppor $ni ies6 o& he ?:N banana
E$ropean -omm$ni ies6 appellan 6s s$bmissions0 paras/ 424-428 (E'$a"or)0 paras/ 458-495 (.,)/ E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 455 (E'$a"or)0 para/ 450 (.,)/ 57 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 494 (E'$a"or) (original emphasis) (re&erring o E'$a"or 7anel (epor 0 para/ 7/552)/
56 55

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 50 s$ppliers/L58 The E$ropean -omm$ni ies arg$es ha he D$an i # limi a ion impose" on he A-7 pre&eren'e %as no a Lbene&i L gran e" o he A-7 'o$n ries b$ 0 ra her0 i %as La 6bene&i 6 gran e" o he ?:N 'o$n riesL/59 5/ The E$ropean -omm$ni ies 'on en"s ha his &a' is no a&&e' e" b# he 7anel6s &in"ing ha

he +oha Ar i'le 1 )aiver ha" e3pire" a he en" o& 2005 an"0 'onseD$en l#0 ha he A-7 pre&eren'e gran e" be %een 4 Can$ar# 2006 an" 54 +e'ember 2007 %as no longer 'onsis en %i h Ar i'le 1 o& he AATT 4999/ The E$ropean -omm$ni ies arg$es ha he 7anel &aile" o e3plain ho% he limi a ion o& he D$an i ies bene&i ing &rom he A-7 pre&eren'e L'a$se" an# ne% or additional n$lli&i'a ion or impairmen o E'$a"or $n"er Ar i'le 2111 o& he AATTL60 be#on" he n$lli&i'a ion or impairmen $n"er Ar i'le 1/ The E$ropean -omm$ni ies s$bmi s ha he 7anel also &aile" o a@e in o 'onsi"era ion ha he D$an i # limi a ion ha" he e&&e' o& limiting he nega ive e&&e' s o& he A-7 pre&eren'e on E'$a"or6s L'ompe i ive oppor $ni iesL $n"er Ar i'le 1/ A''or"ing o he E$ropean -omm$ni ies0 he 7anel ma"e a L"o$ble 'o$n ingL o& n$lli&i'a ion or impairmen 0 b# 'o$n ing as n$lli&i'a ion or impairmen no onl# he nega ive e&&e' s 'a$se" b# he A-7 pre&eren'e0 b$ also L he limi a ion o& hese nega ive e&&e' s hro$gh he D$an i # limi L/ 64 9/ The E$ropean -omm$ni ies0 here&ore0 reD$es s he Appella e !o"# o reverse he 7anel6s

legal in erpre a ions an" he 'onseD$en ial reNe' ion o& he E$ropean -omm$ni ies6 arg$men ha he limi on he D$an i ies o& A-7 bananas ha 'o$l" bene&i &rom pre&eren ial rea men "i" no 'a$se an# n$lli&i'a ion or impairmen o& bene&i s a''r$ing o E'$a"or $n"er he 'overe" agreemen s/ 7/ 4/ N$lli&i'a ion or 1mpairmen %i h respe' o he .ni e" , a es

The E$ropean -omm$ni ies appeals he 7anel6s &in"ing ha 0 L o he e3 en ha he FE-

!ananas 1mpor (egimeG 'on ains meas$res in'onsis en %i h vario$s provisions o& he AATT 49990 i has n$lli&ie" or impaire" bene&i s a''r$ing o he .ni e" , a es $n"er ha Agreemen /L 62 The E$ropean -omm$ni ies arg$es ha he 7anel erre" in &in"ing ha he .ni e" , a es ha" s$&&ere" n$lli&i'a ion or impairmen as a res$l o& he E- !ananas 1mpor (egime/ 2/ The E$ropean -omm$ni ies arg$es ha he 7anel 'on&$se" he no ion o& Ln$lli&i'a ion or A''or"ing o he E$ropean

impairmen L in Ar i'le 5/8 o& he +,. %i h he Lin eres L ha a 'omplaining par # m$s have in or"er o have Ls an"ingL o 'ommen'e "isp$ e se lemen pro'ee"ings/ 65
58 59

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 492 (E'$a"or)/ E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 495 (E'$a"or)/ 60 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 499 (E'$a"or)/ (original emphasis) 64 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 495 (E'$a"or)/ 62 ., 7anel (epor 0 para/ 8/42/ 65 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 456 (.,)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 54 -omm$ni ies0 he no ion o& Ln$lli&i'a ion or impairmen L $n"er Ar i'le 5/8 is he same as he no ion o& Ln$lli&i'a ion or impairmen L $n"er Ar i'le 220 b$ i is "i&&eren &rom he #pe o& Lin eres L ha a 'omplaining par # m$s have in or"er o have Ls an"ingL o 'ommen'e "isp$ e se lemen pro'ee"ings/ 1n his respe' 0 he E$ropean -omm$ni ies arg$es ha i %as no eno$gh &or he 7anel o rel# on he po en ial e3por in eres o& he .ni e" , a es an" he po en ial e&&e' s o& he 'on es e" meas$res on %orl" s$pplies an" pri'es o& bananas o &in" ha n$lli&i'a ion or impairmen %i hin he meaning o& Ar i'le 5/8/ 5/ The E$ropean -omm$ni ies 'laims ha 0 'onsi"ering ha he .ni e" , a es %as a ne he .ni e" , a es ha" s$&&ere"

impor er o& bananas an" %as no a' ivel# involve" in he b$siness o& e3por ing bananas o an# 'o$n r#0 le alone he E$ropean -omm$ni ies0 he ra"e pre&eren'e &or bananas origina ing in A-7 'o$n ries 'o$l" no 0 an" "i" no 0 "eprive he .ni e" , a es &rom an# L'ompe i ive oppor $ni #L o e3por bananas o he E$ropean -omm$ni iesB nor "i" i 'hange he .ni e" , a es6 L'ompe i ive rela ionshipL %i h an# banana e3por ing 'o$n r# in he %orl"0 be'a$se he .ni e" , a es has never ha" a L'ompe i ive rela ionshipL/ The E$ropean -omm$ni ies 'on en"s ha he &a' ha he 'on es e" meas$res migh a&&e' he val$e o& he .ni e" , a es6 e3por s in goo"s or servi'es o%ar"s hir" 'o$n ries "i" no 'ons i $ e Ln$lli&i'a ion or impairmen L $n"er he AATT 4999/ 9/ The E$ropean -omm$ni ies also 'ri i'i=es he 7anel &or rel#ing on he &in"ings o& he A''or"ing o he E$ropean

Appella e !o"# in he original E) Bananas III pro'ee"ings in 49970 be'a$se he &a' s o& he presen 'ase are "i&&eren &rom he &a' s as he# e3is e" in 4997/ -omm$ni ies0 he Appella e !o"# repor in he original pro'ee"ings L'on&irmFe"G ha he &in"ing o& a 6n$lli&i'a ion or impairmen 6 o& a bene&i a''r$ing o he .ni e" , a es %as base" on he E$ropean -omm$ni ies6 viola ion o& he AAT,/L 69 The E$ropean -omm$ni ies &$r her re'alls ha he arbi ra ors a' ing p$rs$an o Ar i'le 22/6 o& he +,. in 4999 &o$n" ha he so$r'es o& Ln$lli&i'a ion or impairmen L %i h respe' o he .ni e" , a es %ere: L(a) he ., share o& %holesale ra"e servi'es in bananas sol" in he E$ropean -omm$ni ies an" (b) he ., share o& allo'a e" banana impor li'en'es &rom %hi'h D$o a ren s a''r$e/L65 The E$ropean -omm$ni ies poin s o$ ha he '$rren pro'ee"ings "o no involve an# 'laim $n"er he AAT, an" here is no longer an Line3 ri'abl# in er%ovenL66 rela ion be %een he AATT 4999 an" he AAT,0 so ha none o& he 'onsi"era ions on %hi'h he &in"ing o& Ln$lli&i'a ion or impairmen L o& he .ni e" , a es %as base" in 4997 e3is e" a he ime his 7anel %as es ablishe"/

69 65

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 467 (.,)/ +e'ision o& he Arbi ra ors0 E) Bananas III &/#' &Article ++-3 E)'0 para/ 7/8/ 66 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 469 (.,)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 52 8/ 4/ No i'e o& Appeal

(egar"ing he .ni e" , a es6 allega ion ha he E$ropean -omm$ni ies6 No i'e o& Appeal

"i" no sa is&# he reD$iremen s o& ($le 20(2)(") o& he >or0ing Procedures0 he E$ropean -omm$ni ies "oes no "isp$ e ha i s No i'e o& Appeal "i" no i"en i&# he spe'i&i' paragraphs o& he ., 7anel (epor 'on aining he allege" errors/ The E$ropean -omm$ni ies arg$es0 ho%ever0 ha none o& he par i'ipan s ha" "i&&i'$l # in i"en i&#ing he s'ope an" 'on en o& he E$ropean -omm$ni ies6 No i'e o& Appeal/ ?oreover0 %i h respe' o he allege" &ail$re o lis in i s No i'e o& Appeal a 'laim $n"er Ar i'le 44 o& he +,.0 he E$ropean -omm$ni ies arg$es ha a viola ion o& Ar i'le 44 is al%a#s a means b# %hi'h a panel ma@es an error o& la% or legal in erpre a ion/ -onseD$en l#0 he E$ropean -omm$ni ies 'on en"s ha here %as no nee" o 'i e Ar i'le 44 in 'onN$n' ion %i h ever# error o& la% appeale" in i s No i'e o& Appeal/ 67 !/ Arguments of Ecuador Appellee and 4hird Participant 4/ 4/ Ar i'le 9/5 o& he +,. he 7anel a' e" 'onsis en l# %i h Ar i'le 9/5 o& he +,. %hen i

E'$a"or s$bmi s ha

"e'i"e" o main ain "i&&eren ime ables &or he .ni e" , a es 'ase an" he E'$a"or 'ase/ E'$a"or emphasi=es ha i s rongl# obNe' e" %hen he 7anel as@e" %he her o "ela# he E'$a"or pro'ee"ings in or"er o harmoni=e i %i h he 'ase ini ia e" b# he .ni e" , a es/ E'$a"or "isagrees %i h he E$ropean -omm$ni ies6 'on en ion ha Ar i'le 9/5 imposes an Labsol$ e obliga ion o harmoni=e ime ablesL/68 E'$a"or arg$es ha he phrase L o he grea es e3 en possibleL in Ar i'le 9/5 rela es o he obliga ion o 'ompose he %o separa e panels o& he same persons as %ell as o he panel6s obliga ion o harmoni=e he ime ables/ 2/ E'$a"or asser s ha harmoni=a ion o& he ime ables %o$l" have le" o a %o-mon h "ela# he E$ropean -omm$ni ies6 in erpre a ion %o$l" reD$ire

o& he pro'ee"ings in he E'$a"or 'ase in viola ion o& he 90-"a# ime perio" se o$ in Ar i'le 24/5 o& he +,./ E'$a"or &$r her s$bmi s ha harmoni=a ion regar"less o& ho% %i"e he ime-gap be %een %o 'ases ma# be0 an" ha his 'o$l" en ail signi&i'an "ela#s in )TO "isp$ e se lemen / 2/ 4/ >egal E&&e' o& he .n"ers an"ing on !ananas

E'$a"or arg$es ha he E$ropean -omm$ni ies mis'hara' eri=e" he 7anel6s &in"ings %hen

i s$bmi e" ha he 7anel ha" se o$ hree L'on"i ionsL ha ha" o be sa is&ie" in or"er &or he
67 68

E$ropean -omm$ni ies6 response o D$es ioning a he oral hearing/ E'$a"or6s appellee6s s$bmission0 para/ 8/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 55 .n"ers an"ing on !ananas o D$ali&# as a m$ $all# agree" sol$ ion %i hin he meaning o& Ar i'le 5/7 o& he +,./69 E'$a"or main ains ha 0 ra her han 'rea ing an obNe' ionable legal es &or %ha 'ons i $ es a m$ $all# agree" sol$ ion0 he 7anel ha" eval$a e" %he her he erms o& he .n"ers an"ing rea" in heir 'on e3 %ere o& a na $re ha 'o$l" bar E'$a"or &rom ini ia ing 'omplian'e pro'ee"ings/ E'$a"or0 ho%ever0 'on en"s ha he .n"ers an"ing 'o$l" no imm$ni=e an# s eps he E$ropean -omm$ni ies migh have a@en %i h respe' o he re&orm o& he E- !ananas 1mpor (egime &rom 'hallenges be&ore he )TO "isp$ e se lemen s#s em/ 2/ E'$a"or "isagrees %i h he E$ropean -omm$ni ies ha a 'omplaining par # ha en ers in o

a bila eral se lemen 'anno 'hallenge he 'on&ormi # o& meas$res a@en b# he implemen ing par # i& ha par # 'laims ha he meas$res are La''ep e"L $n"er he bila eral agreemen / 70 E'$a"or main ains ha he E$ropean -omm$ni ies6 'ons r$' ion has no basis in he e3 o& he +,. an" %o$l" r$n 'o$n er o Ar i'le 24/5 o& he +,.0 in ha i %o$l" "en# he righ o ini ia e 'omplian'e pro'ee"ings0 %hi'h are e3pressl# provi"e" &or in Ar i'le 24/5/ ?oreover0 E'$a"or 'on en"s ha 0 as all m$ $all# agree" sol$ ions m$s be 'onsis en %i h he 'overe" agreemen s0 pre'l$"ing a par # o a se lemen agreemen &rom 'hallenging he agreemen %o$l" n$lli&# he reD$iremen o& 'on&ormi # o& he bila eral agreemen %i h )TO la% an" ren"er he agreemen $nen&or'eable $n"er he +,./ 5/ E'$a"or &$r her s$bmi s ha he 7anel %as 'orre' in reNe' ing he E$ropean -omm$ni ies6 he prin'iple o& goo" &ai h pre'l$"e" E'$a"or &rom 'hallenging he E- !ananas E'$a"or s$ppor s he 7anel6s s a emen ha E'$a"or has LFnGo%here in he

'on en ion ha 1mpor (egime/

.n"ers an"ing /// a''ep e" ha i %o$l" &orego i s righ o 'hallenge he 'on&ormi # %i h he 'overe" agreemen s o& an# meas$re ha he E$ropean -omm$ni ies migh a@e o implemen a s ep se o$ in he !ananas .n"ers an"ingL/74 :$r hermore0 E'$a"or 'on en"s ha Ar i'le 5/40 o& he +,. "oes no pre'l$"e ini ia ion o& "isp$ e se lemen pro'ee"ings/

E'$a"or6s appellee6s s$bmission0 para/ 49 (re&erring o E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 94 (E'$a"or)0 in $rn re&erring o E'$a"or 7anel (epor 0 para/ 7/76)/ 70 E'$a"or6s appellee6s s$bmission0 para/ 48/ 74 E'$a"or6s appellee6s s$bmission0 para/ 52 (D$o ing E'$a"or 7anel (epor 0 para/ 7/428)/

69

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 59 5/ 4/ Ar i'le 11 o& he AATT 4999 he imposi ion o& a ari&& o& M476*m b# he

E'$a"or s$ppor s he 7anel &in"ings ha

E$ropean -omm$ni ies viola e" Ar i'le 11 o& he AATT 49990 be'a$se ha ari&& is in e3'ess o& he ari&& D$o a 'on'ession bo$n" in he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions/ E'$a"or 'on en"s ha he E$ropean -omm$ni ies6 'on'ession &or bananas 'on in$e" o remain in &or'e &or %o reasons: &irs 0 he !ananas :rame%or@ Agreemen %as no in en"e" o (nor "i" i ) ermina e he ari&& D$o a 'on'ession as o& 54 +e'ember 2002B an"0 se'on"l#0 as he 7anel &o$n"0 he ari&& D$o a 'on'ession remaine" in e&&e' be'a$se o& i s e3 ension hro$gh he agreemen mani&es e" in he +oha Ar i'le 1 )aiver/ 2/ E'$a"or agrees %i h he 7anel ha L he +oha )aiver %as an agreemen regar"ing he

application o& he 'on'ession0 %hi'h is %i hin he s'ope o& Ar i'le 54(5) Fo& he 8ienna )onventionG/L72 ?oreover0 a''or"ing o E'$a"or0 L he +oha )aiver /// s rongl# s$ppor FsG E'$a"or6s posi ion ha he -on'ession %as never in en"e" o e3pire on a''o$n o& paragraph 9 o& he F!ananas :rame%or@ Agreemen G/L75 5/ E'$a"or agrees %i h he 7anel ha L he +oha )aiver 'ons i $ e" an in erna ional agreemen

rela ing o he appli'a ion o& he -on'ession/L 79 E'$a"or also arg$es ha Ar i'le 54(5) o& he 8ienna )onvention "oes no pres'ribe &ormal reD$iremen s as o %ha ma# 'ons i $ e a s$bseD$en agreemen 0 an" ha a %aiver o& obliga ions is an agreemen ha is bin"ing on all ?embers an" ha al ers0 &or he "$ra ion o& he %aiver0 righ s an" obliga ions &or all ?embers/ E'$a"or also no es ha i is irrelevan ha %aivers are no a"op e" b# 'onsens$s0 be'a$se Leven a ?ember %ho "i" no s$ppor a %aiver %ill no be able o en&or'e 'omplian'e %i h a %aive" r$le b# he ?ember %ho re'eive" he %aiver/L 75 9/ E'$a"or 'on en"s ha a %aiver ma# be regar"e" as an agreemen e3 en"ing he 'on'ession0

even i& i "oes no mee )TO reD$iremen s an" pro'e"$res &or mo"i&#ing a AATT ari&& 'on'ession/ E'$a"or arg$es ha L he mo"i&i'a ion o& he "$ra ion o& he -on'ession b# he +oha )aiver is0 i& an# hing0 a more ransparen s ep han mos mo"i&i'a ions0 %hi'h ma# help e3plain %h# "isp$ e se lemen panels an" he Appella e !o"# have &o$n" ha 'on'essions 'anno a$ hori=e "evia ions &rom o her )TO r$les/L76 E'$a"or also agrees %i h he 7anel6s &in"ing ha 0 inso&ar as i mo"i&ies he E$ropean -omm$ni ies6 ari&& 'on'ession0 L he +oha )aiver %as an agreemen regar"ing he

72 75

E'$a"or6s appellee6s s$bmission0 para/ 58/ (original emphasis) E'$a"or6s appellee6s s$bmission0 para/ 66/ 79 E'$a"or6s appellee6s s$bmission0 para/ 55/ 75 E'$a"or6s appellee6s s$bmission0 para/ 55/ 76 E'$a"or6s appellee6s s$bmission0 para/ 57/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 55 application o& he 'on'ession0 %hi'h is %i hin he s'ope o& Ar i'le 54(5) Fo& he 8ienna )onventionGL/77 5/ E'$a"or believes ha 0 al ho$gh he +oha Ar i'le 1 )aiver has e3pire" %i h respe' o

bananas0 i 'an never heless e3 en" he ari&& D$o a 'on'ession0 be'a$se o& he overall se lemen mani&es e" in he )aiver0 %hi'h also rela es o he .n"ers an"ing on !ananas/ A''or"ing o E'$a"or0 he E$ropean -omm$ni ies 'o$l" no sa# L ha i go i s par o& he bargainL an" main ain i s )TO in'onsis en regime $n il 20080 b$ 0 a he same ime0 Lignore he 'ommi men s %i h permanen e&&e' on %hi'h he +oha )aiver %as 'on"i ione"L/ 78 7ar o& he E$ropean -omm$ni ies6 'ommi men s %as o Lin ro"$'e an" rebin" a ari&& onl# regime ha %o$l" permanen l# an" %i ho$ he nee" &or a %aiver a leas main ain o al mar@e a''ess &or ?:N s$ppliers0 a@ing in o a''o$n all E- mar@e a''ess 'ommi men sL/ 79 6/ E'$a"or arg$es ha i ha" in ro"$'e" evi"en'e be&ore he 7anel "emons ra ing ha all )TO

?embers0 in'l$"ing he E$ropean -omm$ni ies0 ha" $ni&orml# a' e" on he basis ha he ari&& D$o a 'on'ession %as permanen / A''or"ing o E'$a"or0 he &irs ime ha he E$ropean -omm$ni ies ever arg$e" or a' e" as i& he 'on'ession ha" e3pire" on 54 +e'ember 2002 %as in he E$ropean -omm$ni ies6 reb$ al s$bmission in hese 7anel pro'ee"ings/ 7/ E'$a"or &$r her 'on en"s ha he 7anel re&erre" o he ?o"ali ies 7aper as a g$i"e o he

'ommon in en ions o& nego ia ors0 no as en&or'eable r$les/ :or E'$a"or0 L he mo"ali ies paper 'on in$es o opera e as a g$i"e0 s$'h as in a''ession nego ia ionsL 800 an" here&ore i %as appropria e &or he 7anel o rel# on i as s$pplemen ar# means o& in erpre a ion/ E'$a"or also 'laims ha he 7anel %as righ o in&er &rom he no i&i'a ions an" ini ia ion o& Ar i'le 22;111 nego ia ions b# he E$ropean -omm$ni ies in 2009 an" in 2007 ha L he E- %o$l" no have nee"e" o invo@e s$'h nego ia ions i& i s bo$n" "$ ies %ere 680 e$ros*m 0 sin'e members "o no nee" o nego ia e $n"er Ar i'le 22;111 o lo%er heir bin"ings/L84 8/ :inall#0 E'$a"or 'on en"s ha he +oha Ar i'le 1 )aiver sho$l" be seen as an agreemen he ari&& D$o a

ha s$ppor s E'$a"or6s o her appeal an" 'on&irms E'$a"or6s in erpre a ion ha

'on'ession %as never in en"e" o e3pire b# vir $e o& paragraph 9 o& he !ananas :rame%or@ Agreemen / 1n E'$a"or6s vie%0 paragraph 90 a mos 0 %as in en"e" o ermina e hose 'on"i ions o& he !ananas :rame%or@ Agreemen (s$'h as he allo'a ion o& he ari&& D$o a among s$ppliers) ha
77 78

E'$a"or6s appellee6s s$bmission0 para/ 58/ (original emphasis) E'$a"or6s appellee6s s$bmission0 para/ 60/ 79 E'$a"or6s appellee6s s$bmission0 para/ 60/ 80 E'$a"or6s appellee6s s$bmission0 para/ 69/ 84 E'$a"or6s appellee6s s$bmission0 para/ 65/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 56 are no in'l$"e" in he &irs si3 'ol$mns $n"er he E$ropean -omm$ni ies6 ari&& hea"ing on bananas in i s ,'he"$le o& -on'essions/ 9/ Ar i'le 2111 o& he AATT 4999 (a) 4/ ,$gges ions p$rs$an o Ar i'le 49/4 +,. he 7anel properl# "ismisse" he arg$men b# he E$ropean

E'$a"or respon"s ha

-omm$ni ies ha he 7anel 'o$l" no revie% in hese Ar i'le 24/5 pro'ee"ings he 'on&ormi # o& he meas$res a@en o 'ompl#0 %hi'h he E$ropean -omm$ni ies 'laims o have a@en o implemen he s$gges ions ma"e b# he &irs E'$a"or Ar i'le 24/5 panel p$rs$an implemen ha s$gges ion &rom revie% $n"er Ar i'le 24/5 o& he +,./ 2/ A''or"ing o E'$a"or0 he E$ropean -omm$ni ies6 posi ion regar"ing s$gges ions %o$l" o Ar i'le 49/4 o& +,./ :or E'$a"or0 he &a' ha he s$gges ions ha" no been appeale" "oes no imm$ni=e meas$res a@en o

have he ne e&&e' o& "is'o$raging reD$es s &or a panel o ma@e s$gges ions an" %o$l" impl# ha a par # ha ge s a Ls$gges ionL ob ains imm$ni # &rom a 'hallenge $n"er )TO r$les &or meas$res i $n"er a@es 'onsis en l# %i h ha s$gges ion/ E'$a"or &$r her 'on en"s ha ano her $na''ep able 'onseD$en'e %o$l" be ha 0 i& a panel ma"e a Lbroa"L s$gges ion0 L he "e&en"ing par # %o$l" be &ree o a"op he mos pro e' ionis an" )TO-in'onsis en se o& meas$res i 'o$l" 'on rive ha %o$l" s ill arg$abl# &i %i hin he parame ers o& he panel s$gges ionL an" L%o$l" be imm$ne &rom s'r$ in# &or 'omplian'e %i h )TO r$les0 so long as F hose meas$resG 'on&orme" %i h he 'on o$rs o& F heG s$gges ion/L82 (b) 4/ 1n erpre a ion o& Ar i'le 2111 o& he AATT 4999

E'$a"or reD$es s he Appella e !o"# o reNe' he E$ropean -omm$ni ies6 appeal o& he

7anel6s in erpre a ion o& Ar i'le 2111 o& he AATT 4999 an" he 7anel6s 'onseD$en ial &in"ings ha he E- !ananas 1mpor (egime %as in'onsis en %i h Ar i'le 2111:4 an" 2 o& he AATT 4999/ 2/ E'$a"or s$bmi s ha 0 in he presen "isp$ e0 he prior +,! re'ommen"a ions an" r$lings on

Ar i'le 2111 'on in$e o appl#0 be'a$se he E- !ananas 1mpor (egime in'l$"e" a ari&& D$o a/ 1n E'$a"or6s vie%0 he Appella e !o"# 'learl# s a e" in E) Bananas III ha Ar i'le 2111 applies Lregar"less %he her here are one0 %o or man# F ari&& D$o asGL/ 85 E'$a"or emphasi=es ha o& ?:N bananas0 %hi'h are "enie" a''ess o he "$ #-&ree D$o a/
E'$a"or6s appellee6s s$bmission0 para/ 58/ E'$a"or6s appellee6s s$bmission0 para/ 92 (re&erring o Appella e !o"# (epor 0 E) Bananas III0 para/ 490)/
85 82

he

E$ropean -omm$ni ies6 pre&eren ial ari&& D$o a &or A-7 bananas 'ons i $ es a res ri' ion on impor s

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 57 5/ (egar"ing Ar i'le 2111:40 E'$a"or reNe' s he E$ropean -omm$ni ies6 arg$men ha L he

ari&& D$o a "oes no res ri' 0 b$ ra her helps E'$a"or an" he o her ?:N s$ppliers o he E-/L 89 E'$a"or arg$es ha he 7anel 'orre' l# &o$n" ha bananas o& ?:N origin are rea e" less &avo$rabl# be'a$se he# have no a''ess o he =ero-"$ # ari&& D$o a gran e" &or A-7 bananas0 an" ha he pre&eren ial ari&& D$o a gran e" b# he E$ropean -omm$ni ies o he A-7 'o$n ries is in'onsis en %i h Ar i'le 2111:4 o& he AATT 4999/ 9/ A''or"ing o E'$a"or0 'er ain previo$s %aivers &rom Ar i'le 1 re&erre" o b# he E$ropean

-omm$ni ies "o no "emons ra e ha here %as La 'ommon $n"ers an"ing ha e3'l$sion &rom a pre&eren ial ari&& D$o a is no in'onsis en %i h Ar i'le 2111L/85 1n E'$a"or6s vie%0 he e3is en'e o& hese %aivers 'anno 'ons i $ e a legal basis &or he Appella e !o"# o reverse i s prior in erpre a ion o& Ar i'le 21110 be'a$se all hese %aivers L%ere all in e3is en'e %hen he E-6s pre&eren ial ari&& D$o as %ere a""resse" b# he 7anel an" he Appella e !o"# in F E) G Bananas III0 #e %ere no "eeme" o a&&e' he proper in erpre a ion o& Ar i'le 2111 in a''or"an'e %i h he in erpre ive prin'iples o& he F8ienna )onventionGL/86 E'$a"or &$r her 'on en"s ha he E$ropean -omm$ni ies i sel& re'eive" a %aiver &rom Ar i'le 2111 in or"er o main ain i s "is'rimina or# ari&& D$o a reserve" &or A-7 bananas0 sho%ing ha he mos re'en )TO pra' i'e reveale" ha i %as ne'essar# o ob ain a separa e %aiver &or "is'rimina or# ari&& D$o as/ 5/ (egar"ing Ar i'le 2111:20 E'$a"or "isagrees %i h he E$ropean -omm$ni ies6 in erpre a ion

ha he 'hapea$ o& Ar i'le 2111:2 gives righ s o onl# ?embers ha are s$bNe' o a par i'$lar ari&& D$o a/ E'$a"or emphasi=es ha he e3 o& his provision "oes no re&er o res ri' ions on 'o$n ries0 b$ 0 ra her0 re&ers o pro"$' s/ 1n an# even 0 E'$a"or %as Lplainl# s$bNe' o he res ri' ions be'a$se he D$o as e3'l$"eF"G E'$a"orian bananas al oge her &rom he =ero "$ # D$o aL/ 87 E'$a"or s$bmi s ha he 7anel6s reNe' ion o& he E$ropean -omm$ni ies6 in erpre a ion o& Ar i'le 2111 %as 'onsis en %i h previo$s "e'isions o& he Appella e !o"# in E) Bananas III an" /# Line Pipe/88 (') 4/ N$lli&i'a ion or 1mpairmen %i h respe' o E'$a"or

E'$a"or a@es iss$e %i h he E$ropean -omm$ni ies6 'laim ha here %as no n$lli&i'a ion

an" impairmen o& bene&i s s$&&ere" b# E'$a"or be'a$se he ari&& D$o a impose" b# he E$ropean -omm$ni ies limi e" he "$ #-&ree 'ompe i ion &rom he A-7 'o$n ries/ 1n E'$a"or6s vie%0 LF Ghis

E'$a"or6s appellee6s s$bmission0 para/ 95/ E'$a"or6s appellee6s s$bmission0 para/ 99 (re&erring o E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/429 (E'$a"or))/ 86 E'$a"or6s appellee6s s$bmission0 para/ 99/ 87 E'$a"or6s appellee6s s$bmission0 para/ 97/ 88 E'$a"or6s appellee6s s$bmission0 para/ 97 (re&erring o E'$a"or 7anel (epor 0 paras/ 7/567-7/570)/
85

89

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 58 arg$men has no meri on poli'# or legal gro$n"s/L89 E'$a"or arg$es ha he al erna ive available o he E$ropean -omm$ni ies in or"er o a' 'onsis en l# %i h Ar i'le 2111 o& he AATT 4999 %as no o elimina e he ari&& D$o a giving A-7 bananas "$ #-&ree a''ess0 b$ 0 ra her0 L o allo% E'$a"or $nlimi e" a''ess o he "$ # &ree D$o aL/ 90 E'$a"or also s$bmi s ha he E$ropean -omm$ni ies &aile" o reb$ he pres$mp ion o& n$lli&i'a ion or impairmen $n"er Ar i'le 5/8 o& he +,.0 be'a$se Li is %ell se le" ha s$'h a poli'# arg$men %o$l" no reb$ he pres$mp ion o& n$lli&i'a ion or impairmen 0 %hi'h is no a D$es ion o& Fa' $alG ra"e &lo%s0 b$ ra her o& F ra"eG oppor $ni ies/L 94 -/ Arguments of the /nited #tates Appellee and 4hird Participant 4/ 4/ Ar i'le 9/5 o& he +,.

The .ni e" , a es arg$es ha he 7anel a' e" %i hin i s margin o& "is're ion %hen i "e'i"e"

o main ain "i&&eren ime ables &or he .ni e" , a es 'ase an" he E'$a"or 'ase/ The .ni e" , a es s$bmi s ha he 7anel %as 'orre' in a@ing in o a''o$n ha he presen pro'ee"ings are 'omplian'e pro'ee"ings0 %hi'h0 p$rs$an o Ar i'le 24/5 o& he +,.0 are s$ppose" o be 'omple e" %i hin 90 "a#s/ The .ni e" , a es "isagrees %i h he E$ropean -omm$ni ies6 'on en ion ha Ar i'le 9/5 o& he +,. provi"es an Labsol$ e an" $nD$ali&ie"L 92 obliga ion %i h respe' o he harmoni=a ion o& ime ables/ 1ns ea"0 he .ni e" , a es 'on en"s0 he 7anel6s obliga ion %as D$ali&ie" b# he erms L o he grea es e3 en possibleL in Ar i'le 9/5/ 1n he .ni e" , a es6 vie%0 he 7anel L'are&$ll# 'onsi"ere"L he reD$es &or harmoni=a ion Lan" rea'he" an appropria e "e'ision ha a""resse" all he pro'e"$ral iss$es impli'a e" b# he E-6s reD$es L/ 95 2/ The .ni e" , a es &$r her s$bmi s ha he 7anel "i" ma@e a"N$s men s o he ime able in

or"er o pro e' he "$e pro'ess righ s o& he par ies/ The 7anel ma"e 'lear ha i ini iall# in en"e" o harmoni=e he ime ables0 b$ %as no able o &in" a be er al erna ive o he one i a"op e"/ The .ni e" , a es main ains ha 0 in par i'$lar0 he 7anel ens$re" ha replies o D$es ions an" 'ommen s

E'$a"or6s appellee6s s$bmission0 para/ 98/ E'$a"or6s appellee6s s$bmission0 para/ 98/ 94 E'$a"or6s appellee6s s$bmission0 para/ 99/ 92 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 20 (.,) (re&erre" o in .ni e" , a es6 appellee6s s$bmission0 paras/ 422 an" 425)/ 95 .ni e" , a es6 appellee6s s$bmission0 para/ 424/
90

89

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 59 5/ on replies in he .ni e" , a es 'ase %ere re'eive" be&ore he iss$an'e o& he in erim repor in

he E'$a"or 'ase/ The .ni e" , a es s$bmi s ha his preven e" he arg$men s o& he par ies &rom being in&l$en'e" b# a"van'e @no%le"ge o& he &in"ings o& he 7anel in he E'$a"or 'ase/ 99 The .ni e" , a es also asser s ha an appellan reD$es ing reversal o& a panel6s r$ling on ma ers o& pro'e"$re m$s "emons ra e he preN$"i'e genera e" b# ha legal r$ling0 an" ha he E$ropean -omm$ni ies has &aile" o "o so/ 95 ?oreover0 he .ni e" , a es 'on en"s ha Ar i'le 9/5 "oes no reD$ire a panel o provi"e an obNe' ive N$s i&i'a ion &or i s "e'ision on a reD$es &or harmoni=a ionB none heless0 he 7anel "i" in &a' provi"e an Le3plana ion as o %h# i %as $nable o harmoni=e he ime ablesL/96 :inall#0 he .ni e" , a es 'on en"s ha 0 even i& he Appella e !o"# reverses he 7anel6s &in"ing rela ing o Ar i'le 9/5 o& he +,.0 ha reversal sho$l" have no e&&e' on he meri s o& he "isp$ e or he s$bs an ive &in"ings o& he 7anel/ 2/ 4/ >egal E&&e' o& he .n"ers an"ing on !ananas he 7anel "i" no se o$ hree L'on"i ionsL ha ever#

The .ni e" , a es arg$es ha

m$ $all# agree" sol$ ion m$s mee / (a her0 he .ni e" , a es 'on en"s0 he 7anel e3plaine" on he basis o& he L hree reasons ta0en togetherL %h# he .n"ers an"ing "i" no have he e&&e' o& barring he .ni e" , a es &rom ini ia ing 'omplian'e pro'ee"ings/ 97 2/ )i h respe' o he 7anel6s &irs reasonP ha he .n"ers an"ing provi"es onl# &or he

means0 ha is0 a series o& &$ $re s eps0 &or resolving an" se ling he "isp$ eP he .ni e" , a es main ains ha he 7anel merel# se o$ he &a' s base" on a 'orre' rea"ing o& he erms o& he .n"ers an"ing/ The .ni e" , a es s$bmi s ha he 7anel "i" no 0 as he E$ropean -omm$ni ies asser s0 se a L'on"i ionL ha onl# agreemen s re'or"ing meas$res ha have alrea"# been implemen e" 'an D$ali&# as m$ $all# agree" sol$ ions/ 98 )i h respe' o he 7anel6s se'on" reasonP ha he .n"ers an"ing %as 'on'l$"e" s$bseD$en o re'ommen"a ions0 r$lings0 an" s$gges ions b# he +,!P he .ni e" , a es arg$es ha he 7anel "i" no se his as a L'on"i ionL b$ 0 ra her0 $se" i as relevan his ori'al 'on e3 &or assessing he E$ropean -omm$ni ies6 preliminar# obNe' ion/ 99 :inall#0 %i h regar" o he 7anel6s hir" reasonP ha he par ies have ma"e 'on&li' ing 'omm$ni'a ions o he +,! 'on'erning he .n"ers an"ing on !ananasP he .ni e" , a es again 'on en"s ha he 7anel ha" no i"en i&ie" ha &a' as a L'on"i ionL/ 1n he .ni e" , a es6 vie%0 he

99 95

.ni e" , a es6 appellee6s s$bmission0 para/ 424 (re&erring o ., 7anel (epor 0 para/ 7/44)/ .ni e" , a es6 appellee6s s$bmission0 para/ 425/ 96 .ni e" , a es6 appellee6s s$bmission0 para/ 426/ 97 .ni e" , a es6 appellee6s s$bmission0 para/ 57 (original emphasis) (re&erring o ., 7anel (epor 0 para/ 7/407)/
98 99

.ni e" , a es6 appellee6s s$bmission0 para/ 64/ .ni e" , a es6 appellee6s s$bmission0 para/ 62/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 90 7anel ha" 'orre' l# a@en in o a''o$n ha he .ni e" , a es "isagrees %i h he E$ropean

-omm$ni ies6 'hara' eri=a ion o& he .n"ers an"ing as a Lm$ $all# agree" sol$ ionL/ 400 5/ The .ni e" , a es a@es iss$e %i h he E$ropean -omm$ni ies6 allega ion ha L he 7anel has

6in ro"$'eF"G an erroneo$s limi a ion on he #pes o& o her Llegall# bin"ing agreemen sL ha 'an be en&or'eable an" pro"$'e &$ll legal e&&e' s in he )TO legal or"er/6 L404 The .ni e" , a es s$bmi s ha he 7anel "i" no in ro"$'e s$'h a limi a ionB ra her0 he 7anel merel# &o$n" ha 0 in he 'on e3 o& he presen 'ase0 he .ni e" , a es %as no pre'l$"e" &rom having re'o$rse o Ar i'le 24/5 o& he +,.0 be'a$se he .n"ers an"ing be %een he .ni e" , a es an" he E$ropean -omm$ni ies "i" no provi"e &or s$'h a pre'l$sion/ 9/ A''or"ing o he .ni e" , a es0 he E$ropean -omm$ni ies6 posi ion %o$l" have he

'onseD$en'e ha a respon"ing par # ha &aile" o 'ompl# %i h he erms o& a m$ $all# agree" sol$ ion 'o$l" 'laim imm$ni # &rom &$r her pro'ee"ings b# vir $e o& he legal e&&e' o& m$ $all# agree" sol$ ions0 as %ell as &rom a 'laim $n"er he m$ $all# agree" sol$ ion i sel&0 be'a$se m$ $all# agree" sol$ ions are no L'overe" agreemen sL/ The .ni e" , a es emphasi=es0 ho%ever0 ha he +,. "oes no &oresee s$'h a limi a ion o& he 'omplainan 6s righ s/ 5/ The .ni e" , a es also s$bmi s ha he 7anel "i" no err in i s in erpre a ion an" appli'a ion

o& he prin'iple o& goo" &ai h provi"e" &or in Ar i'le 5/40 o& he +,./ The .ni e" , a es 'on en"s ha he 7anel %as 'orre' in rel#ing on pas panel an" Appella e !o"# repor s %hen &in"ing ha here m$s be some hing Lmore han mere viola ionL o& a s$bs an ive provision o& he 'overe" agreemen s be&ore a ?ember ma# be &o$n" o have &aile" o a' in goo" &ai h/ 402 6/ :inall#0 %i h respe' o he E$ropean -omm$ni ies6 'laim p$rs$an o Ar i'le 44 o& he +,.

ha he 7anel &aile" o provi"e an# N$s i&i'a ion &or reNe' ing i s 'laim base" on he prin'iple o& goo" &ai h0 he .ni e" , a es s$bmi s ha 0 sin'e he E$ropean -omm$ni ies6 No i'e o& Appeal "oes no 'on ain a re&eren'e o Ar i'le 44 o& he +,.0 ha 'laim is o$ si"e he s'ope o& his appeal/ 405

.ni e" , a es6 appellee6s s$bmission0 para/ 65/ .ni e" , a es6 appellee6s s$bmission0 para/ 65 (D$o ing E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 87 (.,))/ 402 .ni e" , a es6 appellee6s s$bmission0 para/ 76 (re&erring o Appella e !o"# (epor 0 /# =ffset Act &Byrd Amendment'0 para/ 297B an" 7anel (epor 0 Argentina Poultry Anti !umping !uties0 para/ 7/55)/ 405 .ni e" , a es6 appellee6s s$bmission0 para/ 70/
404

400

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 94 5/ 4/ ?eas$re Ta@en o -ompl#

The .ni e" , a es s$bmi s ha he 7anel "i" no err in &in"ing ha he E- !ananas 1mpor

(egime %as a Lmeas$re a@en o 'ompl#L %i h he +,! re'ommen"a ions an" r$lings in E) Bananas III/ The .ni e" , a es main ains ha he Ls r$' $re an" lang$ageL o& he .n"ers an"ing on !ananas in"i'a e ha i s p$rpose %as o 'ommi he E$ropean -omm$ni ies o bring i sel& in o )TO 'omplian'e on 4 Can$ar# 2006/ The .ni e" , a es arg$es ha he re&eren'e o he +oha Ar i'le 2111 )aiver in paragraph E o& he .n"ers an"ing "emons ra es an agreemen be %een he par ies o he .n"ers an"ing ha &$r her meas$res be#on" he in erim ari&& D$o a-base" regime %o$l" be ne'essar# &or he E$ropean -omm$ni ies o a'hieve 'omplian'e %i h he re'ommen"a ions an" r$lings o& he +,! in he original pro'ee"ings/ 2/ The .ni e" , a es 'on en"s ha i s 'ommi men o ermina e re alia ion $pon he

in ro"$' ion o& a ari&& D$o a-base" impor regime $n"er s$bparagraph -/2 o& he .n"ers an"ing "i" no in"i'a e an agreemen b# he .ni e" , a es o regar" he E$ropean -omm$ni ies6 in erim regime as he &inal implemen a ion o& he original +,! re'ommen"a ions an" r$lings/ The .ni e" , a es asser s ha i ermina e" onl# he imposi ion o& re alia or# "$ ies b$ ha he m$l ila eral a$ hori=a ion o s$spen" 'on'essions ha" no been revo@e"/ The .ni e" , a es main ains ha a 'omplainan ma# 'hoose %he her an" o %ha e3 en o ma@e $se o& he )TO a$ hori=a ion o s$spen" 'on'essions0 an" ha 0 here&ore0 he 'omplainan 6s "e'ision no o e3er'ise ha righ "oes no impl# he 'omplainan 6s a''ep an'e ha he respon"en 6s meas$res have be'ome 'onsis en %i h i s )TO obliga ions/ 5/ The .ni e" , a es "isagrees %i h he E$ropean -omm$ni ies ha here %as no lin@ be %een

he 'on es e" meas$re an" he +,! re'ommen"a ions an" r$lings in E) Bananas III/ The .ni e" , a es s$bmi s ha he E$ropean -omm$ni ies agree" hro$gh he erms o& he .n"ers an"ing on !ananas o a@e 'er ain in erim s eps '$lmina ing in a ari&&-onl# regime b# 4 Can$ar# 2006/ 1n he .ni e" , a es6 vie%0 his "emons ra e" ha a L'lear lin@L 409 e3is e" be %een he re'ommen"a ions an" r$lings o& he +,! in E) Bananas III an" he E- !ananas 1mpor (egime a iss$e in he presen "isp$ e/ 9/ A''or"ing o he .ni e" , a es0 he 7anel "i" no err in a@ing in o a''o$n he &in"ings o&

he panels in E) Bananas III &Article +,-. Ecuador' an" E) Bananas III &Article +,-. E)'0 an" he "e'ision b# he arbi ra ors in E) Bananas III &/#' &Article ++-3 E)'0 %hen assessing %he her he E- !ananas 1mpor (egime a iss$e in he '$rren "isp$ e 'ons i $ e" a Lmeas$re a@en o 'ompl#L %i h he +,! re'ommen"a ions an" r$lings in E) Bananas III/405 The .ni e" , a es poin s
.ni e" , a es6 appellee6s s$bmission0 para/ 88/ .ni e" , a es6 appellee6s s$bmission0 para/ 90 (re&erring o E$ropean -omm$ni ies6 appellan 6s s$bmission0 paras/ 55-60 (.,))/
405 409

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 92 o he Appella e !o"#6s s a emen in :apan Alcoholic Beverages II ha La"op e" panel repor s 'rea e legi ima e e3pe' a ions an" sho$l" be a@en in o a''o$n %hen relevan L/ 406 1n a""i ion0 he .ni e" , a es 'on en"s ha he 7anel merel# $se" hese repor s as evi"en'e o& he lin@ be %een he +,!6s re'ommen"a ions an" r$lings in he original pro'ee"ings an" he E- !ananas 1mpor (egime a iss$e in he presen "isp$ e/ 5/ )i h respe' o he E$ropean -omm$ni ies 'laim ha he 7anel a' e" in'onsis en l# %i h

Ar i'le 44 o& he +,. %hen i relie" on s$gges ions ma"e b# he panel in E) Bananas III &Article +,-. Ecuador'0 he .ni e" , a es arg$es ha his 'laim is no properl# be&ore he Appella e !o"# be'a$se i %as no in'l$"e" in he E$ropean -omm$ni ies6 No i'e o& Appeal/ 9/ 4/ (epeal o& he -hallenge" ?eas$re

The .ni e" , a es 'on en"s ha he 7anel "i" no err in ma@ing &in"ings %i h respe' o

E- (eg$la ion 4969*20050 even ho$gh ha (eg$la ion %as repeale" "$ring he 'o$rse o& he 7anel pro'ee"ings/ The .ni e" , a es s$bmi s ha a 'omplian'e panel is as@e" %i h "e ermining %he her meas$res a@en o 'ompl# e3is 0 an"0 %hen s$'h meas$res e3is 0 %he her he# 'ompl# %i h he re'ommen"a ions an" r$lings o& he +,!/ 407 The .ni e" , a es main ains ha he 7anel properl# 'on'l$"e" ha he 'hallenge" meas$re &aile" o implemen he re'ommen"a ions an" r$lings o& he +,! in he original pro'ee"ings/ 1n he .ni e" , a es6 vie%0 hese &in"ings %ere s$&&i'ien an" he 7anel "i" no nee" o ma@e a re'ommen"a ion/ The .ni e" , a es here&ore reD$es e" a he in erim revie% s age ha he 7anel6s re'ommen"a ion be "ele e" &rom i s (epor / 2/ )i h respe' o he E$ropean -omm$ni ies6 'laim $n"er Ar i'le 44 o& he +,. ha he

7anel &aile" o assess 'orre' l# he &a' s o& he 'ase b# no a@ing in o a''o$n he repeal o& E(eg$la ion 4969*20050 he .ni e" , a es alleges ha he E$ropean -omm$ni ies improperl# raises his 'laim be'a$se i %as no in'l$"e" in i s No i'e o& Appeal/ 1n a""i ion0 he .ni e" , a es main ains ha he E$ropean -omm$ni ies in ro"$'e" evi"en'e regar"ing he repeal o& E- (eg$la ion 4969*2005 onl# a he in erim revie% s age o& he 7anel pro'ee"ings/ 1n he .ni e" , a es6 vie%0 he E$ropean -omm$ni ies hereb# a' e" in'onsis en l# %i h he limi a ions regar"ing he in ro"$' ion o& ne% evi"en'e a he in erim revie% s age as s ip$la e" in paragraph 44 o& he 7anel6s )or@ing 7ro'e"$res0 an" in Ar i'le 45/2 o& he +,.0 an" a&&irme" b# he Appella e !o"# in E) #elected )ustoms Matters/408
.ni e" , a es6 appellee6s s$bmission0 para/ 90 (re&erring o Appella e !o"# (epor 0 :apan Alcoholic Beverages II0 p/ 490 +,( 4996:10 970 a 408)/ 407 .ni e" , a es6 appellee6s s$bmission0 para/ 445 (re&erring o Appella e !o"# (epor 0 /# F#) &Article +,-. E) II'0 para/ 400(b))/ 408 .ni e" , a es6 appellee6s s$bmission0 paras/ 449-446 (re&erring o Appella e !o"# (epor 0 E) #elected )ustoms Matters0 para/ 259)/
406

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 95 5/ 4/ Ar i'le 11 o& he AATT 4999

The .ni e" , a es 'on en"s0 as a hir" par i'ipan 0 ha 0 in he even ha he Appella e !o"#

reverses he 7anel6s &in"ing ha he E$ropean -omm$ni ies viola e" Ar i'le 11:4(b) o& he AATT 49990 he Appella e !o"# sho$l" also reverse he 7anel6s &in"ing ha he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession o& 2/2 million m e3pire" b# opera ion o& he &irs sen en'e o& paragraph 9 o& he !ananas :rame%or@ Agreemen / The .ni e" , a es arg$es ha 0 as a 'onseD$en'e0 he E$ropean -omm$ni ies6 applie" ari&& %o$l" none heless be in brea'h o& he E$ropean -omm$ni ies6 obliga ions $n"er Ar i'le 11 o& he AATT 4999/ 2/ The .ni e" , a es 'on en"s ha paragraph 9 o& he !ananas :rame%or@ Agreemen "oes no

s ip$la e ha he 'on'ession %i h %hi'h he agreemen %as asso'ia e" %o$l" be o& a limi e" "$ra ion/ The .ni e" , a es alleges ha he 7anel erroneo$sl# eD$a e" he !ananas :rame%or@ Agreemen %i h he ari&& D$o a 'on'ession o& 2/2 million m %hen i &o$n" ha he !ananas :rame%or@ Agreemen La$ oma i'all# implFie"GL409 ha he 'on'ession e3pire" a he same ime as he !ananas :rame%or@ Agreemen / The .ni e" , a es main ains ha he ari&& D$o a 'on'ession is se o$ no onl# in he !ananas :rame%or@ Agreemen 0 b$ also in he E$ropean -omm$ni ies6 ,'he"$le0 an" ha 0 as s$'h0 i applies o all )TO ?embers/ The .ni e" , a es s$bmi s ha he e3pir# o& he !ananas :rame%or@ Agreemen alone 'o$l" no e3 ing$ish a 'on'ession ins'ribe" in a )TO ?ember6s ,'he"$le/ 1n s$ppor o& i s arg$men 0 he .ni e" , a es ma@es re&eren'e o no i&i'a ions b# he E$ropean -omm$ni ies p$rs$an o Ar i'le 22;111:5 o& he AATT 4999 ma"e in C$l# 2009 an" Can$ar# 20050 in %hi'h he E$ropean -omm$ni ies i sel& re&erre" o he in en ion o %i h"ra% L'on'essionsL on bananas/440 1n a""i ion0 he .ni e" , a es main ains ha 0 in he 'on e3 o& he arbi ra ion es ablishe" $n"er he Anne3 on !ananas o he +oha Ar i'le 1 )aiver0 he E$ropean -omm$ni ies propose" o mo"i&# i s L'$rren /// )TO -ommi men sL/ 444 The .ni e" , a es 'on en"s ha s$'h an e3pression 'o$l" no have re&erre" o %ha he E$ropean -omm$ni ies no% 'laims is i s onl# 'on'ession0 namel#0 he M680*m ari&& ra e/ 5/ The .ni e" , a es &$r her asser s ha he e3 o& he .n"ers an"ing on !ananas0 as %ell as

he +oha Ar i'le 1 )aiver0 provi"e s$pplemen ar# means s$ppor ing he 'on'l$sion ha he E$ropean -omm$ni ies6 'on'ession "i" no e3pire along %i h he !ananas :rame%or@ Agreemen /
.ni e" , a es6 hir" par i'ipan 6s s$bmission0 para/ 8/ .ni e" , a es6 hir" par i'ipan 6s s$bmission0 para/ 42 (re&erring o -omm$ni'a ion &rom he E$ropean -omm$ni ies o& 45 C$l# 20090 Ar i'le 22;111:5 Nego ia ions0 ,'he"$le -2> 8 E$ropean -omm$ni ies0 A*,E-(ET*22B an" -omm$ni'a ion &rom he E$ropean -omm$ni ies o& 54 Can$ar# 20050 Ar i'le 22;111:5 Nego ia ions0 ,'he"$le -2> 8 E$ropean -omm$ni ies0 A""en"$m0 A*,E-(ET*22*A""/4)/ ,ee also E'$a"or6s o her appellan 6s s$bmission0 para/ 590 &o$r h b$lle / 444 .ni e" , a es6 hir" par i'ipan 6s s$bmission0 para/ 42 (D$o ing E$ropean -omm$ni ies6 %ri en 'omm$ni'a ion o& 45 ?a# 2005 in he arbi ra ion in E) 4he A)P E) Partnership Agreement (7anel E3hibi E-.-9)0 para/ 9 (emphasis a""e" b# he .ni e" , a es omi e"))/
440 409

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 99 6/ 4/ Ar i'le 2111 o& he AATT 4999

The .ni e" , a es s$bmi s ha he 7anel "i" no err in i s in erpre a ion an" appli'a ion o&

Ar i'le 2111 o& he AATT 4999/ 1n he .ni e" , a es6 vie%0 he E$ropean -omm$ni ies6 arg$men ha a 'ap on a ari&& pre&eren'e "oes no ma@e i a ari&& D$o a an" ha he %o regimes ( he A-7 ari&& D$o a an" he ?:N ari&&) m$s be e3amine" separa el#0 sho$l" be reNe' e" in hese pro'ee"ings as he# have been Lsome &o$r imes be&oreL/ 442 The .ni e" , a es agrees %i h he 7anel ha 0 LF%Ghile he E- meas$re s$bNe' o his pro'ee"ing ma# be simpler han he E-6s prior bananas impor regimesL 4450 no hing in he e3 o& Ar i'le 2111:5 s$gges s ha he E- !ananas 1mpor (egime %as no s$bNe' o he "is'iplines o& Ar i'le 2111:4 an" 2/ Emphasi=ing he $se o& he erm Lan#L6 in &ron o& he erm L ari&& D$o aL an" he &a' ha Ar i'le 2111:5 re&ers o L ari&& D$o aL in he sing$lar0 he .ni e" , a es s$bmi s ha Ar i'le 2111:5 "oes no 'on"i ion he appli'abili # o& Ar i'le 2111 onl# o ins an'es in %hi'h Lall impor sL o& he pro"$' s$bNe' o he ari&& D$o a are Le&&e' e" hro$gh he allo'a ion o& ari&& D$o asL/449 The .ni e" , a es also arg$es ha he 7anel properl# $n"ers oo" an" applie" he &in"ings o& he Appella e !o"# in he original pro'ee"ings: %hils he original 'ase "eal %i h a regime %here all impor s %ere Le&&e' e" hro$gh he allo'a ion o& ari&& D$o asL 4450 he Appella e !o"#6 reasoning in he original pro'ee"ings 'on in$es o be relevan / 2/ The .ni e" , a es &$r her s$ppor s he 7anel6s &in"ing ha he E- !ananas 1mpor (egime

viola e" Ar i'le 2111:4/ The .ni e" , a es rei era es ha he E$ropean -omm$ni ies6 posi ion 'anno be re'on'ile" %i h he Appella e !o"#6s reasoning in respe' o& he Lsepara e regimesL arg$men in E) Bananas III/446 The .ni e" , a es emphasi=es he panel an" Appella e !o"# &in"ings in he original pro'ee"ings ha he E$ropean -omm$ni ies6 meas$re %as a ari&& D$o a s$bNe' o Ar i'le 2111 an" ha LAr i'le 2111:4 i sel& 'on ains a non-"is'rimina ion reD$iremen %hen a ari&& D$o a is $se"L/447 There&ore0 a''or"ing o he .ni e" , a es0 he E$ropean -omm$ni ies 'anno avoi" he obliga ions o& Ar i'le 2111 b# 'arving o$ a por ion o& i s mar@e &or pre&eren ial a''ess %i ho$ an# m$l ila eral 'on rols over ho% he 'arve-o$ a&&e' s a''ess in o he same mar@e &or Lli@eL pro"$' s &rom o her s$ppliers/ The .ni e" , a es agrees %i h he 7anel ha Ar i'le 2111:5 ma@es 'lear ha he obliga ion o& Ar i'le 2111:4 applies o he A-7 ari&& D$o as0 even i& ?:N s$ppliers %ere s$bNe' o a ari&&-onl# regime/ The .ni e" , a es arg$es ha he Lres ri' ionL in he presen 'ase is he D$an i a ive limi on a bene&i ( ha is0 =ero-"$ # a''ess) available onl# o he A-7 'o$n riesB
.ni e" , a es6 appellee6s s$bmission0 para/ 42/ .ni e" , a es6 appellee6s s$bmission0 para/ 47/ 449 .ni e" , a es6 appellee6s s$bmission0 para/ 47 (D$o ing E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 455 (.,))/ 445 .ni e" , a es6 appellee6s s$bmission0 para/ 48/ 446 .ni e" , a es6 appellee6s s$bmission0 para/ 49/ 447 .ni e" , a es6 appellee6s s$bmission0 paras/ 22-25/
445 442

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 95 given ha he ?:N 'o$n ries Lare 'omple el# "enie" a''ess o his bene&i L0 he# are here&ore

Lres ri' e"L in heir a''ess o he E$ropean -omm$ni ies6 mar@e &or bananas an" 'learl# no L rea e" eD$all#L as he A-7 'o$n ries/448 The .ni e" , a es also poin s o$ ha he Appella e !o"# &o$n" in he original pro'ee"ings ha a %aiver &rom Ar i'le 1 o& he AATT 4999 'overing a pre&eren ial ari&& D$o a 'anno be rea" o Le3'$seL ha ari&& D$o a &rom he obliga ions o& Ar i'le 2111/ There&ore0 an# %aiver 'overing pre&eren ial ari&& D$o as 'anno es ablish L he 'ommon $n"ers an"ing on he par o& he AATT 'on ra' ing par ies an" )TO ?embers ha e3'l$sion &rom a pre&eren ial ari&& D$o a "oes no 'ons i $ e an in&ringemen o& Ar i'le 2111L/449 5/ :inall#0 he .ni e" , a es reNe' s he E$ropean -omm$ni ies6 arg$men ha Ar i'le 2111:2 is

solel# 'on'erne" %i h D$an i a ive res ri' ions/ The .ni e" , a es re&ers o he Appella e !o"#6s e3plana ion in he original pro'ee"ings ha Ar i'le 2111:2 Lis logi'all# 'on'erne" %i h he mar@e &or he pro"$' an" %ha res ri' ions ma# be applie" o ha mar@e L/ 420 The .ni e" , a es 'on'l$"es ha he E- !ananas 1mpor (egime s$bNe' o his pro'ee"ing 'on aine" an impor res ri' ion in he &orm o& he pre&eren ial ari&& D$o a &or A-7 bananas/ There&ore0 he E$ropean -omm$ni ies %as reD$ire" o &ollo% he allo'a ion r$les se &or h in Ar i'le 2111:2/ A''or"ing o he .ni e" , a es0 he E$ropean -omm$ni ies6 arg$men ha he pre&eren'e 'anno be 'onsi"ere" in'onsis en %i h he 'hapea$ o& Ar i'le 2111:2 be'a$se he .ni e" , a es6 share o& ra"e in bananas %i h he E$ropean -omm$ni ies0 %i h or %i ho$ he pre&eren'e0 is =ero0 is simpl# a L"i&&eren version o& he E-6s pro'e"$ral arg$men ha he .ni e" , a es s$&&ers no n$lli&i'a ion or impairmen L/ 424

.ni e" , a es6 appellee6s s$bmission0 para/ 55/ .ni e" , a es6 appellee6s s$bmission0 para/ 59 (re&erring o E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 496 (.,))/ 420 .ni e" , a es6 appellee6s s$bmission0 para/ 96/ 424 .ni e" , a es6 appellee6s s$bmission0 para/ 95/
449

448

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 96 7/ 4/ N$lli&i'a ion or 1mpairmen %i h respe' o he .ni e" , a es he 7anel erre" in

The .ni e" , a es reNe' s he E$ropean -omm$ni ies6 'laim ha

'on'l$"ing ha he .ni e" , a es ha" s$&&ere" n$lli&i'a ion or impairmen / A''or"ing o he .ni e" , a es0 i %as no he 7anel %ho 'on&$se" Ls an"ingL %i h Ln$lli&i'a ion or impairmen L0 b$ he E$ropean -omm$ni ies i sel& %ho L'on&$se"L he iss$es b# arg$ing ha 0 as a hreshol" ma er0 he 7anel nee"e" o "e ermine %he her he .ni e" , a es ha" Ls an"ingL o bring his pro'ee"ing an"0 i& so an" i& i &o$n" a viola ion0 L%he her 6 here is n$lli&i'a ion or impairmen o& a bene&i a''r$ing o he .ni e" , a es &or %hi'h he E$ropean -omm$ni ies 'an &a'e s$spension o& 'on'essions6L/ 422 2/ The .ni e" , a es re'alls ha he Appella e !o"# alrea"# reNe' e" similar arg$men s ma"e

b# he E$ropean -omm$ni ies in he original pro'ee"ings/ The .ni e" , a es arg$es ha 0 'onsi"ering ha hese are 'omplian'e pro'ee"ings $n"er Ar i'le 24/5 o& he +,.0 he &in"ings o& he Appella e !o"# in he original pro'ee"ings &orm he basis &or he r$lings an" re'ommen"a ions a""resse" o he E$ropean -omm$ni ies in his "isp$ e/ 5/ -i ing he Appella e !o"#6s a&&irma ion o& he AATT panel6s reasoning in /# #uperfund0

he .ni e" , a es s$bmi s ha a sho%ing o& a"verse ra"e e&&e' s is $nne'essar# &or he p$rposes o& "emons ra ing ha a brea'h o& a AATT provision res$l s in he n$lli&i'a ion or impairmen o& bene&i s/425 The .ni e" , a es arg$es ha he 'lear brea'hes o& Ar i'les 1 an" 2111 o& he AATT 4999 obvia e he nee" &or he .ni e" , a es o "emons ra e a&&irma ivel# he ra"e e&&e' s 'a$se" b# he E$ropean -omm$ni ies6 banana meas$res/ :or he .ni e" , a es0 o ma@e a &in"ing o& n$lli&i'a ion or impairmen 0 i is s$&&i'ien ha he .ni e" , a es is a pro"$'er o& bananas0 has a po en ial e3por in eres 0 an" i s in ernal mar@e &or bananas 'o$l" also be a&&e' e" b# he e&&e' s o& he E$ropean -omm$ni ies6 meas$res on %orl" s$pplies an" %orl" pri'es o& bananas/ The .ni e" , a es &$r her s$bmi s ha L hese reali ies have no 'hange"L 4290 an" he 7anel "i" no err in rel#ing on he &in"ings o& he panel an" he Appella e !o"# in he original pro'ee"ings/ 9/ The .ni e" , a es "isagrees %i h he E$ropean -omm$ni ies ha n$lli&i'a ion or

impairmen %as &o$n" o e3is in he original pro'ee"ings onl# be'a$se o& he viola ions o& he AAT,/ The .ni e" , a es 'on en"s ha 0 in he original pro'ee"ings0 he Appella e !o"# 'learl# &o$n" ha he .ni e" , a es %as N$s i&ie" o ma@e 'laims $n"er he AATT 4999/ :inall#0 he .ni e" , a es s$bmi s ha he E$ropean -omm$ni ies 'on&$se" he iss$e o& he e3is en'e o& n$lli&i'a ion or impairmen as a
.ni e" , a es6 appellee6s s$bmission0 para/ 95 (D$o ing E$ropean -omm$ni ies6 &irs %ri en s$bmission o he 7anel)/ 425 .ni e" , a es6 appellee6s s$bmission0 paras/ 96-98 (re&erring o AATT 7anel (epor 0 /# #uperfund0 para/ 5/49)/ 429 .ni e" , a es6 appellee6s s$bmission0 para/ 99/
422

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 97 res$l o& a viola ion $n"er Ar i'le 5/8 o& he +,. %i h he iss$e o& %ha n$lli&i'a ion or impairmen is $n"er Ar i'le 22/6 o& he +,./425 8/ 4/ No i'e o& Appeal he a' $al level o&

The .ni e" , a es 'on en"s ha he E$ropean -omm$ni ies6 No i'e o& Appeal "oes no

sa is&# he reD$iremen s o& ($le 20(2)(")(iii) o& he >or0ing Procedures be'a$se i "oes no 'on ain an in"i'a ive lis o& he paragraphs o& he 7anel (epor 'on aining he allege" errors0 as reD$ire" $n"er ha ($le/426 The .ni e" , a es &$r her s$bmi s ha 'omplian'e o& he No i'e o& Appeal %i h ($le 20(2)(")(i) is "o$b &$l be'a$se several paragraphs o& he No i'e o& Appeal spea@ o& Lerroneo$s &in"ingsL o& he 7anel %i ho$ i"en i&#ing %hi'h &in"ings are allege" o be erroneo$s/ 427 The .ni e" , a es reD$es s he Appella e !o"# o "ismiss he appeal on his basis/ 2/ :$r her0 he .ni e" , a es main ains ha he No i'e o& Appeal ma@es no men ion o&

Ar i'le 44 o& he +,./ 1n he even ha he Appella e !o"# "oes no "ismiss he appeal in i s en ire #0 he .ni e" , a es soli'i s he Appella e !o"# o 'onsi"er he E$ropean -omm$ni ies6 'laims $n"er Ar i'le 44 as no properl# be&ore i 0 in @eeping %i h he Appella e !o"#6s rea men o& his iss$e in a previo$s appeal/428 +/ )laims of Error $y Ecuador =ther Appellant 4/ 4/ Ar i'le 11 o& he AATT 4999

E'$a"or6s o her appeal is 'on"i ional $pon he Appella e !o"# reversing he 7anel6s

'on'l$sions $n"er Ar i'le 11 o& he AATT 4999 on he basis o& he iss$es appeale" b# he E$ropean -omm$ni ies/ 1n ha even 0 E'$a"or reD$es s he Appella e !o"# o reverse he 7anel6s &in"ing ha he ari&& D$o a 'on'ession o& he E$ropean -omm$ni ies on bananas %as in en"e" o e3pire on 54 +e'ember 2002 b# vir $e o& paragraph 9 o& he !ananas :rame%or@ Agreemen 0 an" o &in"0 ins ea"0 ha he 'on'ession remains in e&&e' 0 an" 'onseD$en l# o $phol" he 7anel6s 'on'l$sion ha he E$ropean -omm$ni ies is appl#ing i s "$ # a a level in'onsis en %i h Ar i'le 11:4(b)/

.ni e" , a es6 appellee6s s$bmission0 para/ 402-409 (re&erring o .ni e" , a es6 response o 7anel E$es ion 29)/ 426 .ni e" , a es6 appellee6s s$bmission0 para/ 428/ 427 1n par i'$lar0 he .ni e" , a es a@es iss$e %i h paragraph 2(a)0 (')0 an" (") o& he No i'e o& Appeal/ 428 .ni e" , a es6 appellee6s s$bmission0 para/ 455 (re&erring o Appella e !o"# (epor 0 /# )ountervailing Measures on )ertain E) Products0 para/ 75)/

425

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 98 2/ E'$a"or s$bmi s ha here is 'onsis en an" over%helming in erpre a ive evi"en'e ha no

)TO ?ember (in'l$"ing he E$ropean -omm$ni ies) has ever arg$e" ha 0 or a' e" as i&0 he E$ropean -omm$ni ies6 'on'ession &or bananas e3pire" on 54 +e'ember 20020 $n il he E$ropean -omm$ni ies i sel& ma"e his arg$men in i s reb$ al s$bmission o his 7anel/ 1n E'$a"or6s vie%0 he a' ion an" ina' ion o& )TO ?embers in"ivi"$all# (in'l$"ing he E$ropean -omm$ni ies) an" 'olle' ivel# 'o$l" onl# be 'onsi"ere" abs$r" i& he# %ere "one %i h he $n"ers an"ing ha 'on'ession %o$l" e3pire on 54 +e'ember 20020 or ha" e3pire" as o& ha "a e/ 5/
429

he

E'$a"or arg$es ha he 7anel6s in erpre a ion "oes no give e&&e' o all he erms o& he

'on'ession an" ignores 'ri i'al 'on e3 / E'$a"or "isagrees %i h he 7anel6s 'hara' eri=a ion o& he 'on'ession as he LD$o a o& 2/2 million m a a bo$n" ra e o& M75*m L an" ha he L erms0 'on"i ions an" D$ali&i'a ionsL ha he 'on'ession is s$bNe' o is L he !ananas :rame%or@ Agreemen L/ 450 A''or"ing o E'$a"or0 he M75*m "$ # is s$bNe' o vario$s 'on"i ions as se o$ in he E$ropean -omm$ni ies6 ,'he"$le0 in'l$"ing0 b$ no limi e" o0 hose spe'i&ie" in 'ol$mn 70 %hi'h "oes no rea" L erms an" 'on"i ionsL0 b$ LO her Terms an" -on"i ionsL0 h$s in"i'a ing ha hose erms an" 'on"i ions Lin"i'a e"L in he Anne3 are Lin additionL o he erms se o$ in he &irs si3 'ol$mns/ 454 9/ E'$a"or "isagrees %i h he 7anel6s &in"ing ha all he elemen s o& he E$ropean ha

-omm$ni ies6 'on'ession are res a e" in he !ananas :rame%or@ Agreemen 0 poin ing o$

elemen s s$'h as he &inal ari&& ra e an" D$o a D$an i # %ere no / E'$a"or 'laims ha he 7anel &aile" o a@e in o a''o$n ha he Appella e !o"# ha" &o$n" in he original pro'ee"ings ha mos o& he erms an" 'on"i ions se o$ in he !ananas :rame%or@ Agreemen %ere in'onsis en %i h he AATT 4999/ E'$a"or D$es ions he 7anel6s &ail$re o a rib$ e an# signi&i'an'e o L he n$lli&i'a ion o& he erms &or %hi'h he F!ananas :rame%or@ Agreemen G provi"es b# &ar he mos "e ailL/ 452 E'$a"or agrees %i h he 7anel ha he 'on'ession 'anno be rea" in isola ion &rom he !ananas :rame%or@ Agreemen 0 as 'on aine" in he Anne3 re&erre" o in 'ol$mn 7/ <o%ever0 in E'$a"or6s vie%0 he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession is no provi"e" in 'ol$mn 7 alone0 an" ma# no be rea" as simpl# 'omprising he !ananas :rame%or@ Agreemen %i ho$ regar" o o her elemen s o& he 'on'ession/

429 450

E'$a"or6s o her appellan 6s s$bmission0 para/ 5/ E'$a"or6s o her appellan 6s s$bmission0 para/ 48 (re&erring o E'$a"or 7anel (epor 0 para/ 7/929)/ 454 E'$a"or6s o her appellan 6s s$bmission0 para/ 20/ (original emphasis) 452 E'$a"or6s o her appellan 6s s$bmission0 para/ 25/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 99 5/ E'$a"or 'laims ha he 7anel erre" in &in"ing ha he e3pira ion o& he !ananas :rame%or@

Agreemen L%o$l" a$ oma i'all# impl# F heG e3pira ion o& he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession $n"er he erms o& i s ,'he"$le/L 455 A''or"ing o E'$a"or0 Li is legall# possible /// o se a ime limi as a 'on"i ion o& a 'on'essionL 459 %hen his is "one 'learl#0 %hi'h %as no he 'ase %i h paragraph 9 o& he !ananas :rame%or@ Agreemen / 6/ E'$a"or arg$es ha i is possible o give legal e&&e' %i ho$ invali"a ing o paragraph 9 o& he !ananas ari&& D$o a

:rame%or@ Agreemen

he en ire E$ropean -omm$ni ies6

'on'ession/ A''or"ing o E'$a"or0 a pla$sible in erpre a ion o& paragraph 9 %o$l" be ha he o her erms an" 'on"i ions se o$ in he !ananas :rame%or@ Agreemen 0 s$'h as he D$o a allo'a ion provisions0 %o$l" e3pire on 54 +e'ember 20020 leaving onl# he M75*m "$ # 'on'ession &or 2/2 million m / 1n s$ppor o& his arg$men 0 E'$a"or arg$es ha 0 given he obliga ions o& Ar i'le 21110 ?embers 'anno e3pe' o re ain D$o a allo'a ion righ s in"e&ini el#/ 7/ E'$a"or s$bmi s ha i s in erpre a ion o& he !ananas :rame%or@ Agreemen as 'on aining

a D$o a allo'a ion %i h a ime-limi %o$l" no re"$'e paragraph 9 o& he !ananas :rame%or@ Agreemen o in$ ili #B ra her0 i %o$l" Lgive e&&e' o all he %or"s o& he 'on'ession0 in'l$"ing0 b$ no limi e" o0 he F!ananas :rame%or@ Agreemen G as i %as in'orpora e"L in o he E$ropean -omm$ni ies6 ,'he"$le/ E'$a"or arg$es ha i s in erpre a ion %o$l" also avoi" he L'omple el# impla$sibleL455 in erpre a ion o& he 'ommon in en ion o& he )TO ?embers %i h regar" o he 'on'ession o& 4999 $n il he ?embers e3 en"e" he 'on'ession in 2002/ 8/ E'$a"or &$r her re&ers o evi"en'e s$ppor ing he proposi ion ha he 'on'ession %as never

in en"e" o e3pire on a''o$n o& paragraph 9 o& he !ananas :rame%or@ Agreemen / 1n par i'$lar0 E'$a"or arg$es ha : (i) a ime-limi e" minim$m a''ess 'ommi men %o$l" have been "ire' l# 'on rar# o he ?o"ali ies 7aper ha g$i"e" he .r$g$a# (o$n" nego ia ionsB (ii) he +oha Ar i'le 1 )aiver %as base" on he premise ha 0 an" reD$ire" ha 0 he 'on'ession remain bo$n" $nless an" $n il rebo$n"B (iii) n$mero$s s a emen s ma"e b# he E$ropean -omm$ni ies an" b# arbi ra ors in 2005 a'@no%le"ge" or %ere base" on he 'on in$e" bin"ing 'hara' er o& he 'on'ession $n"er Ar i'le 11B an" (iv) he E$ropean -omm$ni ies &ile" Ar i'le 22;111:5 no i&i'a ions0 in C$l# 2009 an" in Can$ar# 20050 on he ass$mp ion ha he ari&& D$o a 'on'ession %as s ill in &or'e/ 456 1n his respe' 0 E'$a"or no es ha 0 in hese no i&i'a ions0 he E$ropean -omm$ni ies anno$n'e" i s in en ion

455 459

E'$a"or6s o her appellan 6s s$bmission0 para/ 26/ E'$a"or6s o her appellan 6s s$bmission0 para/ 27/ 455 E'$a"or6s o her appellan 6s s$bmission0 para/ 52/ 456 ,ee No i&i'a ions0 supra0 &oo no e Error: (e&eren'e so$r'e no &o$n"/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 50 o %i h"ra% 'on'essions (in he pl$ral)/ E'$a"or &$r her 'on en"s ha no ?ember %o$l" invo@e Ar i'le 22;111:5 pro'e"$res o lo%er i s bo$n" ra e/457 9/ E'$a"or arg$es ha he 7anel6s vie% o& he obNe' an" p$rpose o& he 'overe" agreemen s

"oes no a"" an# %eigh o he 7anel6s erroneo$s in erpre a ion o& he &irs sen en'e o& paragraph 9 o& he !ananas :rame%or@ Agreemen / A''or"ing o E'$a"or0 he 7anel rea" he obNe' an" p$rpose o& he !ananas :rame%or@ Agreemen broa"l# an" emphasi=e" he obNe' ive herein o& Lpromo ing se'$ri # an" pre"i' abili # o& in erna ional ra"eL in or"er o N$s i&# i s 'on'l$sions regar"ing paragraph 9/ E'$a"or 'on en"s0 ho%ever0 ha he obNe' ives o& Le3pan"ing ra"e in goo"s an" servi'es an" re"$'ing barriers o ra"e0 hro$gh he nego ia ion o& re'ipro'al an" m$ $all# a"van ageo$s arrangemen sL4580 %o$l" be harme" b# impl#ing he ermina ion o& he 'on'ession/ ?oreover0 E'$a"or arg$es ha 0 in i s anal#sis o& he obNe' an" p$rpose o& he )TO agreemen s in rela ion o he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession0 he 7anel &aile" o 'onsi"er he s a e" p$rposes o& he Agreement on Agriculture0 %hi'h in i s preamble s a es he in en o& 'rea ing a Lre&orm pro'essL ha %o$l" enable Ls$bs an ial progressive re"$' ionsL in pro e' ion over ime/ 459 E/ Arguments of the European )ommunities Appellee 4/ 4/ Ar i'le 11 o& he AATT 4999

The E$ropean -omm$ni ies 'on en"s ha E'$a"or6s o her appeal is L'on"i ionalL an"0

here&ore0 he Appella e !o"# %ill have o e3amine i onl# i& he Appella e !o"# a''ep s he E$ropean -omm$ni ies6 appeal o& he 7anel6s &in"ings on he p$rpor e" e&&e' s o& he +oha Ar i'le 1 )aiver on he ari&& D$o a 'on'ession in he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions/ 490 2/ The E$ropean -omm$ni ies agrees %i h he 7anel6s 'on'l$sion ha he ari&& bin"ing on

bananas in he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions L%as $neD$ivo'all# in en"e" o e3pire on 54 +e'ember 2002L/494 1n he E$ropean -omm$ni ies6 vie%0 Ar i'le 11:4(b) o& he AATT 4999 e3pressl# provi"es ha )TO ?embers ma# legall# gran 'on'essions s$bNe' o L erms0 'on"i ions an" D$ali&i'a ionsL/ ?oreover0 i is %ell se le" ha a ime limi a ion in he "$ra ion o& a 'on'ession D$ali&ies as a L erm0 'on"i ion or D$ali&i'a ionL/ 492 :or hese reasons0 he E$ropean
E'$a"or6s o her appellan 6s s$bmission0 para/ 59/ E'$a"or6s o her appellan 6s s$bmission0 para/ 29/ 459 E'$a"or6s o her appellan 6s s$bmission0 para/ 50/ (emphasis omi e") 490 E$ropean -omm$ni ies6 appellee6s s$bmission0 para/ 4 (E'$a"or) (re&erring o E'$a"or6s o her appellan 6s s$bmission0 para/ 58)/ 494 E$ropean -omm$ni ies6 appellee6s s$bmission0 para/ 5 (E'$a"or) (re&erring o E'$a"or 7anel (epor 0 para/ 7/956)/ 492 E$ropean -omm$ni ies6 appellee6s s$bmission0 para/ 8 (E'$a"or) (re&erring o AATT 7anel (epor 0 /# #ugar >aiver0 para/5/8)/
458 457

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 54 -omm$ni ies "isagrees %i h E'$a"or ha Lgran FingG a 6 ime-limi e" a''ess 'ommi men &or an agri'$l $ral pro"$' 6 %o$l" D$ali&# as a 6'on e3 $al sho'@6 an" %o$l" be a 6'omple el# impla$sible0 even abs$r" in erpre a ion o& he 'ommon in en ion o& he )TO members/6L 495 5/ The E$ropean -omm$ni ies arg$es ha i is 'ommon pra' i'e &or )TO ?embers o in'l$"e

L erms0 'on"i ions an" D$ali&i'a ionsL o& heir 'on'essions ei her in he se' ion o& Lhea"no esL ($s$all# %hen he# appl# o all 'on'essions in he spe'i&i' par or se' ion o& he ,'he"$le) or in Lanne3esL ($s$all# %hen he# appl# o a spe'i&i' 'on'ession or gro$p o& 'on'essions)/ 'ol$mn en i le" L'ommen sL or Lo her erms an" 'on"i ionsL/ A''or"ing o The E$ropean he E$ropean -omm$ni ies &$r her 'on en"s ha re&eren'e o he 'orrespon"ing Lanne3L is $s$all# &o$n" in he -omm$ni ies0 all erms o& a ,'he"$le have he same legal val$e0 irrespe' ive o& %he her he# are pla'e" $n"er he 'ol$mns o& a spe'i&i' se' ion0 in he Lhea"no esL o he se' ion0 or in he Lanne3esL o he se' ion/ There&ore0 he 7anel %as 'orre' in 'on'l$"ing ha he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas provi"e" in 'ol$mn 7 o& 7ar 10 ,e' ion 1-! o& he E$ropean -omm$ni ies6 ,'he"$le499 'anno be rea" in isola ion &rom he erms in he !ananas :rame%or@ Agreemen 0 anne3e" o E$ropean -omm$ni ies6 ,'he"$le/ 495 The E$ropean -omm$ni ies &$r her 'laims ha he e3 o& he Anne3 'learl# provi"e" &or a ime limi a ion o& he 'on'ession ( ha is0 54 +e'ember 2002)0 an" ha he 'on e3 o& he Anne3 also &$ll# 'on&irme" his in erpre a ion o& he e3 / 9/ -on rar# o E'$a"or6s 'laim0 he E$ropean -omm$ni ies 'on en"s ha he s r$' $re o& )TO

?embers6 AATT ,'he"$les o& -on'essions ma@es 'lear ha -ol$mn 7 is he mos appropria e pla'e o in'l$"e he re&eren'e o L erm0 'on"i ion an" D$ali&i'a ionL/ The E$ropean -omm$ni ies "isagrees %i h E'$a"or6s arg$men ha he ime limi a ion sho$l" no appl# o he E$ropean -omm$ni ies6 ,'he"$le be'a$se i is pla'e" in he Anne3 an" no on he same page o& he ,'he"$le %i h he 'ol$mns/ 1n he E$ropean -omm$ni ies6 vie%0 his arg$men sho$l" be reNe' e" be'a$se i %o$l" 'rea e 'on&$sion as o he legal e&&e' s o& L erms0 'on"i ions or D$ali&i'a ionsL0 %hi'h are no pla'e" in he L'ol$mnsL o& )TO ?embers6 ,'he"$les "$e o spa'e 'ons rain s/ 5/ ?oreover0 he E$ropean -omm$ni ies s$bmi s ha he ari&& on bananas &rom E'$a"or an"

o her ?:N s$pplier 'o$n ries0 applie" in he perio" be %een he en" o& 2002 an" he en" o& 20050 %as no in en"e" o be bo$n" in he ,'he"$le o& -on'essions/ The E$ropean -omm$ni ies arg$es ha he more &avo$rable ari&& rea men %as applie" onl# as a 'onseD$en'e o& he .n"ers an"ing on !ananas

E$ropean -omm$ni ies6 appellee6s s$bmission0 para/ 24 (E'$a"or)/ The relevan e3'erp s &rom 7ar 10 ,e' ion 1-! o& he E$ropean -omm$ni ies6 ,'he"$le >222 are repro"$'e" in Anne3 ;1 a a'he" o his (epor / 495 E$ropean -omm$ni ies6 appellee6s s$bmission0 para/ 42 (E'$a"or) (re&erring o E'$a"or 7anel (epor 0 para/ 7/926)/
499

495

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 52 6/ agree" o in 20040 an" ha E'$a"or 'anno $se he E$ropean -omm$ni ies6 goo" &ai h

implemen a ion o& he erms o& he .n"ers an"ing agains he E$ropean -omm$ni ies an" see@ o rans&orm ha applie" &avo$rable ra e in o a bo$n" ra e/ 7/ The E$ropean -omm$ni ies &$r her 'on en"s ha he e3 an" 'on e3 o& he ,'he"$le 'o$l"

no be mo"i&ie" or in erpre e" b# he "es'rip ion o& he E$ropean -omm$ni ies6 bananas impor regime in he 2005 arbi ra ion pro'ee"ings $n"er he Anne3 on !ananas o he +oha Ar i'le 1 )aiver0 be'a$se s$'h pro'ee"ings oo@ pla'e o$ si"e he r$les o& he +,. an" he obNe' %as no o "e ermine he banana 'on'ession bo$n" in he E$ropean -omm$ni ies6 ,'he"$le/ The E$ropean -omm$ni ies s$bmi s ha 0 he &a' i engage" in nego ia ions p$rs$an o Ar i'le 22;111 o& he AATT 49990 "oes no al er he &a' ha he 'on'ession e3pire" in +e'ember 2002/ The E$ropean -omm$ni ies arg$es ha ?embers 'an ini ia e Ar i'le 22;111 nego ia ions also %i h he in en ion o& lo%ering heir ari&&/ The E$ropean -omm$ni ies ha" s ar e" Ar i'le 22;111 nego ia ions in or"er o implemen i s 'ommi men s $n"er he erms o& he .n"ers an"ings on !ananas agree" o %i h E'$a"or an" he .ni e" , a es in 2004/ :inall#0 he E$ropean -omm$ni ies arg$es ha he 7anel 'o$l" no have relie" on he ?o"ali ies 7aper o in erpre he E$ropean -omm$ni ies6 ,'he"$le0 be'a$se he ?o"ali ies 7aper i sel& provi"es ha i shall Lno be $se" as a basis &or "isp$ e se lemen pro'ee"ingsL/ 496 8/ The E$ropean -omm$ni ies0 here&ore0 as@s he Appella e !o"# o reNe' E'$a"or6s o her

appeal an" o $phol" he 7anel6s &in"ing ha he ari&& D$o a 'on'ession in he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions e3pire" a he en" o& 2002/ :/ Arguments of the 4hird Participants 4/ 4/ A-7 -o$n ries

-er ain A-7 'o$n ries ( he LA-7 -o$n riesL 497) asser ha he .n"ers an"ings on !ananas The A-7

have p$ an en" o he "isp$ es on bananas an"0 here&ore0 preven he par ies o he .n"ers an"ings &rom s$bseD$en l# ini ia ing 'omplian'e pro'ee"ings $n"er Ar i'le 24/5 o& he +,./ -o$n ries &$r her 'on en" ha hese .n"ers an"ings are bin"ing on he par ies an" h$s preven hem &rom p$ ing he erms o& he .n"ers an"ings in o D$es ion/ The A-7 -o$n ries allege ha 0 in bo h he E'$a"or an" ., 7anel (epor s0 he 7anel erre" in i s legal in erpre a ion an" &in"ings 'on'erning
E$ropean -omm$ni ies6 appellee6s s$bmission0 para/ 50 (E'$a"or) (D$o ing ?o"ali ies 7aper0 p/ 4)/ 1n his (epor 0 LA-7 -o$n riesL re&ers o he &ollo%ing seven 'o$n ries ha s$bmi e" a Noin hir" par i'ipan s6 s$bmission in he appeal o& he E'$a"or 7anel (epor : !eli=e0 +omini'a0 he +omini'an (ep$bli'0 Camai'a0 ,ain >$'ia0 ,ain ;in'en an" he Arena"ines0 an" ,$rinameB an" o hese same seven 'o$n ries along %i h -ameroon an" -K e "61voire ha s$bmi e" a Noin hir" par i'ipan s6 s$bmission in he appeal o& he ., 7anel (epor / -ameroon0 -o e "61voire0 an" Ahana s$bmi e" a separa e Noin hir" par i'ipan s6 s$bmission in he appeal o& he E'$a"or 7anel (epor /
497 496

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 55 he .n"ers an"ings on !ananas/ The A-7 -o$n ries s$bmi ha he me ho"olog# applie" b# he 7anel %as no 'orre' : in or"er o "e ermine %he her he .ni e" , a es %as preven e" &rom bringing his 'omplian'e 'hallenge0 he 7anel sho$l" have e3amine" %he her he .n"ers an"ings 'ons i $ e" m$ $all# agree" sol$ ions an"0 i& no 0 %he her he# 'ons i $ e" legall# bin"ing agreemen s0 an" sho$l" have anal#=e" he legal e&&e' s a a'he" o he .n"ers an"ing in ei her 'ase/ The A-7 -o$n ries 'on en" ha he 7anel erre" %hen i "i" no 'onsi"er i ne'essar# o anal#=e he Llegal s a $sL o& he .n"ers an"ings on !ananas0 an"0 in par i'$lar0 %he her he# 'ons i $ e" m$ $all# agree" sol$ ions0 %i hin he meaning o& Ar i'le 5/7 o& he +,.0 or o her%ise legall# bin"ing agreemen s/ 1n he .ni e" , a es 'ase0 he A-7 -o$n ries ma@e re&eren'e o le ers e3'hange" be %een he E$ropean -omm$ni ies an" he .ni e" , a es on 29 an" 50 ?a# 2004/ 1n he vie% o& he A-7 -o$n ries0 he par ies 'on&irme" in hese le ers he L'ommon $n"ers an"ingL o& heir agreemen 0 an" he .ni e" , a es a'@no%le"ge" having rea'he" a m$ $all# agree" sol$ ion %i h he E$ropean -omm$ni ies/ 498 2/ The A-7 -o$n ries arg$e &$r her ha i %as in'orre' &or he 7anel o rel# on he 7anel

(epor in India Autos0 be'a$se he m$ $all# agree" sol$ ion in ha 'ase "i" no rela e o he same ma er as he "isp$ e be&ore he panel in India Autos/ <o%ever0 he A-7 -o$n ries s$bmi ha 0 in he presen 'ase0 he original "isp$ e ha" been se le" b# means o& a m$ $all# agree" sol$ ion0 he 'on en o& %hi'h 'anno be 'alle" in o D$es ion in Ar i'le 24/5 pro'ee"ings/ 1n a""i ion0 he A-7 -o$n ries obNe' o he 7anel6s &in"ing ha he .n"ers an"ings 'o$l" pre'l$"e he 'omplainan s &rom ini ia ing Ar i'le 24/5 pro'ee"ings onl# i& he .n"ers an"ings 'ons i $ e" a Lposi ive sol$ ion an" e&&e' ive se lemen L o he "isp$ e/ The A-7 -o$n ries s$bmi ha s$'h a s an"ar" 'o$l" no be "erive" &rom he +,./ :or he same reason0 he A-7 -o$n ries "isagree %i h he hree reasons relie" $pon b# he 7anel in i s &in"ing ha he .n"ers an"ings "i" no 'ons i $ e an impe"imen &or he 'omplainan s o ini ia e Ar i'le 24/5 pro'ee"ings/ 5/ )i h respe' o he &irs reason relie" $pon b# he 7anel0 namel#0 ha he .n"ers an"ings on ha m$ $all# agree" sol$ ions no i&ie" o he +,! 'an ei her re&er o

!ananas provi"e onl# &or he means0 or0 a series o& &$ $re s eps0 &or resolving an" se ling he "isp$ e0 he A-7 -o$n ries asser meas$res ha have alrea"# been a@en0 or provi"e &or s eps s ill o be $n"er a@en/ 1n his respe' 0 he A-7 -o$n ries ma@e re&eren'e o he m$ $all# agree" sol$ ion in Australia Automotive Leather II an" asser ha his m$ $all# agree" sol$ ion se s o$ a series o& elemen s o be $n"er a@en in he &$ $re/

498

Thir" par i'ipan s6 s$bmission o& he A-7 -o$n ries0 paras/ 56 an" 57 (.,)B 7anel E3hibi E--5/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 59 9/ -on'erning he se'on" reason0 namel#0 ha he .n"ers an"ings %ere agree" o s$bseD$en here are s rong in"i'a ions ha

o he re'ommen"a ions0 r$lings0 an" s$gges ions ma"e b# he +,! in he original pro'ee"ings an" previo$s 'omplian'e pro'ee"ings0 he A-7 -o$n ries arg$e ha m$ $all# agree" sol$ ions re&erre" o in he +,. 'an a@e pla'e a all s ages o& he pro'ee"ings/ 1n he vie% o& he A-7 -o$n ries0 he pre&eren'e ar i'$la e" in Ar i'le 5/7 o& he +,. &or m$ $all# agree" sol$ ions applies generall# hro$gho$ all s ages o& he "isp$ e se lemen pro'ess/ 1n ha respe' 0 he A-7 -o$n ries "ra% &$r her s$ppor &rom he i le o& Ar i'le 50 %hi'h is LAeneral 7rovisionsL/ 5/ )i h respe' o he hir" reason0 ha he par ies ha" ma"e 'on&li' ing 'omm$ni'a ions o he

+,! regar"ing he legal na $re o& he .n"ers an"ings on !ananas a& er hese .n"ers an"ings ha" been signe"0 he A-7 -o$n ries D$es ion he relevan'e o& hese 'omm$ni'a ions an" arg$e ha he +,. "oes no reD$ire ha a sol$ ion be Noin l# no i&ie" o be regar"e" as a m$ $all# agree" sol$ ion/ 1n a""i ion0 he A-7 -o$n ries s$bmi ha he 'on en o& he .n"ers an"ings is more impor an o "e ermine heir legal s a $s han $nila eral "e'lara ions ma"e s$bseD$en l#/ 6/ ha The A-7 -o$n ries 'on en" ha he 7anel erre" in bo h he E'$a"or an" ., 7anel (epor s he 7anel6s in'orre' in erpre a ion o& he erm Lres ri' ionL le" o a &la%e" 'on'l$sion ha

in i s in erpre a ion an" &in"ings 'on'erning Ar i'le 2111 o& he AATT 4999/ 1n par i'$lar0 he# arg$e Ar i'le 2111:4 o& he AATT 4999 is appli'able0 %hen in &a' he Lappli'able non-"is'rimina ion r$le is 'on aine" in Ar i'le 1 o& he AATT an" no in Ar i'le 2111L/499 The A-7 -o$n ries poin o he or"inar# meaning an" 'on e3 o& he erm Lres ri' ionL0 an" s$bmi ha he e3is en'e o& a res ri' ion LreD$ires ha a limitation be applie" on he impor a ion o& he pro"$' 'on'erne"L 4500 %hi'h0 $n"er Ar i'le 2111:40 Lne'essaril# implies a Auantitative elemen L/454 The A-7 -o$n ries highligh he 7anel6s s a emen ha he D$an i # o& bananas ha ?:N s$ppliers 'an e3por is no res ri' e"0 an" s$bmi ha he 7anel6s in erpre a ion o& Lres ri' ionL as in'l$"ing si $a ions %here a ?ember Lis no pro e' e" in i s 'ompe i ive oppor $ni ies regar"ing impor s o& li@e pro"$' s origina ing &rom o her )TO ?embers0 is no in line %i h he reD$iremen ha Ar i'le 2111 onl# applies o 6D$an i a ive res ri' ions6L/452

499 450

Thir" par i'ipan s6 s$bmissions o& he A-7 -o$n ries0 para/ 62 (E'$a"or)0 para/ 59 (.,)/ Thir" par i'ipan s6 s$bmissions o& he A-7 -o$n ries0 para/ 59 (E'$a"or)0 para/ 54 (.,)/ (original Thir" par i'ipan s6 s$bmissions o& he A-7 -o$n ries0 para/ 57 (E'$a"or)0 para/ 59 (.,)/ (original Thir" par i'ipan s6 s$bmissions o& he A-7 -o$n ries0 para/ 57 (E'$a"or)0 para/ 59 (.,)/

emphasis)
454

emphasis)
452

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 55 7/ The A-7 -o$n ries &$r her main ain ha he 7anel &aile" o a@e in o a''o$n he 'onsis en

pra' i'e o& )TO ?embers o impose 'eilings on pre&eren ial impor s an" o 'onsi"er hem 'overe" b# he Enabling -la$se or Ar i'le 221; o& he AATT 4999/ The A-7 -o$n ries 'on en" ha 0 i& pre&eren ial a''ess 'onsis en %i h Ar i'le 10 b# vir $e o& a %aiver or Ar i'le 221;0 &ell a&o$l o& Ar i'le 2111 o& he AATT 49990 an" i& his pre&eren ial a''ess %ere 'appe"0 hen vir $all# all pre&eren ial ari&& D$o as $se" in he 'on e3 o& &ree ra"e agreemen s %o$l" pres$mabl# be )TOin'onsis en / 1n a""i ion0 he A-7 -o$n ries 'laim ha he 7anel &aile" o a''ep ha Ar i'le 2111:2 is no appli'able0 be'a$se he E- !ananas 1mpor (egime "i" no appl# an# D$an i a ive res ri' ions/ 1n respe' o& he ., 7anel (epor 0 he A-7 -o$n ries s$bmi in he al erna ive ha 0 even i& he 7anel6s in erpre a ion o& Ar i'le 2111:2 %as 'orre' 0 i %o$l" no be appli'able o he .ni e" , a es as i LF'anno G 'laim o have e3pe' e" an# mar@e share ha goes above =ero in he E$ropean mar@e L/ 455 8/ 1n he E'$a"or 'ase0 he A-7 -o$n ries allege ha he 7anel erre" in &in"ing ha he

E$ropean -omm$ni ies is bo$n" b# he ari&& D$o a 'on'ession o& 2/2 million m a M75*m / The A-7 -o$n ries re&er o he 7anel6s &in"ing ha he ari&& D$o a &or bananas %as s$bNe' o he erms an" 'on"i ions se &or h in he !ananas :rame%or@ Agreemen 0 %hi'h provi"e" ha he agreemen %o$l" e3pire on 54 +e'ember 2002/ The A-7 -o$n ries arg$e ha 0 here&ore0 he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas ha" e3pire" a he en" o& 20020 an" ha 0 'onseD$en l#0 he 7anel sho$l" have "ismisse" E'$a"or6s 'laim $n"er Ar i'le 11 o& he AATT 4999/ 9/ The A-7 -o$n ries also 'on es he 7anel6s in erpre a ion o& he +oha Ar i'le 1 )aiver as a

Ls$bseD$en agreemen L mo"i&#ing he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions/ 1n heir vie%0 Lmo"i&i'a ionL is a 'on'ep ha 'o$l" no reasonabl# be regar"e" as 'overe" b# or in'l$"e" in he erms Lin erpre a ionL an" Lappli'a ionL as se &or h in Ar i'le 54(5)(a) o& he 8ienna )onvention/ The A-7 -o$n ries obNe' o he 7anel6s &in"ing ha he preamble o& he +oha Ar i'le 1 )aiver e3presse" he )TO ?embers6 L'ommon in en ionL ha he in-D$o a ari&& applie" o bananas shall no e3'ee" 75MQm 0 an" ha an# rebin"ing $n"er Ar i'le 22;111 o& he AATT 4999 sho$l" res$l in a leas main aining o al mar@e a''ess &or ?:N banana s$ppliers/ The A-7 -o$n ries s$bmi ha his in erpre a ion %o$l" a"" obliga ions be#on" hose nego ia e" an" a''ep e" b# he )TO ?embers/ 40/ 1n he .ni e" , a es 'ase0 he A-7 -o$n ries &$r her s$bmi ha here is no n$lli&i'a ion or

impairmen o& bene&i s a''r$ing o he .ni e" , a es as i "oes no e3por bananas o he E$ropean -omm$ni ies/ The A-7 -o$n ries 'on en" ha 0 in he original "isp$ e0 impairmen %as &o$n" in rela ion o he E$ropean -omm$ni ies6 viola ion o& i s AAT, 'ommi men s/ <o%ever0 in he presen 'ase0 AAT, 'ommi men s are no a iss$e/ The A-7 -o$n ries arg$e ha 0 &or he .ni e" , a es o
455

Thir" par i'ipan s6 s$bmission o& he A-7 -o$n ries0 para/ 72 (.,)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 56 have s$&&ere" n$lli&i'a ion or impairmen as a res$l o& a viola ion o& he AATT 49990 he .ni e" , a es %o$l" have o have an e3por ra"e in bananas o he E$ropean -omm$ni ies0 %hi'h i "oes no have/ There&ore0 he A-7 -o$n ries s$bmi ha he .ni e" , a es "i" no s$&&er n$lli&i'a ion or impairmen &rom he E- !ananas 1mpor (egime/ The A-7 -o$n ries &$r her arg$e ha he .ni e" , a es0 in i s arg$men s0 'on&$se" he iss$e o& n$lli&i'a ion or impairmen %i h he D$es ion o& %he her he .ni e" , a es ha" s an"ing/ 44/ A he oral hearing0 ,$riname arg$e" ha he ?o"ali ies 7aper 'o$l" no be $se" as a means

o s$ppor he anal#sis o& he or"inar# meaning o& he ari&& D$o a 'on'ession &or bananas be'a$se i is no par o& he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions an"0 a''or"ing o an e3press provision in he ?o"ali ies 7aper0 i 'anno serve as a s$pplemen ar# means o& in erpre a ion in he 'on e3 o& "isp$ e se lemen / +omini'a 'on en"e" ha 0 i& he 7anel6s reasoning %ere &ollo%e"0 an# 'ap on pre&eren ial a''ess &or he A-7 -o$n ries %o$l" also r$n a&o$l o& Ar i'le 221;:5(b) o& he AATT 49990 %hi'h pre'l$"es Lmore res ri' iveL reg$la ions o& 'ommer'e on ?:N ra"e in he 'on e3 o& he 'rea ion o& a &ree ra"e agreemen / 2/ 4/ 7$rs$an !ra=il o ($le 29(2) o& he >or0ing Procedures0 !ra=il 'hose no o s$bmi a hir"

par i'ipan 6s s$bmission/ !ra=il6s s a emen a he oral hearing &o'$se" on he legal e&&e' s o& he .n"ers an"ings on !ananas an" he 7anel6s &in"ings %i h respe' o Ar i'le 11 o& he AATT 4999/ 5/ 4/ -ameroon0 -o e "61voire0 an" Ahana

-ameroon0 -o e "61voire0 an" Ahana allege ha 0 in he E'$a"or 'ase0 he 7anel &aile" o

properl# a@e in o a''o$n he ?inis erial +e'lara ion o& 49 November 2004/ The# s$bmi ha he 7anel erre" in &in"ing ha he 'on"i ions &or he %aiver &rom Ar i'le 1 o& he AATT 4999 gran e" b# he ?inis erial +e'ision on 49 November 2004 ha" no been me / -ameroon0 -o e "61voire0 an" Ahana asser ha he E$ropean -omm$ni ies ha" 'omplie" %i h he s eps se o$ in he Anne3 on !ananas o he +oha Ar i'le 1 )aiver/ 2/ -ameroon0 -o e "61voire0 an" Ahana &$r her 'on en" ha he E$ropean -omm$ni ies ha"

al ere" he level o& he envisage" rebin"ing o& he '$s oms "$ # on bananas in a''or"an'e %i h he "e'ision in he arbi ra ion pro'ee"ing p$rs$an o he Anne3 on !ananas/ The# &$r her allege ha he 7anel &aile" o a@e in o a''o$n a "e'ision a@en a he ime o& he <ong Rong ?inis erial -on&eren'e0 a''or"ing o %hi'h a reg$lar e3amina ion o& ra"e in bananas %o$l" be 'arrie" o$ $n"er he aegis o& he ?inis er o& Tra"e o& Nor%a#/ 459 -ameroon0 -o e "61voire0 an" Ahana 'on en" ha he
459

Thir" par i'ipan s6 s$bmission o& -ameroon0 -o e "61voire0 an" Ahana0 para/ 40 (E'$a"or)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 57 res$l s o& his moni oring pro'ess "emons ra e" ha mar@e a''ess &or ?:N s$ppliers ha" in'rease" 'onsi"erabl#/ The# allege ha he 7anel &aile" o ma@e an obNe' ive assessmen o& he ma er b# no a@ing his in o a''o$n / 5/ A''or"ing o -ameroon0 -o e "61voire0 an" Ahana0 he 7anel %rongl# 'on'l$"e" ha i "i"

no have he a$ hori # o "e ermine %he her he E- !ananas 1mpor (egime res$l e" in La leas main aining o al mar@e a''ess &or ?:N banana s$ppliersL/ 455 The# s$bmi ha 0 ins ea"0 he 7anel sho$l" have e3amine" he L ren" o& banana impor s 'oming &rom ?:N 'o$n ries o''$rring in 2006 an" 2007 $n"er he ne% regime0 in 'omparison %i h hose ha ha" a@en pla'e %i hin he remi o& he &ormer regimeL456 an" assesse" his in he ligh o& he a''ess 'ommi men s 'on aine" in he Anne3 o he +oha Ar i'le 1 )aiver/ 1n his respe' 0 -ameroon0 -o e "61voire0 an" Ahana s$bmi ha banana impor s &rom ?:N 'o$n ries o he E$ropean -omm$ni ies in'rease" b# 5600000 m in 2006 'ompare" o 20050 an" b# 6800000 m in 2007 'ompare" o 2005/ 457 The# &$r her main ain ha he n$mber o& e3por ers &rom ?:N 'o$n ries has in'rease" &ollo%ing he elimina ion o& he impor D$o a li'enses/ 9/ 4/ -olombia

-olombia arg$es ha he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas "i"

no e3pire on 54 +e'ember 2002 an" ha 0 here&ore0 he E- !ananas 1mpor (egime %as in'onsis en %i h he E$ropean -omm$ni ies6 obliga ions $n"er Ar i'le 11:4(b) o& he AATT 4999/ -olombia 'on en"s ha he E$ropean -omm$ni ies6 ,'he"$le provi"es &or an in"e&ini e 2/2 million m ari&& D$o a 'on'ession &or bananas ha is no "epen"en on he !ananas :rame%or@ Agreemen / <o%ever0 -olombia main ains ha 0 %hile he 'ommi men s se o$ in he !ananas :rame%or@ Agreemen e3pire" on 54 +e'ember 2002 p$rs$an o paragraph 9 o& ha agreemen 0 he 'ommi men s separa el# ins'ribe" in 'ol$mns 5 an" 9 o& he E$ropean -omm$ni ies6 ,'he"$le "i" no e3pire on ha "a e/ -olombia alleges ha he 7anel ass$me" ha he erms o& he !ananas :rame%or@ Agreemen D$ali&ie" he "$ra ion o& he 'ommi men s separa el# ins'ribe" in 'ol$mns 5 an" 9/458 A''or"ing o -olombia0 i& he "ra& ers ha" in en"e" o limi he "$ra ion o& he ari&& D$o a 'on'ession &or bananas0 he# %o$l" have ma"e spe'i&i' re&eren'e o L'on'essions ins'ribe" in 'ol$mns 5 an" 9 o& he E-6s ,'he"$leL in paragraph 9 o& he anne3e" !ananas :rame%or@ Agreemen or o her%ise e3pli'i l# lin@e" he "$ra ion o& he 'on'essions o he "$ra ion o& he !ananas :rame%or@ Agreemen / 459
455

Thir" par i'ipan s6 s$bmission o& -ameroon0 -o e "61voire0 an" Ahana0 para/ 45 (E'$a"or)/ 456 Thir" par i'ipan s6 s$bmission o& -ameroon0 -o e "61voire0 an" Ahana0 para/ 59 (E'$a"or)/ 457 Thir" par i'ipan s6 s$bmission o& -ameroon0 -o e "61voire0 an" Ahana0 para/ 56 (E'$a"or)/ 458 -olombia6s hir" par i'ipan 6s s$bmission0 para/ 7 (E'$a"or) (re&erring o E'$a"or 7anel (epor 0 paras/ 7/928-7/929)/ 459 -olombia6s hir" par i'ipan 6s s$bmission0 para/ 8 (E'$a"or)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 58 2/ -olombia asser s ha he 7anel erre" in hol"ing ha E'$a"or6s in erpre a ion %o$l" ren"er

in$ ile paragraph 9 o& he !ananas :rame%or@ Agreemen / 460 -olombia arg$es ha he in en"e" e&&e' o& his paragraph %as o release he E$ropean -omm$ni ies &rom he !ananas :rame%or@ Agreemen 6s D$o a allo'a ion 'ommi men s on 54 +e'ember 2002/ -olombia &$r her asser s ha prepara or# %or@ o& he AATT 4999 'on&irms ha he E$ropean -omm$ni ies is bo$n" b# an in"e&ini e 2/2 million m ari&& D$o a 'on'ession &or bananas %i h an in-D$o a ari&& ra e o& M75*m / 1n s$ppor o& his arg$men 0 -olombia relies on he ?o"ali ies 7aper0 he "ra& ,'he"$le o& he E$ropean -omm$ni ies s$bmi e" in he 'on e3 o& he .r$g$a# (o$n" nego ia ions0 an" s a emen s b# he E$ropean -omm$ni ies in he 'on e3 o& he arbi ra ion es ablishe" $n"er he Anne3 on !ananas o he +oha Ar i'le 1 )aiver/ -olombia 'on en"s ha s$'h Lprono$n'emen sL b# )TO ?embers are o be a@en in o a''o$n as s$bseD$en Lpra' i'eL %i hin he meaning o& Ar i'le 54(5)(b) o& he 8ienna )onvention/464 5/ 4/ +,./ Capan

Capan agrees %i h he 7anel6s &in"ing ha he .n"ers an"ings on !ananas "i" no pre'l$"e Je 0 Capan a@es iss$e %i h some o& he $n"erl#ing legal in erpre a ions an" reasoning

E'$a"or an" he .ni e" , a es &rom ini ia ing 'omplian'e pro'ee"ings p$rs$an o Ar i'le 24/5 o& he "evelope" b# he 7anel0 in par i'$lar0 %i h he L hree reasonsL &or %hi'h he 7anel &o$n" ha he .n"ers an"ings "i" no 'ons i $ e a legal impe"imen &or he 'omplainan s o ini ia e 'omplian'e pro'ee"ings/ 2/ Capan s$ppor s he 7anel6s &in"ing ha a m$ $all# agree" sol$ ion m$s be 'onsis en %i h

he 'overe" agreemen s/ <o%ever0 %i h respe' o he 7anel6s &in"ing ha he .n"ers an"ings on !ananas 'o$l" no bar he 'omplainan s &rom ini ia ing 'omplian'e pro'ee"ings be'a$se he# %ere a"op e" s$bseD$en o he re'ommen"a ions an" r$lings o& he +,! in he original pro'ee"ings0 Capan D$es ions %h# he iming o& he se lemen sho$l" be an impor an &a' or in "e ermining %he her he .n"ers an"ings %o$l" 'ons i $ e an impe"imen o he ini ia ion o& 'omplian'e pro'ee"ings/ )i h regar" o he 7anel6s relian'e on he &a' ha he par ies ma"e 'on&li' ing 'omm$ni'a ions o he )TO abo$ he .n"ers an"ings on !ananas0 Capan 'onsi"ers ha a par # sho$l" no be allo%e" o "e'lare a

-olombia6s hir" par i'ipan 6s s$bmission0 para/ 9 (E'$a"or) (re&erring o E'$a"or 7anel (epor 0 para/ 7/956)/ 464 -olombia6s hir" par i'ipan 6s s$bmission0 para/ 28 (E'$a"or)/

460

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 59 5/ sol$ ion $nila erall# an" no i&# a se lemen agreemen o preven ano her par # &rom

bringing a 'omplian'e "isp$ e/ Capan 'on en"s ha 0 $nless he par ies o a m$ $all# agree" sol$ ion e3pli'i l# relinD$ish heir righ s $n"er he +,. in he m$ $all# agree" sol$ ion0 ha sol$ ion sho$l" no be in erpre e" as barring he 'omplaining par # &rom p$rs$ing 'hallenges in )TO "isp$ e se lemen / Capan main ains ha 0 in he 'on e3 o& he presen 'ase0 he .n"ers an"ings on !ananas "o no have s$'h e&&e' / 9/ Capan &$r her agrees %i h he 7anel in he "isp$ e ini ia e" b# he .ni e" , a es ha he

E- !ananas 1mpor (egime %as a Lmeas$re a@en o 'ompl#L %i h he re'ommen"a ions an" r$lings o& he +,! in he original pro'ee"ings an" h$s &ell %i hin he p$rvie% o& 'omplian'e pro'ee"ings p$rs$an o Ar i'le 24/5 o& he +,./ Capan 'on en"s ha he iming0 na $re0 an" e&&e' o& he E- !ananas 1mpor (egime0 as %ell as he &a' ha paragraph A o& he .n"ers an"ings on !ananas i"en i&ies he E- !ananas 1mpor (egime as a meas$re Lb# %hi'h he long s an"ing "isp$ e over he E-6s banana impor regime 'an be resolve"L0 are evi"en'e o& a Lpar i'$larl# 'lose rela ionshipL o& he E- !ananas 1mpor regime %i h he r$ling an" re'ommen"a ions o& he +,!/ 462 5/ :inall#0 in he .ni e" , a es 'ase0 Capan &$r her s$ppor s he 7anel6s reNe' ion o& he

E$ropean -omm$ni ies6 preliminar# obNe' ion as o he s an"ing o& he .ni e" , a es o ini ia e a "isp$ e an" he allege" la'@ o& n$lli&i'a ion or impairmen o& bene&i s s$&&ere" b# he .ni e" , a es/ 1n his respe' 0 Capan main ains ha he 7anel 'orre' l# 'on'l$"e" ha he E$ropean -omm$ni ies ha" no reb$ e" he pres$mp ion in Ar i'le 5/8 o& he +,. p$rs$an o %hi'h he E- !ananas 1mpor (egime n$lli&ie" or impaire" bene&i s a''r$ing o he .ni e" , a es/ 6/ 4/ ?e3i'o

7$rs$an o ($le 29(2) o& he >or0ing Procedures0 ?e3i'o 'hose no o s$bmi a hir" o

par i'ipan 6s s$bmission/ A he oral hearing0 ?e3i'o6s 'ommen s &o'$se" on he legal e&&e' s o& m$ $all# agree" sol$ ions an" he legal s a $s o& Ls$gges ionsL ma"e b# a panel p$rs$an Ar i'le 49/4 o& he +,./ 7/ 4/ 7anama an" Ni'arag$a

7anama an" Ni'arag$a s$bmi ha he 7anel 'orre' l# &o$n" ha he A-7 pre&eren ial ari&&

D$o a viola es Ar i'le 2111:4 an" 2 o& he AATT 4999/ A''or"ing o 7anama an" Ni'arag$a0 i& "is'rimina or# pre&eren ial ari&& D$o as %ere permi e" o es'ape Ar i'le 2111 "is'iplines on he

462 Capan6s hir" par i'ipan 6s s$bmission0 para/ 25 (.,) (re&erring o .n"ers an"ing on !ananas (.,)0 )T*+,27*590 A*-*)*2700 para/ A)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 60 2/ D$o as/465 5/ 1n rela ion o he E'$a"or 7anel (epor 0 7anama an" Ni'arag$a reD$es he Appella e !o"# gro$n"s ha o her e3'l$"e" non-pre&erre" s$ppliers %ere s$bNe' o a L"i&&eren ari&& ra eL0

here %o$l" be no limi o he ra"e res ri' ions 'a$se" b# he D$an i a ive elemen o& pre&erre" ari&&

o reNe' he E$ropean -omm$ni ies6 preliminar# allega ion ha he Lse'on" s$gges ionL o& he &irs E'$a"or Ar i'le 24/5 panel barre" he 7anel in hese pro'ee"ings &rom assessing he ne% E$ropean -omm$ni ies6 ari&& D$o a $n"er Ar i'le 24/5 o& he +,./ 9/ (egar"ing Ar i'le 2111 o& he AATT 49990 7anama an" Ni'arag$a "isagree %i h he ha he 7anel misin erpre e" he no ion o& Lres ri' ionL in

E$ropean -omm$ni ies6 arg$men

Ar i'le 2111:4/ 7anama an" Ni'arag$a arg$e ha he 7anel 'orre' l# "e ermine" ha an e3'l$sive pre&eren ial ari&& D$o a reserve" &or A-7 s$ppliers ha "enies all a''ess &or ?:N 'o$n ries represen s a Lres ri' ionL on hose ?:N s$ppliers %i hin he meaning o& Ar i'le 2111:4/ 7anama an" Ni'arag$a s$bmi ha he 7anel 'orre' l# &o$n"0 on he basis o& Ar i'le 2111:50 ha Ar i'le 2111 applies o Lan# ari&& D$o aL0 irrespe' ive o& %he her a similar D$an i a ive res ri' ion is also applie" o o her ?embers/ 1n heir vie%0 his in erpre a ion o& Ar i'le 2111 is 'onsis en %i h he &in"ings o& he Appella e !o"# in he original E) Bananas III pro'ee"ings/469 5/ 7anama an" Ni'arag$a arg$e ha Ar i'le 2111 provi"es &or s ri' non-"is'rimina ion

reD$iremen s0 so ha 0 %hen he E$ropean -omm$ni ies applie" a D$an i a ive limi o i s A-7 ari&& pre&eren'e0 i %as Lver# m$'h 6oblige"6 o sa is&# he Ar i'le 2111 non-"is'rimina ion (i/e/0 ?:N) 6r$le6/L465 7anama an" Ni'arag$a also 'on en" ha here is no )TO %aiver pra' i'e revealing a L'ommon $n"ers an"ingL among )TO ?embers ha pre&eren ial ari&& D$o as are e3emp &rom Ar i'le 2111/ On he 'on rar#0 he# s$bmi ha re'en %aiver pra' i'e a& er he E) Bananas III 'ase 'learl# "emons ra es ha pre&eren ial ari&& D$o as reD$ire a %aiver &rom Ar i'le 21110 in'l$"ing he %aiver reD$es e" b# he E$ropean -omm$ni ies &or he pre&eren ial A-7 ari&& D$o a p$rs$an o he .n"ers an"ings on !ananas/ 6/ 7anama an" Ni'arag$a arg$e ha he 'hapea$ o& Ar i'le 2111:2 applies regar"less o&

%he her here are several ari&& D$o as or a single ari&& D$o a o %hi'h ?:N s$ppliers are "enie" a''ess/ 7anama an" Ni'arag$a also s$bmi ha he E$ropean -omm$ni ies6 pre&eren ial A-7 ari&& D$o a viola e" he obliga ion in he 'hapea$ o& Ar i'le 2111:2 L o 6aim a a "is rib$ ion o& ra"e6 in bananas
Thir" par i'ipan s6 s$bmissions o& 7anama an" Ni'arag$a0 para/ 40 (E'$a"or)0 para/ 40 (.,)/ Thir" par i'ipan s6 s$bmissions o& 7anama an" Ni'arag$a0 para/ 55 (E'$a"or)0 para/ 22 (.,) (D$o ing Appella e !o"# (epor 0 E) Bananas III0 para/ 490)/ 465 Thir" par i'ipan s6 s$bmissions o& 7anama an" Ni'arag$a0 para/ 90 (E'$a"or)0 para/ 27 (.,)/
469 465

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 64 7/ resembling he shares ha %o$l" have o''$rre" 6in he absen'e o&6 ha res ri' ionL0 be'a$se

i gran e" a mar@e share o A-7 non-s$bs an ial s$ppliers ha %as no a''or"e" o o her s$ppliers/ 466 (egar"ing Ar i'le 2111:2(")0 7anama an" Ni'arag$a 'on en" ha he E$ropean -omm$ni ies 'o$l" no have ma"e an allo'a ion o an# s$bs an ial ?:N s$pplier base" on a Lrepresen a ive perio"L be'a$se he E$ropean -omm$ni ies6 mar@e ha" been s$bNe' o 'on in$o$s "is'rimina ion0 %hi'h ma"e i impossible o "e&ine a Lprevio$s represen a ive perio"L/ 467 8/ 1n rela ion o he ., 7anel (epor 0 7anama an" Ni'arag$a 'on en" ha he 7anel 'orre' l#

applie" he previo$s &in"ings in E) Bananas III regar"ing he iss$es o& Ln$lli&i'a ion or impairmen L an" Ls an"ingL/468 ?oreover0 7anama an" Ni'arag$a 'onsi"er ha he 7anel "i" no have o e3plain ho% he .ni e" , a es6 po en ial e3por in eres an" in ernal mar@e %o$l" be a&&e' e" be'a$se L he &in"ings o& /# #uperfund /// es ablishe" ha a 'laim o& no or insigni&i'an ra"e e&&e' s is irrelevan o n$lli&i'a ion or impairmen /L469 9/ 7anama an" Ni'arag$a also reD$es he Appella e !o"# o reNe' he E$ropean

-omm$ni ies6 'laim ha he pres$mp ion o& n$lli&i'a ion or impairmen 'a$se" b# he "is'rimina or# D$an i a ive limi 'an be 'onsi"ere" one an" he same %i h he n$lli&i'a ion an" impairmen $n"er Ar i'le 1/ 1n 7anama6s an" Ni'arag$a6s vie%0 he E$ropean -omm$ni ies6 'on'ern o& La""i ional or "o$ble 'o$n e" n$lli&i'a ion or impairmen L is mispla'e" be'a$se i L'on&$ses F he ma er o&G he n$lli&i'a ion or impairmen es ablishe" b# an in&ringemen $n"er he 'over agreemen s %i h he level o& n$lli&i'a ion or impairmen separa el# a""resse" $n"er Ar i'le 22 o& he +,.L %hi'h is no a iss$e in he presen 'ase/470 40/ 7anama an" Ni'arag$a s$ppor he 7anel6s 'on'l$sion ha he E$ropean -omm$ni ies6

,'he"$le o& -on'ession "i" no e3pire on 54 +e'ember 2002 ( he ermina ion "a e o& he !ananas :rame%or@ Agreemen )0 b$ %as e3 en"e" $n il Ar i'le 22;111 rebin"ing pro'e"$res %ere 'on'l$"e"/ 7anama an" Ni'arag$a s$bmi ha he E$ropean -omm$ni ies has L never once in he 45-#ear his or# o& he BE) Bananas IIIC "isp$ eL474 'laime" ha i s M75*m .r$g$a# (o$n" 'on'essions e3pire" as o& 54 +e'ember 2002/ 7anama an" Ni'arag$a s$bmi ha o a''ep he E$ropean -omm$ni ies6 arg$men s %o$l" mean he appli'a ion o& a bo$n" ra e o& M680*m Pa 'on'ession eD$ivalen o La ban on all ?:N a''ess in o he %orl"6s larges banana mar@e L/ 472
Thir" par i'ipan s6 s$bmissions o& 7anama an" Ni'arag$a0 para/ 50 (E'$a"or)0 para/ 57 (.,)/ Thir" par i'ipan s6 s$bmissions o& 7anama an" Ni'arag$a0 para/ 52 (E'$a"or)0 para/ 59 (.,)/ 468 Thir" par i'ipan s6 s$bmission o& 7anama an" Ni'arag$a0 para/ 99 (.,) (re&erring o Appella e !o"# (epor 0 E) Bananas III0 para/ 254)/ 469 Thir" par i'ipan s6 s$bmission o& 7anama an" Ni'arag$a0 para/ 96 (.,)/ 470 Thir" par i'ipan s6 s$bmissions o& 7anama an" Ni'arag$a0 para/ 58 (E'$a"or)0 para/ 98 (.,)/ (original emphasis) 474 Thir" par i'ipan s6 s$bmission o& 7anama an" Ni'arag$a0 para/ 69 (E'$a"or)/ (original emphasis) 472 Thir" par i'ipan s6 s$bmission o& 7anama an" Ni'arag$a0 para/ 65 (E'$a"or)/
467 466

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 62 44/ 7anama an" Ni'arag$a 'on en" ha he 7anel 'orre' l# rea" in paragraph 9 o& he !ananas ha LF&G$ll

:rame%or@ Agreemen ha he E$ropean -omm$ni ies6 in-D$o a bananas 'on'ession %as D$ali&ie" no onl# b# he ermina ion "a e o& 54 +e'ember 20020 b$ also b# he reD$iremen 'ons$l a ions %i h he >a in Ameri'an s$ppliers ha are AATT ?embers sho$l" s ar no la er han in #ear 2004L/475 1n 7anama6s an" Ni'arag$a6s vie%0 he 7anel 'orre' l# in erpre e" he +oha Ar i'le 1 )aiver as a s$bseD$en agreemen regar"ing he appli'a ion o& he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions in a''or"an'e %i h Ar i'le 54(5)(a) o& he 8ienna )onvention/ 7anama an" Ni'arag$a arg$e ha he 8ienna )onvention "oes no reD$ire an# &ormal "e'ision o& he par ies or a Lposi ivel# e3press 'onsen o be bo$n"L479 o an in erna ional agreemen / ?oreover0 7anama an" Ni'arag$a 'on en" ha 0 as he +oha Ar i'le 1 )aiver %as a"op e" b# he ?inis erial -on&eren'e0 L he op-mos "e'ision-ma@ing bo"# o& he )TOL0 i ha" all he a$ hori # L o a@e a "e'ision b# 'onsens$s regar"ing he appli'a ion o& he 'ons$l a ion preroga ives o& paragraph 9 o& he F!ananas :rame%or@ Agreemen G so as o e3 en" he E-6s 'on'essions $n il rebo$n" prior o Tari&& Onl#/L 475 42/ 7anama an" Ni'arag$a s$ppor he 7anel6s 'on'l$sion ha Lb# "ela#ing Ar i'le 22;111

rebin"ing pro'e"$res /// ?embers %ere ne'essaril# re&le' ing heir in en ion o 'on in$e he E-6s e3is ing 'on'ession $n il Ar i'le 22;111 rebin"ing pro'e"$res %ere 'omple e"/L 476 ?oreover0 7anama an" Ni'arag$a arg$e ha 0 LFiG& he onl# 'on'ession o be pro e' e" b# 6an# rebin"ing6 %as he prohibi ive 680M*m ari&&0 i %o$l" have been illogi'al &or he ?embers o s a e ha 6all E- )TO mar@e -a''ess 'ommi men s6 m$s 6a leas main aiFnG o al mar@e a''ess6L 4770 be'a$se a M680*m ari&& %o$l" elimina e mar@e a''ess0 ra her han main ain i / 1n 7anama6s an" Ni'arag$a6s opinions0 he e3 o& he +oha Ar i'le 1 )aiver is 'lear in a&&irming ha he E$ropean -omm$ni ies6 'on'ession is e3 en"e" $n il Ar i'le 22;111 pro'e"$res are 'on'l$"e"0 an" given ha he E$ropean -omm$ni ies has no 'on'l$"e" hese pro'e"$res0 L he 7anel %as 'orre' in &in"ing ha he E-6s .r$g$a# (o$n" 'on'essions 'on in$e o appl#/L 478

Thir" par i'ipan s6 s$bmission o& 7anama an" Ni'arag$a0 para/ 69 (E'$a"or) (D$o ing E'$a"or 7anel (epor 0 para/ 7/959)/ 479 Thir" par i'ipan s6 s$bmission o& 7anama an" Ni'arag$a0 para/ 77 (E'$a"or)/ 475 Thir" par i'ipan s6 s$bmission o& 7anama an" Ni'arag$a0 para/ 78 (E'$a"or)/ (&oo no e omi e") 476 Thir" par i'ipan s6 s$bmission o& 7anama an" Ni'arag$a0 para/ 85 (E'$a"or)/ 477 Thir" par i'ipan s6 s$bmission o& 7anama an" Ni'arag$a0 para/ 89 (E'$a"or)/ 478 Thir" par i'ipan s6 s$bmission o& 7anama an" Ni'arag$a0 para/ 99 (E'$a"or)/

475

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 65 45/ 7anama an" Ni'arag$a also agree %i h E'$a"or6s o her appeal ha 0 i& he Appella e !o"#

%ere o 'onsi"er ha he +oha Ar i'le 1 )aiver "i" no e3 en" he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession0 i sho$l" rea" he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions as remaining in &or'e be#on" he e3pira ion o& he !ananas :rame%or@ Agreemen / 1n heir vie%0 L-ol$mn 70 o& ,e' ion 4/! o& he E$ropean -omm$ni ies6 -on'ession ( =ther Terms an" -on"i ions)L is in en"e" o mean Le3is ing besi"e0 &$r her0 a""i ionalL/ 479 There&ore0 he !ananas :rame%or@ Agreemen 'an onl# s$pplemen he '$rren a''ess 'on"i ions0 an" 'anno "iminish he L&inalL s'he"$le" in-D$o a 'ommi men s o& M75*m ari&& &or 2/2 million m 0 i"en i&ie" in 'ol$mns 5 an" 9/ 480 7anama an" Ni'arag$a 'on en" ha he !ananas :rame%or@ Agreemen %as a L plurilateral settlementL484 'learl# "is in' &rom he ,'he"$le0 an" ha he erms o& he !ananas :rame%or@ Agreemen 'o$l" no ermina e he 'on'ession &or all )TO ?embers/ 49/ (egar"ing he LobNe' an" p$rposeL o& he E$ropean -omm$ni ies6 'on'ession0 7anama an"

Ni'arag$a 'on en" ha he )TO6s aim o& Lprovi"ing se'$ri # an" pre"i' abili #L o arrangemen s ha s$bs an iall# re"$'e ari&&s is L"es ro#e"L 482 i& he &irs sen en'e o& paragraph 9 o& he !ananas :rame%or@ Agreemen is rea" o repeal '$rren a''ess %i h a 680 M*m a''ess ban/ 7anama an" Ni'arag$a s$bmi ha his arg$men is s$ppor e" b# he preamble o& he Agreement on Agriculture0 %hi'h aims La a''omplishing a spe'ial 6re&orm pro'ess6 ha %o$l" enable 6s$bs an ial progressive reductions6 in pro e' ion over ime/L485 45/ :inall#0 7anama an" Ni'arag$a reNe' he E$ropean -omm$ni ies6 'laim ha he 7anel 'o$l"

no have ma"e a re'ommen"a ion regar"ing i s ari&& D$o a0 be'a$se he meas$re has 'ease" o e3is an" sho$l" be 'onsi"ere" Lse le" la%L/ 7anama an" Ni'arag$a 'on en" ha i is %ell se le" in )TO la% ha panels 'an ma@e re'ommen"a ions on meas$res a iss$e0 or elemen s o& hose meas$res0 ha have e3pire"0 an" ha 0 in he 'ases 'i e" b# he E$ropean -omm$ni ies0 he e3pire" meas$res %ere s$bmi e" %i hin he proper revie% perio"/

Thir" par i'ipan s6 s$bmission o& 7anama an" Ni'arag$a0 para/ 450 (E'$a"or)/ Thir" par i'ipan s6 s$bmission o& 7anama an" Ni'arag$a0 para/ 450 (E'$a"or)/ 484 Thir" par i'ipan s6 s$bmission o& 7anama an" Ni'arag$a0 para/ 455 (E'$a"or)/ 482 Thir" par i'ipan s6 s$bmission o& 7anama an" Ni'arag$a0 para/ 492 (E'$a"or)/ 485 Thir" par i'ipan s6 s$bmission o& 7anama an" Ni'arag$a0 para/ 495 (E'$a"or) (D$o ing preambles 2 an" 5 o& he Agreement on Agriculture)/ (emphasis a""e" b# 7anama an" Ni'arag$a)
480

479

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 69 III. 4/ I..+%. R-).%0 )/ $'% A55%-* #1 $'% E,+-0#( P-/%* R%5#($ The &ollo%ing iss$es are raise" in he appeal o& he 7anel (epor 0 European )ommunities

*egime for the Importation( #ale and !istri$ution of Bananas #econd *ecourse to Article +,-. of the !#/ $y Ecuador ()T*+,27*()2*E-.): (a) %i h respe' o pro'e"$ral iss$es: (i) %he her he 7anel a' e" in'onsis en l# %i h Ar i'le 9/5 o& he +,. b# main aining "i&&eren ime ables &or he Ar i'le 24/5 pro'ee"ings be %een he E$ropean -omm$ni ies an" E'$a"or an" be %een he E$ropean -omm$ni ies an" he .ni e" , a esB an" (ii) %he her he 7anel erre" in &in"ing ha E'$a"or %as no barre" b# he .n"ers an"ing on !ananas &rom ini ia ing his 'omplian'e pro'ee"ingB (b) %i h respe' o Ar i'le 2111 o& he AATT 4999: (i) %he her he 7anel erre" in &in"ing ha 0 o he e3 en ha he E$ropean o

-omm$ni ies arg$es ha i has implemen e" a s$gges ion p$rs$an

Ar i'le 49/4 o& he +,.0 he 7anel %as no preven e" &rom 'on"$' ing0 $n"er Ar i'le 24/5 o& he +,.0 he assessmen reD$es e" b# E'$a"orB an" ha 0 here&ore0 he 7anel "i" no nee" o assess %he her he E$ropean -omm$ni ies has e&&e' ivel# implemen e" an# o& he s$gges ions o& he &irs 'omplian'e panel reD$es e" b# E'$a"orB an" (ii) %he her he 7anel erre" in &in"ing ha he "$ #-&ree ari&& D$o a reserve" &or bananas o& A-7 'o$n r# origin %as in'onsis en %i h Ar i'le 2111:4 an" 2 o& he AATT 4999B (') %i h respe' o Ar i'le 11 o& he AATT 4999: (i) %he her he 7anel erre" in &in"ing ha he +oha Ar i'le 1 )aiver 'ons i $ e" a s$bseD$en agreemen be %een he par ies e3 en"ing he ari&& D$o a 'on'ession &or bananas lis e" in he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions be#on" 54 +e'ember 20020 $n il he rebin"ing o& he E$ropean -omm$ni ies6 ari&& on bananasB

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 65 (ii) i& he Appella e !o"# reverses he 7anel6s &in"ing ha he s$bseD$en

agreemen be %een he par ies res$l e" in an e3 ension o& he ari&& D$o a 'on'ession &or bananas be#on" 54 +e'ember 2002 $n il he rebin"ing o& he E$ropean -omm$ni ies6 ari&& on bananas0 %he her he 7anel erre" in &in"ing ha he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas %as in en"e" o e3pire on 54 +e'ember 2002 on a''o$n o& paragraph 9 o& he !ananas :rame%or@ Agreemen B an" (iii) %he her he 7anel erre" in &in"ing ha he ari&& applie" b# he E$ropean -omm$ni ies o ?:N impor s o& bananas0 se a M476*m 0 %i ho$ 'onsi"era ion o& he ari&& D$o a o& 2/2 million m bo$n" a an in-D$o a ari&& ra e o& 75M*m 0 is an or"inar# '$s oms "$ # in e3'ess o& ha provi"e" &or in he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions0 an" h$s in'onsis en %i h Ar i'le 11:4(b) o& he AATT 4999B an" (") %he her he 7anel erre" in &in"ing ha he E$ropean -omm$ni ies0 b# having

main aine" meas$res in'onsis en %i h "i&&eren provisions o& he AATT 49990 'on in$es o n$lli&# or impair bene&i s a''r$ing o E'$a"or $n"er ha Agreemen / 2/ I7. 4/ )e pro'ee" o anal#=e hese iss$es in he or"er se o$ above/ I..+%. R-).%0 )/ $'% A55%-* #1 $'% US P-/%* R%5#($ The &ollo%ing iss$es are raise" in he appeal o& he 7anel (epor 0 European )ommunities

*egime for the Importation( #ale and !istri$ution of Bananas *ecourse to Article +,-. of the !#/ $y the /nited #tates ()T*+,27*()*.,A): (a) %i h respe' o pro'e"$ral iss$es: (i) %he her he 7anel a' e" in'onsis en l# %i h Ar i'le 9/5 o& he +,. b# main aining "i&&eren ime ables &or he Ar i'le 24/5 pro'ee"ings be %een he E$ropean -omm$ni ies an" E'$a"or an" be %een he E$ropean -omm$ni ies an" he .ni e" , a esB (ii) %he her he 7anel erre" in &in"ing ha he .ni e" , a es %as no barre" b# he .n"ers an"ing on !ananas &rom ini ia ing his 'omplian'e pro'ee"ingB

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 66 (iii) %he her he 7anel erre" in &in"ing ha he E- !ananas 1mpor (egime

'ons i $ e" a Lmeas$re a@en o 'ompl#L %i hin he meaning o& Ar i'le 24/5 o& he +,. an" %as here&ore properl# be&ore he 7anelB (iv) %he her he 7anel erre" in ma@ing &in"ings %i h respe' o a meas$re ha ha" 'ease" o e3is s$bseD$en o he es ablishmen o& he 7anel0 b$ be&ore he 7anel iss$e" i s (epor B an" (v) %he her *evie%B (b) %i h respe' o Ar i'le 2111 o& he AATT 4999: %he her he 7anel erre" in &in"ing ha he "$ #-&ree ari&& D$o a reserve" &or bananas o& A-7 'o$n r# origin %as in'onsis en %i h Ar i'le 2111:4 an" 2 o& he AATT 4999B an" (') %he her he 7anel erre" in &in"ing ha he E$ropean -omm$ni ies0 b# having he E$ropean -omm$ni ies6 No i'e o& Appeal sa is&ies he

reD$iremen s o& ($le 20(2)(") o& he >or0ing Procedures for Appellate

main aine" meas$res in'onsis en %i h "i&&eren provisions o& he AATT 49990 'on in$es o n$lli&# or impair bene&i s a''r$ing o he .ni e" , a es $n"er ha Agreemen / 2/ 7. 4/ )e pro'ee" o anal#=e hese iss$es in he or"er se o$ above/ A($),*% ".8 #1 $'% DSU H-(6#/)9-$)#/ #1 T)6%$-3*%. :E,+-0#( -/0 U/)$%0 S$-$%.; )e begin b# a""ressing he D$es ion %he her0 b# main aining "i&&eren ime ables &or he

Ar i'le 24/5 pro'ee"ings be %een he E$ropean -omm$ni ies an" E'$a"or an" be %een he E$ropean -omm$ni ies an" he .ni e" , a es0 he 7anel a' e" in'onsis en l# %i h Ar i'le 9/5 o& he +,./ 2/ Ar i'le 9/5 o& he +,. rea"s: 1& more han one panel is es ablishe" o e3amine he 'omplain s rela e" o he same ma er0 o he grea es e3 en possible he same persons shall serve as panelis s on ea'h o& he separa e panels an" he ime able &or he panel pro'ess in s$'h "isp$ es shall be harmoni=e"/ 5/ ,everal imes "$ring he 'o$rse o& he 7anel pro'ee"ings0 he E$ropean -omm$ni ies

reD$es e" he 7anel o harmoni=e he ime ables o& he %o pro'ee"ings/ The 7anel 'onsi"ere" ha mo"i&#ing he ime ables L%o$l" have mos li@el# involve" a "ela# in he pro'ee"ings reD$es e" b#

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 67 E'$a"orL/4 E'$a"or obNe' e" o an# "ela# in he pro'ee"ing i ha" ini ia e"0 emphasi=ing ha an a''elera e" ime&rame applie" o Ar i'le 24/5 pro'ee"ings/ The 7anel s a e" ha harmoni=ing he ime ables &or he 7anel pro'esses in hese 'ases %as par i'$larl# "i&&i'$l be'a$se o& he %o-mon h perio" ha ha" elapse" be %een he "a es on %hi'h he panelis s began heir %or@ in ea'h o& he 'ases/ The 7anel no e" ha he )TO +ire' or-Aeneral 'ompose" he panel reD$es e" b# E'$a"or on 48 C$ne 20070 an" 'ompose" he panel reD$es e" b# he .ni e" , a es on 45 A$g$s 2007/ The 7anel 'onsi"ere" ha his %o-mon h "i&&eren'e be %een he "isp$ es %as signi&i'an 0 sin'e 'omplian'e pro'ee"ings0 b# heir ver# na $re0 are in en"e" o be brie&/ The 7anel 'on'l$"e": /// no %i hs an"ing he 7anel6s ini ial in en ion o harmoni=e he ime able o& bo h he pro'ee"ings reD$es e" b# E'$a"or an" hose reD$es e" b# he .ni e" , a es0 he 7anel %as $nable o &in" a be er al erna ive &or he ime able ha %as /// a"op e" in hese pro'ee"ings/ This "espi e he &a' ha he 7anel %as a%are ha he approve" ime able implie" a 'onsi"erable b$r"en o& %or@0 pea@ing a par i'$lar momen s &or he par ies0 as %ell as &or he 7anel an" he ,e're aria /FSG 2
FSGAs no e" above0 ho%ever0 iss$an'e o& he in erim repor %as "ela#e" b# he 7anel in or"er o ens$re ha replies o D$es ions an" 'ommen s on replies in he pro'ee"ings reD$es e" b# he .ni e" , a es ha" been re'eive" b# ha panel0 be&ore he in erim repor in he '$rren pro'ee"ings %as iss$e"/

9/

On appeal0 he E$ropean -omm$ni ies alleges ha

he 7anel a' e" in'onsis en l# %i h

Ar i'le 9/5 o& he +,. b# &ailing o harmoni=e he ime ables o& he %o 7anel pro'ee"ings an" reD$es s he Appella e !o"# o reverse he 7anel6s in erpre a ion an" appli'a ion o& Ar i'le 9/5/ 1n s$ppor o& i s 'laim0 he E$ropean -omm$ni ies s$bmi s ha he $se o& he %or" LshallL in Ar i'le 9/5 in"i'a es an Labsol$ e an" $nD$ali&ie"L obliga ion &or panels o harmoni=e ime ables0 %hi'h L"oes no allo% panels an# "is're ionL in "e'i"ing %he her ime ables sho$l" be harmoni=e"/ 5 The E$ropean -omm$ni ies s$bmi s ha he ime ables Lm$s absol$ el# be harmoni=e" a some s age o& he pro'ee"ingL/ 1n he E$ropean -omm$ni ies6 vie%0 he phrase L o he grea es e3 en possibleL is no in"i'a ion ha panels have "is're ion0 b$ is onl# mean o allo% a panel o a@e no e o& 'er ain pro'e"$ral a' s ha ma# have alrea"# been 'omple e" in one 'ase0 he o''$rren'e o& %hi'h ma@es i LimpossibleL o harmoni=e he ime able o& ha 'ase %i h he ime able o& ano her 'ase/ 9 The E$ropean -omm$ni ies 'on en"s ha i ha" o provi"e i s %ri en s$bmission o he .ni e" , a es in one pro'ee"ing be&ore he .ni e" , a es ha" s$bmi e" i s o%n &irs %ri en s$bmission in he o her

4 2

., 7anel (epor 0 para/ 7/7/ E'$a"or 7anel (epor 0 para/ 7/40 an" &oo no e 298 here oB ., 7anel (epor 0 para/ 7/40/ 5 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 24 (E'$a"or)0 para/ 20 (.,)/ 9 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 29 (E'$a"or)0 para/ 25 (.,)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 68 pro'ee"ing0 an" ha he .ni e" , a es h$s ha" he a"van age o& @no%ing %ha "e&en'es an"

arg$men s he E$ropean -omm$ni ies %o$l" $se in he la er pro'ee"ing/ 5/ The .ni e" , a es an" E'$a"or "isagree %i h he E$ropean -omm$ni ies6 'on en ion ha

Ar i'le 9/5 provi"es an Labsol$ e an" $nD$ali&ie"L obliga ion/ 5 1ns ea"0 he# 'on en" ha he 7anel6s obliga ion is D$ali&ie" b# he phrase L o he grea es e3 en possibleL in Ar i'le 9/5/ The# &$r her s$ppor he 7anel6s "e'ision o a@e in o a''o$n ha he presen pro'ee"ings are 'omplian'e pro'ee"ings0 %hi'h0 p$rs$an o Ar i'le 24/50 sho$l" be 'omple e" %i hin 90 "a#s/ 6/ Ar i'le 9/5 ma# appear o be 'as in he %a# o& an obliga ion0 b$ he %or" Lharmon#L is

"e&ine" as he 'ombina ion or a"ap a ion o& par s0 so as o &orm a L'onsis en an" or"erl# %holeL/ 6 E$i e "is in' &rom Ls#n'hron#L0 Lharmon#L "oes no reD$ire ha elemen s 'oin'i"e e3a' l# in ime/ There&ore0 %e 'onsi"er ha he $se o& he %or" Lharmoni=e"L ra her han Ls#n'hroni=e"L in Ar i'le 9/5 'on&ers o panels a N$"gemen o& "egree an" pra' i'ali #/ 1 res s %i h panels o organi=e he s eps o& he pro'ee"ings in a %a# ha %ill ens$re ha he# &orm a 'onsis en an" or"erl# %hole/ )hereas he $se o& he %or" LshallL or"inaril# 'onno es an obliga ion0 here0 %hile he panel m$s see@ o harmoni=e0 he e3 en o %hi'h ha is possible lies %i hin i s po%er/ )e "o no 'onsi"er ha Lharmoni=a ionL reD$ires a"op ion o& i"en i'al ime ables in m$l iple pro'ee"ings/ As %e see i 0 his provision a""resses a pra' i'al 'on'ern ha ea'h ime able m$s be &rame" in he ligh o& he o her/ 7/ The phrase L o he grea es e3 en possibleL in Ar i'le 9/5 len"s &$r her s$ppor o o$r

in erpre a ion/ This phrase in ro"$'es he main 'la$se o& he sen en'e/ The phrase L o he grea es e3 en possibleL D$ali&ies bo h elemen s o& he main 'la$seP he sele' ion o& he same persons as panelis s an" he harmoni=a ion o& he panel pro'essesPan" h$s D$ali&ies %ha he panel m$s "o o harmoni=e he ime ables/ harmoni=e"L/7 8/ :$r hermore0 %e no e ha Ar i'les 42/4 an" 42/2 o& he +,. 'on&er a margin o& "is're ion )e here&ore "isagree %i h he E$ropean -omm$ni ies6 rea"ing ha Ar i'le 9/5 L"oes no allo% panels an# "is're ion in "e'i"ing %he her he ime ables sho$l" be

on panels o "ra% $p heir %or@ing pro'e"$res/ Ar i'le 42/4 a$ hori=es panels o es ablish heir o%n %or@ing pro'e"$res in he even ha he panel "e'i"es0 a& er 'ons$l ing he par ies0 no o &ollo% he )or@ing 7ro'e"$res &or panels se o$ in Appen"i3 5 o he +,./ 7$rs$an o Ar i'le 42/20 panel pro'e"$res sho$l" provi"e Ls$&&i'ien &le3ibili # so as o ens$re high-D$ali # panel repor s0 %hile no
.ni e" , a es6 appellee6s s$bmission0 paras/ 422 an" 425 (re&erring o E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 25 (.,))B E'$a"or6s appellee6s s$bmission0 para/ 8/ 6 #horter =xford English !ictionary0 5 h e"n0 )/(/ Tr$mble0 A/ , evenson (e"s) (O3&or" .niversi # 7ress0 2002)0 ;ol/ 40 p/ 4200/ 7 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 24 (E'$a"or)0 para/ 20 (.,)/
5

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 69 $n"$l# "ela#ing he panel pro'essL/ !# vir $e o& his provision0 panels are ves e" %i h a "egree o& "is're ion an" &le3ibili # o a@e he ne'essar# pro'e"$ral "e'isions o s ri@e a balan'e be %een provi"ing Lhigh-D$ali # panel repor sL an" avoi"ing "ela#s in he panel pro'ess/ The panel6s margin o& "is're ion0 in $rn0 in&orms o$r s an"ar" o& revie% o& he panels6 appli'a ion o& i s obliga ions $n"er Ar i'le 9/5/ 9/ As his 7anel %as es ablishe" p$rs$an o Ar i'le 24/5 o& he +,.0 %e 'onsi"er ha he

obliga ions o& Ar i'le 9/5 m$s be rea" in he 'on e3 o& Ar i'le 24/50 %hi'h reD$ires a 'ompresse" ime&rame/ Ar i'le 24/5 provi"es ha a panel shall 'ir'$la e i s repor %i hin 90 "a#s a& er he "a e o& re&erral o& he ma er o i / 1& an Ar i'le 24/5 panel 'onsi"ers ha i 'anno provi"e i s repor %i hin ha ime&rame0 i m$s no i&# he +,!0 spe'i&#ing he reasons &or he "ela# oge her %i h an es ima e o& he perio" %i hin %hi'h i %ill iss$e i s repor / !# 'on ras 0 Ar i'les 42/8 an" 42/9 o& he +,. pres'ribe ha original panel pro'ee"ings Lshall0 as a general r$le0 no e3'ee" si3 mon hsL an" Lsho$l"L in no 'ase e3'ee" nine mon hs/ )e here&ore 'onsi"er ha Ar i'le 24/5 an"0 in par i'$lar0 he obliga ion o 'ir'$la e he 'omplian'e panel repor %i hin 90 "a#s a& er he "a e o& re&erral o& he ma er o i 0 &rames a 'omplian'e panel6s "is're ion/ 40/ The E$ropean -omm$ni ies alleges ha he 7anel0 b# obliging he E$ropean -omm$ni ies

o provi"e i s %ri en s$bmission o he .ni e" , a es in he E'$a"or 'ase be&ore he .ni e" , a es ha" s$bmi e" i s o%n &irs %ri en s$bmission in he .ni e" , a es 'ase0 gave he .ni e" , a es he a"van age o& @no%ing %ha "e&en'es an" arg$men s he E$ropean -omm$ni ies %o$l" $se in he .ni e" , a es 'ase0 an" hereb# a' e" 'on rar# o Ar i'le 42/6 o& he +,./8 44/ )e re'all ha he Appella e !o"# has previo$sl# hel" ha a panel6s e3er'ise o& "is're ion is

'ir'$ms'ribe" b# he "$e pro'ess righ s o& he par ies o he "isp$ e/ 9 1n o$r vie%0 he si $a ion "es'ribe" b# he E$ropean -omm$ni ies ma# arise $n"er he +,. %henever a meas$re ha is 'hallenge" b# one ?ember is s$bseD$en l# 'hallenge" b# a se'on" ?ember0 an" he 'omplainan in he la er pro'ee"ing is a hir" par # in he earlier pro'ee"ing/ )e re'ogni=e ha his ma# en ail a ris@ o& p$ ing he respon"en in he la er pro'ee"ing a a "isa"van age in erms o& li iga ion s ra eg#/ <o%ever0 in he presen 'ase0 he E$ropean -omm$ni ies an"0 in &a' 0 all par ies %ere provi"e" %i h an oppor $ni # o reb$ &a' $al an" legal arg$men s presen e" b# he o her par ies/ The E$ropean -omm$ni ies "oes no "en# ha i %as given an oppor $ni # o respon" o he .ni e" , a es6 &irs %ri en s$bmission0 in'l$"ing he .ni e" , a es6 arg$men s a""ressing he "e&en'es an" arg$men s ma"e b# he E$ropean -omm$ni ies in earlier s$bmissions/ The E$ropean -omm$ni ies has no i"en i&ie" spe'i&i' aspe' s in %hi'h i s pro'e"$ral "$e pro'ess righ s %ere in&ringe"0 res$l ing &rom
8 9

E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 54 (E'$a"or)0 para/ 50 (.,)/ Appella e !o"# (epor 0 /# 1am$ling0 para/ 270/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 70 he 7anel6s "e'ision o main ain separa e ime ables/ 1n o$r vie%0 ho%ever0 he mere possibili # ha he "$e pro'ess righ s o& he E$ropean -omm$ni ies 'o$l" have been a"versel# a&&e' e" b# he 7anel6s "e'ision o main ain separa e ime ables in hese pro'ee"ings is no s$&&i'ien o es ablish ha he "$e pro'ess righ s o& he E$ropean -omm$ni ies have in"ee" been 'ompromise"/ 1n he presen 'ases0 he 7anel 'ons$l e" %i h he par ies an" ma"e e&&or s o a"op a single %or@ing s'he"$le &or bo h pro'ee"ings/ :$r hermore0 he 7anel "i" a@e s eps o harmoni=e he pro'ee"ings0 %hen i "ela#e" he iss$an'e o& he in erim repor in he E'$a"or 'ase o ens$re ha he replies o D$es ions an" 'ommen s on he replies in he .ni e" , a es 'ase ha" been re'eive" b# he 7anel be&ore he in erim repor in he E'$a"or 'ase %as iss$e"/ 40 42/ There is no basis &or in er&ering %i h he 7anel6s e3er'ise o& i s po%er o harmoni=e0 be'a$se

he a' ions o& he 7anel have no in&ringe" he E$ropean -omm$ni ies6 "$e pro'ess righ s/ )e here&ore find ha he 7anel "i" no a' in'onsis en l# %i h Ar i'le 9/5 o& he +,. b# main aining "i&&eren ime ables in he %o Ar i'le 24/5 pro'ee"ings ini ia e" b# E'$a"or an" he .ni e" , a es/ 7I. 4/ L%2-* E11%,$ #1 $'% U/0%(.$-/0)/2. #/ B-/-/-. :E,+-0#( -/0 U/)$%0 S$-$%.; )e $rn no% o a""ress he D$es ion %he her he .n"ers an"ings on !ananas 40 %hi'h he o Ar i'le 24/5 o& he +,. %i h

E$ropean -omm$ni ies 'on'l$"e" %i h he .ni e" , a es an" %i h E'$a"or0 preven e" he 'omplainan s &rom ini ia ing 'omplian'e pro'ee"ings p$rs$an respe' o he E$ropean -omm$ni ies6 regime &or he impor a ion o& bananas in ro"$'e" b# -o$n'il (eg$la ion (E-) No/ 4969*2005 o& 29 November 20052 (LE- (eg$la ion 4969*2005L) ( he LE- !ananas 1mpor (egimeL)/ 2/ !ase" on Ar i'les 5/50 5/90 an" 5/7 o& he +,.0 he 7anel &o$n" ha he .n"ers an"ings on he 'omplainan s &rom ini ia ing 'omplian'e pro'ee"ings p$rs$an o

!ananas 'o$l" preven

Ar i'le 24/5 onl# i& hese .n"ers an"ings 'ons i $ e" a Lposi ive sol$ ion an" e&&e' ive se lemen o he "isp$ e in D$es ionL/5 The 7anel &o$n" ha his 'on"i ion %as no &$l&ille" &or he &ollo%ing hree reasons a@en oge her:

E'$a"or 7anel (epor 0 &oo no e 298 o para/ 7/40/ .n"ers an"ing on !ananas be %een he E$ropean -omm$ni ies an" he .ni e" , a es signe" on 44 April 2004 ()T*+,27*590 A*-*)*270B )T*+,27*580 En'los$re 4)0 an" .n"ers an"ing on !ananas be %een he E$ropean -omm$ni ies an" E'$a"or signe" on 50 April 2004 ()T*+,27*600 A*-*)*279B )T*+,27*580 En'los$re 2)/ 2 -o$n'il (eg$la ion (E-) No/ 4969*2005 o& 29 November 2005 on he ari&& ra es &or bananas0 =fficial :ournal of the European /nion0 > ,eries0 No/ 546 (2 +e'ember 2005) 4 (7anel E3hibi s E-.-4 an" .,-4)/ 5 E'$a"or 7anel (epor 0 para/ 7/75/ ,ee also ., 7anel (epor 0 para/ 7/405/
4

40

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 74 (a) (b) (') 5/ he !ananas .n"ers an"ing provi"es onl# &or a means0 i/e/ a series o& &$ $re s eps0 &or resolving an" se ling he "isp$ eB he a"op ion o& he !ananas .n"ers an"ing %as s$bseD$en o re'ommen"a ions0 r$lings an" s$gges ions b# he +,!B an"0 par ies have ma"e 'on&li' ing 'omm$ni'a ions o he )TO 'on'erning he !ananas .n"ers an"ing/9

The 7anel 'onsi"ere" ha i "i" no nee" o assess %he her he .n"ers an"ings on !ananas

%ere no i&ie" appropria el# $n"er Ar i'le 5/6 o& he +,.0 an" %he her hese .n"ers an"ings %ere a m$ $all# agree" sol$ ion %i hin he meaning o& Ar i'le 5/60 an" %en on o &in" ha : /// i is "i&&i'$l /// o see ho% he !ananas .n"ers an"ing 'o$l" provi"e a posi ive sol$ ion an" e&&e' ive se lemen o he "isp$ e %hen0 imme"ia el# &ollo%ing he respon"en 6s 'omm$ni'a ion o& he .n"ers an"ing o he )TO0 he 'omplainan in he "isp$ e 'on es e" he m$l ila eral s a $s o& he .n"ers an"ing an" i s role in "e&ini ivel# resolving he "isp$ e/ 1 %o$l" seem appropria e o ass$me ha an allege" m$ $all# agree" sol$ ion or legall# bin"ing agreemen ha 'o$l" bar he 'omplainan &rom bringing a s$bseD$en 'omplian'e "isp$ e0 %o$l" nee" o provi"e a sol$ ion o he "isp$ e &or bo h par ies0 in'l$"ing in par i'$lar &or he 'omplainan 0 an" espe'iall# a& er he +,! es ablishe" he in'onsis en'# %i h he 'overe" agreemen o& meas$res a"op e" b# he respon"en /5 9/ The 7anel 'on'l$"e" ha he E$ropean -omm$ni ies ha" Lno s$''ee"e" in ma@ing a

prima facie 'ase in &avo$r o& i s preliminar# obNe' ionL0 an" h$s reNe' e" he E$ropean -omm$ni ies6 preliminar# obNe' ion/6 5/ The 7anel &o$n" ha he .n"ers an"ings on !ananas ha" o 'ons i $ e a Lposi ive sol$ ion o he "isp$ eL in or"er o pre'l$"e he 'omplainan s &rom ini ia ing

an" e&&e' ive se lemen

Ar i'le 24/5 pro'ee"ings/ The E$ropean -omm$ni ies 'hallenges his posi ion on appeal/ A''or"ing o he E$ropean -omm$ni ies0 here are agreemen s be %een )TO ?embers ha "o no 'ons i $ e a posi ive sol$ ion an" e&&e' ive se lemen o a "isp$ e0 #e 0 he# are given &$ll legal e&&e' b# he )TO "isp$ e se lemen s#s em/ As e3amples o& s$'h agreemen s0 he E$ropean -omm$ni ies men ions0 inter alia: agreemen s o "ispense %i h he +,. reD$iremen o hol" 'ons$l a ions be&ore reD$es ing he es ablishmen o& a panelB agreemen s e3 en"ing he "ea"line &or he a"op ion o& panel repor s b# he +,!B an" LseD$en'ing agreemen sL/ 7
9 5

E'$a"or 7anel (epor 0 para/ 7/76B ., 7anel (epor 0 para/ 7/407/ E'$a"or 7anel (epor 0 paras/ 7/407 an" 7/408/ ,ee also ., 7anel (epor 0 paras/ 7/490 an" 7/494/ 6 E'$a"or 7anel (epor 0 para/ 7/456B ., 7anel (epor 0 para/ 7/465/ 7 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 56 (E'$a"or)0 para/ 88 (.,)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 72 6/ :$r hermore0 he E$ropean -omm$ni ies a@es iss$e %i h he hree reasons relie" $pon b#

he 7anel in s$ppor o& i s &in"ing ha he .n"ers an"ings on !ananas 'o$l" no legall# bar he 'omplainan s &rom bringing hese 'omplian'e pro'ee"ings/ The &irs reason given b# he 7anel is ha he .n"ers an"ings "o no in hemselves 'ons i $ e a sol$ ion0 b$ provi"e onl# &or he means0 ha is0 a series o& &$ $re s eps &or resolving an" se ling he "isp$ e/ 1n his respe' 0 he E$ropean -omm$ni ies arg$es ha Ar i'le 5 o& he +,. "oes no provi"e ha onl# agreemen s re'or"ing meas$res ha ha" alrea"# been implemen e" sho$l" D$ali&# as Lm$ $all# agree" sol$ ionsL/ The E$ropean -omm$ni ies s$bmi s ha 0 ra her0 in vir $all# ever# ins an'e %here he par ies o a "isp$ e rea'h a se lemen 0 meas$res o implemen ha se lemen %ill be a@en a& er he 'on'l$sion o& he se lemen /8 7/ The se'on" reason relie" $pon b# he 7anel is ha he .n"ers an"ings %ere agree" o

s$bseD$en

o he re'ommen"a ions0 r$lings0 an" s$gges ions ma"e b# he +,! in he original o

pro'ee"ings an" previo$s 'omplian'e pro'ee"ings/ 1n he E$ropean -omm$ni ies6 vie%0 no hing in he +,. preven s )TO ?embers &rom en ering in o m$ $all# agree" sol$ ions s$bseD$en re'ommen"a ions an" r$lings b# he +,!/ On he 'on rar#0 he E$ropean -omm$ni ies s$bmi s ha Ar i'les 22/2 an" 22/8 o& he +,. e3pressl# provi"e &or se lemen agreemen s ha 'an be en ere" in o &ollo%ing re'ommen"a ions an" r$lings b# he +,!/ 9 8/ Thir"l#0 he 7anel relie" on he &a' ha he par ies0 a& er having signe" he .n"ers an"ings0 he +,! mee ing 40 regar"ing heir legal na $re/ The E$ropean

ma"e 'on&li' ing s a emen s a

-omm$ni ies alleges ha 0 b# rel#ing on hese s a emen s0 he 7anel e&&e' ivel# allo%e" a signa or# o a se lemen o n$lli&# he erms o& he agreemen a& er having signe" an" reape" he bene&i s o& i 0 simpl# b# re&$sing o ma@e a Noin no i&i'a ion o& se lemen o he +,!/ The E$ropean -omm$ni ies 'on en"s ha here is no reD$iremen in he +,. ha a m$ $all# agree" sol$ ion m$s be no i&ie" o he +,! b# one par # or b# bo h par ies Noin l#/

8 9

E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 99 (E'$a"or)0 para/ 75 (.,)/ E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 98 (E'$a"or)0 para/ 79 (.,)/ 40 ?in$ es o& he +,! mee ing hel" on 4 :ebr$ar# 20020 )T*+,!*?*4490 paras/ 5 an" 8/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 75 9/ E'$a"or 'on en"s ha he E$ropean -omm$ni ies mis'hara' eri=e" he 7anel6s &in"ings as

se ing o$ hree L'on"i ionsL ha ha" o be sa is&ie" in or"er &or he .n"ers an"ing on !ananas be %een he E$ropean -omm$ni ies an" E'$a"or o D$ali&# as a m$ $all# agree" sol$ ion %i hin he meaning o& Ar i'le 5/7 o& he +,./44 E'$a"or main ains ha he E$ropean -omm$ni ies6 'ons r$' ion o& he .n"ers an"ing has no basis in he e3 o& he +,. an" %o$l" r$n 'o$n er o Ar i'le 24/50 as i %o$l" "en# he par ies o he .n"ers an"ing he righ o ini ia e 'omplian'e pro'ee"ings/ 40/ The .ni e" , a es arg$es ha he 7anel "i" no se o$ hree L'on"i ionsL ha ever#

m$ $all# agree" sol$ ion m$s mee / (a her0 he 7anel e3plaine" on he basis o& L hree reasons ta0en togetherL %h# he .n"ers an"ing on !ananas be %een he E$ropean -omm$ni ies an" he .ni e" , a es "i" no have he e&&e' o& barring he la er &rom ini ia ing his 'omplian'e pro'ee"ing/ 42 )i h respe' o he 7anel6s &irs reason0 namel#0 ha he .n"ers an"ing provi"es onl# &or he means &or resolving an" se ling he "isp$ e0 he .ni e" , a es main ains ha he 7anel merel# se o$ he &a' s a''or"ing o he erms o& he .n"ers an"ing0 an" "i" no 0 as he E$ropean -omm$ni ies asser s0 se a L'on"i ionL ha onl# agreemen s re'or"ing meas$res ha have alrea"# been implemen e" 'an D$ali&# as m$ $all# agree" sol$ ions/45 )i h respe' o he 7anel6s se'on" reason0 namel#0 ha he .n"ers an"ing pos "a es he +,! re'ommen"a ions an" r$lings0 he .ni e" , a es arg$es ha he 7anel "i" no se his as a L'on"i ionL b$ 0 ra her0 $se" i as relevan his ori'al 'on e3 &or assessing he E$ropean -omm$ni ies6 preliminar# obNe' ion/ 49 )i h regar" o he 7anel6s hir" reason0 namel#0 ha he par ies ha" ma"e 'on&li' ing s a emen s a he +,! mee ing regar"ing he legal na $re o& he .n"ers an"ing a& er i ha" been signe"0 he .ni e" , a es main ains ha he 7anel 'orre' l# oo@ in o a''o$n he .ni e" , a es6 "isagreemen %i h he E$ropean -omm$ni ies6 'hara' eri=a ion o& he .n"ers an"ing a he +,! as a Lm$ $all# agree" sol$ ionL/ 45 44/ )e &irs a""ress he E$ropean -omm$ni ies6 'hallenge o he 'ri erion o& a Lposi ive he .n"ers an"ings on !ananas "i" no 'ons i $ e a posi ive sol$ ion an" o he "isp$ e in D$es ion/ :inall#0 %e $rn o he E$ropean -omm$ni ies6

sol$ ion an" e&&e' ive se lemen L o he "isp$ e/ )e hen a""ress he L hree reasonsL &or %hi'h he 7anel 'onsi"ere" ha e&&e' ive se lemen

arg$men s rela ing o he prin'iple o& Lgoo" &ai hL/

E'$a"or6s appellee6s s$bmission0 para/ 49 (re&erring o E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 94 (E'$a"or)0 in $rn re&erring o E'$a"or 7anel (epor 0 para/ 7/76)/ 42 .ni e" , a es6 appellee6s s$bmission0 para/ 57 (original emphasis) (re&erring o ., 7anel (epor 0 para/ 7/407)/ 45 .ni e" , a es6 appellee6s s$bmission0 para/ 64/ 49 .ni e" , a es6 appellee6s s$bmission0 para/ 62/ 45 .ni e" , a es6 appellee6s s$bmission0 para/ 65/

44

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 79 42/ A he o$ se 0 %e re&er o he e3 o& Ar i'les 5/50 5/60 an" 5/7 o& he +,.0 %hi'h provi"e0 in

relevan par : (5) All sol$ ions o ma ers &ormall# raise" $n"er he 'ons$l a ion an" "isp$ e se lemen provisions o& he 'overe" agreemen s0 in'l$"ing arbi ra ion a%ar"s0 shall be 'onsis en %i h hose agreemen s an" shall no n$lli&# or impair bene&i s a''r$ing o an# ?ember $n"er hose agreemen s0 nor impe"e he a ainmen o& an# obNe' ive o& hose agreemen s/ (6) ?$ $all# agree" sol$ ions o ma ers &ormall# raise" $n"er he 'ons$l a ion an" "isp$ e se lemen provisions o& he 'overe" agreemen s shall be no i&ie" o he +,! an" he relevan -o$n'ils an" -ommi ees0 %here an# ?ember ma# raise an# poin rela ing here o/ (7) !e&ore bringing a 'ase0 a ?ember shall e3er'ise i s N$"gemen as o %he her a' ion $n"er hese pro'e"$res %o$l" be &r$i &$l/ The aim o& he "isp$ e se lemen me'hanism is o se'$re a posi ive sol$ ion o a "isp$ e/ A sol$ ion m$ $all# a''ep able o he par ies o a "isp$ e an" 'onsis en %i h he 'overe" agreemen s is 'learl# o be pre&erre"/ 1n he absen'e o& a m$ $all# agree" sol$ ion0 he &irs obNe' ive o& he "isp$ e se lemen me'hanism is $s$all# o se'$re he %i h"ra%al o& he meas$res 'on'erne" i& hese are &o$n" o be in'onsis en %i h he provisions o& an# o& he 'overe" agreemen s /// / 45/ 1n respe' o& he 'ri erion o& a Lposi ive sol$ ion an" e&&e' ive se lemen L0 he 7anel relie"

on Ar i'le 5/7 o& he +,./ Ar i'le 5/7 s a es he LaimL o& he "isp$ e se lemen s#s em/ 1 ar i'$la es a pre&eren'e &or sol$ ions ha are m$ $all# a''ep able o he par ies o a "isp$ e an" 'onsis en %i h he 'overe" agreemen s/ <o%ever0 no hing in Ar i'le 5/7 es ablishes a 'on"i ion $n"er %hi'h a par # %o$l" be preven e" &rom ini ia ing 'omplian'e pro'ee"ings or0 in"ee"0 "i' a es ha he onl# @in" o& se lemen envisage" in ha provision is one ha bars re'o$rse o 'omplian'e pro'ee"ings $n"er Ar i'le 24/5/ Ar i'le 5/7 is no pres'rip ive as o he 'on en o& a m$ $all# agree" sol$ ion0 save ha i m$s be 'onsis en %i h he 'overe" agreemen s/ The onl# e3press limi a ion re&erre" o in Ar i'le 5/7 is ha La ?ember shall e3er'ise i s N$"gemen as o %he her a' ion $n"er hese pro'e"$res %o$l" be &r$i &$lL/ The Appella e !o"# has in erpre e" his phrase o in"i'a e ha a ?ember is Le3pe' e" o be largel# sel&-reg$la ing in "e'i"ing %he her an# s$'h a' ion %o$l" be 6&r$i &$l6L/ 46 This is also borne o$ b# Ar i'le 5/50 %hi'h provi"es ha he promp se lemen o& si $a ions in %hi'h a ?ember0 in i s o%n N$"gemen 0 'onsi"ers ha a bene&i a''r$ing o i $n"er he 'overe" agreemen s is being impaire" b# a meas$re a@en b# ano her ?ember is essen ial o he e&&e' ive &$n' ioning o& he )TO/

46

Appella e !o"# (epor 0 E) Bananas III0 para/ 455/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 75 49/ The erm Lsol$ ionL emplo#e" in Ar i'le 5/7 re&ers o he La' o& solving a problemL/ 47

There are $s$all# "i&&eren %a#s o& solving an# given problem/ 7$rs$an o Ar i'le 49/4 o& he +,.0 %hen a panel or he Appella e !o"# 'on'l$"es ha a meas$re is in'onsis en %i h a 'overe" agreemen 0 i shall re'ommen" ha he ?ember 'on'erne" bring he meas$re in o 'on&ormi # %i h ha agreemen / A''or"ingl#0 i is0 in prin'iple0 %i hin he ?ember6s "is're ion o 'hoose he means o& implemen a ion an" o "e'i"e in %hi'h %a# i %ill see@ o a'hieve 'omplian'e/ The +,. h$s re'ogni=es ha a sol$ ion lea"ing o 'omplian'e 'an be implemen e" in vario$s %a#s/ ,imilarl#0 a m$ $all# agree" sol$ ion p$rs$an o Ar i'le 5/7 ma# en'ompass an agreemen o &orego he righ o ini ia e 'omplian'e pro'ee"ings/ Or i ma# provi"e &or he s$spension o& he righ o& re'o$rse o Ar i'le 24/5 $n il he s eps agree" $pon in a m$ $all# agree" sol$ ion have been implemen e"/ Je 0 his nee" no al%a#s be so/ )e here&ore "o no 'onsi"er ha he mere agreemen o a Lsol$ ionL ne'essaril# implies ha par ies %aive heir righ o have re'o$rse o he "isp$ e se lemen s#s em in he even o& a "isagreemen as o he e3is en'e or 'onsis en'# %i h he 'overe" agreemen s o& a meas$re a@en o 'ompl#/ 1ns ea"0 %e 'onsi"er ha here m$s be a 'lear in"i'a ion in he agreemen be %een he par ies o& a relinD$ishmen o& he righ o have re'o$rse o Ar i'le 24/5/ 1n o$r vie%0 he 7anel6s reD$iremen ha he .n"ers an"ings m$s 'ons i $ e a Lposi ive sol$ ion an" e&&e' ive se lemen L o he "isp$ e in D$es ion o pre'l$"e re'o$rse o Ar i'le 24/5 pro'ee"ings %as no a 'orre' in erpre a ion o& %ha he +,. reD$ires/ 45/ !e&ore %e assess he D$es ion %he her0 in he presen 'ases0 he par i'ipan s "i" in &a' agree

o relinD$ish heir righ o have re'o$rse o Ar i'le 24/5 pro'ee"ings0 %e a""ress he L hree reasonsL relie" $pon b# he 7anel as o %h# he .n"ers an"ings on !ananas "i" no 'ons i $ e a Lposi ive sol$ ion an" e&&e' ive se lemen L o he "isp$ e/ A he o$ se 0 %e no e he E$ropean -omm$ni ies6 allega ion ha he 7anel es ablishe" hree L'on"i ionsL ha an agreemen be %een he par ies ha" o mee in or"er o D$ali&# as a Lm$ $all# agree" sol$ ionL/ 48 )e "isagree/ The 7anel $se" he %or" LreasonsL an" no he %or" L'on"i ionsL0 an" also 'learl# s a e" ha i %as loo@ing a he par i'$lar L"isp$ e in D$es ionL/49 1n o$r vie%0 i is 'lear &rom he lang$age $se" b# he 7anel ha i ar i'$la e" reasons as o %h# he .n"ers an"ings on !ananas0 given heir par i'$lar erms0 "i" no preven he 'omplainan s &rom ini ia ing Ar i'le 24/5 pro'ee"ings0 ra her han es ablishing L'on"i ionsL an agreemen %o$l" have o &$l&il in or"er o 'ons i $ e a Lm$ $all# agree" sol$ ionL/

#horter =xford English !ictionary0 5 h e"n0 )/(/ Tr$mble0 A/ , evenson (e"s) (O3&or" .niversi # 7ress0 2002)0 ;ol/ 20 p/ 2947/ 48 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 75 (.,)/ 49 ., 7anel (epor 0 para/ 7/407/

47

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 76 46/ The 7anel relie" on he reason ha L he !ananas .n"ers an"ingFsG provi"eFG onl# &or a

means0 i/e/ a series o& &$ $re s eps0 &or resolving he "isp$ eL/ 20 The proper in erpre a ion o& he .n"ers an"ings is ha he# se o$ a series o& s eps %hi'h %ere in en"e" as a pre'$rsor o he possible 'on'l$sion o& a &inal se lemen agreemen / There&ore0 %e see no reason o &in" &a$l %i h he 7anel6s relian'e on his elemen as one reason &or %hi'h i 'onsi"ere" ha he par ies o he .n"ers an"ings ha" no %aive" heir righ o& re'o$rse o Ar i'le 24/5 pro'ee"ings/ 47/ The se'on" reason relie" $pon b# he 7anel in s$ppor o& i s &in"ing ha he .n"ers an"ings hese o he a"op ion o& re'ommen"a ions0 r$lings0 an" ha %o$l"

'o$l" no legall# bar he 'omplainan s &rom bringing hese 'omplian'e pro'ee"ings is ha .n"ers an"ings %ere agree" $pon s$bseD$en

s$gges ions b# he +,!/ )e "isagree %i h he 7anel6s reasoning/ )e see no hing in Ar i'le 5/7 or else%here in he +,. ha preven s par ies o a "isp$ e &rom rea'hing a se lemen pre'l$"e re'o$rse o Ar i'le 24/5 pro'ee"ings a& er he a"op ion o& re'ommen"a ions an" r$lings b# he +,!/ 1n &a' 0 Ar i'le 22/8 o& he +,. s ip$la es ha s$spension o& 'on'essions shall onl# be applie" $n il s$'h ime as a m$ $all# sa is&a' or# sol$ ion is rea'he"/ Th$s0 he +,. i sel& 'learl# envisages he possibili # o& en ering in o m$ $all# agree" sol$ ions a& er re'ommen"a ions an" r$lings are ma"e b# he +,!/ )e "o no 'onsi"er ha he &a' or ha he .n"ers an"ings %ere 'on'l$"e" onl# a& er he +,! ma"e re'ommen"a ions an" r$lings assis s o "e ermine %he her he .n"ers an"ings pre'l$"e" he par ies &rom ini ia ing Ar i'le 24/5 pro'ee"ings/ 48/ The hir" reason relie" $pon b# he 7anel is ha he par ies ha" ma"e 'on&li' ing s a emen s

a he +,! mee ing as o he legal na $re o& he .n"ers an"ings a& er he# %ere signe"/ )e 'onsi"er ha hese s a emen s ma# be a@en in o a''o$n %here he in erpre a ion o& he .n"ers an"ings is no 'lear &rom he lang$age $se" in i s 'on e3 / <o%ever0 %here he e3 o& he .n"ers an"ings is 'lear0 hese s a emen s have limi e" relevan'e0 i& an#0 &or he p$rpose o& in erpre ing he .n"ers an"ings/ The par ies6 obliga ions m$s &irs an" &oremos be "e ermine" on he basis o& he e3 o& he .n"ers an"ings/ 1n an# even 0 ex post 'omm$ni'a ions o& he par ies 'on'erning he .n"ers an"ings have0 a bes 0 sligh evi"en iar# val$e/ 49/ )i h his in min"0 %e $rn o anal#=e o& he .n"ers an"ings on !ananas a iss$e/ )e

'onsi"er ha he 'omplainan s 'o$l" be pre'l$"e" &rom ini ia ing Ar i'le 24/5 pro'ee"ings b# means o& hese .n"ers an"ings onl# i& he par ies o hese .n"ers an"ings ha"0 ei her e3pli'i l# or b# ne'essar# impli'a ion0 agree" o %aive heir righ o have re'o$rse o Ar i'le 24/5/ 1n o$r vie%0 he

20

E'$a"or 7anel (epor 0 para/ 7/78B ., 7anel (epor 0 para/ 7/407/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 77 relinD$ishmen o& righ s gran e" b# he +,. 'anno be ligh l# ass$me"/ (a her0 he lang$age in he .n"ers an"ings m$s reveal 'learl# ha he par ies in en"e" o relinD$ish heir righ s/ 24 20/ The .n"ers an"ings s a e0 in paragraph A0 ha he par ies: /// have i"en i&ie" he means b# %hi'h he long-s an"ing "isp$ e over he E- banana impor regime 'an be resolve"/ 24/ The i"en i&i'a ion o& he means &or he resol$ ion o& a "isp$ e is an in erme"ia e s ep

o%ar"s a &inal sol$ ion o a "isp$ e/ The mere i"en i&i'a ion o& he means %ill no resolve he "isp$ e/ :$r hermore0 %e no e he $se o& he erm L'an be resolve"L in he same 'la$se/ The %or" L'anL e3presses a possibili #0 b$ no he &inali #0 o& a resol$ ion o& he "isp$ e/ 1n o$r vie%0 ha" he par ies o he .n"ers an"ings in en"e" o s ip$la e ha resolve"0 ra her han ha he "isp$ e L'anL be resolve"/ 22/ s a e ha )e &in" &$r her s$ppor &or o$r in erpre a ion in he &a' ha all he s eps i"en i&ie" in he he E$ropean -omm$ni ies L%ill implemen L 22 an" he E$ropean -omm$ni ies L%ill he# 'onsi"ere" ha he .n"ers an"ings he "isp$ e LisL hemselves 'ons i $ e" he sol$ ion o his "isp$ e0 he# %o$l" have s a e" ha

.n"ers an"ings re&er o a seD$en'e o& a' ions o be a@en over a &$ $re perio"/ The .n"ers an"ings in ro"$'eL/25 -onseD$en l#0 E'$a"or an" he .ni e" , a es agree" ha he# L%ill li& F heirG reserveL 29 'on'erning he %aiver &rom Ar i'le 1:4 o& he AATT 4999 ( he L+oha Ar i'le 1 )aiverL25)P%hi'h %as s$bseD$en l# a"op e" b# he ?inis erial -on&eren'e mee ing in +oha on 49 November 2004/ The $se o& he &$ $re ense 'on&irms o$r rea"ing o& he .n"ers an"ings as a %a# &or%ar" o resolving he "isp$ e0 ra her han as being in i sel& he sol$ ion o he "isp$ e/ )e %ish o 'lari&# ha an agreemen ha reD$ires &$ $re per&orman'e "oes no &or ha reason alone in"i'a e ha he par ies have no relinD$ishe" heir righ par i'$lar agreemen "oes/ o have re'o$rse o Ar i'le 24/5 pro'ee"ings/ <o%ever0 his

1n his respe' 0 %e no e he 1n erna ional -o$r o& C$s i'e0 7reliminar# ObNe' ions0 )ase concerning the 4emple of Preah 8ihear &)am$odia v- 4hailand' 0 C$"gmen o& 26 ?a# 49640 1-C (epor s (4964) 520 a""ressing he in erpre a ion o& "e'lara ions o& a''ep an'e o& he 'omp$lsor# N$ris"i' ion o& he -o$r / 1n or"er o "e ermine %he her Thailan" ha" re'ogni=e" as 'omp$lsor# he N$ris"i' ion o& he -o$r 0 he -o$r 'onsi"ere" ha he Lsole relevan D$es ionL %as %he her Thailan"6s "e'lara ion 'learl# reveale" s$'h in en ion/ 22 .n"ers an"ings on !ananas0 para/ -/ 25 .n"ers an"ings on !ananas0 para/ !/ 29 .n"ers an"ings on !ananas0 para/ :/ 25 :o$r h ,ession o& he ?inis erial -on&eren'e hel" in +oha0 E$ropean -omm$ni ies 8 The A-7-E7ar nership Agreemen 0 +e'ision o& 49 November 20040 )T*?1N(04)*45B )T*>*956 (a a'he" as Anne3 ; o his (epor B his "o'$men %as also s$bmi e" as 7anel E3hibi s .,-5 an" E--2 (E'$a"or))/ The +oha Ar i'le 1 )aiver e3pire" on 54 +e'ember 2007 in respe' o& A-7 pro"$' s o her han bananas/

24

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 78 25/ )e "isagree %i h he E$ropean -omm$ni ies6 asser ion ha paragraph A o& he

.n"ers an"ing involving E'$a"or 'on ains a mani&es a ion o& he in en ion o& he par ies o &orego heir righ o ini ia e Ar i'le 24/5 pro'ee"ings be'a$se i s a es ha LF Ghe E- an" E'$a"or 'onsi"er ha his .n"ers an"ing 'ons i $ es a m$ $all# agree" sol$ ion o he banana "isp$ eL/ The e3 o& ha 'la$se is ne$ ral %i h respe' o he D$es ion o& %he her he sol$ ion en aile" a relinD$ishmen o& he righ o& re'o$rse o 'omplian'e pro'ee"ings/ 1 here&ore leaves he res$l o& he above anal#sis $n o$'he"0 an" "oes no hing o al er he 'on'l$sion ha he .n"ers an"ings on !ananas "i" no 'on ain a relinD$ishmen o& he righ o ini ia e 'omplian'e pro'ee"ings/ 29/ 1n he ligh o& hese 'onsi"era ions0 %e 'on'l$"e ha he 7anel erre" in pla'ing he relevan'e

i "i" on he 'on&li' ing s a emen s o& he par ies a he mee ing o& he +,!0 be'a$se0 %ha he 7anel %as reD$ire" o "o %as o provi"e an in erpre a ion o& he e3 o& he .n"ers an"ings/ Onl# on'e i ha" "one so0 'o$l" i hen 'onsi"er 'on&li' ing s a emen s o he +,! &or he limi e" p$rpose o& ei her see@ing 'on&irma ion o& he 7anel6s in erpre a ion0 or "e ermining he meaning be'a$se he e3 $al in erpre a ion le& he meaning ambig$o$s or le" o mani&es l# abs$r" res$l s/ <aving &o$n"0 base" on he in erpre a ion o& he e3 o& he .n"ers an"ings0 ha hese .n"ers an"ings "i" no 'on ain a relinD$ishmen o& he righ o ini ia e 'omplian'e pro'ee"ings0 %e arrive a he same 'on'l$sion as he 7anel0 in paragraph 7/456 o& he E'$a"or 7anel (epor an" in paragraph 7/465 o& he ., 7anel (epor 0 namel#0 ha he 'omplainan s %ere no pre'l$"e" &rom ini ia ing hese pro'ee"ings "$e o he .n"ers an"ings on !ananas/ 25/ 1n a""i ion0 he E$ropean -omm$ni ies s$bmi s ha he 7anel erre" in i s in erpre a ion an"

appli'a ion o& he prin'iple o& goo" &ai h re&erre" o in Ar i'le 5/40 o& he +,./ A''or"ing o he E$ropean -omm$ni ies0 he 7anel oo@ he erroneo$s vie% ha an obNe' ion base" on he prin'iple o& goo" &ai h 'o$l" be s$''ess&$l onl# i& he E$ropean -omm$ni ies ha" ma"e o$ a prima facie 'ase &or he allege" viola ion o& Ar i'le 5/400 an" also &or Lsome hing more han mere viola ionL/ 26 The E$ropean -omm$ni ies alleges ha he 7anel erre" in &in"ing ha he prin'iple o& goo" &ai h 'o$l" onl# be invo@e" as an La""-onL27 o he viola ion o& ano her )TO r$le an" 'o$l" no b# i sel& be he so$r'e o& righ s an" obliga ions o& )TO ?embers/ 26/ E'$a"or s$bmi s ha he 7anel %as 'orre' in reNe' ing he E$ropean -omm$ni ies6

'on en ion ha

he prin'iple o& goo" &ai h pre'l$"e" E'$a"or &rom 'hallenging he E- !ananas

1mpor (egime/ E'$a"or s$ppor s he 7anel6s s a emen ha E'$a"or has LFnGo%here in he

E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 60 (E'$a"or) (re&erring o E'$a"or 7anel (epor 0 para/ 7/454)0 para/ 92 (.,) (re&erring o ., 7anel (epor 0 para/ 7/462)/ 27 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 67 (E'$a"or)0 para/ 98 (.,)/

26

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 79 27/ .n"ers an"ing /// a''ep e" ha i %o$l" &orego i s righ o 'hallenge he 'on&ormi # %i h he

'overe" agreemen s o& an# meas$re ha he E$ropean -omm$ni ies migh a@e o implemen a s ep se o$ in he !ananas .n"ers an"ingL/ 28 :$r hermore0 E'$a"or 'on en"s ha Ar i'le 5/40 "oes no pre'l$"e ini ia ion o& "isp$ e se lemen pro'ee"ings/ 28/ The .ni e" , a es s$bmi s ha he 7anel "i" no err in i s in erpre a ion an" appli'a ion o& here m$s be

he prin'iple o& goo" &ai h enshrine" in Ar i'le 5/40/ The .ni e" , a es 'on en"s ha he 7anel %as 'orre' in rel#ing on pas panel an" Appella e !o"# repor s %hen &in"ing ha ?ember 'an be &o$n" o have &aile" o a' in goo" &ai h/ 29 29/ The 7anel relie" on he Appella e !o"# (epor in /# =ffset Act &Byrd Amendment' in here m$s be some hing Lmore han mere viola ionL o& a s$bs an ive some hing Lmore han mere viola ionL o& a s$bs an ive provision o& he 'overe" agreemen s be&ore a

s$ppor o& i s &in"ing ha

provision o& he 'overe" agreemen s be&ore a ?ember ma# be &o$n" o have &aile" o a' in goo" &ai h/50 1n o$r vie%0 he 7anel "i" no 'onsi"er he D$o a ion &rom /# =ffset Act &Byrd Amendment' in i s proper 'on e3 / 1n ha repor 0 he Appella e !o"# reverse" he panel6s &in"ings ha he meas$re a iss$e %as in'onsis en %i h Ar i'le 5/9 o& he Agreement on Implementation of Article 8I of the 1eneral Agreement on 4ariffs and 4rade ,??5 ( he LAnti !umping AgreementL) an" Ar i'le 44/9 o& he Agreement on #u$sidies and )ountervailing Measures ( he L#)M AgreementL)/ Tha panel &$r her &o$n" ha he .ni e" , a es ha" no a' e" in goo" &ai h %i h respe' o i s obliga ions $n"er hose provisions/ <aving reverse" he panel6s &in"ing 'on'erning Ar i'le 5/9 o& he Anti !umping Agreement an" Ar i'le 44/9 o& he #)M Agreement0 he Appella e !o"# %as le& %i h an a''essor# &in"ing o& viola ion o& he goo" &ai h prin'iple/ The Appella e !o"# reverse" ha &in"ing an" s a e"0 as D$o e" in he 7anel (epor s in he presen 'ase: No hing /// in he 'overe" agreemen s s$ppor s he 'on'l$sion ha simpl# be'a$se a )TO ?ember is &o$n" o have viola e" a s$bs an ive rea # provision0 i has here&ore no a' e" in goo" &ai h/ 1n o$r vie%0 i %o$l" be ne'essar# o prove more han mere viola ion o s$ppor s$'h a 'on'l$sion/54 50/ This &in"ing0 ho%ever0 is no per inen in he 'on e3 o& he presen appeals0 be'a$se he

legal D$es ion be&ore he 7anel in he presen 'ases is "i&&eren &rom he legal D$es ion be&ore he Appella e !o"# in /# =ffset Act &Byrd Amendment' / )hile0 in ha 'ase0 he Appella e !o"#
E'$a"or6s appellee6s s$bmission0 para/ 52 (D$o ing E'$a"or 7anel (epor 0 para/ 7/428)/ .ni e" , a es6 appellee6s s$bmission0 para/ 76/ 50 E'$a"or 7anel (epor 0 para/ 7/4290 ., 7anel (epor 0 para/ 7/460 (D$o ing Appella e !o"# (epor 0 /# =ffset Act &Byrd Amendment'0 para/ 298)/ 54 E'$a"or 7anel (epor 0 para/ 7/4290 ., 7anel (epor 0 para/ 7/460 (re&erring o Appella e !o"# (epor 0 /# =ffset Act &Byrd Amendment'0 para/ 298)/
29 28

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 80 'onsi"ere" he prin'iple o& goo" &ai h as i rela es o a s$bs an ive provision o& he )TO agreemen s0 he 7anel in he presen 'ases %as &a'e" %i h he allega ion o& a la'@ o& goo" &ai h as a pro'e"$ral impe"imen &or a )TO ?ember o ini ia e Ar i'le 24/5 pro'ee"ings/ Al ho$gh no $sing he erm0 he E$ropean -omm$ni ies0 in he presen 'ases0 in &a' a"van'es an es oppel arg$men / The Appella e !o"# a""resse" his "imension o& he prin'iple o& goo" &ai h in E) Export #u$sidies on #ugar: )e see li le in he +,. ha e3pli'i l# limi s he righ s o& )TO ?embers o bring an a' ionB )TO ?embers m$s e3er'ise heir LN$"gemen as o %he her a' ion $n"er hese pro'e"$res %o$l" be &r$i &$lL0 b# vir $e o& Ar i'le 5/7 o& he +,.0 an" he# m$s engage in "isp$ e se lemen pro'e"$res in goo" &ai h0 b# vir $e o& Ar i'le 5/40 o& he +,./ This la er obliga ion 'overs0 in o$r vie%0 he en ire spe' r$m o& "isp$ e se lemen 0 &rom he poin o& ini ia ion o& a 'ase hro$gh implemen a ion/ Th$s0 even ass$ming arguendo ha he prin'iple o& es oppel 'o$l" appl# in he )TO0 i s appli'a ion %o$l" &all %i hin hese narro% parame ers se o$ in he +,./ 52 54/ )e 'onsi"er his o be he appli'able s an"ar" an" here&ore agree %i h he E$ropean

-omm$ni ies ha he 7anel erre" %hen i reNe' e" he E$ropean -omm$ni ies6 'laim on he basis ha he E$ropean -omm$ni ies ha" no ma"e o$ a prima facie 'ase &or some hing Lmore han mere viola ionL/ The above D$o e" s a emen o& he Appella e !o"# rela es o an allega ion ha he 'omplainan s %ere es oppe" &rom 'hallenging 'er ain elemen s o& he E$ropean -omm$ni ies6 s$gar regime in he original pro'ee"ings/ The presen 'ases0 ho%ever0 involve 'omplian'e pro'ee"ings p$rs$an o Ar i'le 24/5 o& he +,./ Je 0 %e 'onsi"er ha 0 irrespe' ive o& he #pe o& pro'ee"ing0 i& a )TO ?ember has no 'learl# s a e" ha i %o$l" no a@e legal a' ion %i h respe' o a 'er ain meas$re0 i 'anno be regar"e" as &ailing o a' in goo" &ai h i& i 'hallenges ha meas$re/ 1n ha vein0 he Appella e !o"# &o$n"0 in E) Export #u$sidies on #ugar0 ha i %as no possible o i"en i&# an# &a' s or s a emen s ma"e b# he 'omplainan s a"mi ing ha he E$ropean -omm$ni ies6 meas$re %as )TO-'onsis en or promising ha he# %o$l" no a@e legal a' ion agains he E$ropean -omm$ni ies/55 1n he presen 'ases0 i& he 'omplainan s %ere o be regar"e" as being es oppe" &rom ini ia ing hese Ar i'le 24/5 pro'ee"ings0 s$'h es oppel %o$l" have o a a'h o a represen a ion o$ si"e o& he .n"ers an"ings on !ananas/ This0 ho%ever0 is no he 'ase/ There&ore0 %e 'onsi"er ha he .ni e" , a es an" E'$a"or have no &aile" o a' in goo" &ai h in reD$es ing 'omplian'e pro'ee"ings p$rs$an o Ar i'le 24/5/

52 55

Appella e !o"# (epor 0 E) Export #u$sidies on #ugar0 para/ 542/ Appella e !o"# (epor 0 E) Export #u$sidies on #ugar0 para/ 545/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 84 52/ ?a@ing re&eren'e o Ar i'le 44 o& he +,.0 he E$ropean -omm$ni ies &$r her alleges ha

he 7anel &aile" o provi"e an# N$s i&i'a ion &or reNe' ing i s 'laim base" on he prin'iple o& goo" &ai h/ The .ni e" , a es respon"s ha his 'laim is o$ si"e he s'ope o& his appeal be'a$se he E$ropean -omm$ni ies6 No i'e o& Appeal "oes no 'on ain a re&eren'e o Ar i'le 44 o& he +,./ )e no e ha he E$ropean -omm$ni ies 'lari&ie" a he oral hearing ha i %as no a"van'ing a 'laim $n"er Ar i'le 44 o& he +,./ There&ore0 %e ma@e no &in"ing in respe' o ha provision/ 7II. 4/ S,#5% #1 A($),*% 21.5 P(#,%%0)/2. M%-.+(% T-<%/ $# C#65*= :U/)$%0 S$-$%.; )e no% $rn o a""ress he E$ropean -omm$ni ies6 appeal o& he 7anel6s &in"ing ha he

E- !ananas 1mpor (egime 'ons i $ e" a Lmeas$re a@en o 'ompl#L %i hin he meaning o& Ar i'le 24/5 o& he +,. an" %as here&ore properl# be&ore he 7anel/ The E$ropean -omm$ni ies appeals his &in"ing onl# in he pro'ee"ing ini ia e" b# he .ni e" , a es/ 2/ The 7anel &irs assesse" %he her he E- !ananas 1mpor (egime %as a meas$re a@en o regime o& he E$ropean -omm$ni ies0 an" o he original

'ompl# be'a$se o& La par i'$larl# 'lose rela ionshipL o he "e'lare" meas$re a@en o 'ompl#0 ha is0 he 2002-2005 bananas impor re'ommen"a ions an" r$lings o& he +,!/ 4 Therea& er0 he 7anel assesse" %he her0 base" on he 'ri eria i"en i&ie" b# he Appella e !o"# in /# #oft%ood Lum$er I8 &Article +,-. )anada'0 he E- !ananas 1mpor (egime %as in i sel& a meas$re a@en o 'ompl#/ 5/ )i h respe' o he la er D$es ion0 %he her he E- !ananas 1mpor (egime %as in i sel& a

meas$re a@en o 'ompl#0 he 7anel 'onsi"ere" he E$ropean -omm$ni ies6 La emp L o 'ompl# %i h he original +,! re'ommen"a ions an" r$lings b# a"op ing0 on 4 Can$ar# 49990 -o$n'il (eg$la ion (E-) No/ 4657*982 (LE- (eg$la ion 4657*98L) an" -ommission (eg$la ion (E-) No/ 2562*985 (LE- (eg$la ion 2562*98L)/ The 7anel also re&erre" o he +e'ision b# he Arbi ra ors in E) Bananas III &/#' &Article ++-3 E)'0 he 7anel (epor in E) Bananas III &Article +,-. Ecuador'0 an" he 7anel (epor in E) Bananas III &Article +,-. E)'0 an" 'on'l$"e" ha i ha" been es ablishe" in hose pro'ee"ings ha Bananas III "isp$ e in 4997/9
., 7anel (epor 0 para/ 7/549 (D$o ing Appella e !o"# (epor 0 /# #oft%ood Lum$er I8 &Article +,-. )anada'0 para/ 77)/ 2 -o$n'il (eg$la ion (E-) No/ 4657*98 o& 20 C$l# 4998 amen"ing -o$n'il (eg$la ion (EE-) No/ 909*95 on he 'ommon organisa ion o& he mar@e in bananas0 =fficial :ournal of the European )ommunities0 > ,eries0 No/ 240 (28 C$l# 4998) 28/ 5 -ommission (eg$la ion (E-) No/ 2562*98 o& 28 O' ober 4998 la#ing "o%n r$les &or he implemen a ion o& -o$n'il (eg$la ion (EE-) No/ 909*95 regar"ing impor s o& bananas in o he -omm$ni #0 =fficial :ournal of the European )ommunities0 > ,eries0 No/ 295 (28 O' ober 4998) 52/ 9 ., 7anel (epor 0 para/ 7/552/
4

he E$ropean -omm$ni ies ha" &aile" o bring i sel& in o

'omplian'e %i h he original re'ommen"a ions an" r$lings a"op e" b# he +,! in he E)

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 82 9/ 1n i s anal#sis0 he 7anel also oo@ in o a''o$n he .n"ers an"ing on !ananas 'on'l$"e" The relevan se' ions o& his

be %een he E$ropean -omm$ni ies an" he .ni e" , a es/ 5 .n"ers an"ing provi"e as &ollo%s: !/

1n a''or"an'e %i h Ar i'le 46(4) o& (eg$la ion No/ (EE-) 909*95 (as amen"e" b# (eg$la ion No/ (E-) 246*2004)0 he E$ropean -omm$ni ies (E-) %ill in ro"$'e a Tari&& Onl# regime &or impor s o& bananas no la er han 4 Can$ar# 2006/ 1n he in erim0 he E- %ill implemen an impor regime on he basis o& his ori'al li'ensing as &ollo%s: 4/ E&&e' ive 4 C$l# 20040 he E- %ill implemen an impor regime on he basis o& his ori'al li'ensing as se o$ in Anne3 4/ E&&e' ive as soon as possible herea& er0 s$bNe' o -o$n'il an" E$ropean 7arliamen approval an" o a"op ion o& he Ar i'le 2111 %aiver re&erre" o in paragraph E0 he E- %ill implemen an impor regime on he basis o& his ori'al li'ensing as se o$ in Anne3 2/ The -ommission %ill see@ o ob ain he implemen a ion o& s$'h an impor regime as soon as possible/ o

-/

2/

5/

The 7anel 'onsi"ere" he lang$age o& he .n"ers an"ing an" &o$n"0 %i h respe'

E- (eg$la ion 4969*20050 %hi'h in ro"$'e" he E- !ananas 1mpor (egime a iss$e in he presen "isp$ e0 ha : /// he E$ropean -omm$ni ies "oes no 'on es ha E- (eg$la ion 4969*2005 'orrespon"s o paragraph ! o& he !ananas .n"ers an"ing0 %hi'h provi"es ha L1n a''or"an'e %i h Ar i'le 46(4) o& (eg$la ion No/ (E-) 909*95 (as amen"e" b# (eg$la ion No/ (E-) 246*2004)0 he E$ropean -omm$ni ies (E-) %ill in ro"$'e a Tari&& Onl# regime &or impor s o& bananas no la er han 4 Can$ar# 2006/L6 6/ :$r hermore0 he 7anel relie" on s a emen s b# he E$ropean -omm$ni ies a he +,!

mee ing hel" on 49 November 49990 as %ell as he s a $s repor o he +,! on 44 :ebr$ar# 20000 in %hi'h he E$ropean -omm$ni ies propose" a %o-s age pro'ess &or he re&orm o& i s banana regime0 as a'@no%le"gemen s b# he E$ropean -omm$ni ies ha 0 a 'omplian'e/7 ha ime0 i ha" no #e a'hieve"

., 7anel (epor 0 para/ 7/557 (re&erring o )T*+,27*58B )T*+,27*59B an" )T*+,27*60)/ ., 7anel (epor 0 para/ 7/584/ 7 ., 7anel (epor 0 para/ 7/555 (re&erring o ?in$ es o& he +,! mee ing hel" on 49 November 49990 )T*+,!*?*74) an" para/ 7/556 (re&erring o E) Bananas III0 , a $s (epor b# he E$ropean -omm$ni ies0 )T*+,27*54*A""/5)/
6

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 85 7/ meas$re 1n a""i ion0 he 7anel assesse" %he her he E- !ananas 1mpor (egime a iss$e in his a@en o 'ompl#0 ha is0 he 2002-2005 bananas impor regime o& he

"isp$ e %as a meas$re a@en o 'ompl# be'a$se o& La par i'$larl# 'lose rela ionshipL o he "e'lare" E$ropean -omm$ni ies0 an" o he original re'ommen"a ions an" r$lings o& he +,!/ 8 1n his respe' 0 he 7anel observe" ha bo h he original bananas impor regime an" he E- !ananas 1mpor (egime a iss$e in he presen 'ase Lmain ain0 in he &orm o& one or more ari&& ra e D$o as a a =ero in-D$o a "$ #0 a pre&eren ial rea men &or A-7 'o$n ries in 'omparison %i h he rea men a''or"e" o o her )TO ?embers/L9 :or he 7anel0 hese %ere Limpor an similari ies in he na $re an" e&&e' s o& he impor regime revie%e" in he original panel an" appella e pro'ee"ings0 an" he FE- !ananas 1mpor (egime a iss$e in his "isp$ eGL/40 8/ The 7anel 'on'l$"e" ha : /// in i sel& he FE- !ananas 1mpor (egime a iss$e in he '$rren "isp$ eG is a meas$re a@en o 'ompl# %i h he original re'ommen"a ions an" r$lings o& he +,! in he E) Bananas III "isp$ e/ :$r her0 he FE- !ananas 1mpor (egime a iss$e in he '$rren "isp$ eG is a meas$re a@en o 'ompl# %i h he original re'ommen"a ions an" r$lings o& he +,! in he E) Bananas III "isp$ e also on he basis o& i s par i'$larl# 'lose rela ionship o he allege" &inal meas$re a@en o 'ompl# b# he E$ropean -omm$ni ies0 i/e/ he 2002-2005 E- bananas impor regime/ A''or"ingl#0 he 7anel reNe' s he hir" preliminar# obNe' ion o& he E$ropean -omm$ni ies an" &in"s ha he .ni e" , a es has properl# bro$gh his "isp$ e $n"er Ar i'le 24/5 o& he +,./44 9/ On appeal0 he E$ropean -omm$ni ies arg$es ha he .ni e" , a es6 "e'ision o ermina e he .ni e" , a es an" he

he s$spension o& 'on'essions $pon implemen a ion o& he ari&& D$o a-base" impor regime "es'ribe" in s$bparagraph -/2 o& he .n"ers an"ing on !ananas 'on&irme" ha E$ropean -omm$ni ies ha" agree" ha he E$ropean -omm$ni ies ha" 'omplie" %i h he

re'ommen"a ions an" r$lings o& he +,! in he original "isp$ e/ The E$ropean -omm$ni ies s$bmi s

., 7anel (epor 0 para/ 7/549 (D$o ing Appella e !o"# (epor 0 /# #oft%ood Lum$er I8 &Article +,-. )anada'0 para/ 79)/ ( e3 in sD$are bra'@e s a""e" b# he 7anel) 9 ., 7anel (epor 0 para/ 7/526/ 40 ., 7anel (epor 0 para/ 7/526/ 44 ., 7anel (epor 0 paras/ 7/554 an" 7/552/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 89 40/ ha L he .ni e" , a es6 re en ion o& he righ o re-impose re alia or# meas$res onl# i& he

F ari&& D$o a-base"G regime 6F"i"G no en er in o &or'e b# 4 Can$ar# 20026L42 "emons ra e" he impor an'e pla'e" b# he .ni e" , a es0 i sel&0 on he ari&& D$o a impor regime0 an" &$r her s$ppor e" he 'on'l$sion ha se le"/ 44/ 1n a""i ion0 he E$ropean -omm$ni ies s$bmi s ha here %as Lno lin@L be %een he he .ni e" , a es an" he E$ropean -omm$ni ies ha" agree" ha 0 %i h he in ro"$' ion o& he ari&& D$o a-base" regime as he Lmeas$re a@en o 'ompl#L0 he "isp$ e %o$l" be

original +,! re'ommen"a ions an" r$lings an" he poli i'al "e'ision o& he E$ropean -omm$ni ies o in ro"$'e a ari&&-onl# impor regime b# 4 Can$ar# 2006/ The E$ropean -omm$ni ies arg$es ha a Llin@L e3is s be %een a meas$re an" he +,! re'ommen"a ions an" r$lings in he original pro'ee"ings %hen he in ro"$' ion o& he 'on es e" meas$re is ne'essar# o a""ress a spe'i&i' &in"ing o& in'onsis en'# %i h he 'overe" agreemen s/ Je 0 he E$ropean -omm$ni ies arg$es ha here %as no &in"ing in he original E) Bananas III pro'ee"ings ha 'o$l" be implemen e" onl# hro$gh a ari&&-onl# regime/ There&ore0 he E$ropean -omm$ni ies s$bmi s ha a lin@ o he +,! re'ommen"a ions an" r$lings in he original pro'ee"ings %as missing in he presen pro'ee"ings0 an" ha he E- !ananas 1mpor (egime %as here&ore no a Lmeas$re a@en o 'ompl#L/ Th$s0 i& he .ni e" , a es in en"e" o 'hallenge he 'onsis en'# %i h )TO la% o& E- (eg$la ion 4969*20050 i ha" o "o so in a reg$lar panel pro'ee"ing0 no $n"er Ar i'le 24/5 o& he +,./ 42/ The .ni e" , a es 'on en"s ha i s 'ommi men o ermina e re alia ion $pon he

in ro"$' ion o& a ari&& D$o a-base" impor regime $n"er s$bparagraph -/2 o& he .n"ers an"ing on !ananas "i" no in"i'a e an agreemen b# he .ni e" , a es o regar" he E$ropean -omm$ni ies6 in erim regime as he &inal implemen a ion o& he original +,! re'ommen"a ions an" r$lings/ The .ni e" , a es asser s ha i ermina e" onl# he imposi ion o& re alia or# "$ ies0 b$ ha he m$l ila eral a$ hori=a ion o s$spen" 'on'essions ha" no been revo@e"/ The .ni e" , a es main ains ha a 'omplainan ma# 'hoose %he her an" o %ha e3 en o ma@e $se o& he )TO a$ hori=a ion o s$spen" 'on'essions0 an" ha 0 here&ore0 he 'omplainan 6s "e'ision no o e3er'ise ha righ "oes no impl# he 'omplainan 6s a''ep an'e ha he respon"en 6s meas$res have be'ome 'onsis en %i h i s )TO obliga ions/ 1n a""i ion0 he .ni e" , a es "isagrees %i h he E$ropean -omm$ni ies ha here %as no lin@ be %een he 'on es e" meas$re an" he +,! re'ommen"a ions an" r$lings in E) Bananas III/ The .ni e" , a es s$bmi s ha 0 ins ea"0 he E$ropean -omm$ni ies agree" hro$gh he erms o& he .n"ers an"ing on !ananas o a@e 'er ain in erim s eps '$lmina ing in a ari&&-onl# regime b# 4 Can$ar# 20060 an" ha his 'ons i $ e" a L'lear lin@L 45 be %een he re'ommen"a ions an"
E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 94 (.,) (D$o ing s$bparagraph +/5 o& he .n"ers an"ing on !ananas)/ 45 .ni e" , a es6 appellee6s s$bmission0 para/ 88/
42

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 85 r$lings o& he +,! in E) Bananas III an" he E- !ananas 1mpor (egime a iss$e in he presen "isp$ e/ 45/ )e begin o$r anal#sis b# re'alling he e3 o& Ar i'le 24/5 o& he +,.0 %hi'h provi"es in

relevan par : )here here is "isagreemen as o he e3is en'e or 'onsis en'# %i h a 'overe" agreemen o& meas$res a@en o 'ompl# %i h he re'ommen"a ions an" r$lings s$'h "isp$ e shall be "e'i"e" hro$gh re'o$rse o hese "isp$ e se lemen pro'e"$res0 in'l$"ing %herever possible resor o he original panel/ 49/ )e a""ress0 &irs 0 he legal s an"ar" ar i'$la e" b# he 7anel &or "e ermining %he her he

E- !ananas 1mpor (egime %as a meas$re a@en o 'ompl#0 an" %he her i %as properl# be&ore his 7anel/ Therea& er0 %e e3amine %he her he 7anel 'orre' l# applie" Ar i'le 24/5 o he &a' s o& his 'ase %hen i "e ermine" ha he E- !ananas 1mpor (egime 'ons i $ e" a Lmeas$re a@en o 'ompl#L ha 'o$l" properl# be 'hallenge" in an Ar i'le 24/5 pro'ee"ing/ 45/ )i h respe' o he legal s an"ar" a"op e" b# he 7anel0 %e no e ha he 7anel relie" $pon

he Appella e !o"#6s &in"ing in /# #oft%ood Lum$er I8 &Article +,-. )anada' ha LFsGome meas$res %i h a par i'$larl# 'lose rela ionship o he "e'lare" 6meas$re a@en o 'ompl#60 an" o he re'ommen"a ions an" r$lings o& he +,!0 ma# also be s$s'ep ible o revie% b# a panel a' ing $n"er Ar i'le 24/5/L49 1n i s 'on'l$sion0 he 7anel &o$n" ha he E- !ananas 1mpor (egime %as a meas$re a@en o 'ompl# Lin i sel&L an" also Lon he basis o& i s par i'$larl# 'lose rela ionship o he allege" &inal meas$re a@en o 'ompl#L/ 45 46/ The 'on'l$sions o& he 7anel "erive" &rom i s appli'a ion o& he reasoning in /# #oft%ood

Lum$er I8 &Article +,-. )anada'/ The 7anel0 ho%ever0 &aile" o re&le' in i s reasoning ha /# #oft%ood Lum$er I8 &Article +,-. )anada' %as no 'on'erne" %i h %he her a meas$re is in i sel& a meas$re a@en o 'ompl#/ Tha "isp$ e 'on'erne" he si $a ion %here0 b# reason o& he 'lose rela ionship be %een he meas$re a iss$e an" he "e'lare" meas$re a@en o 'ompl#0 he meas$re a iss$e &ell %i hin he s'ope o& Ar i'le 24/5/ 1 %ill or"inaril# be ne'essar# o 'onsi"er &irs %he her he meas$re a iss$e is in i sel& a meas$re a@en o 'ompl#/ Onl# i& ha anal#sis 'anno provi"e a 'lear ans%er0 is he anal#sis o& /# #oft%ood Lum$er I8 &Article +,-. )anada' o& appli'a ion/

., 7anel (epor 0 para/ 7/540 (D$o ing Appella e !o"# (epor 0 /# #oft%ood Lum$er I8 &Article +,-. )anada'0 para/ 77)/ 45 ., 7anel (epor 0 paras/ 7/554/

49

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 86 47/ 1n o$r vie%0 he si $a ion in he presen 'ase is "i&&eren &rom he si $a ion be&ore he

Appella e !o"# in /# #oft%ood Lum$er I8 &Article +,-. )anada'/ The Appella e !o"# has emphasi=e" ha he reasoning in /# #oft%ood Lum$er I8 &Article +,-. )anada' 'on'erne" he i"en i&i'a ion o& 'losel# 'onne' e" meas$res so as o avoi" 'ir'$mven ion/ 46 There&ore0 i& he meas$re a iss$e is &o$n" o 'ons i $ e in i sel& a meas$re a@en o 'ompl#0 i %ill no be ne'essar# o es ablish a Lpar i'$larl# 'lose rela ionshipL o& he meas$re a iss$e o he "e'lare" meas$re a@en o 'ompl# in or"er o s$bNe' he meas$re a iss$e o he s'ope o& Ar i'le 24/5/ O$r anal#sis m$s h$s begin %i h he D$es ion %he her he meas$re a iss$e in his 'ase %as in i sel& a meas$re a@en o 'ompl#/ 1n he even ha he meas$re a iss$e is &o$n" no o be in i sel& a meas$re a@en o 'ompl#0 o$r anal#sis %ill $rn o he D$es ion %he her a Lpar i'$larl# 'lose rela ionshipL e3is s be %een he meas$re a iss$e an" he "e'lare" meas$re a@en o 'ompl#0 %hi'h %o$l" %arran s$bNe' ing he meas$re a iss$e o he s'ope o& Ar i'le 24/5 o& he +,./ 48/ )e0 here&ore0 $rn &irs o he D$es ion %he her he E- !ananas 1mpor (egime %as in )e re'all he E$ropean -omm$ni ies6 arg$men ha 0 in he

i sel& a meas$re a@en o 'ompl#/

.n"ers an"ing on !ananas0 he .ni e" , a es an" he E$ropean -omm$ni ies ha" agree" o 'onsi"er he a"op ion o& a ari&& D$o a-base" impor regime on he basis o& his ori'al li'ensing0 as provi"e" in s$bparagraph -/2 o& he .n"ers an"ing0 as he &inal Lmeas$re a@en o 'ompl#L in his "isp$ e0 an" ha he "isp$ e %as resolve" %i h he in ro"$' ion o& ha regime/ 49/ 7aragraph - o& he .n"ers an"ing provi"es ha he impor regimes &oreseen herein %o$l"

be implemen e" b# he E$ropean -omm$ni ies Lin he in erimL/ An in erim regime is no a &inal meas$re/ The &inal regime is se o$ in paragraph ! o& he .n"ers an"ing0 %hi'h provi"es ha he E$ropean -omm$ni ies %o$l" in ro"$'e a ari&&-onl# regime &or impor s o& bananas no la er han 4 Can$ar# 2006/ The in erim meas$res se o$ in paragraph - o& he .n"ers an"ing %o$l" remain in pla'e $n il he ari&&-onl# s#s em %as in ro"$'e"0 a he la es b# 4 Can$ar# 2006/ 1 is here&ore 'lear &rom he lang$age o& he .n"ers an"ing ha he ari&& D$o a-base" impor regime %as in en"e" o be o& an in erim na $re/ The .n"ers an"ing se s o$ several 'onse'$ ive s eps &or he E$ropean -omm$ni ies o a@e in or"er o a'hieve 'omplian'e/ A''or"ingl#0 %e see no basis in he e3 o& he .n"ers an"ing o s$ppor he posi ion ha he .ni e" , a es ha" agree" ha a ari&& D$o a-base" impor regime %o$l" be he &inal meas$re a@en o 'ompl#/

Appella e !o"# (epor 0 /# /pland )otton &Article +,-. Bra"il'0 para/ 2050 s a es: LThe "isp$ e in /# #oft%ood Lum$er I8 &Article +,-. )anada' 'on'erne" he i"en i&i'a ion o& 'losel# 'onne' e" meas$res so as o avoi" 'ir'$mven ion/L

46

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 87 20/ :$r hermore0 he E$ropean -omm$ni ies main ains ha he .ni e" , a es6 $n"er a@ing o

ermina e i s imposi ion o& in'rease" "$ ies in 'onsi"era ion o& he E$ropean -omm$ni ies6 implemen a ion o& he ari&& D$o a-base" impor regime &inall# resolve" he "isp$ e be %een he par ies/ The 7anel "ismisse" his arg$men &or he reason ha Ar i'le 24/5 "oes no 'on ain an# re&eren'e o he s$spension o& 'on'essions/ 1 &$r her 'onsi"ere" ha he a$ hori=a ion o s$spen" 'on'essions 'on&ers a righ 0 b$ no an obliga ion0 o "o so/ On ha basis0 he 7anel 'on'l$"e" ha he ermina ion o& he .ni e" , a es6 s$spension o& 'on'essions 'anno in i sel& be rea" as a %aiver o& he righ o bring a 'omplian'e "isp$ e0 or as an a''ep an'e b# he .ni e" , a es ha he 2002-2005 impor regime o& he E$ropean -omm$ni ies %o$l" 'ons i $ e he &inal meas$re a@en o 'ompl#/ 47 24/ The E$ropean -omm$ni ies relies on he 'on"$' o& he .ni e" , a es ermina ing i s

s$spension o& 'on'essions as proba ive o& i s 'on en ion as o &inali #/ Ar i'le 22/4 o& he +,. provi"es ha s$spension o& 'on'essions is a emporar# meas$re LavailableL in he even ha i has been "e ermine" ha he original +,! re'ommen"a ions an" r$lings have no been &$ll# implemen e" b# he en" o& he reasonable perio" o& ime/ The erm LavailableL in"i'a es ha 0 on'e s$spension o& 'on'essions is a$ hori=e"0 i is %i hin he ?embers6 "is're ion o e3er'ise ha a$ hori=a ion s$bNe' o he 'on"i ions se o$ in Ar i'le 22/8/ The 'on"$' o& he .ni e" , a es is 'onsis en %i h he .n"ers an"ing being an in erim meas$re no &inall# se ling he "isp$ e/ -on rar# o he E$ropean -omm$ni ies6 asser ion0 %e "o no 'onsi"er ha he 'on"$' o& he .ni e" , a es es ablishes i s a''ep an'e o& he ari&& D$o a s#s em in ro"$'e" p$rs$an o s$bparagraph -/2 o& he .n"ers an"ing as he &inal Lmeas$re a@en o 'ompl#L/ The &a' ha he .ni e" , a es 'ease" s$spen"ing 'on'essions in 2002 is no proba ive o& he E$ropean -omm$ni ies6 'ase/ 22/ )e 'onsi"er ne3 %he her s a emen s ma"e b# he .ni e" , a es in he 'on e3 o& he

s$spension o& 'on'essions an" s$bseD$en ermina ion o& ha s$spension 'hanges o$r eval$a ion o& he ma er/ 1n par i'$lar0 %e 'onsi"er ha he 7anel %as 'orre' in a@ing in o a''o$n he .ni e" , a es6 s a emen a he +,! mee ing hel" on 4 :ebr$ar# 2002 in assessing %he her he .ni e" , a es6 ermina ion o& he s$spension o& 'on'essions 'o$l" be regar"e" as a &inal sol$ ion o he "isp$ e/ The .ni e" , a es e3plaine" ha 0 $pon he in ro"$' ion b# he E$ropean -omm$ni ies o& he ari&& D$o a on he basis o& his ori'al li'ensing: F Ghe .ni e" , a es ha"0 here&ore0 ermina e" he s$spension o& 'on'essions in e&&e' sin'e 4999/ The .ni e" , a es %o$l" 'on in$e o %or@ 'losel# %i h he E- an" o her ?embers o a""ress an# iss$es ha migh arise as he E- move" o a ari&&-base" s#s em &or bananas

47

., 7anel (epor 0 paras/ 7/5950 7/5990 an" 7/909/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 88 an" implemen e" he erms o& he bila eral .n"ers an"ing on !ananas/48 (&oo no e omi e") 25/ 1 is 'lear &rom his s a emen ha he .ni e" , a es "i" no a''ep ha 0 b# in ro"$'ing he

ransi ional ari&& D$o a regime0 he E$ropean -omm$ni ies ha" bro$gh i s bananas impor regime &$ll# in o 'omplian'e %i h he re'ommen"a ions an" r$lings o& he +,! in he original E) Bananas III "isp$ e/ 1&0 as he E$ropean -omm$ni ies s$gges s0 he .ni e" , a es ha" 'onsi"ere" ha he E$ropean -omm$ni ies ha" a'hieve" &$ll 'omplian'e b# in ro"$'ing he ari&& D$o a p$rs$an o paragraph - o& he .n"ers an"ing0 here %o$l" have been no reason &or he .ni e" , a es o 'on in$e o %or@ 'losel# %i h he E$ropean -omm$ni ies an" o her ?embers o a""ress an# iss$es ha migh arise as he E- move" o a ari&&-base" s#s em &or bananas/ 1n &a' 0 in his s a emen 0 he .ni e" , a es lin@e" i s in en ion o L%or@ 'losel# %i h he E-L o i s e3pe' a ion ha he E$ropean -omm$ni ies %o$l" Limplemen FG he erms o& he bila eral .n"ers an"ing on !ananasL/ %i h i s obliga ions a This in"i'a es ha he .ni e" , a es "i" no 'onsi"er ha he E$ropean -omm$ni ies ha" &$ll# 'omplie" he ime he .ni e" , a es "e'i"e" o ermina e he s$spension o& i s 'on'essions/ )e0 here&ore0 reNe' he E$ropean -omm$ni ies6 arg$men ha he .ni e" , a es an" he E$ropean -omm$ni ies ha" agree" o 'onsi"er he in ro"$' ion o& he ari&& D$o a as he &inal Lmeas$re a@en o 'ompl#L ha %o$l" resolve his "isp$ e/ 29/ )e &in" ha he E- !ananas 1mpor (egime is in i sel& a Lmeas$re a@en o 'ompl#L %i hin

he sense o& Ar i'le 24/5 o& he +,./ There&ore0 s ri' l# spea@ing0 %e %o$l" no be reD$ire" o assess %he her he E- !ananas 1mpor (egime &ell %i hin he s'ope o& Ar i'le 24/5 be'a$se o& a Lpar i'$larl# 'lose rela ionshipL o he "e'lare" meas$re a@en o 'ompl#P ha is0 he 2002-2005 bananas impor regime o& he E$ropean -omm$ni iesPan" o he original re'ommen"a ions an" r$lings o& he +,!/ None heless0 as he 7anel ma"e &in"ings in his respe' 0 an" given ha he par ies a"van'e several arg$men s rela ing here o0 %e brie&l# a""ress hese a""i ional &in"ings/ 25/ :irs 0 he E$ropean -omm$ni ies alleges ha here %as Lno lin@L an" here&ore no

Lpar i'$larl# 'lose rela ionshipL be %een he re'ommen"a ions an" r$lings o& he +,! in E) Bananas III an" he poli i'al "e'ision o& he E$ropean -omm$ni ies o in ro"$'e a ari&&-onl# impor regime b# 4 Can$ar# 2006/ The E$ropean -omm$ni ies arg$es ha a lin@ e3is s %hen he in ro"$' ion o& he 'hallenge" meas$re is Lne'essar#L 49 o a""ress a spe'i&i' &in"ing o& in'onsis en'# %i h he 'overe" agreemen s/ Je 0 in he E$ropean -omm$ni ies6 s$bmission0 here is no &in"ing in he 4997 E) Bananas III "isp$ e ha 'o$l" be 'omplie" %i h onl# hro$gh he in ro"$' ion o& a ari&&-onl# regime/
., 7anel (epor 0 para/ 7/594 (D$o ing ?in$ es o& he +,! mee ing hel" on 4 :ebr$ar# 20020 )T*+,!*?*4490 para/ 8)/ 49 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 96 (.,)/
48

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 89 26/ >i@e he 7anel0 %e "o no see %h# i sho$l" be relevan ha he original re'ommen"a ions

an" r$lings o& he +,! "i" no e3pressl# s$gges ha he E$ropean -omm$ni ies bring i sel& in o 'omplian'e spe'i&i'all# hro$gh he in ro"$' ion o& a ari&&-onl# regime/ )e see no basis in he +,. &or reD$iring ha a meas$re m$s be Lne'essar#L o a""ress a spe'i&i' &in"ing o& in'onsis en'# in or"er &or ha meas$re o be in ro"$'e"B nor "oes he E$ropean -omm$ni ies i"en i&# an# e3 $al basis &or his in he +,./ )TO ?embers enNo# some "is're ion in 'hoosing ho% o implemen +,! re'ommen"a ions an" r$lings/ 1n ha vein0 he 'hapea$ o& Ar i'le 24/5 o& he +,. provi"es ha L he ?ember 'on'erne" shall in&orm he +,! o& i s in en ions in respe' o& implemen a ion o& he re'ommen"a ions an" r$lings o& he +,!/L 1n /# /pland )otton &Article +,-. Bra"il'0 he Appella e !o"# s a e": )here al erna ive means o& implemen a ion are available0 a )TO ?ember enNo#s some "is're ion in "e'i"ing %ha meas$res o a@e o 'ompl# %i h he +,!6s re'ommen"a ions an" r$lings/20 27/ The Appella e !o"# a""resse" he lin@ be %een he Lmeas$re a@en o 'ompl#L an" he

original re'ommen"a ions an" r$lings o& he +,! in /# #oft%ood Lum$er I8 &Article +,-. )anada'0 /# F#) &Article +,-. E) II'0 an" )hile Price Band #ystem &Article +,-. Argentina'/24 The Appella e !o"# "i" no &in" ha a lin@ be %een a meas$re a@en o 'ompl# an" he original +,! re'ommen"a ions an" r$lings e3is s onl# %hen he meas$re is Lne'essar#L o a""ress a spe'i&i' &in"ing o& in'onsis en'#/ )e here&ore reNe' his arg$men o& he E$ropean -omm$ni ies/ 28/ The E$ropean -omm$ni ies alleges &$r her ha 0 in 'on'l$"ing ha he E- !ananas 1mpor

(egime a iss$e in he presen 'ase %as 'losel# rela e" o he re'ommen"a ions an" r$lings in E) Bananas III0 he 7anel overs eppe" he limi a ions impose" b# i s erms o& re&eren'e0 %hi'h 'on&ine" he s'ope o& he 7anel6s revie% o he Lspe'i&i' meas$re a iss$eL/ 22 The E$ropean -omm$ni ies 'laims ha he 7anel hereb# a' e" in'onsis en l# %i h Ar i'les 6/2 an" 7 o& he +,./ )e see no error in he 7anel6s re&eren'e o &in"ings o& he original panel in E) Bananas III/ The 7anel "i" no reassess he meas$re a iss$e in E) Bananas III/ 1ns ea"0 he 7anel ha" regar" o ha meas$re in an evi"en iar# sense &or he p$rpose o& assessing %he her here %as a lin@ be %een he bananas impor regime revie%e" in he E) Bananas III "isp$ e an" ha a iss$e in he presen pro'ee"ings/ 1n "oing so0 he 7anel "i" no e3'ee" i s man"a e/

Appella e !o"# (epor 0 /# /pland )otton &Article +,-. Bra"il'0 para/ 202/ Appella e !o"# (epor 0 /# #oft%ood Lum$er I8 &Article +,-. )anada'0 para/ 68B Appella e !o"# (epor 0 /# F#) &Article +,-. E) II'0 para/ 64B Appella e !o"# (epor 0 )hile Price Band #ystem &Article +,-. Argentina'0 para/ 456/ 22 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 98 (.,)/
24

20

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 90 29/ The E$ropean -omm$ni ies also asser s ha he 7anel %as %rong in rel#ing on he &in"ings

o& he panels in E) Bananas III &Article +,-. Ecuador' an" E) Bananas III &Article +,-. E)'0 an" on he "e'ision b# he arbi ra ors in E) Bananas III &/#' &Article ++-3 E)'0 %hen assessing %he her he E- !ananas 1mpor (egime a iss$e in he '$rren pro'ee"ings 'ons i $ e" a Lmeas$re a@en o 'ompl#L/25 The E$ropean -omm$ni ies 'on en"s ha hose pro'ee"ings rela e" o a "i&&eren ma er an" involve" "i&&eren )TO ?embers o hose in he presen pro'ee"ings/ There&ore0 he E$ropean -omm$ni ies 'on en"s ha L he res$l ing repor FsG FareG no bin"ing pre'e"en &or o her "isp$ es be %een he same par ies on o her ma ers0 or be %een "i&&eren par ies on he same ma er even %here he same D$es ion o& )TO la% migh arise/L29 50/ )e no e ha he 7anel s a e" ha i rea" he Labove hree pro'e"$resL as an Lin"i'a ionL ha o bring i sel& in o 'omplian'e b# 4 Can$ar# 4999 %as

he E$ropean -omm$ni ies6 a emp

$ns$''ess&$l/25 1n so s a ing0 he 7anel 'onsi"ere" he res$l o& hese hree repor s as evi"en'e in he 'on e3 o& i s assessmen o& %he her he E- !ananas 1mpor (egime 'ons i $ e" a meas$re a@en Lin the direction of0 or havBingC the o$Dective of achieving 0 'omplian'eL/26 )e see no error in he 7anel6s relian'e on he o$ 'ome o& hese pro'ee"ings &or assessing %he her he E$ropean -omm$ni ies ha" bro$gh i sel& in o 'omplian'e/ There is no D$es ion ha hese previo$s repor s an" "e'isions &orm par o& a 'on in$$m o& even s ha provi"e an in"i'a ion ha pro'ee"ings/ 54/ )i h respe' o he E$ropean -omm$ni ies6 men ion o& Ar i'le 44 o& he +,.0 %e no e ha he E$ropean -omm$ni ies ha" no #e &$ll# implemen e" he +,!6s re'ommen"a ions an" r$lings in he original

he E$ropean -omm$ni ies 'lari&ie"0 a he oral hearing0 ha i %as no invo@ing Ar i'le 44 as he basis o& a separa e 'laim/ The E$ropean -omm$ni ies e3plaine" ha 0 ra her0 i ma"e re&eren'e o Ar i'le 44 o& he +,. as a s$ppor ing arg$men in he 'on e3 o& allega ions o& viola ion o& o her provisions o& he AATT 4999 or he +,./ )e also no e ha Ar i'le 44 has no been lis e" b# he E$ropean -omm$ni ies in i s No i'e o& Appeal/ 1n hese 'ir'$ms an'es0 %e ma@e no &in"ing %i h respe' o Ar i'le 44 o& he +,./ 52/ :or all hese reasons0 %e find ha he E- !ananas 1mpor (egime 'ons i $ e"0 in i sel&0 a he E- !ananas 1mpor (egime0 se o$ in

Lmeas$re a@en o 'ompl#L/ )e here&ore uphold0 albei &or "i&&eren reasons0 he 7anel6s &in"ing0 in paragraph 7/554 o& he ., 7anel (epor 0 ha
25

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 55 (.,) (re&erring o ., 7anel (epor 0 para/ 7/552)/ 29 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 56 (.,)/ 25 ., 7anel (epor 0 para/ 7/552/ 26 ., 7anel (epor 0 para/ 7/506 (D$o ing Appella e !o"# (epor 0 /# #oft%ood Lum$er I8 &Article +,-. )anada'0 para/ 67 (original emphasis))/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 94 E- (eg$la ion 4969*2005 an" implemen ing reg$la ions0 'ons i $ e" a meas$re a@en o 'ompl# an" %as here&ore properl# be&ore he 7anel in hese Ar i'le 24/5 pro'ee"ings/ 7III. 4/ R%5%-* #1 $'% C'-**%/2%0 M%-.+(% :U/)$%0 S$-$%.; )e no% a""ress he D$es ion %he her he 7anel erre"0 in he 'ase ini ia e" b# he .ni e"

, a es0 in &ailing o a@e in o 'onsi"era ion he repeal o& he 'hallenge" meas$re/ 2/ A""ressing a reD$es b# he E$ropean -omm$ni ies a he in erim revie% s age o ma@e

several mo"i&i'a ions o re&le' he a"op ion o& E- (eg$la ion 4528*20070 %hi'h repeale"0 inter alia0 he ari&& D$o a o& 7750000 me ri' onnes (Lm L) es ablishe" hro$gh Ar i'le 4(2) o& E- (eg$la ion 4969*20050 he 7anel &o$n": FEGvi"en'e s$bmi e" a his la e s age b# he E$ropean -omm$ni ies regar"ing he a"op ion o& amen"men s o he E- bananas impor regime is ina"missible/ :$r hermore0 he 7anel "oes no 'onsi"er ha he lang$age 'on aine" in paragraph 8/5(') o& he in erim repor 'rea es an# impression ha he 7anel is ma@ing &in"ings regar"ing aspe' s o& he E- bananas impor regime o her han he pre&eren ial ari&& D$o a reserve" &or A-7 bananas/4 5/ None heless0 he 7anel mo"i&ie" paragraph 8/5 o& he 1n erim (epor 0 %hi'h rea" LF Ghe

7anel re'ommen"s ha he +isp$ e ,e lemen !o"# reD$es he E$ropean -omm$ni ies o bring he in'onsis en meas$res in o 'on&ormi # %i h i s obliga ions $n"er he AATT 4999L o rea" as &ollo%s in he :inal (epor : ,in'e he original +,! re'ommen"a ions an" r$lings in his "isp$ e remain opera ive hro$gh he res$l s o& he '$rren 'omplian'e pro'ee"ings0 he 7anel ma@es no ne% re'ommen"a ion/ 2 9/ On appeal0 he E$ropean -omm$ni ies 'on en"s ha he 7anel &aile" o a@e in o

'onsi"era ion he repeal o& he 'on es e" meas$re0 an" hereb# a' e" in'onsis en l# %i h i s obliga ion $n"er Ar i'le 5/9 o& he +,. o La'hieveFG a sa is&a' or# se lemen o& he ma erL an" i s obliga ion $n"er Ar i'le 5/7 o& he +,. o Lse'$re a posi ive sol$ ion o he "isp$ eL/ 5 1n his 'on e3 0 he E$ropean -omm$ni ies also ma@es re&eren'e o Ar i'le 44 o& he +,./ The E$ropean -omm$ni ies
., 7anel (epor 0 para/ 6/92/ ., 7anel (epor 0 para/ 8/45/ 1n 'on ras 0 he E'$a"or 7anel (epor s a es0 in paragraph 8/5: The 7anel re'ommen"s ha he +isp$ e ,e lemen !o"# reD$es he E$ropean -omm$ni ies o bring he in'onsis en meas$res in o 'on&ormi # %i h i s obliga ions $n"er he AATT 4999/ )e no e ha paragraph 8/45 o& he ., 1n erim (epor %as i"en i'al o paragraph 8/5 o& he :inal (epor in he E'$a"or 'ase/ <o%ever0 he 7anel mo"i&ie" his re'ommen"a ion in he :inal ., 7anel (epor / (,ee E$ropean -omm$ni ies6 appellan 6s s$bmission0 paras/ 477 an" 478 (.,)) 5 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 480 (.,)/
2 4

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 92 s$bmi s ha he 7anel "i" no "is ing$ish properl# be %een &a' $al evi"en'e s$ppor ing a 'laim an" evi"en'e rela ing o he e3is en'e o& he 'on es e" meas$re i sel& %hen i "ismisse" evi"en'e s$bmi e" b# he E$ropean -omm$ni ies regar"ing he a"op ion o& E- (eg$la ion 4528*2007/ 5/ The E$ropean -omm$ni ies also 'laims ha he 7anel erre" in ma@ing a re'ommen"a ion he 7anel provi"e" a L'on'eale"L re'ommen"a ion b# s a ing ha
5

%i h respe' o a meas$re ha ha" 'ease" o e3is s$bseD$en o he es ablishmen o& he 7anel 90 an" alleges ha he original +,! re'ommen"a ions an" r$lings remaine" opera ive/ ma@e re'ommen"a ions %i h respe' The E$ropean -omm$ni ies re&ers o he The E$ropean

Appella e !o"# (epor in /# )ertain E) Products in s$ppor o& i s proposi ion ha panels 'anno o meas$res ha have 'ease" o e3is / -omm$ni ies s$bmi s ha 0 sin'e he 7750000 m "$ #-&ree ari&& D$o a reserve" &or A-7 impor s %as repeale" b# E- (eg$la ion 4528*2007 prior o he iss$an'e o& he ., 7anel (epor 0 here %as no re'ommen"a ion ha 'o$l" be ma"e or ha 'o$l" Lremain opera iveL/ 6 6/ The .ni e" , a es 'on en"s ha he 7anel "i" no err in ma@ing &in"ings %i h respe' o

E- (eg$la ion 4969*20050 even ho$gh ha (eg$la ion %as repeale" "$ring he 'o$rse o& he 7anel pro'ee"ings/ The .ni e" , a es asser s ha vario$s panels an" he Appella e !o"# have ma"e re'ommen"a ions %i h respe' o e3pire" meas$res/ 7 )i h respe' o he E$ropean -omm$ni ies6 relian'e on he Appella e !o"# (epor in /# )ertain E) Products0 he .ni e" , a es 'on en"s ha he meas$re a iss$e in ha "isp$ e ha" 'ease" o e3is prior o he es ablishmen o& he panel6s erms o& re&eren'e0 %hile0 in he presen "isp$ e0 he E$ropean -omm$ni ies repeale" E- (eg$la ion 4969*2005 onl# o%ar"s he 'on'l$sion o& he 7anel pro'ee"ings/ 8

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 487 (.,)/ E$ropean -omm$ni ies6 appellan 6s s$bmission0 paras/ 490 an" 494 (.,)/ 6 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 494 (.,)/ 7 .ni e" , a es6 appellee6s s$bmission0 para/ 408 (re&erring o 7anel (epor 0 E) Approval and Mar0eting of Biotech Product0 paras/ 8/46 an" 8/56B Appella e !o"# (epor 0 E) #elected )ustoms Matters0 para/ 540B an" Appella e !o"# (epor 0 !ominican *epu$lic Import and #ale of )igarettes0 para/ 429)/ 8 .ni e" , a es6 appellee6s s$bmission0 para/ 409/
5

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 95 7/ T$rning o o$r anal#sis0 %e &irs e3amine he E$ropean -omm$ni ies6 allega ion ha he

7anel &aile" o a@e in o 'onsi"era ion he repeal o& he 'on es e" meas$re an" erre" in ma@ing &in"ings %i h respe' o E- (eg$la ion 4969*2005/ The Appella e !o"# previo$sl# a""resse" he D$es ions %he her e3pire" meas$res 'an be s$bNe' o 'ons$l a ions an" %he her he Lmeas$re a iss$eL %i hin he meaning o& Ar i'le 6/2 o& he +,. 'an be an e3pire" meas$re/ The Appella e !o"# ans%ere" bo h D$es ions in he a&&irma ive/ 1n par i'$lar0 %i h respe' meas$res ma# be s$bNe' o he D$es ion o& %hi'h o 'ons$l a ions0 he Appella e !o"# re&erre" o he phrase Lmeas$res

a&&e' ing he opera ion o& an# 'overe" agreemen L in Ar i'le 9/2 o& he +,./ 1n his respe' 0 he Appella e !o"# &o$n"0 in /# /pland )otton0 ha %he her or no a meas$re is s ill in &or'e is no "isposi ive o& %he her ha meas$re is '$rren l# a&&e' ing he opera ion o& an# 'overe" agreemen 0 an" 'an here&ore be s$bNe' o 'ons$l a ions/ 9 8/ The Appella e !o"# also reNe' e" he no ion ha an e3pire" meas$re 'o$l" no be a meas$re

ha is La iss$eL in erms o& Ar i'le 6/2 o& he +,./ The Appella e !o"# e3plaine" ha Ar i'le 6/2 reD$ires ha meas$res m$s be La iss$eL0 ha is Lin "isp$ eL a he ime he panel reD$es is ma"e/ Je 0 he Appella e !o"# &o$n" ha 0 sin'e he erm La iss$eL "oes no she" ligh on %he her meas$res a iss$e m$s '$rren l# be in &or'e or %he her he# 'an have e3pire"0 he &a' ha a meas$re has e3pire" is no "isposi ive o& he D$es ion %he her he panel 'an a""ress 'laims in respe' o& ha meas$re/40 The Appella e !o"# &o$n" 'on e3 $al s$ppor &or reNe' ing he no ion ha an e3pire" meas$re 'o$l" no be a meas$re La iss$eL in Ar i'le 5/5 o& he +,.0 %hi'h re&ers o he Lpromp se lemen L o& 'er ain si $a ions ha 0 in he absen'e o& se lemen 0 'o$l" $n"ermine he e&&e' ive &$n' ioning o& he )TO an" he main enan'e o& a proper balan'e be %een he righ s an" obliga ions o& ?embers/ The Appella e !o"# observe" ha Ar i'le 5/5 &o'$ses no $pon Le3is ingL meas$res0 or meas$res ha are L'$rren l# in &or'eL0 b$ 0 ra her0 $pon Lmeas$res a@enL b# a ?ember0 %hi'h in'l$"es meas$res a@en in he pas /44 9/ The si $a ion in he presen 'ase is "i&&eren &rom ha in /# /pland )otton0 in ha he

meas$re in he presen appeal %as s ill in &or'e %hen he 7anel %as es ablishe" an" e3pire" onl# o%ar"s he en" o& he 7anel pro'ee"ings/ 1n /# /pland )otton0 'er ain meas$res %ere no longer in &or'e a he ime o& he es ablishmen o& he panel0 b$ he 'on in$e" e&&e' o& pas s$bsi"ies %as 'laime" o s ill 'a$se serio$s preN$"i'e o he 'omplainan s6 in eres s/ <o%ever0 %e 'onsi"er ha 0 i& he +,. "oes no e3'l$"e &rom he s'ope o& 'ons$l a ions0 or &rom he s'ope o& panel pro'ee"ings0 a meas$re ha %as no longer in &or'e %hen he "isp$ e %as ini ia e"0 hen0 a fortiori0 a panel is no

Appella e !o"# (epor 0 /# /pland )otton0 para/ 262/ Appella e !o"# (epor 0 /# /pland )otton0 paras/ 269-272/ 44 Appella e !o"# (epor 0 /# /pland )otton0 para/ 269/
40

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 99 pre'l$"e" &rom ma@ing &in"ings %i h respe' pro'ee"ings/ 40/ )e &in" &$r her s$ppor &or his in erpre a ion in Ar i'le 7 o& he +,.0 %hi'h se s o$ he o meas$res ha e3pire "$ring he 'o$rse o& he

s an"ar" erms o& re&eren'e &or panels/ The erms o& re&eren'e &or a panel p$rs$an o Ar i'le 7 "e&ine he s'ope o& he "isp$ e an" he man"a e o& he panel/ 1n he presen 'ase0 he panel reD$es i"en i&ie"0 inter alia0 E- (eg$la ion 4969*20050 an" he +,! es ablishe" he 7anel on ha basis %i h s an"ar" erms o& re&eren'e/42 The E$ropean -omm$ni ies an" he .ni e" , a es bo h agree" a he o$ se o& he pro'ee"ings ha his (eg$la ion %as he meas$re a iss$e in'l$"e" in he 7anel6s erms o& re&eren'e/ The par ies agree" ha his meas$re %as %i hin he N$ris"i' ion o& he 7anel/ The +,. no%here provi"es ha he N$ris"i' ion o& a panel ermina es or is limi e" b# he e3pir# o& he meas$re a iss$e/ On he 'on rar#0 %hen he +,. provi"es &or limi a ions on he a$ hori # o& he panel in o her ins an'es0 i "oes so in e3press erms/ Ar i'le 42/42 o& he +,.0 &or e3ample0 provi"es ha a panel6s a$ hori # lapses i& he %or@ o& he panel has been s$spen"e" &or more han 42 mon hs/ The absen'e o& a similar limi a ion0 %i h respe' o 'hanges o he s'ope o& he panel6s N$ris"i' ion a& er he panel has been es ablishe" an" he erms o& re&eren'e have been "e ermine" b# he +,!0 len"s &$r her s$ppor o o$r in erpre a ion ha 0 on'e a panel has been es ablishe" an" he erms o& re&eren'e &or he panel have been se 0 he panel has he 'ompe en'e o ma@e &in"ings %i h respe' o he meas$res 'overe" b# i s erms o& re&eren'e/ )e h$s 'onsi"er i o be %i hin he "is're ion o& he panel o "e'i"e ho% i a@es in o a''o$n s$bseD$en mo"i&i'a ions or a repeal o& he meas$re a iss$e/ A''or"ingl#0 panels have ma"e &in"ings on e3pire" meas$res in some 'ases an" "e'line" o "o so in o hers0 "epen"ing on he par i'$lari ies o& he "isp$ es be&ore hem/ 45 1n he presen 'ase0 he E$ropean -omm$ni ies has a"van'e" no reason0 nor "o %e see a reason0 &or in er&ering %i h he 7anel6s e3er'ise o& ha "is're ion/ 44/ )e $rn ne3 o he E$ropean -omm$ni ies6 allega ion ha he 7anel erre" in ma@ing a o an e3pire" meas$re/ )e re'all ha he Appella e !o"# has

re'ommen"a ion %i h respe'

"is ing$ishe" he D$es ion %he her a panel 'an ma@e a finding 'on'erning an e3pire" meas$re &rom he D$es ion %he her a panel 'an ma@e a recommendation rela ing o an e3pire" meas$re/ 1n /# )ertain E) Products0 he Appella e !o"# reverse" he panel6s "e'ision o ma@e a re'ommen"a ion p$rs$an o Ar i'le 49/4 o& he +,. on he gro$n"s ha he panel ha" alrea"# &o$n" ha he meas$re a iss$e in ha "isp$ e ha" e3pire"/ 49 The Appella e !o"# 'on&irme"0 in /# /pland )otton0 ha he

., 7anel (epor 0 para/ 4/5/ ,ee0 &or ins an'e0 7anel (epor 0 >ool #hirts and Blouses0 para/ 6/2B 7anel (epor 0 Indonesia Autos0 para/ 49/9B 7anel (epor 0 )hile Price Band #ystem0 para/ 7/426B 7anel (epor 0 !ominican *epu$lic Import and #ale of )igarettes0 para/ 7/599B an" 7anel (epor 0 E) Approval and Mar0eting of Biotech Product 0 para/ 7/4542/ 49 Appella e !o"# (epor 0 /# )ertain E) Products0 para/ 84/
45

42

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 95 &a' ha a meas$re has e3pire" ma# a&&e' %ha re'ommen"a ion a panel ma# ma@e0 b$ i is no "isposi ive o& he D$es ion %he her a panel 'an ma@e &in"ings rela ing o an e3pire" meas$re/ 45 42/ 1n @eeping %i h his "is in' ion0 %e assess %he her he 7anel ma"e a re'ommen"a ion o he

+,! in he presen 'aseB an"0 i& so0 %ha @in" o& re'ommen"a ion i ma"e/ )e no e ha he 7anel s a e"0 in paragraph 8/45 o& he ., 7anel (epor 0 ha i Lma@es no ne% re'ommen"a ionL/ 1 is no 'lear %ha is mean b# he %or" Lne%L in his 'on e3 : i seems o rela e o he &a' ha he original +,! re'ommen"a ions an" r$lings in E) Bananas III remain opera ive $n il he E$ropean -omm$ni ies has a'hieve" s$bs an ive 'omplian'e %i h hese re'ommen"a ions an" r$lings/ )hile ma@ing he allega ion ha he 7anel ma"e a L'on'eale"L re'ommen"a ion0 he E$ropean -omm$ni ies "oes no spe'i&# he 'on en o& his allege" L'on'eale"L re'ommen"a ion/ 1n his si $a ion0 %e are $nable o "is'ern %ha %o$l" be he 'on en o& his allege" L'on'eale"L re'ommen"a ion/ )e "o no believe ha he 7anel ma"e a spe'i&i' re'ommen"a ion %i h respe' o a meas$re ha %as no longer in &or'e a he ime he ., 7anel (epor %as 'ir'$la e"/ 45/ :$r hermore0 %e 'onsi"er ha he 7anel6s s a emen ha he Loriginal +,! The +,!

re'ommen"a ions an" r$lings in his "isp$ e remain opera iveL %as no in'orre' /

re'ommen"a ions an" r$lings &rom he original pro'ee"ings remain in e&&e' $n il he E$ropean -omm$ni ies brings i sel& in o s$bs an ive 'omplian'e/ The s a emen b# he 7anel "oes no in an# %a# a&&e' he legal s a $s o& he +,! re'ommen"a ions an" r$lings in he original "isp$ e/ )e see no error in he 7anel6s s a emen in paragraph 8/45 o& he ., 7anel (epor / )e here&ore find ha he 7anel "i" no err in ma@ing &in"ings %i h respe' o a meas$re ha ha" 'ease" o e3is s$bseD$en o he es ablishmen o& he 7anel0 b$ be&ore he 7anel iss$e" i s (epor / 49/ )i h respe' o he E$ropean -omm$ni ies6 re&eren'e o Ar i'le 44 o& he +,.0 %e no e ha

he E$ropean -omm$ni ies 'lari&ie"0 a he oral hearing0 ha i %as no invo@ing Ar i'le 44 as he basis o& a separa e 'laim/ The E$ropean -omm$ni ies e3plaine" ha 0 ra her0 i ma"e re&eren'e o Ar i'le 44 o& he +,. as a s$ppor ing arg$men in he 'on e3 o& allega ions o& viola ion o& o her provisions o& he AATT 4999 or he +,./ )e also re'all ha he E$ropean -omm$ni ies6 No i'e o& Appeal ma@es no men ion o& Ar i'le 44 o& he +,./ 1n hese 'ir'$ms an'es0 %e ma@e no &in"ing %i h respe' o ha provision/

45

Appella e !o"# (epor 0 /# /pland )otton0 para/ 272/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 96 I>. 4/ T'% E+(#5%-/ C#66+/)$)%.? N#$),% #1 A55%-* :U/)$%0 S$-$%.; 1n i s appellee6s s$bmission0 he .ni e" , a es 'on en"s ha he E$ropean -omm$ni ies6

No i'e o& Appeal "oes no sa is&# he reD$iremen s o& ($le 20(2)(")(iii) o& he >or0ing Procedures for Appellate *evie%0 be'a$se i "oes no 'on ain an in"i'a ive lis o& he paragraphs o& he ., 7anel (epor 'on aining he allege" errors/ 4 The .ni e" , a es &$r her s$bmi s ha he No i'e o& Appeal &ails o 'ompl# %i h ($le 20(2)(")(i)0 be'a$se several paragraphs o& he No i'e o& Appeal spea@ o& Lerroneo$s &in"ingsL o& he 7anel %i ho$ i"en i&#ing %hi'h &in"ings are allege" o be erroneo$s/ 1n par i'$lar0 he .ni e" , a es a@es iss$e %i h paragraph 2(a)0 (')0 an" (") o& he No i'e o& Appeal/ The .ni e" , a es reD$es s ha %e "ismiss he appeal &or hese reasons/ 2/ 1n a""i ion0 he .ni e" , a es asser s ha he No i'e o& Appeal ma@es no men ion o& a 'laim

$n"er Ar i'le 44 o& he +,./ Je 0 he .ni e" , a es no es ha he E$ropean -omm$ni ies6 appellan 6s s$bmission 'on ains several allega ions o& viola ion o& Ar i'le 44 o& he +,./ The .ni e" , a es reD$es s ha 0 in an# even 0 he Appella e !o"# sho$l" 'onsi"er he E$ropean -omm$ni ies6 Ar i'le 44 'laims as no properl# be&ore i /2 5/ 1n repl#0 he E$ropean -omm$ni ies "oes no "isp$ e ha i s No i'e o& Appeal "i" no

i"en i&# he spe'i&i' paragraphs o& he ., 7anel (epor 'on aining he allege" errors/ The E$ropean -omm$ni ies arg$es0 ho%ever0 ha none o& he par i'ipan s or hir" par i'ipan s ha" "i&&i'$l # in i"en i&#ing he s'ope an" 'on en o& he No i'e o& Appeal/ ?oreover0 %i h respe' o he allege" &ail$re o lis in i s No i'e o& Appeal a 'laim $n"er Ar i'le 44 o& he +,.0 he E$ropean -omm$ni ies a''ep s ha Ar i'le 44 o& he +,. is in"ee" no i"en i&ie" in he No i'e o& Appeal/ <o%ever0 he E$ropean -omm$ni ies 'lari&ie"0 a he oral hearing0 ha i "i" no invo@e Ar i'le 44 as he basis o& a 'laim0 b$ ra her as a s$ppor ing arg$men /5 9/ ($le 20(2)(") o& he >or0ing Procedures provi"es ha a No i'e o& Appeal shall in'l$"e he

&ollo%ing in&orma ion: FAG brie& s a emen o& he na $re o& he appeal0 in'l$"ing: (i) i"en i&i'a ion o& he allege" errors in he iss$es o& la% 'overe" in he panel repor an" legal in erpre a ions "evelope" b# he panelB a lis o& he legal provision(s) o& he 'overe" agreemen s ha he panel is allege" o have erre" in in erpre ing or appl#ingB an"

(ii)

4 2

.ni e" , a es6 appellee6s s$bmission0 para/ 428/ .ni e" , a es6 appellee6s s$bmission0 para/ 455/ 5 E$ropean -omm$ni ies6 response o D$es ioning a he oral hearing/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 97 (iii) %i ho$ preN$"i'e o he abili # o& he appellan o re&er o o her paragraphs o& he panel repor in he 'on e3 o& i s appeal0 an in"i'a ive lis o& he paragraphs o& he panel repor 'on aining he allege" errors/

5/

1n i s No i'e o& Appeal0 he E$ropean -omm$ni ies Lsee@s revie%L o& seven Liss$es o& la%

an" legal in erpre a ionsL 'on aine" in he ., 7anel (epor / The No i'e o& Appeal0 ho%ever0 "oes no provi"e a lis o& he legal provisions o& he 'overe" agreemen s ha he 7anel is allege" o have erre" in in erpre ing or appl#ing0 as reD$ire" b# ($le 20(2)(")(ii) o& he >or0ing Procedures/ :$r hermore0 he No i'e o& Appeal "oes no 'on ain an Lin"i'a ive lis o& he paragraphs o& he panel repor 'on aining he allege" errorsL0 as reD$ire" $n"er ($le 20(2)(")(iii)/ 6/ ($le 20(2)(") "oes no s ip$la e %ha 'onseD$en'es &lo% &rom a &ail$re o mee i s

reD$iremen s/ 1n assessing he po en ial 'onseD$en'es0 %e are min"&$l o& he "$e pro'ess &$n' ion ha his ($le &$l&ils/ The Appella e !o"# re'ogni=e" in /# )ountervailing Measures on )ertain E) Products: T he impor an balan'e ha m$s be main aine" be %een he righ o& ?embers o e3er'ise he righ o& appeal meaning&$ll# an" e&&e' ivel#0 an" he righ o& appellees o re'eive no i'e hro$gh he No i'e o& Appeal o& he &in"ings $n"er appeal0 so ha he# ma# e3er'ise heir righ o& "e&en'e e&&e' ivel#/ 9 7/ The Appella e !o"# s a e" in ha 'ase ha he reD$iremen s o& ($le 20(2) Lserve o ens$re

ha he appellee also re'eives no i'e0 albei brie&0 o& he 6na $re o& he appeal6 an" he 6allega ions o& errors6 b# he panel/L5 The Appella e !o"# hel"0 in :apan Apples0 ha Lan eval$a ion o& he s$&&i'ien'# o& a No i'e o& Appeal m$s e3amine %he her he appellee re'eive" no i'e herein o& he iss$es o be arg$e" on appealL/6 8/ 1n @eeping %i h his approa'h0 %e assess0 in he presen 'ase0 %he her he .ni e" , a es %as

p$ on no i'e o& he allege" errors o& la% an" legal in erpre a ions in he ., 7anel (epor b# he E$ropean -omm$ni ies6 No i'e o& Appeal/ )e &irs a""ress he E$ropean -omm$ni ies6 omission o re&er o spe'i&i' paragraphs o& he ., 7anel (epor in i s No i'e o& Appeal/ Therea& er0 %e a""ress he .ni e" , a es6 allega ion ha vario$s 'laims b# he E$ropean -omm$ni ies $n"er Ar i'le 44 o& he +,. are no properl# be&ore he Appella e !o"# be'a$se he# %ere no in'l$"e" in he No i'e o& Appeal/

9 5

Appella e !o"# (epor 0 /# )ountervailing Measures on )ertain E) Products0 para/ 62/ Appella e !o"# (epor 0 /# )ountervailing Measures on )ertain E) Products0 para/ 62/ 6 Appella e !o"# (epor 0 :apan Apples0 para/ 424/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 98 9/ The E$ropean -omm$ni ies6 No i'e o& Appeal i"en i&ies seven "is in' legal iss$es/

<o%ever0 i ma@es no men ion o& an# paragraph n$mber o& he ., 7anel (epor o %hi'h he iss$es appeale" rela e/ None heless0 %e 'onsi"er ha he .ni e" , a es %as in a posi ion o "is'ern he iss$es raise" in he E$ropean -omm$ni ies6 No i'e o& Appeal/ The E$ropean -omm$ni ies has provi"e" a brie& "es'rip ion o& ea'h legal iss$e i raises on appeal/ The &a' ha he .ni e" , a es has provi"e" a 'omprehensive appellee6s s$bmission respon"ing o all he iss$es o& %hi'h he E$ropean -omm$ni ies see@s revie%0 s$gges s o $s ha he .ni e" , a es %as0 in &a' 0 in a posi ion o i"en i&# he 7anel &in"ings he E$ropean -omm$ni ies is appealing0 an" "i" no s$&&er preN$"i'e &rom he &ail$re o& he E$ropean -omm$ni ies o provi"e a lis o& relevan paragraphs o& he ., 7anel (epor in i s No i'e o& Appeal/ :$r hermore0 %e no e ha 0 in response o D$es ioning a he oral hearing0 he .ni e" , a es 'on&irme" ha i %as no alleging ha i ha" been preN$"i'e" b# he absen'e o& paragraph n$mbers o& he ., 7anel (epor in he E$ropean -omm$ni ies6 No i'e o& Appeal/ )e here&ore 'onsi"er ha 0 %i h respe' o i ems (a)8(g) se o$ in paragraph 2 o& he No i'e o& Appeal0 he .ni e" , a es %as in he posi ion o L@no% he 'ase Fi ha"G o mee L 70 an" %as h$s pla'e" on no i'e o& he iss$es raise" in he E$ropean -omm$ni ies6 No i'e o& Appeal/ The &ormal "e&e' s in he No i'e o& Appeal h$s "o no give rise o pro'e"$ral "e rimen o& he @in" ha %o$l" %arran he "ismissal o& he E$ropean -omm$ni ies6 appeal/ )e here&ore find ha appeal/ 40/ )e $rn no% o he .ni e" , a es6 reD$es ha %e "ismiss he E$ropean -omm$ni ies6 he "e&i'ien'ies in he E$ropean -omm$ni ies6 No i'e o& Appeal "o no lea" o "ismissal o& he E$ropean -omm$ni ies6

'laims $n"er Ar i'le 44 o& he +,. as no properl# be&ore he Appella e !o"# be'a$se s$'h 'laims %ere no in'l$"e" in he No i'e o& Appeal/ 8 The .ni e" , a es s$bmi s ha 0 %hile he E$ropean -omm$ni ies6 No i'e o& Appeal no%here 'on ains a 'laim $n"er Ar i'le 44 o& he +,.0 he E$ropean -omm$ni ies6 appellan 6s s$bmission asser s0 in several pla'es0 ha he 7anel a' e" in'onsis en l# %i h Ar i'le 44/ There&ore0 he .ni e" , a es reD$es s he Appella e !o"# o 'onsi"er he E$ropean -omm$ni ies6 'laims $n"er Ar i'le 44 as no properl# be&ore i 0 'onsis en %i h he Appella e !o"#6s rea men o& his iss$e in previo$s 'ases/

7 8

Appella e !o"# (epor 0 /# )ountervailing Measures on )ertain E) Products0 para/ 79/ .ni e" , a es6 appellee6s s$bmission0 para/ 455/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 99 44/ The E$ropean -omm$ni ies 'lari&ie"0 a he oral hearing0 ha i %as no invo@ing Ar i'le 44

as he basis o& a separa e 'laim/ The E$ropean -omm$ni ies e3plaine" ha 0 ra her0 i ma"e re&eren'e o Ar i'le 44 o& he +,. as a s$ppor ing arg$men in he 'on e3 o& i s 'laims $n"er o her provisions o& he AATT 4999 or he +,./ 1n o$r vie%0 a par # is no preven e" &rom ma@ing re&eren'e o Ar i'le 44 in s$ppor o& an arg$men 0 an" %e "o no &in" &a$l %i h he E$ropean -omm$ni ies &or ma@ing vario$s re&eren'es o Ar i'le 44 in i s appellan 6s s$bmission/ <o%ever0 as no separa e 'laim $n"er Ar i'le 44 o& he +,. has been raise" in he No i'e o& Appeal0 an" as %e have no been as@e" o ma@e &in"ings %i h respe' o Ar i'le 440 %e ma@e no s$'h &in"ings/ 42/ :or all hese reasons0 %e reDect he .ni e" , a es6 reD$es o "ismiss he E$ropean

-omm$ni ies6 appeal on a''o$n o& he E$ropean -omm$ni ies6 &ail$re o 'ompl# %i h he reD$iremen se o$ in ($le 20(2)(") o& he >or0ing Procedures/ ?oreover0 as he E$ropean -omm$ni ies has no in'l$"e" 'laims base" on Ar i'le 44 o& he +,. in i s No i'e o& Appeal0 an" has 'lari&ie" ha i has ma"e no separa e 'laim base" on Ar i'le 440 %e ma@e no &in"ings in his respe' / >. 4/ A($),*% >III #1 $'% GATT 1""@ :E,+-0#( -/0 U/)$%0 S$-$%.; )e $rn ne3 o he E$ropean -omm$ni ies6 appeal o& he 7anel6s &in"ing ha he "$ #-&ree

ari&& D$o a reserve" &or bananas o& A-7 origin &alls %i hin he s'ope o& Ar i'le 2111 o& he AATT 4999 an" %as0 here&ore0 in'onsis en %i h Ar i'le 2111:40 he 'hapea$ o& Ar i'le 2111:20 an" Ar i'le 2111:2(") o& he AATT 4999/ 4 As a preliminar# iss$e0 %e a""ress he E$ropean -omm$ni ies6 appeal in he E'$a"or 'ase o& he 7anel6s &in"ing ha L he &a' ha a ?ember a"op s a meas$re o implemen a s$gges ion p$rs$an o Ar i'le 49/4 %o$l" Fno G preven ano her ?ember &rom 'hallenging0 p$rs$an o Ar i'le 24/50 he 'omplian'e o& s$'h meas$re %i h he 'overe" agreemen s/L 2 2/ ,e' ion A s$mmari=es he &in"ings ma"e in he original pro'ee"ings an" b# he &irs

Ar i'le 24/5 panel reD$es e" b# E'$a"or/ ,e' ion ! "es'ribes he meas$res a@en b# he E$ropean -omm$ni ies o 'ompl# %i h he +,!6s re'ommen"a ions an" r$lings/ The '$rren Ar i'le 24/5 pro'ee"ings are s$mmari=e" in se' ion -/ ,e' ion + provi"es an overvie% o& he arg$men s raise" on appeal b# he par i'ipan s an" he hir" par i'ipan s/ :inall#0 in se' ion E0 %e "is'$ss he iss$es appeale"/ A/ 4/ 4he =riginal Proceedings and the First Ecuador Article +,-. Panel

1n he original E) Bananas III pro'ee"ings0 he allo'a ion o& ari&& D$o a shares $n"er he

E$ropean -omm$ni ies6 bananas impor regime in &or'e a ha ime %as &o$n" o be in'onsis en %i h
4 2

E'$a"or 7anel (epor 0 para/7/582B ., 7anel (epor 0 para/ 7/720/ E'$a"or 7anel (epor 0 para/ 7/254/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 400 Ar i'le 2111 o& he AATT 4999/ This in'onsis en'# %as &o$n" no -on'essions0 or he Agreement on Agriculture/ o be N$s i&ie" b# ei her he he

L!ananas :rame%or@ Agreemen L5 anne3e" o he E$ropean -omm$ni ies6 AATT ,'he"$le o& The Appella e !o"# also &o$n" ha L>omH )aiverL9 &rom Ar i'le 1 "i" no N$s i&# in'onsis en'ies %i h Ar i'le 2111 o& he AATT 4999/5 On 25 ,ep ember 49970 he +,! a"op e" he original panel an" Appella e !o"# (epor s in E) Bananas III an" re'ommen"e" ha he E$ropean -omm$ni ies bring i s meas$res in o 'on&ormi # %i h he 'overe" agreemen s/6 2/ The impor regime in ro"$'e" p$rs$an o E- (eg$la ion 4657*98 main aine" a ari&& D$o a

o& 8570000 m reserve" &or "$ #-&ree impor s o& bananas &rom ra"i ional A-7 s$ppliers an" ari&& D$o as o alling 205550000 m &or impor s &rom hir" 'o$n ries an" non- ra"i ional A-7 s$ppliers/ 7 .n"er hese ari&& D$o as0 impor s &rom hir" 'o$n ries %ere s$bNe' o an in-D$o a "$ # o& E-.75*m 0 %hile impor s &rom A-7 s$ppliers %ere "$ # &ree/ s$ppliers/ 5/ On 48 +e'ember 49980 E'$a"or ini ia e" pro'ee"ings p$rs$an o Ar i'le 24/5 o& he +,.0 he meas$res a@en b# he E$ropean -omm$ni ies &aile" o implemen he +,!6s he O$ -o&-D$o a impor s &rom A-7 s$ppliers bene&i e" &rom an E-.200 pre&eren'e over he o$ -o&-D$o a "$ # appli'able o impor s &rom non-A-7

alleging ha

re'ommen"a ions an" r$lings/ The &irs Ar i'le 24/5 panel reD$es e" b# E'$a"or &o$n" ha

meas$res a@en o 'ompl# b# he E$ropean -omm$ni ies %ere in'onsis en %i h Ar i'les 1 an" 2111 o& he AATT 4999/8 The &irs E'$a"or Ar i'le 24/5 panel repor %as no appeale" an" %as a"op e" b# he +,! on 6 ?a# 4999/9

:rame%or@ Agreemen on !ananas0 anne3e" o bo h E- ,'he"$le >222 an" E- ,'he"$le -2>0 originall# nego ia e" in 4999 b# he E$ropean -omm$ni ies %i h -olombia0 -os a (i'a0 Ni'arag$a0 an" ;ene=$ela (repro"$'e" in Anne3 ;11 a a'he" o his (epor )/ 9 The :o$r h A-7-EE- -onven ion o& >omH0 +e'ision o& he -ONT(A-T1NA 7A(T1E, o& 9 +e'ember 49990 >*76090 49 +e'ember 49990 e3 en"e" b# E- 8 The :o$r h A-7-EE- -onven ion o& >omH0 E3 ension o& )aiver0 +e'ision o& he )TO Aeneral -o$n'il o& 49 O' ober 49960 )T*>*4860 48 O' ober 4996 ( he L>omH )aiverL)/ 5 The Appella e !o"# an" he original panel also &o$n" ha li'en'e allo'a ion pro'e"$res viola e" Ar i'les 1:4 an" 111:9 o& he AATT 4999 an" Ar i'les 11 an" 2;11 o& he AAT,/ (Appella e !o"# (epor 0 E) Bananas III0 para/ 225) The original panel an" he Appella e !o"# &o$n" ha his viola ion o& Ar i'le 1:4 %as no N$s i&ie" b# he >omH )aiver &rom Ar i'le 10 be'a$se i %as no reD$ire" b# he Lom@ )onvention/ 6 On 20 C$l# 49980 he E$ropean -omm$ni ies a"op e" E- (eg$la ion 4657*98 amen"ing EE(eg$la ion 909*95 an"0 on 28 O' ober 49980 a"op e" E- (eg$la ion 2562*98 repealing EE- (eg$la ion 4992*95/ 7 O& hese 202550000 m 0 a ari&& D$o a o& 2/2 million m %as bo$n" in he E$ropean -omm$ni ies6 ,'he"$le an" he E$ropean -omm$ni ies opene" an a$ onomo$s ari&& D$o a o& 5550000 m "$e o he enlargemen o& he E$ropean -omm$ni ies in 4995/ 8 The &irs E'$a"or Ar i'le 24/5 panel also &o$n" ha he revise" li'en'e allo'a ion pro'e"$res %ere also in'onsis en %i h Ar i'les 11 an" 2;11 o& he AAT,/ (7anel (epor 0 E) Bananas III &Article +,-. Ecuador'0 paras/ 6/459 an" 7/4) 9 )T*+,!*?*64/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 404 9/ The &irs E'$a"or Ar i'le 24/5 panel ma"e s$gges ions0 p$rs$an o Ar i'le 49/4 o& he

+,.0 ha he E$ropean -omm$ni ies 'o$l" bring i s meas$res in o 'on&ormi # b#: (i) appl#ing a ari&&-onl# s#s em %i ho$ a ari&& D$o a ha 'o$l" in'l$"e a pre&eren'e &or A-7 'o$n ries 'overe" b# a %aiver or a &ree ra"e agreemen 'onsis en %i h Ar i'le 221; o& he AATT 4999B (ii) appl#ing a ari&&-onl# s#s em %i h a "$ #-&ree ari&& D$o a &or A-7 'o$n ries 'overe" b# a s$i able %aiverB or (iii) main aining i s bo$n" an" a$ onomo$s mos -&avo$re" na ion (L?:NL) ari&& D$o as0 ei her %i ho$ allo'a ing 'o$n r#-spe'i&i' shares or b# allo'a ing s$'h shares b# agreemen %i h all s$bs an ive s$ppliers 'onsis en l# %i h Ar i'le 2111:2 o& he AATT 4999/ The ?:N ari&& D$o a 'o$l" be 'ombine" %i h he e3 ension o& "$ #-&ree rea men o A-7 'o$n ries 'overe" b# he >omH )aiver &rom Ar i'le 1 o& he AATT 4999 or %i h a "$ #-&ree ari&& D$o a &or A-7 'o$n ries0 provi"e" ha a %aiver &rom Ar i'le 2111 o& he AATT 4999 %as ob aine"/40 5/ :ollo%ing arbi ra ion pro'ee"ings p$rs$an o Ar i'le 22/6 o& he +,.0 he .ni e" , a es

an" E'$a"or reD$es e" an" ob aine" a$ hori=a ion &rom he +,! o s$spen" 'on'essions or o her obliga ions/44 !/ 4/ Measure 4a0en to )omply

:ollo%ing he signing0 in April 20040 o& he .n"ers an"ings on !ananas be %een he he +oha ?inis erial -on&eren'e o& %o %aivers0 &rom

E$ropean -omm$ni ies an" E'$a"or an" be %een he E$ropean -omm$ni ies an" he .ni e" , a es0 an" he a"op ion0 in November 20040 a bananas impor regime/ Ar i'le 1 an" &rom Ar i'le 2111 o& he AATT 49990 he E$ropean -omm$ni ies &$r her amen"e" i s

7anel (epor 0 E) Bananas III &Article +,-. Ecuador'0 paras/ 6/456-6/458/ 7$rs$an o arbi ra ions on he level o& s$spension o& 'on'essions an" o her obliga ions in he #ears 4999 an" 20000 he +,! a$ hori=e" he .ni e" , a es o s$spen" 'on'essions or o her obliga ions $p o an amo$n o& .,O494/9 million per #ear0 an" E'$a"or $p o an amo$n o& .,O204/6 million per #ear/ (+e'ision b# he Arbi ra ors0 E) Bananas III &/#' &Article ++-3 E)'0 para/ 8/4B +e'ision b# he Arbi ra ors0 E) Bananas III &Ecuador' &Article ++-3 E)'0 para/ 475) The .ni e" , a es s$spen"e" ari&& 'on'essionsB E'$a"or0 ho%ever0 "i" no e3er'ise i s righ o s$spen" 'on'essions an" o her obliga ions $n"er he AATT 49990 he AAT,0 or he 4*IP# Agreement/
44

40

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 402 2/ E- (eg$la ion 246*2004 reorgani=e" he E- !ananas 1mpor (egime in o ari&& D$o as A

an" !0 o alling 205550000 m 0 an" ari&& D$o a -0 a he level o& 8500000 m / These hree ari&& D$o as %ere open &or impor s o& bananas &rom hir" 'o$n ries/ <o%ever0 in-D$o a impor s o& A-7 bananas en ere" "$ # &ree an" o$ -o&-D$o a impor s en ere" %i h a ari&& pre&eren'e o& M500*m over he ?:N "$ # spe'i&ie" in he E$ropean -omm$ni ies6 'ommon '$s oms ari&&/ 42 1mpor s &rom non-A-7 s$ppliers $n"er ari&& D$o as A an" ! %ere s$bNe' o an in-D$o a "$ # o& M75*m an" impor s $n"er ari&& D$o a - %ere s$bNe' o a "$ # o& M500*m / E- (eg$la ion 246*2004 es ablishe" ha he -ommission0 on he basis o& an agreemen %i h he )TO ?embers %i h a s$bs an ial in eres in he s$ppl# o& bananas0 %o$l" allo'a e ari&& D$o as A an" ! among s$pplier 'o$n ries/45 5/ E- (eg$la ion 2587*2004 &$r her amen"e" he E$ropean -omm$ni ies6 'ommon mar@e

organi=a ion in or"er o implemen 7hase 11 o& he .n"ers an"ings on !ananas &or he perio" &rom 4 Can$ar# 2002 o 54 +e'ember 2005/ E- (eg$la ion 2587*2004 mo"i&ie" he ari&& D$o as in he &ollo%ing %a#s: (i) ari&& D$o a A o& 2/2 million m %as main aine"0 %hile ari&& D$o a ! %as in'rease" o 9550000 m B (ii) %i hin ari&& D$o as A an" !0 impor s &rom hir" 'o$n ries %ere s$bNe' o a "$ # o& M75*m 0 %hile impor s &rom A-7 'o$n ries en ere" "$ # &reeB an" (iii) ari&& D$o a -0 reserve" &or impor s &rom A-7 'o$n ries an" s$bNe' o a =ero "$ #0 %as "e'rease" o 7500000 m /49 O$ -o&-D$o a impor s &rom A-7 'o$n ries enNo#e" a ari&& pre&eren'e o& M500*m over impor s &rom non-A-7 s$pplier 'o$n ries/45 9/ :inall#0 on 29 November 20050 he E$ropean -omm$ni ies a"op e" E- (eg$la ion

4969*20050 %hi'h in ro"$'e" he E- !ananas 1mpor (egime a iss$e in hese Ar i'le 24/5 pro'ee"ings/ The ne% impor regime en ere" in o &or'e on 4 Can$ar# 2006 an" es ablishe" a ari&&onl# regime &or impor s &rom non-A-7 s$ppliers %i h an ?:N ari&& ra e o& M476*m &or bananas/ 1n a""i ion0 i es ablishe" a =ero "$ # pre&eren'e &or 7750000 m o& impor s &rom A-7 'o$n ries/46 On 20 +e'ember 20070 he E$ropean -omm$ni ies a"op e" E- (eg$la ion 4528*20070 %hi'h repeale" EE- (eg$la ion 909*95 an" mo"i&ie" E- (eg$la ion 4969*20050 elimina ing he 7750000 m ari&& D$o a &or "$ #-&ree impor s &rom A-7 'o$n ries/ -/ 4/ 4he )urrent Article +,-. Proceedings he

!e&ore he 7anel0 E'$a"or an" he .ni e" , a es ( he 'omplainan s) 'laime" ha

47

E- !ananas 1mpor (egime %as in'onsis en %i h Ar i'le 2111:4 an" 2 o& he AATT 4999/
42 45

E- (eg$la ion 246*20040 Ar i'le 48/90 as amen"e"/ E- (eg$la ion 246*20040 Ar i'le 49/40 as amen"e"/ 49 E- (eg$la ion 2587*20040 Ar i'les 48/40 48/20 an" 48/50 as amen"e"/ 45 E- (eg$la ion 2587*20040 Ar i'le 48/90 as amen"e"/ 46 ,ee supra0 &oo no e Error: (e&eren'e so$r'e no &o$n"/ 47 E'$a"or 7anel (epor 0 para/ 7/202B ., 7anel (epor 0 para/ 7/608/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 405 2/ The 'omplainan s arg$e" ha 0 no %i hs an"ing he e3pira ion o& he +oha Ar i'le 2111

)aiver48 on 54 +e'ember 20050 he E$ropean -omm$ni ies 'on in$e" o appl# a ari&& D$o a a he level o& 7750000 m reserve" &or "$ #-&ree impor s &rom A-7 'o$n ries/ 1mpor s &rom all o her s$pplier 'o$n ries "i" no have a''ess o he A-7 "$ #-&ree ari&& D$o a an" %ere s$bNe' o he ?:N ari&& a he level o& M476*m / 49 The 'omplainan s 'laime" ha he E$ropean -omm$ni ies6 meas$re %as in'onsis en %i h Ar i'le 2111:4 o& he AATT 49990 in ha banana impor s o& non-A-7 origin %ere no Lsimilarl# res ri' e"L as %ere impor s o& A-7 bananas be'a$se non-A-7 s$ppliers %ere e3'l$"e" &rom ha "$ #-&ree ari&& D$o a/20 The 'omplainan s also arg$e" ha he meas$re %as in'onsis en %i h he 'hapea$ o& Ar i'le 2111:2 be'a$se i "is'rimina e" be %een A-7 bananas an" li@e non-A-7 bananas in he appli'a ion o& he ari&& D$o aB nei her "i" i aim a a "is rib$ ion o& ra"e approa'hing as 'losel# as possible he ari&& D$o a shares0 %hi'h he vario$s ?embers migh be e3pe' e" o ob ain in he absen'e o& s$'h res ri' ions/ 24 :inall#0 he 'omplainan s 'laime" ha he meas$re %as in'onsis en %i h Ar i'le 2111:2(") be'a$se he allo'a ion o& he "$ #-&ree ari&& D$o a0 e3 en"e" e3'l$sivel# o A-7 s$ppliers0 bears no rela ion o ra"ing pa erns in he %orl" mar@e or he E$ropean -omm$ni ies6 mar@e /22 5/ The E$ropean -omm$ni ies raise" a preliminar# obNe' ion in he E'$a"or 'ase/ 1 arg$e"

ha E'$a"or6s 'laim $n"er Ar i'le 2111 sho$l" be reNe' e" be'a$se0 in ena' ing he 'hallenge" meas$re0 he E$ropean -omm$ni ies ha" &ollo%e" a s$gges ion &or implemen a ion ma"e b# he &irs E'$a"or Ar i'le 24/5 panel0 namel#0 Lappl#ing a ari&&-onl# s#s em %i h a "$ #-&ree ari&& D$o a &or A-7 'o$n ries 'overe" b# a s$i able %aiverL/ 25 On he s$bs an'e o& he Ar i'le 2111 'laims0 he E$ropean -omm$ni ies 'on en"e" ha Ar i'le 2111 %as no appli'able o he 'hallenge" meas$re be'a$se he L'apL on he ari&& pre&eren'e &or A-7 s$ppliers &ell %i hin he s'ope o& Ar i'le 1:4 o& he AATT 4999/29 The E$ropean -omm$ni ies also arg$e" ha he 'ap on "$ #-&ree impor s &rom A-7 s$ppliers %as no a Lres ri' ionL %i hin he meaning o& Ar i'le 2111 be'a$se he 'ap on he ari&& pre&eren'e %as impose" on A-7 'o$n ries an" no on he non-A-7 s$pplier 'o$n ries/ 25 A''or"ing o he E$ropean -omm$ni ies0 Ar i'le 2111 "i" no reD$ire he e3 ension o all ?embers o& he ari&& pre&eren'e gran e" o A-7 'o$n ries/ 26 1n he E'$a"or 'ase0 he E$ropean -omm$ni ies &$r her
:o$r h ,ession o& he ?inis erial -on&eren'e hel" in +oha0 E$ropean -omm$ni ies 8 Transi ional (egime &or he E- A$ onomo$s Tari&& (a e E$o as on 1mpor s o& !ananas0 +e'ision o& 49 November 20040 )T*?1N(04)*46B )T*>*957 (7anel E3hibi .,-5)/ The +oha Ar i'le 2111 )aiver e3pire" on 54 +e'ember 2005/ 49 E'$a"or 7anel (epor 0 para/7/205B ., 7anel (epor 0 paras/ 7/645 an" 7/649/ 20 E'$a"or 7anel (epor 0 para/7/205B ., 7anel (epor 0 para/ 7/645/ 24 E'$a"or 7anel (epor 0 para/7/206B ., 7anel (epor 0 para/ 7/649/ 22 E'$a"or 7anel (epor 0 para/ 7/208B ., 7anel (epor 0 para/ 7/649/ 25 E'$a"or 7anel (epor 0 para/ 7/209/ 29 E'$a"or 7anel (epor 0 para/ 7/240B ., 7anel (epor 0 para/ 7/647/ 25 E'$a"or 7anel (epor 0 para/ 7/244B ., 7anel (epor 0 para/ 7/646/ 26 E'$a"or 7anel (epor 0 para/ 7/242B ., 7anel (epor 0 para/ 7/647/
48

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 409 arg$e" ha E'$a"or 'o$l" no 'hallenge he limi on he ari&& pre&eren'e &or impor s &rom A-7 'o$n ries0 be'a$se his 'ap "i" no res$l in an# n$lli&i'a ion or impairmen o& bene&i s a''r$ing o E'$a"or/27 To he 'on rar#0 he 'ap on "$ #-&ree impor s &rom A-7 'o$n ries bene&i e" non-A-7 s$pplier 'o$n ries0 in'l$"ing E'$a"or/ 9/ The 7anel 'onsi"ere"0 &irs 0 he preliminar# obNe' ion raise" b# he E$ropean -omm$ni ies he E$ropean o Ar i'le 49/4 b# he &irs E'$a"or

agains E'$a"or6s 'laim $n"er Ar i'le 2111/ A''or"ing o he 7anel0 o he e3 en -omm$ni ies implemen e" he s$gges ion ma"e p$rs$an

Ar i'le 24/5 panel0 he 7anel %as no pre'l$"e" &rom 'on"$' ing he assessmen reD$es e" b# E'$a"or $n"er Ar i'le 24/5 in hese pro'ee"ings/28 The 7anel reasone" ha E'$a"or %as no as@ing &or an assessmen o& he 'on&ormi # %i h he 'overe" agreemen s o& he suggestions ma"e b# he &irs E'$a"or Ar i'le 24/5 panel b$ 0 ra her0 o& he measure a' $all# a@en b# he E$ropean -omm$ni ies o implemen s$'h s$gges ions/29 The 7anel hel" ha he 'on&ormi # %i h he 'overe" agreemen s o& an# meas$re a@en b# a ?ember o implemen a s$gges ion %ill "epen" on he a' $al implemen a ion o& he s$gges ion b# he ?ember in D$es ion/50 The 7anel 'on'l$"e" ha : /// on'e he respon"en has a@en he meas$re allege"l# o implemen a s$gges ion $n"er Ar i'le 49/40 o he e3 en ha he 'omplainan 'on es s he e3is en'e o& s$'h meas$res or heir 'on&ormi # %i h he 'overe" agreemen s0 e3is en'e an" 'on&ormi # %i h he 'overe" agreemen s ma# be veri&ie"0 i& reD$es e" b# he 'omplainan 0 b# a 'omplian'e panel p$rs$an o Ar i'le 24/5/54 5/ The 7anel also no e" ha : /// in a""ressing he E$ropean -omm$ni ies6 &irs preliminar# obNe' ion0 he 7anel "oes no nee" o assess %he her he E$ropean -omm$ni ies has e&&e' ivel# implemen e" an# o& he s$gges ions o& he &irs 'omplian'e panel reD$es e" b# E'$a"or/ There&ore0 he 7anel "oes no nee" o a""ress0 in he 'on e3 o& he E$ropean -omm$ni ies6 &irs preliminar# obNe' ion0 %he her he Ehas &$l&ille" he %o par s o& he se'on" s$gges ion o& ha 'omplian'e panel0 in par i'$lar %he her he erm Ls$i able %aiverL re&ers o a %aiver &rom onl# Ar i'le 1 or also &rom Ar i'le 2111 o& he AATT 4999/52 6/ (egar"ing he rela ionship be %een Ar i'les 1 an" 2111 o& he AATT 49990 he 7anel

reasone" ha 0 Li& here %as some overlap be %een hose %o Ar i'les0 giving e&&e' o Ar i'le 2111
27 28

E'$a"or 7anel (epor 0 para/ 7/245/ E'$a"or 7anel (epor 0 para/ 7/258/ 29 E'$a"or 7anel (epor 0 para/ 7/228/ 50 E'$a"or 7anel (epor 0 para/ 7/297/ 54 E'$a"or 7anel (epor 0 para/ 7/262/ 52 E'$a"or 7anel (epor 0 para/ 7/265/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 405 %o$l" no n$lli&# he e&&e' o& Ar i'le 1L/55 The 7anel also relie" on he &in"ings o& he &irs E'$a"or Ar i'le 24/5 panel ha Ar i'le 2111 "i" no onl# appl# o D$an i a ive prohibi ions an" res ri' ions0 b$ ha Ar i'le 2111:5 s$bNe' e" ari&& D$o as o he reD$iremen s o& Ar i'le 2111/59 7/ 1n respe' o& he 'laim $n"er Ar i'le 2111:40 he 7anel &o$n" ha he "$ #-&ree ari&& D$o a

&or A-7 bananas a a level o& 7750000 m represen e" a D$an i a ive res ri' ion0 %i hin he meaning o& Ar i'le 2111:40 on banana impor s &rom non-A-7 s$ppliers ha L'anno have a''ess o ha D$an i a ivel# limi e" bene&i /L55 The 7anel &o$n" ha impor s &rom A-7 'o$n ries %ere no similarl# res ri' e" as %ere li@e impor s &rom non-A-7 s$ppliers/ There&ore0 he "$ #-&ree ari&& D$o a reserve" &or A-7 'o$n ries %as in'onsis en %i h Ar i'le 2111:4/56 8/ <aving &o$n" ha banana impor s &rom E'$a"or %ere Lres ri' e"L %i hin he meaning o&

Ar i'le 2111:40 he 7anel also reNe' e"0 in he E'$a"or 'ase0 he E$ropean -omm$ni ies6 arg$men ha 0 even ass$ming arguendo ha here %as a D$an i a ive res ri' ion impose" on A-7 'o$n ries0 E'$a"or 'o$l" no s$''ess&$ll# 'hallenge i 0 be'a$se his D$an i a ive res ri' ion impose" on A-7 'o$n ries %o$l" no res$l in an# n$lli&i'a ion or impairmen o& an# bene&i a''r$ing o E'$a"or/ 57 9/ 1n respe' o& Ar i'le 2111:2 o& he AATT 49990 he 7anel &o$n" ha : /// given ha ?:N 'o$n ries are e3'l$"e" &rom he E$ropean -omm$ni ies6 pre&eren ial A-7 ari&& D$o a0 b# "e&ini ion0 he A-7 pre&eren'e 'anno an" "oes no Laim a a "is rib$ ion o& ra"e in FbananasG approa'hing as 'losel# as possible he shares %hi'h he vario$s F?embers0 in'l$"ing bo h A-7 an" ?:N 'o$n riesG migh be e3pe' e" o ob ain in he absen'e o& s$'h res ri' ionsL/58 The 7anel h$s &o$n" ha 0 on i s &a'e0 he E- !ananas 1mpor (egime0 in'l$"ing i s A-7 "$ #-&ree ari&& D$o a0 %as in'onsis en %i h he 'hapea$ o& Ar i'le 2111:2/59 40/ :inall#0 he 7anel 'on'l$"e" ha he A-7 "$ #-&ree ari&& D$o a0 %hi'h is gran e" o o hers0 in'l$"ing s$bs an ial s$ppliers0 "oes no

e3'l$sivel# o some )TO ?embers an" no

'ompl# %i h he reD$iremen s o& Ar i'le 2111:2(") be'a$se0 in he absen'e o& an agreemen on he allo'a ion o& ari&& D$o a shares0 i "oes no res$l in an allo'a ion o& D$o a shares o ?embers having

55 59

E'$a"or 7anel (epor 0 para/ 7/299B ., 7anel (epor 0 para/ 7/659/ E'$a"or 7anel (epor 0 para/ 7/509B ., 7anel (epor 0 para/ 7/659/ 55 E'$a"or 7anel (epor 0 para/ 7/552B ., 7anel (epor 0 para/ 7/679/ 56 E'$a"or 7anel (epor 0 para/ 7/599 an" 7/550B ., 7anel (epor 0 paras/ 7/697 an" 7/698/ 57 E'$a"or 7anel (epor 0 para/ 7/557/ 58 E'$a"or 7anel (epor 0 para/ 7/566B ., 7anel (epor 0 para/ 7/708/ 59 E'$a"or 7anel (epor 0 para/ 7/566B ., 7anel (epor 0 para/ 7/708/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 406 a s$bs an ial in eres in s$ppl#ing he pro"$' shares base" $pon he propor ions s$pplie" b# s$'h ?embers "$ring a previo$s represen a ive perio"/ 90 +/ 4/ )laims and Arguments on Appeal

1n he E'$a"or 'ase0 he E$ropean -omm$ni ies reD$es s he Appella e !o"# o reverse he

7anel6s &in"ing ha he a"op ion b# a ?ember o& a meas$re ha implemen s a s$gges ion ma"e b# a panel p$rs$an o Ar i'le 49/4 o& he +,. "oes no preven ano her ?ember &rom 'hallenging0 in Ar i'le 24/5 pro'ee"ings0 he 'onsis en'# o& ha meas$re %i h he 'overe" agreemen s/ The E$ropean -omm$ni ies also 'hallenges he 7anel6s &in"ing ha 0 LFeGven i& here %as a pres$mp ion o& he legali # o& meas$res a@en o implemen a s$gges ion p$rs$an o Ar i'le 49/40 here is no hing in he +,. s$gges ing ha he allege" legali # o& s$'h meas$res 'o$l" no be revie%e" b# a 'omplian'e panel/L94 2/ 1n bo h he E'$a"or an" .ni e" , a es 'ases0 he E$ropean -omm$ni ies reD$es s he

Appella e !o"# o reverse he 7anel6s in erpre a ion o& Ar i'le 2111 o& he AATT 4999 an" he 7anel6s 'onseD$en ial &in"ings ha he E- !ananas 1mpor (egime %as in'onsis en %i h Ar i'le 2111:40 he 'hapea$ o& Ar i'le 2111:20 an" Ar i'le 2111:2(")/92 1n par i'$lar0 he E$ropean -omm$ni ies arg$es ha he limi on he ari&& pre&eren'e &or A-7 bananas &alls %i hin he s'ope o& Ar i'le 1:4 an" "oes no 'ons i $ e a LD$an i a ive res ri' ionL %i hin he meaning o& Ar i'le 2111/95 ?oreover0 he E$ropean -omm$ni ies 'on en"s ha he D$an i a ive limi a ion applies o he pre&eren'e gran e" o A-7 'o$n ries an" is no impose" on he allege"l# aggrieve" ?embersP ha is0 he non-A-7 s$ppliersPas %o$l" be reD$ire" in or"er &or Ar i'le 2111 o appl#/ 99 5/ 1n he .ni e" , a es 'ase onl#0 he E$ropean -omm$ni ies emphasi=es ha L he .ni e"

, a es has never been a banana s$pplier o he E$ropean -omm$ni ies an" is no li@el# o be'ome s$'h a banana s$pplier in he &$ $re/L 95 :or ha reason0 he A-7 ari&& pre&eren'e 'o$l" no be in'onsis en %i h he reD$iremen o& he 'hapea$ o& Ar i'le 2111:2 ha impor res ri' ions aim a a "is rib$ ion o& ra"e approa'hing as 'losel# as possible he shares in he absen'e o& he res ri' ion/ This is so be'a$se0 even in he absen'e o& he A-7 ari&& pre&eren'e0 he .ni e" , a es6 share o& ra"e in bananas in he E$ropean -omm$ni ies %o$l" be =ero/ 96
E'$a"or 7anel (epor 0 para/ 7/577B ., 7anel (epor 0 para/ 7/745/ E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 80 (E'$a"or) (D$o ing E'$a"or 7anel (epor 0 para/ 7/254)/ 92 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 paras/ 4450 4500 an" 459 (E'$a"or)0 paras/ 4500 4970 an" 454 (.,)/ 95 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 409 (E'$a"or)0 para/ 426 (.,)/ 99 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 455 (E'$a"or)0 para/ 450 (.,)/ 95 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 455 (.,)/ 96 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 455 (.,)/
94 90

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 407 9/ 1n he E'$a"or 'ase0 he E$ropean -omm$ni ies reD$es s he Appella e !o"# o reverse he o E'$a"or6s in eres s $n"er he 'overe" agreemen sB ra her0 i %as a bene&i &or

7anel6s &in"ing ha he limi on he ari&& pre&eren'e &or impor s o& A-7 bananas 'a$se" n$lli&i'a ion or impairmen E'$a"or ha he A-7 ari&& pre&eren'e %as limi e"/ 97 5/ E'$a"or reD$es s he Appella e !o"# o $phol" he 7anel6s &in"ing ha i 'o$l" revie%

$n"er Ar i'le 24/5 he 'on&ormi # o& he meas$res a@en o 'ompl# b# he E$ropean -omm$ni ies0 even ho$gh he E$ropean -omm$ni ies ha" a@en he meas$res o implemen a s$gges ion ma"e b# he &irs E'$a"or Ar i'le 24/5 panel p$rs$an o Ar i'le 49/4 o& he +,./ E'$a"or arg$es ha Lno hing in he +,. s$gges s ha he absen'e o& an appeal /// o& a panelF6sG s$gges ion imm$ni=es meas$res a@en o implemen ha s$gges ion &rom an Ar i'le 24/5 revie%/L98 6/ As o he s$bs an'e o& heir Ar i'le 2111 'laims0 E'$a"or an" he .ni e" , a es 'on en" ha o &in"0 'onsis en %i h he repor s o& earlier panels0 arbi ra ors0 an" he

he 7anel %as 'orre'

Appella e !o"# in his 'on in$ing "isp$ e0 ha he "$ #-&ree ari&& D$o a &or A-7 bananas 'ons i $ e" a res ri' ion %i hin he meaning o& Ar i'le 21110 an" viola e" Ar i'le 2111:40 he 'hapea$ o& Ar i'le 2111:20 an" Ar i'le 2111:2(")/99 E'$a"or an" he .ni e" , a es emphasi=e ha Ar i'le 2111:5 ma@es he reD$iremen s o& Ar i'le 2111 appli'able o an# ari&& D$o a0 an" ha ha %ere "enie" a''ess o he "$ #-&ree D$o a/ 50 7/ E'$a"or &$r her agrees %i h he 7anel6s reNe' ion o& he E$ropean -omm$ni ies6 arg$men he E$ropean -omm$ni ies6 "$ #-&ree ari&& D$o a &or A-7 s$ppliers 'ons i $ e" a res ri' ion on non-A-7 s$ppliers

ha L here %as no n$lli&i'a ion or impairmen o& bene&i s0 essen iall# be'a$se /// he ari&& D$o a helpe" E'$a"or b# limi ing "$ #-&ree 'ompe i ion &rom A-7 'o$n ries rela ive o he 'ompe i ion ha %o$l" have e3is e" i& here ha" been no D$an i a ive limi a ions/L 54 E'$a"or 'laims ha Lpres$mp ion o& n$lli&i'a ion or impairmen /// is no a D$es ion o& ra"e &lo%s0 b$ ra her o& F ra"eG oppor $ni ies/L 52 8/ The A-7 -o$n ries55 s$ppor he arg$men s ma"e b# he E$ropean -omm$ni ies in rela ion

o Ar i'le 21110 %hile 7anama an" Ni'arag$a s$ppor he posi ion o& E'$a"or an" he .ni e" , a es in his regar"/59

97 98

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 496 (E'$a"or)/ E'$a"or6s appellee6s s$bmission0 para/ 55/ 99 E'$a"or6s appellee6s s$bmission0 paras/ 94 an" 92B .ni e" , a es6 appellee6s s$bmission0 para/ 40/ 50 E'$a"or6s appellee6s s$bmission0 para/ 97B .ni e" , a es6 appellee6s s$bmission0 para/ 55/ 54 E'$a"or6s appellee6s s$bmission0 para/ 98/ 52 E'$a"or6s appellee6s s$bmission0 para/ 99/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 408 E/ 4/ Analysis of the Appealed Findings of the Panel under Article EIII of the 1A44 ,??5

)e begin o$r anal#sis b# a""ressing he E$ropean -omm$ni ies6 appeal o& he 7anel6s

&in"ing regar"ing he E$ropean -omm$ni ies6 preliminar# obNe' ion o E'$a"or6s 'laim $n"er Ar i'le 2111 o& he AATT 49990 an" he iss$e o& he legal e&&e' o& s$gges ions ma"e p$rs$an o Ar i'le 49/4 o& he +,./ )e hen $rn o he s$bs an ive iss$es appeale" in rela ion o Ar i'le 2111:4 an" 2 o& he AATT 4999/ 4/ >egal E&&e' o& ,$gges ions ?a"e p$rs$an (E'$a"or) o Ar i'le 49/4 o& he +,.

4/

The E$ropean -omm$ni ies s$bmi s ha E'$a"or6s 'laim $n"er Ar i'le 2111 sho$l" be

"ismisse" be'a$se LE'$a"or6s 'laims are in reali # a 'hallenge on he meas$res suggested b# he F&irs E'$a"or Ar i'le 24/5G 7anel0 ra her han on he meas$res actually ta0en b# he E$ropean -omm$ni ies/L55 The E$ropean -omm$ni ies arg$es ha 0 on'e a panel or an Appella e !o"# repor 0 'on aining s$gges ions ma"e p$rs$an o he se'on" sen en'e o& Ar i'le 49/4 o& he +,.0 has been a"op e"0 L he 'onsis en'# o& he measures suggested b# he original panel %i h he 'overe" agreemen 'anno be 'hallenge" b# he 'omplaining par # be&ore an Ar i'le 24/5 panelL/56 This is so be'a$se o& ha par #6s obliga ion o L$n'on"i ionall# a''ep L0 p$rs$an 'overs an# s$gges ions 'on aine" herein/ 2/ The E$ropean -omm$ni ies also arg$es ha 0 i& meas$res s$gges e" b# a panel or he o Ar i'le 47/49 rea" in 'ombina ion %i h Ar i'le 46/9 o& he +,.0 he +,!6s re'ommen"a ions an" r$lings0 %hi'h also

Appella e !o"# in previo$s pro'ee"ings are 'hallenge" be&ore an Ar i'le 24/5 panel0 an" he
The A-7 -o$n ries (see supra0 &oo no e Error: (e&eren'e so$r'e no &o$n") 'on en" ha he 7anel in'orre' l# in erpre e" an" applie" Ar i'le 2111:4 be'a$se he Lappli'able non-"is'rimina ion r$le is 'on aine" in Ar i'le 1 /// no in Ar i'le 2111L/ The A-7 -o$n ries s$bmi ha a Lres ri' ionL reD$ires a Llimi a ionL be applie" on he impor e" pro"$' 0 %hi'h0 $n"er Ar i'le 2111:40 Lne'essaril# implies a Auantitative elemen L/ <o%ever0 he A-7 -o$n ries main ain ha he 7anel &aile" o 'onsi"er he 'onsis en pra' i'e o& )TO ?embers o impose 'eilings on pre&eren ial impor s as N$s i&ie" b# he Enabling -la$se or Ar i'le 221; o& he AATT 4999/ A''or"ing o he A-7 -o$n ries0 i& limi a ions on pre&eren ial a''ess &ell a&o$l o& Ar i'le 21110 an" i& pre&eren ial a''ess %ere 'appe"0 hen vir $all# all "$ #-&ree ari&& D$o as $se" in he 'on e3 o& &ree ra"e agreemen s %o$l" pres$mabl# be )TO-in'onsis en / (Thir" par i'ipan s6 s$bmissions o& he A-7 -o$n ries0 paras/ 57-62 (E'$a"or)0 paras/ 59-59 (.,)) 59 7anama an" Ni'arag$a agree %i h he 7anel ha he A-7 "$ #-&ree ari&& D$o a viola es Ar i'le 2111:4 an" 2/ 7anama an" Ni'arag$a arg$e ha he 7anel 'orre' l# "e ermine" ha an e3'l$sive "$ #-&ree ari&& D$o a ha is reserve" &or A-7 s$ppliers an" "enies all a''ess &or ?:N s$ppliers represen s a Lres ri' ionL on hose ?:N s$ppliers %i hin he meaning o& Ar i'le 2111:4/ 7anama an" Ni'arag$a also s$bmi ha he E$ropean -omm$ni ies6 A-7 "$ #-&ree ari&& D$o a viola es he reD$iremen s o& he 'hapea$ an" paragraph (") o& Ar i'le 2111:20 be'a$se he E$ropean -omm$ni ies6 mar@e has been s$bNe' o 'on in$o$s "is'rimina ion0 %hi'h ma@es i impossible o "e&ine a Lprevio$s represen a ive perio"L/ (Thir" par i'ipan s6 s$bmissions o& 7anama an" Ni'arag$a0 paras/ 50-52 (E'$a"or)0 paras/ 57-59 (.,)) 55 E$ropean -omm$ni ies6 &irs %ri en s$bmission o he 7anel0 para/ 88 (E'$a"or)/ (original emphasis) 56 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 88 (E'$a"or)/ (emphasis a""e")
55

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 409 Ar i'le 24/5 panel is Lsa is&ie" ha he 'hallenge" meas$res are in"ee" he meas$res s$gges e" b# he original panelL0 hen he Ar i'le 24/5 panel Lsho$l" &in" ha he# are 'onsis en %i h he 'overe" agreemen s %i ho$ an# &$r her anal#sis/L 57 The E$ropean -omm$ni ies 'on en"s ha 0 in he presen pro'ee"ings0 he 7anel &aile" L o assess %he her he E$ropean -omm$ni ies has e&&e' ivel# implemen e" an# o& he s$gges ions o& he &irs 'omplian'e panel reD$es e" b# E'$a"orL 580 an" erroneo$sl# 'on'l$"e" ha E'$a"or6s "isagreemen as o %he her he E$ropean -omm$ni ies6 bananas impor regime 'omplie" %i h he s$gges ions ma"e in 4999 %as s$&&i'ien o reNe' he E$ropean -omm$ni ies6 arg$men o he 'on rar#/ 59 5/ The 7anel no e" ha E'$a"or %as as@ing i o assess he 'onsis en'# %i h he 'overe" o assess he

agreemen s o& he measures he E$ropean -omm$ni ies 'laims o have a@en o 'ompl# %i h a s$gges ion &or implemen a ion ma"e b# he &irs E'$a"or Ar i'le 24/5 panel0 no 'on&ormi # %i h )TO la% o& he s$gges ion i sel&/ 60 The 7anel "i" no &o'$s0 as he E$ropean -omm$ni ies arg$es0 on %he her he meas$res a@en o 'ompl# 'on&orme" o an# o& he s$gges ions ma"e b# he &irs E'$a"or Ar i'le 24/5 panelB ra her0 he 7anel e3amine" "ire' l# %he her he E- !ananas 1mpor (egime %as 'onsis en %i h he 'overe" agreemen s/ The 7anel "is ing$ishe" be %een s$gges ions ma"e $n"er Ar i'le 49/4 b# a panel or he Appella e !o"#0 on he one han"0 an" he meas$res a' $all# a@en b# ?embers o implemen s$'h s$gges ions so as o 'ompl# %i h he +,! re'ommen"a ions an" r$lings0 on he o her han"/ The 7anel no e" ha Ar i'le 24/5 'rea es an $n'on"i ional righ ha an# "isp$ e res$l ing &rom L"isagreemen as o he e3is en'e or 'onsis en'# %i h a 'overe" agreemen o& meas$res a@en o 'ompl# %i h he re'ommen"a ions an" r$lingsL 'an be "e'i"e" hro$gh re'o$rse o 'omplian'e pro'ee"ings/ 9/ Ar i'le 49/4 o& he +,.0 en i le" L7anel an" Appella e !o"# (e'ommen"a ionsL0 rea"s: )here a panel or he Appella e !o"# 'on'l$"es ha a meas$re is in'onsis en %i h a 'overe" agreemen 0 i shall re'ommen" ha he ?ember 'on'erne" bring he meas$re in o 'on&ormi # %i h ha agreemen / 1n a""i ion o i s re'ommen"a ions0 he panel or Appella e !o"# ma# s$gges %a#s in %hi'h he ?ember 'on'erne" 'o$l" implemen he re'ommen"a ions/ (&oo no es omi e") 5/ ,$gges ions ma"e b# panels or he Appella e !o"# p$rs$an o Ar i'le 49/4 o& he +,.

regar"ing %a#s o& implemen a ion &orm par o& panel or Appella e !o"# repor s a"op e" b# he +,! in previo$s pro'ee"ings/ The +,. "oes no e3pressl# a""ress he D$es ion o& he legal s a $s o& s$gges ions ha &orm par o& a repor a"op e" b# he +,!0 nor "oes i spe'i&# he legal 'onseD$en'es
57 58

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 90 (E'$a"or)/ E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 95 (E'$a"or)/ 59 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 95 (E'$a"or)/ 60 E'$a"or 7anel (epor 0 para/ 7/228/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 440 %hen a ?ember 'hooses o implemen +,! re'ommen"a ions an" r$lings b# &ollo%ing a s$gges ion &or implemen a ion/ A ?ember ma# 'hoose %he her or no o &ollo% a s$gges ion/ The $se o& he erm L'o$l"L in Ar i'le 49/4 'lari&ies ha ?embers are no oblige" o &ollo% s$gges ions &or implemen a ion/ 6/ ,$gges ions ma"e p$rs$an o Ar i'le 49/4 are no in hemselves he s$bNe' o& revie% b# a

'omplian'e panel/ Ar i'le 24/5 o& he +,. onl# re&ers o Lmeas$res a@en o 'ompl# %i h he re'ommen"a ions an" r$lingsL an" no o meas$res a@en o 'ompl# %i h s$gges ions iss$e" p$rs$an o he se'on" sen en'e o& Ar i'le 49/4/ This 'on&irms ha an Ar i'le 24/5 panel6s po%er o& revie% is limi e" o he assessmen o& he e3is en'e or 'onsis en'# %i h he 'overe" agreemen s o& he meas$res a@en o 'ompl# %i h re'ommen"a ions an" r$lings o& he +,!/ Th$s0 %ha ma ers in Ar i'le 24/5 pro'ee"ings is %he her he res$l o& implemen a ionP%ha ever means are 'hosenPbrings abo$ s$bs an ive 'omplian'e %i h he +,! re'ommen"a ions an" r$lings/ As he 7anel no e"0 he 'on&ormi # o& he meas$res a@en o 'ompl# %i h he 'overe" agreemen s %ill "epen" on %he her a' $al implemen a ion o& he +,! re'ommen"a ions an" r$lings has been a'hieve" b# he ?ember 'on'erne"/64 There&ore0 %e agree %i h he 7anel ha he meas$res a' $all# a@en b# a ?ember o 'ompl# %i h +,! re'ommen"a ions an" r$lings0 %he her or no pro'ee"ings/ 7/ )e 'onsi"er ha s$gges ions ma"e b# panels or he Appella e !o"# ma#0 i& 'orre' l# an" he# &ollo% he s$gges ions &or implemen a ion ma"e in previo$s pro'ee"ings0 are he s$bNe' ma er o& he 'hallenge in Ar i'le 24/5

&$ll# implemen e"0 lea" o 'omplian'e %i h he +,!6s re'ommen"a ions an" r$lings/ <o%ever0 &$ll 'omplian'e %i h +,! r$lings an" )TO-'onsis en'# o& he meas$res a' $all# a@en o 'ompl# 'anno be pres$me" simpl# be'a$se a ?ember "e'lares ha i s meas$res a@en o 'ompl# 'on&orm o a s$gges ion ma"e $n"er Ar i'le 49/4 o& he +,./ As poin e" o$ above0 Ar i'le 24/5 pro'ee"ings &o'$s on he meas$re a' $all# a@en o 'ompl#0 no he %a#s in %hi'h he ?ember 'o$l" implemen he re'ommen"a ions an" r$lings/ :ollo%ing a s$gges ion "oes no g$aran ee s$bs an ive 'omplian'e %i h he re'ommen"a ions an" r$lings b# he +,!/ )he her s$'h 'omplian'e has been a'hieve" nee"s o be "e ermine" hro$gh Ar i'le 24/5 pro'ee"ings/ The a"op ion o& a panel or Appella e !o"# repor b# he +,! ma@es he re'ommen"a ions an" r$lings herein bin"ing $pon he par ies/ As no e" earlier0 s$'h a"op ion b# he +,! "oes no ma@e s$gges ions &or implemen a ion bin"ing $pon he par ies (espe'iall#0 %here0 as in his 'ase0 he &irs E'$a"or Ar i'le 24/5 panel ma"e several s$gges ions)B nor "oes +,! a"op ion mean ha a' ions a@en o implemen s$gges ions m$s be pres$me" o be )TO-'onsis en or shiel"e" &rom revie% in Ar i'le 24/5 pro'ee"ings/

64

E'$a"or 7anel (epor 0 para/ 7/297/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 444 8/ )e0 here&ore0 agree %i h he 7anel ha E'$a"or ha" he righ o 'hallenge be&ore an The &$n' ion o&

Ar i'le 24/5 panel he E$ropean -omm$ni ies6 meas$re a@en o 'ompl#0 %he her or no s$'h meas$re implemen e" a s$gges ion ma"e b# an earlier panel or he Appella e !o"#/ Ar i'le 24/5 pro'ee"ings is o resolve "isagreemen over 'omplian'e/ Even i& he meas$re a@en o 'ompl# 'on&orme" o a s$gges ion ma"e0 his %o$l" no bar E'$a"or &rom bringing Ar i'le 24/5 pro'ee"ings o "e ermine %he her he implemen ing meas$re a'hieves &$ll 'omplian'e %i h he +,! re'ommen"a ions an" r$lings/ )e "o no 'onsi"er ha 0 as a 'onseD$en'e o& he +,! a"op ion o& a panel or Appella e !o"# repor 'on aining a s$gges ion0 he meas$re implemen ing s$'h a s$gges ion 'an be pres$me" o be )TO-'onsis en / 62 1n o$r vie%0 a +,. r$le ha es ablishes a legal pres$mp ion o& 'on&ormi # sho$l" "o so in 'lear an" $nambig$o$s erms/ 65 There&ore0 %e "o no see ho% he erms in Ar i'le 49/40 se'on" sen en'e0 Limpl#L a legal pres$mp ion0 par i'$larl# as his provision has o be rea" in he 'on e3 o& Ar i'le 24/50 %hi'h en i les ?embers o he revie% o& implemen a ion meas$res in 'omplian'e pro'ee"ings/ 9/ ,$gges ions ma"e b# panels or he Appella e !o"# ma# provi"e $se&$l g$i"an'e an"

assis an'e o ?embers an" &a'ili a e implemen a ion o& +,! re'ommen"a ions an" r$lings0 par i'$larl# in 'omple3 'ases/ <o%ever0 he &a' ha a ?ember has 'hosen o &ollo% a s$gges ion "oes no 'rea e a pres$mp ion o& 'omplian'e in Ar i'le 24/5 pro'ee"ings/ The &a' ha a ?ember has 'hosen o &ollo% a s$gges ion is par o& he his or# an" ba'@gro$n" o& he meas$re a iss$e in Ar i'le 24/5 pro'ee"ings0 b$ i sho$l" no in i sel& pre-emp a panel6s assessmen o& 'omplian'e $n"er Ar i'le 24/5/ 1n o$r vie%0 s$gges ions provi"e g$i"an'e0 %hi'h is ne'essaril# prospe' ive in na $re an" 'anno 0 here&ore0 a@e a''o$n o& all 'ir'$ms an'es in %hi'h implemen a ion ma# o''$r/ 40/ 1n hese 'ir'$ms an'es0 %e 'onsi"er ha he 7anel "i" no err %hen i "e'i"e" o e3amine

%he her he E- !ananas 1mpor (egime %as 'onsis en %i h he 'overe" agreemen s0 ra her han e3amining %he her i 'omplie" %i h he s$gges ions &or implemen a ion ma"e b# he &irs E'$a"or Ar i'le 24/5 panel/ 44/ )e here&ore uphold he 7anel6s &in"ing0 in paragraphs 7/265 an" 7/265 o& he E'$a"or

7anel (epor 0 ha 0 o he e3 en ha he E$ropean -omm$ni ies arg$es ha i has implemen e" a s$gges ion p$rs$an o Ar i'le 49/4 o& he +,.0 he 7anel %as no preven e" &rom 'on"$' ing0 $n"er Ar i'le 24/5 o& he +,.0 he assessmen reD$es e" b# E'$a"orB an" ha 0 here&ore0 he 7anel "i" no
E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 90 (E'$a"or)/ :or e3ample0 Ar i'le 5/8 o& he +,.0 %hi'h es ablishes a legal pres$mp ion ha a brea'h o& )TO r$les 'ons i $ es n$lli&i'a ion or impairmen 0 "oes so in 'lear an" $nambig$o$s erms/ ,imilarl#0 a legal pres$mp ion o& 'on&ormi # %i h he AATT 4999 is es ablishe" in 'lear an" $nambig$o$s erms b# Ar i'le 2/9 o& he Agreement on the Application of #anitary and Phytosanitary Measures &or meas$res 'on&orming o ha Agreemen /
65 62

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 442 nee" o assess %he her he E$ropean -omm$ni ies has e&&e' ivel# implemen e" an# o& he s$gges ions o& he &irs 'omplian'e panel reD$es e" b# E'$a"or/ 2/ 4/ Ar i'les 2111:4 an" 2111:2 o& he AATT 4999 (E'$a"or an" .ni e" , a es) he

)e no% $rn o he E$ropean -omm$ni ies6 appeal o& he 7anel6s &in"ings ha

E- !ananas 1mpor (egime %as in'onsis en %i h Ar i'le 2111:40 he 'hapea$ o& Ar i'le 2111:20 an" Ar i'le 2111:2(") o& he AATT 4999/ (a) 4/ Ar i'le 2111:4 o& he AATT 4999

The E$ropean -omm$ni ies arg$es ha he 7anel misin erpre e" he no ion o& LD$an i a ive

res ri' ionL in Ar i'le 2111:4 o& he AATT 4999/ A''or"ing o he E$ropean -omm$ni ies0 he limi a ion on he ari&& pre&eren'e &or A-7 s$ppliers "oes no &all %i hin he s'ope o& Ar i'le 2111:4 o& he AATT 4999 be'a$se i "oes no 'ons i $ e a LD$an i a ive res ri' ionL impose" on he impor s o& he Laggrieve" ?emberL/69 The E$ropean -omm$ni ies 'on en"s ha he 7anel L"evelope" a heor# p$rs$an o %hi'h a lo%er ari&& o&&ere" o one ?ember FP he A-7 =ero ari&&PG be'omes a$ oma i'all# a 6D$an i a ive res ri' ion6 on all o her ?embers0 provi"e" ha i is o&&ere" o onl# some FP7750000 m PG0 an" no all0 D$an i ies e3por e" b# he bene&i'iar#L/ 65 2/ The 7anel &o$n" ha he E- !ananas 1mpor (egime %as a L ari&&-D$o a-base" impor

regimeL0 %i h an in-D$o a =ero "$ # reserve" &or 7750000 m o& A-7 bananas an" an o$ -o&-D$o a "$ # o& M476*m &or A-7 impor s in e3'ess o& he D$o a an" &or impor s &rom all o her 'o$n ries/ 66 A''or"ing o he 7anel0 he E- !ananas 1mpor (egime L'on&erFe"G a bene&i 0 al ho$gh a D$an i a ivel# limi e" one0 o A-7 'o$n ries0 an" E'$a"or0 li@e o her ?:N banana s$ppliers0 F'o$l" no G have a''ess o ha D$an i a ivel# limi e" bene&i LB an"0 LFbG# i s ver# na $re0 s$'h a bene&i reserve" &or some ?embers generall# represen s a "isa"van age &or o her ?embers/L 67 The 7anel 'on'l$"e" ha 0 $n"er he erms o& Ar i'le 2111:40 ?:N impor s are no similarl# res ri' e" be'a$se A-7 s$ppliers have a''ess o he "$ #-&ree ari&& D$o a0 %hile non-A-7 s$ppliers are "enie" a''ess o ha D$o a680 an" ha 0 &or he same reasons0 he "$ #-&ree ari&& D$o a &ails o 'ompl# %i h he allo'a ion r$les se o$ in Ar i'le 2111:2 o& he AATT 4999/69

69 65

E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 445 (E'$a"or)0 para/ 452 (.,)/ E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 405 (E'$a"or)0 para/ 422 (.,)/ 66 E'$a"or 7anel (epor 0 para/ 7/295B ., 7anel (epor 0 para/ 7/698/ 67 E'$a"or 7anel (epor 0 para/ 7/552/ (&oo no e omi e") ,ee also ., 7anel (epor 0 para/ 7/679/ 68 E'$a"or 7anel (epor 0 para/ 7/599B ., 7anel (epor 0 para/ 7/684/ 69 E'$a"or 7anel (epor 0 para/ 7/566B ., 7anel (epor 0 para/ 7/708/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 445 5/ Ar i'le 2111:4 o& he AATT 49990 on LNon-"is'rimina or# A"minis ra ion o& E$an i a ive

(es ri' ionsL0 s a es: No prohibi ion or res ri' ion shall be applie" b# an# ?ember on he impor a ion o& an# pro"$' o& he erri or# o& an# o her ?ember or on he e3por a ion o& an# pro"$' "es ine" &or he erri or# o& an# o her ?ember0 $nless he impor a ion o& he li@e pro"$' o& all hir" 'o$n ries or he e3por a ion o& he li@e pro"$' o all hir" 'o$n ries is similarl# prohibi e" or res ri' e"/ 9/ The 'hapea$ Ar i'le 2111:2 an" Ar i'le 2111:2(") o& he AATT 4999 provi"e: 1n appl#ing impor res ri' ions o an# pro"$' 0 ?embers shall aim a a "is rib$ ion o& ra"e in s$'h pro"$' approa'hing as 'losel# as possible he shares %hi'h he vario$s ?embers migh be e3pe' e" o ob ain in he absen'e o& s$'h res ri' ions an" o his en" shall observe he &ollo%ing provisions: (d) 1n 'ases in %hi'h a D$o a is allo'a e" among s$ppl#ing 'o$n ries he ?ember appl#ing he res ri' ions ma# see@ agreemen %i h respe' o he allo'a ion o& shares in he D$o a %i h all o her ?embers having a s$bs an ial in eres in s$ppl#ing he pro"$' 'on'erne"/ 1n 'ases in %hi'h his me ho" is no reasonabl# pra' i'able0 he ?ember 'on'erne" shall allo o ?embers having a s$bs an ial in eres in s$ppl#ing he pro"$' shares base" $pon he propor ions0 s$pplie" b# s$'h ?embers "$ring a previo$s represen a ive perio"0 o& he o al D$an i # or val$e o& impor s o& he pro"$' 0 "$e a''o$n being a@en o& an# spe'ial &a' ors %hi'h ma# have a&&e' e" or ma# be a&&e' ing he ra"e in he pro"$' / No 'on"i ions or &ormali ies shall be impose" %hi'h %o$l" preven an# ?ember &rom $ ili=ing &$ll# he share o& an# s$'h o al D$an i # or val$e %hi'h has been allo e" o i 0 s$bNe' o impor a ion being ma"e %i hin an# pres'ribe" perio" o %hi'h he D$o a ma# rela e/ 5/ Ar i'le 2111:5 o& he AATT 4999 rea"s: The provisions o& his Ar i'le shall appl# o an# ari&& D$o a ins i $ e" or main aine" b# an# ?ember0 an"0 in so &ar as appli'able0 he prin'iples o& his Ar i'le shall also e3 en" o e3por res ri' ions/ 6/ )e begin o$r anal#sis b# 'onsi"ering he rela ionship be %een Ar i'le 21 o& he AATT Ar i'le 21:4 'on ains a general prohibi ion on

4999 on LAeneral Elimina ion o& E$an i a ive (es ri' ionsL an" Ar i'le 2111 on LNon-"is'rimina or# A"minis ra ion o& E$an i a ive (es ri' ionsL/ D$an i a ive res ri' ions/ Ar i'le 21:4/
70

Ar i'le 21:2 provi"es &or e3'ep ions o he general prohibi ion in

A D$an i a ive res ri' ion ha is la%&$l b# reason o& an e3'ep ion $n"er Ar i'le 21:2

70 )e no e ha here are o her provisions in he 'overe" agreemen s ha ma# provi"e a legal basis &or he imposi ion o& a D$an i a ive res ri' ion0 %hose appli'a ion is hen s$bNe' o he reD$iremen s o& Ar i'le 2111/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 449 m$s never heless sa is&# he reD$iremen s o& Ar i'le 2111 in respe' o& i s non-"is'rimina or# a"minis ra ion/ 7/ 1n 'on ras o D$an i a ive res ri' ions0 ari&& D$o as "o no &all $n"er he prohibi ion in

Ar i'le 21:4 an" are in prin'iple la%&$l $n"er he AATT 49990 provi"e" ha D$o a ari&& ra es are applie" 'onsis en l# %i h Ar i'le 1/ ?embers are reD$ire"0 in a''or"an'e %i h Ar i'le 110 o provi"e rea men no less &avo$rable han ha bo$n" in heir ,'he"$les o& -on'essions/ A''or"ingl#0 inD$o a an" o$ -o&-D$o a ari&&s m$s no e3'ee" bo$n" ari&& ra es0 an" impor D$an i ies ma"e available $n"er he ari&& D$o a m$s no &all shor o& he s'he"$le" amo$n / 1n a""i ion0 ari&& D$o as are0 $n"er he erms o& Ar i'le 2111:50 ma"e s$bNe' o he "is'iplines o& Ar i'le 2111/ 8/ Ar i'le 2111 has a "$al &$n' ion/ 1 reg$la es he non-"is'rimina or# a"minis ra ion o&

D$an i a ive res ri' ions an" also s$bNe' s he appli'a ion o& ari&& D$o as o hese "is'iplines/ Al ho$gh he lang$age o& 2111:4 is &a'iall# more easil# applie" o D$an i a ive res ri' ions0 he e3 m$s be in erpre e" so as o ens$re ha he provisions o& Ar i'le 2111 are also applie" o ari&& D$o as/ 9/ )e in erpre Ar i'le 2111:4 an" 2111:2 in he &ollo%ing %a#/ Appl#ing Ar i'le 2111:4 o a

ari&& D$o a reD$ires ha he %or" Lres ri' ionL be rea" as a re&eren'e o a ari&& D$o a/ Ar i'le 2111:4 is hen ren"ere" h$s: no ari&& D$o a shall be applie" b# a ?ember on he impor a ion o& an# pro"$' o& he erri or# o& an# o her ?ember0 $nless he impor a ion o& he li@e pro"$' o& all hir" 'o$n ries is similarl# ma"e s$bNe' o he ari&& D$o a/ The appli'a ion o& he ari&& D$o a is h$s on a pro"$' -%i"e basis/ The prin'iple o& non-"is'rimina or# appli'a ion 'ap $re" b# Ar i'le 2111:4 reD$ires ha 0 i& a ari&& D$o a is applie" o one ?ember0 i m$s be applie" o allB an"0 'onseD$en l#0 he erm Lsimilarl# res ri' e"L means0 in he 'ase o& ari&& D$o as0 ha impor s o& li@e pro"$' s o& all hir" 'o$n ries m$s have a''ess o0 an" be given an oppor $ni # o&0 par i'ipa ion/ 1& a ?ember is e3'l$"e" &rom a''ess o0 an" par i'ipa ion in0 he ari&& D$o a0 hen impor s o& li@e pro"$' s &rom all hir" 'o$n ries are no Lsimilarl# res ri' e"L/ 40/ Ar i'le 2111:2 reg$la es he "is rib$ ion o& he ari&& D$o a among ?embers/ The 'hapea$ o&

Ar i'le 2111:2 reD$ires ha he ari&& D$o a be "is rib$ e" so as o serve he aim o& a "is rib$ ion o& ra"e approa'hing as 'losel# as possible he shares ha vario$s ?embers ma# be e3pe' e" o ob ain in he absen'e o& he ari&& D$o a/ 1n his %a#0 all ?embers pro"$'ing he li@e pro"$' are a&&or"e" a''ess o0 an" 'ompe i ive oppor $ni ies $n"er0 he ari&& D$o a in a manner ha mimi's heir 'ompara ive a"van age vis-U-vis o her ?embers %ho %o$l" par i'ipa e $n"er he D$o a/ Th$s0 %hile Ar i'le 2111:4 es ablishes a prin'iple o& non-"is'rimina or# a''ess o an" par i'ipa ion in he overall ari&& D$o a0 he 'hapea$ o& Ar i'le 2111:2 s ip$la es a prin'iple regar"ing he "is rib$ ion o& he ari&& D$o a in he leas ra"e-"is or ing manner/ The provisions o& Ar i'le 2111:2(a)-(") are spe'i&i'

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 445 ins an'es o& a$ hori=e" &orms o& allo'a ion %hen a ?ember 'hooses o allo'a e shares o& he ari&& D$o a/ Ar i'le 2111:2(") allo%s &or he 'ase %here a D$o a is allo'a e" among s$ppl#ing 'o$n ries0 ei her b# %a# o& agreemen or0 %here his is no reasonabl# pra' i'able0 b# allo men o ?embers having a s$bs an ial in eres in s$ppl#ing he pro"$' 'on'erne"0 an" in a''or"an'e %i h he propor ions s$pplie" b# hose ?embers "$ring a previo$s represen a ive perio"0 a@ing "$e a''o$n o& Lspe'ial &a' orsL/ 1n o her %or"s0 Ar i'le 2111:2(") is a permissive Lsa&e harbo$rLB 'omplian'e %i h he reD$iremen s o& Ar i'le 2111:2(") is pres$me" o lea" o a "is rib$ ion o& ra"e as &oreseen in he 'hapea$ o& Ar i'le 2111:20 as &ar as s$bs an ial s$ppliers are 'on'erne"/ 74 1 &ollo%s &rom his anal#sis ha a ari&& D$o a is no per se $nla%&$l be'a$se i &ails o a"here o he "is'iplines o& Ar i'le 2111/ (a her0 he a"minis ra ion o& he ari&& D$o a is $nla%&$l i& i is applie" in a manner ha "oes no 'ompl# %i h he reD$iremen s o& Ar i'le 2111/ 44/ )e no% $rn o e3amine %he her he ari&& D$o a o& 7750000 m reserve" &or impor s &rom

A-7 'o$n ries %as applie" an" a"minis ere" 'onsis en l# %i h he reD$iremen s o& Ar i'le 2111/ .n"er he E- !ananas 1mpor (egime0 he "$ #-&ree ari&& D$o a o& 7750000 m is reserve" &or impor s &rom A-7 'o$n riesB non-A-7 s$ppliers "o no have a''ess o his ari&& D$o a/ Ar i'le 2111:40 as %e have observe"0 ar i'$la es a prin'iple o& a''ess o0 an" par i'ipa ion in0 a ari&& D$o a &or impor s o& he li@e pro"$' &rom all ?embers/ The "$ #-&ree ari&& D$o a reserve" &or A-7 'o$n ries plainl# e3'l$"es non-A-7 'o$n ries/ !# so "oing0 he ari&& D$o a "oes no appl# o0 or Lsimilarl# res ri' L0 impor s o& li@e pro"$' s &rom non-A-7 'o$n ries0 an" h$s o&&en"s he prin'iple o& a''ess o0 an" par i'ipa ion in0 a ari&& D$o a in Ar i'le 2111:4/ 42/ The ari&& D$o a also &ails o mee he reD$iremen s regar"ing "is rib$ ion an" allo'a ion in The e3'l$sion o& non-A-7 s$ppliers &rom he ari&& D$o a is no aime" La a

Ar i'le 2111:2/

"is rib$ ion o& ra"e /// approa'hing as 'losel# as possible he shares %hi'h he vario$s ?embers migh be e3pe' e" o ob ain in he absen'e o& F heG res ri' ionsL0 as reD$ire" b# Ar i'le 2111:2/ On he 'on rar#0 he e3'l$sion o& non-A-7 s$ppliers is no aime" a a "is rib$ ion o& ra"e ha a&&or"s a''ess o0 an" 'ompe i ive oppor $ni ies $n"er0 he ari&& D$o a o all s$ppl#ing ?embers re&le' ing heir 'ompara ive a"van ageB nor "oes he e3'l$sion o& non-A-7 s$ppliers respe' he Lsa&e harbo$rL allo'a ion reD$iremen s in Ar i'le 2111:2(") base" $pon he represen a ive propor ions o& ?embers having a s$bs an ial in eres in he s$ppl# o& bananas o he E$ropean -omm$ni ies/ Allo'a ing he en ire ari&& D$o a e3'l$sivel# o A-7 'o$n ries0 an" reserving no shares o non-A-7 s$ppliers0 'anno be 'onsi"ere" o be base" on he respe' ive shares o& A-7 an" non-A-7 s$pplier 'o$n ries in he
1& a ?ember allo'a es D$o a shares o ?embers %i h a s$bs an ial in eres in s$ppl#ing he pro"$' 0 in a''or"an'e %i h Ar i'le 2111:2(")0 i m$s also respe' he reD$iremen in he 'hapea$ o& Ar i'le 2111:2P ha "is rib$ ion o& ra"e approa'h as 'losel# as possible he shares ha ?embers ma# be e3pe' e" o ob ain in he absen'e o& he res ri' ion/ This is $s$all# "one b# allo'a ing a share o a general Lo hersL 'a egor# &or all s$ppliers o her han ?embers %i h a s$bs an ial in eres in s$ppl#ing he pro"$' /
74

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 446 E$ropean -omm$ni ies6 banana mar@e / As a res$l 0 he e3'l$sion o& non-A-7 s$ppliers &rom he ari&& D$o a o& 7750000 m reserve" &or A-7 'o$n ries is in'onsis en %i h he reD$iremen s o& Ar i'le 2111:40 he 'hapea$ o& Ar i'le 2111:20 an" Ar i'le 2111:2(") o& he AATT 4999/ onl# $n"er he E- !ananas 1mpor (egime/ 45/ The E$ropean -omm$ni ies arg$es ha 0 &or Ar i'le 2111:4 o appl# o a ari&& D$o a0 i m$s )e no e ha he e3 o& Ar i'le 2111:4 e3pressl# re&ers o Lprohibi ion or O$r 'on'l$sion is no al ere" b# he &a' ha impor s &rom non-A-7 s$ppliers are s$bNe' o an ?:N ari&&

be sho%n ha i imposes a Lres ri' ionL on he Laggrieve" ?embersL0 in his 'ase0 he non-A-7 s$pplier 'o$n ries/ res ri' ionL applie" Lb# an# ?emberL on he impor a ion o& Lan# pro"$' L o& he erri or# o& Lan# o her ?emberL/ )e reNe' 0 here&ore0 he E$ropean -omm$ni ies6 arg$men ha 0 be'a$se here %as no res ri' ion on he D$an i ies o& bananas ha E'$a"or an" he o her ?:N 'o$n ries 'o$l" e3por o he E$ropean -omm$ni ies0 L he &irs 'on"i ion &or he appli'a ion o& Ar i'le 2111:4 (i/e/0 he imposi ion o& a D$an i a ive res ri' ion on he impor s 'oming &rom he aggrieve" ?ember) F%asG no sa is&ie"L/72 There&ore0 he A-7 "$ #-&ree ari&& D$o a is s$bNe' o he reD$iremen s o& Ar i'le 2111:40 regar"less o& he ?embers $pon %hi'h he res ri' ion is impose"/

72 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 445 (E'$a"or) (re&erring o E'$a"or 7anel (epor 0 para/ 7/559)0 para/ 452 (.,) (re&erring o ., 7anel (epor 0 para/ 7/684)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 447 49/ The E$ropean -omm$ni ies &$r her 'on en"s ha 0 LFaGn a"van age gran e" o a "i&&eren

'o$n r#0 is no he same as a meas$re imposing a 6prohibi ion or res ri' ion6 on ha spe'i&i' )TO ?ember/L75 The E$ropean -omm$ni ies 'laims ha L he no ion o& 6less &avo$rable rea men 6 F$n"er Ar i'le 1 o& he AATT 4999G is no he same as he no ion o& 6prohibi ion or res ri' ion6 $n"er Ar i'le 2111/L79 The E$ropean -omm$ni ies &$r her arg$es ha LAr i'le 2111:4 "oes no in ro"$'e an ?:N r$le0 i/e/0 i "oes no impose on a ?ember he obliga ion o e3 en" o all ?embers he pre&eren'es i gran s o onl# some 'o$n ries/L75 45/ )e 'onsi"er ha he no ion o& Lnon-"is'rimina ionL in he appli'a ion o& ari&&s $n"er

Ar i'le 1:4 an" he no ion o& non-"is'rimina or# appli'a ion o& a Lprohibi ion or res ri' ionL $n"er Ar i'le 2111 are "is in' 0 an" ha Ar i'le 2111 ens$res ha a ?ember appl#ing a res ri' ion or prohibi ion "oes no "is'rimina e among all o her ?embers/ Ar i'le 1:40 %hi'h applies o ari&&s0 an" Ar i'le 2111:40 %hi'h applies o D$an i a ive res ri' ions an" ari&& D$o as0 ma# appl# o "i&&eren elemen s o& a meas$re or impor regime/ Ar i'le 2111 a"ap s he ?:N- rea men prin'iple o spe'i&i' #pes o& meas$res0 ha is0 D$an i a ive res ri' ions0 an"0 b# vir $e o& Ar i'le 2111:50 ari&& D$o as/ Tari&& D$o as m$s 'ompl# %i h he reD$iremen s o& bo h Ar i'le 1:4 an" Ar i'le 2111 o& he AATT 4999/ This0 in o$r vie%0 "oes no ma@e Ar i'le 2111 re"$n"an in respe' o& ari&& D$o as: i& a ?ember imposes "i&&eren ial in-D$o a "$ ies on impor s o& li@e pro"$' s &rom "i&&eren s$pplier 'o$n ries $n"er a ari&& D$o a0 Ar i'le 1:4 %o$l" be impli'a e"B i& ha ?ember &ails o give a''ess o or allo'a e ari&& D$o a shares on a non-"is'rimina or# basis among s$pplier 'o$n ries0 he reD$iremen s o& Ar i'les 2111:4 an" 2111:2 %o$l" appl#/ 1n he absen'e o& Ar i'le 21110 Ar i'le 1 %o$l" no provi"e spe'i&i' g$i"an'e on ho% o a"minis er ari&& D$o as in a manner ha avoi"s "is'rimina ion in he allo'a ion o& shares/ 46/ The A-7 "$ #-&ree ari&& D$o a0 inso&ar as i gran s more &avo$rable ari&& rea men an"

D$o a allo'a ion o A-7 s$ppliers0 &alls %i hin he s'ope o& bo h provisions/ )e 'onsi"er ha he A-7 "$ #-&ree ari&& D$o a is no a limi a ion on a ari&& pre&eren'e ha is s$bNe' onl# o Ar i'le 1:40 b$ a ari&& D$o a s$bNe' also o Ar i'le 2111/ 47/ 1n o$r vie%0 here&ore0 he pre&eren ial in-D$o a ari&& ra e &alls %i hin he s'ope o&

Ar i'le 1:40 %hile he appli'a ion an" he "is rib$ ion o& he ari&& D$o a m$s 'ompl# %i h he non"is'rimina ion reD$iremen s o& Ar i'le 2111 as %ell0 regar"less o& he appli'able in-D$o a an" o$ -o&D$o a "$ # ra es0

75 79

E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 409 (E'$a"or)0 para/ 426 (.,)/ E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 409 (E'$a"or)0 para/ 426 (.,)/ 75 E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 447 (E'$a"or)0 para/ 459 (.,)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 448 48/ 'o$n ries/ 49/ <aving sai" ha 0 %e no e o$r "isagreemen %i h he 7anel6s overl# broa" in erpre a ion o& an" regar"less o& %hi'h ?embers ma# be 'onsi"ere" o be Laggrieve"L/ This is also he

'ase %hen pre&eren ial in-D$o a ari&& rea men is reserve" &or a gro$p o& ?embers s$'h as he A-7

he erm Lres ri' ionL in Ar i'le 2111:4 as LFaGn# bene&i a''or"e" o &resh bananas o& onl# some ?embers pres$mabl# a&&e' FingG he 'ompe i ive oppor $ni ies o& li@e bananas impor e" &rom o her ?embersL 'onsi"ering ha LFbG# i s ver# na $re0 /// a bene&i reserve" &or some ?embers generall# represen s a "isa"van age &or o her ?embers/L 76 ,$'h a broa" rea"ing o& he erm Lres ri' ionL in Ar i'le 2111 %o$l" mean ha even a simple ari&& pre&eren'e %i ho$ a limi a ion %o$l" lea" o "issimilar res ri' ions %i hin he meaning o& Ar i'le 21110 h$s 'on&o$n"ing he &$n' ion an" 'overage o& Ar i'le 1 an" Ar i'le 2111/ ,$'h an in erpre a ion %o$l" also ignore he &a' ha Ar i'le 2111 is 'on'erne" %i h he non-"is'rimina or# a"minis ra ion o& ari&& D$o as0 an" "oes no prohibi hem as s$'h/ 20/ The E$ropean -omm$ni ies also re&ers o pas AATT an" )TO pra' i'e o& gran ing

%aivers &rom Ar i'le 1 in or"er o N$s i&# "$ #-&ree ari&& D$o as/ :or he E$ropean -omm$ni ies0 his 'on&irms i s arg$men ha Ar i'le 2111 is aime" a D$an i a ive res ri' ions0 an" "oes no appl# o ari&& "is'rimina ion0 %hi'h is he p$rvie% o& Ar i'le 1/77 A''or"ing o he E$ropean -omm$ni ies0 his L'on'or"an 0 'ommon an" 'onsis en L pra' i'e &alls %i hin he no ion o& Ls a e pra' i'eL re&erre" o in Ar i'le 54(5)(b) o& he 8ienna )onvention0 an" s$'h %aiver "e'isions appro3ima e he no ion o& Ls$bseD$en agreemen sL re&erre" o in Ar i'le 54(5)(a)/78 24/ E'$a"or an" he .ni e" , a es 'on en" ha he re'en +oha Ar i'le 2111 )aiver 'ons i $ es

he mos relevan pra' i'e/ 1n"ee"0 in 20040 he E$ropean -omm$ni ies reD$es e" an" ob aine" %aivers &rom bo h Ar i'les 1 an" 2111 o 'over he pre&eren ial ari&& D$o a appli'able o A-7 'o$n ries a ha ime/ Almos all he %aivers 'i e" b# he E$ropean -omm$ni ies %ere gran e" be %een 4998 an" 4999 (onl# one %as gran e" a& er ha #ear0 in 2000)0 %hile he +oha Ar i'le 2111
76 77

E'$a"or 7anel (epor 0 para/ 7/552B ., 7anel (epor 0 para/ 7/679/ E$ropean -omm$ni ies6 appellan 6s s$bmissions0 paras/ 449 an" 420 (E'$a"or)0 paras/ 456 an" 457

(.,)/ E$ropean -omm$ni ies6 appellan 6s s$bmissions0 para/ 420 (E'$a"or)0 para/ 457 (.,)/ The E$ropean -omm$ni ies re&ers o0 inter alia0 he &ollo%ing %aivers &rom Ar i'le 1 o& he AATT 4999: he 4960 %aiver &rom Ar i'le 1:4 gran e" o :ran'e L o he e3 en ne'essar# o permi he Aovernmen o& :ran'e o appl# /// ari&& D$o as o goo"s origina ing in an# par o& he erri or# o& he Ring"om o& ?oro''oLB he 4966 %aiver gran e" o A$s ralia0 %hi'h e3pli'i l# a$ hori=e" he $se o& ari&& D$o asB he 4985 %aiver &rom Ar i'le 1:4 gran e" o he .ni e" , a es regar"ing "$ #-&ree rea men &or impor s &rom -aribbean 'o$n ries0 %hi'h Loverlappe" %i h a s#s em o& D$o asLB an" he 2000 %aiver &rom Ar i'le 1:4 gran e" o he E$ropean -omm$ni ies o allo% "$ #-&ree or pre&eren ial rea men o pro"$' s &rom %es ern !al@an 'o$n ries0 %hi'h Lin'l$"e" ari&& D$o as on several pro"$' sL/ (E$ropean -omm$ni ies6 appellan 6s s$bmissions0 paras/ 424-428 (E'$a"or)0 paras/ 458495 (.,))
78

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 449 22/ original E) Bananas III pro'ee"ings0 'lari&#ing ha he >omH )aiver &rom Ar i'le 1:4 'o$l" no N$s i&# meas$res in'onsis en %i h Ar i'le 2111/79 25/ )e "o no 'onsi"er ha AATT an" )TO pra' i'e o& gran ing %aivers &rom Ar i'le 1:4 an" ha he +oha Ar i'le 2111 )aiver 'on&irms he appli'abili # o& )aiver %as gran e" in 20040 a& er he Appella e !o"# ha" ren"ere" i s &in"ings in he

Ar i'le 2111 provi"e 'on'l$sive g$i"an'e on %he her "$ #-&ree ari&& D$o as are s$bNe' o Ar i'le 2111/ <o%ever0 %e &in" he arg$men Ar i'le 2111 o "$ #-&ree ari&& D$o as more pers$asive/ This is so be'a$se he +oha Ar i'le 2111 )aiver is rela e" o a previo$s A-7 "$ #-&ree ari&& D$o a 800 an" be'a$se i %as a"op e" s$bseD$en o he +,! re'ommen"a ions an" r$lings in he original pro'ee"ings0 %hi'h 'lari&ie" he rela ionship be %een Ar i'le 1:4 an" Ar i'le 2111 o& he AATT 4999/ 29/ )e 'onsi"er ha o$r 'on'l$sions on Ar i'le 2111 are 'onsis en %i h he +,!

re'ommen"a ions an" r$lings in he original E) Bananas III pro'ee"ings an" he &irs E'$a"or Ar i'le 24/5 pro'ee"ings/ The panel in he original pro'ee"ings &o$n" ha ari&& D$o as Lare no D$an i a ive res ri' ions per seL an" are permi e" $n"er AATT r$les0 b$ LAr i'le 2111:5 ma@es i 'lear /// ha Ar i'le 2111 applies o he a"minis ra ion o& ari&& D$o asL/ 84 The Appella e !o"# &o$n" ha 0 Lal ho$gh Ar i'les 1 an" 2111 o& he AATT 4999 are bo h non-"is'rimina ion provisions0 heir rela ionship is no s$'h ha a %aiver &rom he obliga ions $n"er Ar i'le 1 implies a %aiver &rom he obliga ions $n"er Ar i'le 2111L0 an" ha 0 here&ore0 he >omH )aiver &rom Ar i'le 1 "i" no %aive he in'onsis en'# %i h Ar i'le 2111 o& he "$ #-&ree ari&& D$o a appli'able o A-7 'o$n ries a ha ime/ 82 25/ The Appella e !o"# ha" also &o$n" ha L he non-"is'rimina ion provisions appl# o all

impor s o& bananas0 irrespe' ive o& %he her an" ho% a ?ember 'a egori=es or s$b"ivi"es hese impor s &or a"minis ra ive or o her reasonsL 85 an" ha 0 here&ore0 he e3is en'e o& separa e regimes &or
1n i s appellee6s s$bmission0 he .ni e" , a es no es ha i s mos re'en %aiver reD$es s &or pre&eren ial programmes 'overe" bo h Ar i'les 1 an" 2111 o& he AATT 4999/ The .ni e" , a es re&ers o he &ollo%ing %aiver reD$es s "a e" 22 ?ar'h 2007: -o$n'il &or Tra"e in Aoo"s0 (eD$es &or a )aiver0 -aribbean !asin E'onomi' (e'over# A' (-!E(A as amen"e")0 A*-*)*508 an" (ev/4B -o$n'il &or Tra"e in Aoo"s0 (eD$es &or a )aiver0 A&ri'an Aro% h an" Oppor $ni # A' (AAOA)0 A*-*)*509 an" (ev/4B -o$n'il &or Tra"e in Aoo"s0 (eD$es &or a )aiver0 An"ean Tra"e 7re&eren'e A' (AT7A as amen"e")0 A*-*)*540 an" (ev/4/ (.ni e" , a es6 appellee6s s$bmission0 &oo no e 58 o para/ 94) 80 The +oha Ar i'le 2111 )aiver %aive" Ar i'le 2111:4 an" 2 %i h respe' o a similar "$ #-&ree ari&& D$o a &or A-7 'o$n ries $n"er a previo$s bananas impor regime o& he E$ropean -omm$ni ies/ 7aragraph 4 o& he +oha Ar i'le 2111 )aiver s a es: )i h respe' o he E-6s impor s o& bananas0 as o& 4 Can$ar# 20020 an" $n il 54 +e'ember 20050 paragraphs 4 an" 2 o& Ar i'le 2111 o& he AATT 4999 are %aive" %i h respe' o he E-6s separa e ari&& D$o a o& 7500000 onnes &or bananas o& A-7 origin/ 84 7anel (epor s0 E) Bananas III &Ecuador' an" &/#'0 para/ 7/68/ 82 Appella e !o"# (epor 0 E) Bananas III0 para/ 485/ 85 Appella e !o"# (epor 0 E) Bananas III0 para/ 490/ (original emphasis)
79

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 420 he impor a ion o& bananas ( he "$ #-&ree ari&& D$o a &or ra"i ional A-7 bananas an" he erga omnes ari&& D$o a regime &or all o her impor s o& bananas) "i" no e3'l$"e he appli'a ion o& he non"is'rimina ion provisions o& he AATT 4999Pspe'i&i'all#0 Ar i'les 1:4 an" 2111/89 1 &ollo%s0 in o$r vie%0 ha he appli'abili # o& Ar i'le 2111 "oes no "epen" on %he her he A-7 "$ #-&ree ari&& D$o a e3is s si"e b# si"e %i h o her ?:N ari&& D$o as or %i h an ?:N ari&& ra e %i ho$ D$an i a ive res ri' ion/ 26/ :inall#0 %e no e ha he &irs E'$a"or Ar i'le 24/5 panel &o$n" ha L he reserva ion o& he

D$an i # o& 8570700 onnes &or ra"i ional A-7 impor s $n"er he revise" regime F%asG in'onsis en %i h paragraphs 4 an" 2 o& Ar i'le 2111 o& AATTL/85 )e agree %i h he 7anel ha he main "i&&eren'e be %een he ari&& D$o a regime e3amine" b# he &irs E'$a"or Ar i'le 24/5 panel an" he E- !ananas 1mpor (egime a iss$e in hese pro'ee"ings is he level o& he D$an i a ive limi (8570700 m vers$s 7750000 m on "$ #-&ree impor s)/86 <o%ever0 ha "i&&eren'e is o& no relevan'e &or he D$es ion %he her Ar i'le 2111 applies/ 27/ 1n 'on'l$sion0 %e re'all ha he 7anel &o$n" ha he E- !ananas 1mpor (egime %as

in'onsis en %i h bo h Ar i'le 1:4 an" Ar i'le 2111 o& he AATT 49990 an" ha bo h he +oha Ar i'le 1 )aiver an" he +oha Ar i'le 2111 )aiver ha" e3pire" on 54 +e'ember 2005/ )e no e ha he E$ropean -omm$ni ies has no appeale" he 7anel6s &in"ings 'on'erning Ar i'le 1:4 o& he AATT 4999 an" he +oha Ar i'le 1 )aiver0 nor "oes i 'on es ha he +oha Ar i'le 2111 )aiver e3pire" on 54 +e'ember 2005/ Th$s0 on appeal0 he E$ropean -omm$ni ies "oes no 'on es ha he =ero "$ # %i hin he A-7 ari&& D$o a is in'onsis en %i h Ar i'le 1:4 an" is no 'overe" b# a s$i able %aiver/ -onsi"ering ha b# vir $e o& Ar i'le 2111:5 an# ari&& D$o a is s$bNe' o he "is'iplines o& Ar i'le 21110 an" &or he reasons e3plaine" above0 %e 'on'l$"e ha he "$ #-&ree A-7 ari&& D$o a is also in'onsis en %i h Ar i'le 2111:40 he 'hapea$ o& Ar i'le 2111:20 an" Ar i'le 2111:2(") o& he AATT 4999/ 28/ ha There&ore0 in he ligh o& he &oregoing0 %e uphold he 7anel6s &in"ings0 albei &or "i&&eren he E- !ananas 1mpor (egime0 in par i'$lar0 i s "$ #-&ree ari&& D$o a reserve" &or A-7

reasons0 in paragraph 7/582 o& he E'$a"or 7anel (epor an" paragraph 7/720 o& he ., 7anel (epor 0 'o$n ries0 %as in'onsis en %i h Ar i'le 2111:4 an" Ar i'le 2111:2 o& he AATT 4999/

89 85

Appella e !o"# (epor 0 E) Bananas III0 para/ 494/ 7anel (epor 0 E) Bananas III &Article +,-. Ecuador'0 para/ 6/29/ 86 E'$a"or 7anel (epor 0 para/ 7/509B ., 7anel (epor 0 para/ 7/659/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 424 (b) 4/ N$lli&i'a ion or 1mpairmen $n"er Ar i'le 2111:2 (.ni e" , a es)

:inall#0 %e $rn o an iss$e ha he E$ropean -omm$ni ies appeals onl# in he .ni e"

, a es 'ase in rela ion o Ar i'le 2111:2 o& he AATT 4999/ The E$ropean -omm$ni ies arg$es ha L he .ni e" , a es has never been a banana s$pplier o he E$ropean -omm$ni ies an" is no li@el# o be'ome s$'h a banana s$pplier in he &$ $reL 870 an" ha 0 here&ore0 he A-7 ari&& pre&eren'e 'o$l" no be in'onsis en %i h he 'hapea$ o& Ar i'le 2111:2 be'a$se0 even in i s absen'e0 he .ni e" , a es6 share o& ra"e in bananas in he E$ropean -omm$ni ies %o$l" be =ero/ 88 2/ The E$ropean -omm$ni ies is s$gges ing ha he .ni e" , a es 'anno prevail %i h i s

'laim $n"er Ar i'le 2111 be'a$se he A-7 pre&eren'e has no a' $al or po en ial e&&e' s on he .ni e" , a es6 share o& ra"e in bananas in he E$ropean -omm$ni ies/ 1n o$r vie%0 his arg$men rela es o he E$ropean -omm$ni ies6 more general arg$men ha he E- !ananas 1mpor (egime 'a$se" no n$lli&i'a ion o& bene&i s o he .ni e" , a es/ 89 There&ore0 %e shall a""ress his arg$men b# he E$ropean -omm$ni ies belo% oge her %i h he broa"er arg$men rela ing o he n$lli&i'a ion or impairmen o& bene&i s a''r$ing o he .ni e" , a es $n"er he 'overe" agreemen s/ (') 4/ N$lli&i'a ion or 1mpairmen $n"er Ar i'le 2111 (E'$a"or)

The E$ropean -omm$ni ies arg$es ha he A-7 pre&eren'e "i" no 'a$se an# n$lli&i'a ion o E'$a"or in rela ion o he allege" viola ion o& Ar i'le 2111 o& he AATT 4999/

or impairmen

A''or"ing o he E$ropean -omm$ni ies0 L he D$an i # limi a ion impose" on he A-7 pre&eren'e %as no a 6bene&i 6 gran e" o he A-7 'o$n riesL b$ 0 o he 'on rar#0 i L%as a 6bene&i 6 gran e" o he ?:N 'o$n riesL be'a$se0 LFbG# limi ing he D$an i ies o& A-7 bananas ha 'o$l" be impor e" in o he E$ropean -omm$ni ies a pre&eren'e/L90 2/ The E$ropean -omm$ni ies &$r her 'on en"s ha 0 in &in"ing ha he A-7 pre&eren'e %as he pre&eren ial ra e0 he D$an i # limi pro e' e" he 6'ompe i ive oppor $ni ies6 o& he ?:N 'o$n ries an" 'a$se" hem less 6harm6 han an $nres ri' e" A-7

in'onsis en %i h Ar i'le 1 o& he AATT 49990 he 7anel ha" alrea"# &o$n" ha L he A-7 pre&eren'e $y itself nega ivel# a&&e' e" he 6'ompe i ive oppor $ni ies6 o& E'$a"or an"0 here&ore0 'a$se" n$lli&i'a ion or impairmen $n"er Ar i'le 1 o& he AATT/L94 <o%ever0 a''or"ing o he E$ropean -omm$ni ies0 L he 7anel &aile" o e3plain ho% he limi a ion o& he D$an i ies ha bene&i e" &rom he

87 88

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 455 (.,)/ E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 455 (.,)/ 89 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 455 (.,)/ 90 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 495 (E'$a"or)/ 94 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 499 (E'$a"or)/ (original emphasis)

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 422 A-7 pre&eren'e 'a$se" an# ne% or additional n$lli&i'a ion or impairmen Ar i'le 2111 o& he AATT/L92 5/ )e have 'on'l$"e" above ha he A-7 "$ #-&ree ari&& D$o a %as in'onsis en %i h o E'$a"or $n"er

Ar i'le 2111 o& he AATT 4999 an" ha he "enial o& a''ess o he A-7 "$ #-&ree ari&& D$o a n$lli&ie" or impaire" E'$a"or6s bene&i s $n"er he AATT 4999/ <o%ever0 having rea'he" his 'on'l$sion0 %e "o no e3'l$"e ha an# n$lli&i'a ion or impairmen 'a$se" o E'$a"or b# he in'onsis en'# o& he A-7 "$ #-&ree ari&& D$o a %i h Ar i'le 2111 ma# 'oin'i"e %i h he n$lli&i'a ion or impairmen res$l ing &rom a viola ion o& Ar i'le 1:4/ 9/ )e believe ha n$lli&i'a ion or impairmen res$l ing &rom in'onsis en'ies %i h Ar i'les 1:4

an" 2111 ma# 'oin'i"e or overlap0 an" ha an# s$'h overlap is relevan onl# o he 'al'$la ion o& he o al level o& n$lli&i'a ion or impairmen s$&&ere" &or he p$rposes o& nego ia ing 'ompensa ion or assessing he amo$n o& n$lli&i'a ion an" impairmen in an arbi ra ion $n"er Ar i'le 22 o& he +,./ <o%ever0 %e "o no nee" o prono$n'e on s$'h D$es ions in hese Ar i'le 24/5 pro'ee"ings/ )he her or no n$lli&i'a ion or impairmen 'a$se" b# he viola ion o& one provision overlap or 'oin'i"e %i h ha 'a$se" b# he viola ion o& ano her provision "oes no al er he &a' ha bo h in&ringemen s rigger he pres$mp ion o& n$lli&i'a ion or impairmen $n"er Ar i'le 5/8/ 1n an# even 0 a "emons ra ion ha n$lli&i'a ion or impairmen 'a$se" b# he in&ringemen s o& "is in' )TO obliga ions ma# overlap is no s$&&i'ien o reb$ he pres$mp ion in Ar i'le 5/8 o& he +,. ha an# o& hese in&ringemen s 'ons i $ es a prima facie 'ase o& n$lli&i'a ion or impairmen / 5/ 1n s$m0 %e "o no nee" o "e'i"e0 in his 'ase0 %he her n$lli&i'a ion or impairmen o

E'$a"or6s in eres s "$e o he in'onsis en'# o& he D$o a allo'a ion $n"er he A-7 ari&& D$o a %i h Ar i'le 2111 ma# 'oin'i"e or overlap %i h ha "$e o he in'onsis en'# o& he ari&& pre&eren'e %i h Ar i'le 1:4/ 1n an# even 0 o$r 'on'l$sion rea'he" above ha he appli'a ion o& he A-7 "$ #-&ree ari&& D$o a %as in'onsis en %i h Ar i'le 2111 o& he AATT 4999 %o$l" s an"/ 6/ )e here&ore uphold he 7anel6s &in"ing0 in paragraph 8/9 o& he E'$a"or 7anel (epor 0 ha

he E$ropean -omm$ni ies0 b# main aining meas$res in'onsis en %i h "i&&eren provisions o& he AATT 49990 in'l$"ing Ar i'le 21110 has n$lli&ie" or impaire" bene&i s a''r$ing o E'$a"or $n"er ha Agreemen /

92

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 499 (E'$a"or)/ (original emphasis)

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 425 >I. 4/ A($),*% II #1 $'% GATT 1""@ :E,+-0#(; )e no% $rn o he E$ropean -omm$ni ies6 appeal o& he 7anel6s &in"ing ha 0 hro$gh he

+oha Ar i'le 1 )aiver0 )TO ?embers agree" o e3 en" be#on" 54 +e'ember 20024 he ari&& D$o a 'on'ession (a a level o& 2/2 million m %i h an in-D$o a ra e o& M75*m ) in he E$ropean -omm$ni ies6 ,'he"$le o& -on'essionsB 'onseD$en ial &in"ing ha an" he E$ropean -omm$ni ies6 appeal o& he 7anel6s he ari&& o& M476*m applie" b# he E$ropean -omm$ni ies o ?:N

impor s o& bananas is in'onsis en %i h Ar i'le 11:4(b) o& he AATT 4999 be'a$se i is in e3'ess o& i s ari&& bin"ings on bananas/2 )e %ill hen 'onsi"er E'$a"or6s o her appeal o& he 7anel6s &in"ing ha he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas %as in en"e" o e3pire on 54 +e'ember 20025 p$rs$an o paragraph 9 o& he !ananas :rame%or@ Agreemen anne3e" o he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions/ 2/ ,e' ion A s$mmari=es he &in"ings ma"e b# he 7anel in he '$rren Ar i'le 24/5

pro'ee"ings/ ,e' ion ! presen s he arg$men s raise" on appeal b# he par i'ipan s an" he hir" par i'ipan s in rela ion o he E$ropean -omm$ni ies6 appeal/ 1n se' ion -0 %e "is'$ss he E$ropean -omm$ni ies6 'laim ha he 7anel erre" in &in"ing ha he +oha Ar i'le 1 )aiver mo"i&ie" he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions an" e3 en"e" he ari&& D$o a 'on'ession o& 2/2 million m bo$n" a an in-D$o a ra e o& M75*m be#on" 54 +e'ember 2002/9 5/ ,e' ion + presen s he par i'ipan 6s arg$men s rela ing o E'$a"or6s o her appeal/ 1n

se' ion E0 %e "is'$ss E'$a"or6s o her appeal o& he 7anel6s &in"ing ha he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas o& 2/2 million m bo$n" a an in-D$o a ra e o& M75*m %as in en"e" o e3pire on 54 +e'ember 2002 as a res$l o& paragraph 9 o& he !ananas :rame%or@ Agreemen / 5 :inall#0 %e 'onsi"er %he her he 7anel erre" in &in"ing ha AATT 4999/6 he ari&& applie" b# he E$ropean -omm$ni ies o ?:N impor s o& bananas0 se a M476*m 0 %as in'onsis en %i h Ar i'le 11:4(b) o& he

4 2

E'$a"or 7anel (epor 0 para/ 7/992/ E'$a"or 7anel (epor 0 para/ 7/509/ 5 E'$a"or 7anel (epor 0 para/ 7/956/ 9 E'$a"or 7anel (epor 0 para/ 7/992/ 5 E'$a"or 7anel (epor 0 para/ 7/956/ 6 E'$a"or 7anel (epor 0 para/ 7/509/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 429 A/ 4/ 4he )urrent Article +,-. Proceedings

!e&ore he 7anel0 E'$a"or 'laime" ha he E$ropean -omm$ni ies6 meas$re0 'onsis ing o& a

L ari&&-ra e D$o a %i h a single "$ # ra e appli'able o bananas no bene&i ing &rom he =ero "$ # ari&&ra e D$o aL an" applie" o all bananas origina ing in E'$a"or an" o her ?:N 'o$n ries0 %as in brea'h o& he E$ropean -omm$ni ies6 ari&& bin"ing on bananas/ 7 E'$a"or arg$e" ha 0 in par i'$lar0 he E$ropean -omm$ni ies6 "$ # o& M476*m %as in'onsis en %i h he E$ropean -omm$ni ies6 obliga ions $n"er Ar i'le 11 o& he AATT 4999 an" he E$ropean -omm$ni ies6 ,'he"$le 80 %hi'h 'on aine" an ?:N ari&& D$o a o& 2/2 million m %i h an in-D$o a ari&& ra e bo$n" a M75*m / The E$ropean -omm$ni ies 'on en"e" ha he ari&& ra e &or bananas bo$n" in i s ,'he"$le %as M680*m 0 an" ha he ari&& D$o a o& 2/2 million m a he in-D$o a ari&& ra e o& M75*m ha" e3pire" on 54 +e'ember 2002 in a''or"an'e %i h he erms an" 'on"i ions se &or h in he !ananas :rame%or@ Agreemen 0 as anne3e" o he E$ropean -omm$ni ies6 ,'he"$le/ 2/ The 7anel no e" ha he ari&& D$o a bin"ing o& 2/2 million m an" he in-D$o a ari&& ra e o&

M75*m in he E$ropean -omm$ni ies6 ,'he"$le %as s$bNe' o he erms an" 'on"i ions Las in"i'a e" in he Anne3L/9 The Anne3 'on aine" he !ananas :rame%or@ Agreemen 0 %hi'h provi"e"0 in paragraph 90 ha L his agreemen shall appl# $n il 54 +e'ember 2002L/ The 7anel also no e" ha Ar i'le 11:4(b) allo%s ?embers o a a'h L erms0 'on"i ions or D$ali&i'a ionsL o he ari&& 'on'essions in heir ,'he"$les400 an" ha L here is no hing in he )TO Agreemen ha %o$l" preven a ?ember &rom D$ali&#ing a spe'i&i' 'on'ession in i s ,'he"$le b# s$bNe' ing i o a "a e o& e3pir#/L 44 The 7anel here&ore &o$n" ha he ari&& D$o a o& 2/2 million m a a bo$n" ari&& ra e o& M75*m in he E$ropean -omm$ni ies6 ,'he"$le %as $neD$ivo'all# in en"e" o e3pire on 54 +e'ember 2002/42 5/ The 7anel0 ho%ever0 %en on o &in" ha 0 in a"op ing he +oha Ar i'le 1 )aiver0 L)TO

?embers agree" o e3 en" he "$ra ion o& he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas be#on" 54 +e'ember 2002L an" L$n il he 'omple ion o& he Ar i'le 22;111 nego ia ions &or he p$rpose o& he rebin"ing o& he E$ropean -omm$ni ies6 ari&& on bananasL/ 45

7 8

E'$a"or6s &irs %ri en s$bmission o he 7anel0 para/ 55/ E'$a"or6s &irs %ri en s$bmission o he 7anel0 para/ 59/ 9 E'$a"or 7anel (epor 0 para/ 7/924/ 40 E'$a"or 7anel (epor 0 para/ 7/925/ 44 E'$a"or 7anel (epor 0 para/ 7/929/ 42 E'$a"or 7anel (epor 0 para/ 7/956/ 45 E'$a"or 7anel (epor 0 para/ 7/996/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 425 9/ The 7anel 'onsi"ere" ha he +oha Ar i'le 1 )aiver0 Las i rela es o he E$ropean

-omm$ni ies6 )TO mar@e -a''ess 'ommi men s rela ing o bananas0 is a 6s$bseD$en agreemen be %een he par ies6 o he !ananas :rame%or@ Agreemen (i/e/0 he )TO ?embers)0 regar"ing he appli'a ion o& he provisions o& he )TO agreemen as i per ains o s$'h mar@e a''ess 'ommi men sL0 %hi'h 'o$l" no be ignore" Lin or"er o as'er ain he 'ommon in en ions o& he )TO ?embers0 regar"ing he E$ropean -omm$ni ies6 )TO mar@e a''ess 'ommi men s rela ing o bananasL/49 1n his respe' 0 he 7anel &o$n" ha he +oha Ar i'le 1 )aiver Lre'ogni=es he )TO ?embers6 'ommon in en ion ha 0 $n il he en r# in o &or'e o& he ne% E$ropean -omm$ni ies6 ari&&onl# regime0 he in-D$o a ari&& applie" o bananas 6shall no e3'ee" 75M*m 60 as %ell as he 'ommon in en ion ha an# rebin"ing o& he E$ropean -omm$ni ies6 ari&& on bananas $n"er AATT Ar i'le 22;111 pro'e"$res 6sho$l" res$l in a leas main aining o al mar@e a''ess &or ?:N banana s$ppliers6/L45 5/ The 7anel also relie" on s$pplemen ar# means o& in erpre a ion %i hin he meaning o& he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or he &ollo%ing elemen s

Ar i'le 52 o& he 8ienna )onvention o 'on&irm he 'on'l$sion i ha" rea'he" Lregar"ing he 'ommon in en ion o& he )TO ?embers /// ha -omm$ni ies6 ari&& on bananas/L46 bananas %o$l" remain in &or'e0 in i s s$bs an'e0 pen"ing an# la er rebin"ing o& he E$ropean The 7anel &o$n"0 in par i'$lar0 ha 'on&irme" i s &in"ings on he E$ropean -omm$ni ies6 mar@e a''ess 'ommi men s on bananas: (i) he .r$g$a# (o$n" L?o"ali ies 7aperL47 &or agri'$l $ral mar@e a''ess nego ia ions L'alle" &or bin"ing ari&& D$o as in an amo$n an" a a "$ # level s$&&i'ien o permi a''ess a leas eD$ivalen o ha e3is ing in he base perio"L48B (ii) he E$ropean -omm$ni ies ini ia e" nego ia ions p$rs$an o Ar i'le 22;111 o& he AATT 49990 %hi'h %ere ne'essar# in or"er o in'rease he ari&& bin"ing (&rom he in-D$o a level o& M75*m ) an" no o re"$'e i (&rom he o$ -o&-D$o a level o& M680*m ) 49B an" (iii) he &irs a%ar" o& he arbi ra or a' ing p$rs$an o he LAnne3 on !ananasL o he +oha Ar i'le 1 )aiver "es'ribe" he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions as in'l$"ing a D$o a o& 2/2 million m %i h an in-D$o a ari&& ra e o& M75*m / 20

E'$a"or 7anel (epor 0 para/ 7/995/ E'$a"or 7anel (epor 0 para/ 7/999/ 46 E'$a"or 7anel (epor 0 para/ 7/978/ 47 ?o"ali ies &or he Es ablishmen o& ,pe'i&i' !in"ing -ommi men s0 No e b# he -hairman o& he ?ar@e A''ess Aro$p0 ?TN/ANA*?A*)*290 20 +e'ember 4995/ 48 E'$a"or6s se'on" %ri en s$bmission o he 7anel0 para/ 59/ 49 E'$a"or 7anel (epor 0 para/ 7/985/ 20 E'$a"or 7anel (epor 0 para/ 7/994/
45

49

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 426 !/ 4/ )laims and Arguments relating to the European )ommunitiesF Appeal

The E$ropean -omm$ni ies reD$es s he Appella e !o"# o reverse he 7anel6s &in"ings ha

he +oha Ar i'le 1 )aiver Lmo"i&ie" he ,'he"$le o& he E$ropean -omm$ni ies an" e3 en"e" he 'on'ession &or he ari&& D$o a be#on" +e'ember 540 2002L240 as %ell as he 7anel6s 'onseD$en ial &in"ing ha L he E$ropean -omm$ni ies has brea'he" Ar i'le 11 o& he AATTL/22 2/ The E$ropean -omm$ni ies arg$es ha he 7anel erre" in &in"ing ha he +oha Ar i'le 1

)aiver %as a Ls$bseD$en agreemen L rela ing o he ari&& D$o a 'on'ession bo$n" in he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions0 an" ha he )aiver 'o$l" be in erpre e" as an agreemen b# )TO ?embers L o e3 en" he "$ra ion o& he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas be#on" 54 +e'ember 2002/L25 The E$ropean -omm$ni ies also 'laims ha he 7anel ma"e &$r her errors o& legal in erpre a ion an" reasoning in rel#ing on0 as s$pplemen ar# means o& in erpre a ion0 he .r$g$a# (o$n" ?o"ali ies 7aper an" he &a' ha he E$ropean -omm$ni ies ini ia e" ari&& renego ia ions p$rs$an o Ar i'le 22;111 o& he AATT 4999/29 5/ E'$a"or respon"s ha he 7anel "i" no err in &in"ing ha he +oha Ar i'le 1 )aiver %as a

s$bseD$en agreemen 0 %i hin he meaning o& Ar i'le 54(5)(a) o& he 8ienna )onvention 250 regar"ing he appli'a ion o& he E$ropean -omm$ni ies6 'on'ession0 an" ha he )aiver 'on&irme" or e3 en"e" he e&&e' iveness o& he 'on'ession/26 9/ E'$a"or s$bmi s ha he 7anel %as 'orre' in &in"ing L ha he -on'ession remains in e&&e'

be'a$se o& i s e3 ension via he agreemen mani&es e" in he +oha )aiverL 27 an" ha L he +oha )aiver %as an agreemen regar"ing he application o& he 'on'ession0 %hi'h is %i hin he s'ope o& Ar i'le 54(5) Fo& he 8ienna )onventionGL/28 :$r hermore0 a''or"ing o E'$a"or0 L he +oha )aiver /// s rongl# s$ppor FsG E'$a"or6s posi ion ha he -on'ession %as never in en"e" o e3pire on a''o$n o& paragraph 9 o& he F!ananas :rame%or@ Agreemen G/L 29 -/ 4/ Analysis of the European )ommunitiesF Appeal

1n his se' ion0 %e a""ress he E$ropean -omm$ni ies6 'laim ha he 7anel erre" in &in"ing

ha he +oha Ar i'le 1 )aiver mo"i&ie" he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions an"
24 22

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 469 (E'$a"or)/ E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 485 (E'$a"or)/ 25 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 498 (E'$a"or)/ 29 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 499 (E'$a"or)/ 25 E'$a"or6s appellee6s s$bmission0 para/ 58/ 26 E'$a"or6s appellee6s s$bmission0 para/ 59/ 27 E'$a"or6s appellee6s s$bmission0 para/ 54/ 28 E'$a"or6s appellee6s s$bmission0 para/ 58/ 29 E'$a"or6s appellee6s s$bmission0 para/ 66/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 427 e3 en"e" he ari&& D$o a 'on'ession o& 2/2 million m bo$n" a an in-D$o a ra e o& M75*m be#on" 54 +e'ember 2002/50 2/ The 7anel &o$n" ha L he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas %as he +oha

$neD$ivo'all# in en"e" o e3pire on 54 +e'ember 2002/L54 The 7anel hen &o$n" ha

Ar i'le 1 )aiver0 Las i rela es o he E$ropean -omm$ni ies6 )TO mar@e a''ess 'ommi men s on bananas0 is a 6s$bseD$en agreemen be %een he par ies6 /// regar"ing he appli'a ion o& he provisions o& he )TO Agreemen as i per ains o s$'h mar@e a''ess 'ommi men s/L 52 1n ma@ing his &in"ing0 he 7anel no e" ha he +oha Ar i'le 1 )aiver is an agreemen rea'he" be %een he same par ies ha agree" o in'orpora e he !ananas :rame%or@ Agreemen as an anne3 o he E$ropean -omm$ni ies6 ,'he"$le o& -on'essionsB i is s$bseD$en o he !ananas :rame%or@ Agreemen B an"0 li@e ha agreemen 0 he )aiver "eals %i h0 inter alia0 he E$ropean -omm$ni ies6 )TO mar@e a''ess 'ommi men s rela ing o bananas/55 5/ The 7anel hen $rne" o he D$es ion %he her0 in a"op ing he +oha Ar i'le 1 )aiver0 )TO

?embers ha" agree" o e3 en" he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas be#on" 54 +e'ember 20020 he "a e he !ananas :rame%or@ Agreemen %as in en"e" o e3pire/ 59 The 7anel 'on'l$"e" ha he 'ommon in en ion o& )TO ?embers as re&le' e" in he e3 o& he +oha Ar i'le 1 )aiver "e'ision %as ha 0 pen"ing he Ar i'le 22;111 nego ia ions on he rebin"ing o& he banana ari&& in he E$ropean -omm$ni ies6 ,'he"$le0 he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession %o$l" 'on in$e o 'ons i $ e he E$ropean -omm$ni ies6 bo$n" 'ommi men s regar"ing bananas/55 4/ 4/ )aivers0 ?$l ila eral 1n erpre a ions0 an" Amen"men s

)e begin b# no ing hree "i&&eren me ho"s ha ?embers ma# $se o in erpre or mo"i&#

)TO la% provi"e" &or in he >4= Agreement: (i) %aivers (Ar i'le 12:5)B (ii) m$l ila eral in erpre a ions (Ar i'le 12:2)B an" (iii) amen"men s (Ar i'le 2)/ )e %ill ne3 'onsi"er he "is in'

50 54

E'$a"or 7anel (epor 0 para/ 7/992/ E'$a"or 7anel (epor 0 para/ 7/956/ 52 E'$a"or 7anel (epor 0 para/ 7/995/ 55 E'$a"or 7anel (epor 0 para/ 7/995/ 59 E'$a"or 7anel (epor 0 para/ 7/999/ 55 E'$a"or 7anel (epor 0 para/ 7/956/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 428 2/ roles an" &$n' ions o& hese me ho"s in )TO la%/ )e %ill hen a""ress he 7anel6s &in"ing

ha he +oha Ar i'le 1 )aiver %as a Ls$bseD$en agreemen L %i hin he meaning o& Ar i'le 54(5)(a) o& he 8ienna )onvention ha res$l e" in an e3 ension o& he ari&& D$o a 'on'ession be#on" 54 +e'ember 20020 he "a e %hen0 a''or"ing o paragraph 9 o& he !anana :rame%or@ Agreemen 0 L his agreemen L %as o e3pire/ 5/ The &irs me ho" i"en i&ie" above is a %aiver/ Ar i'le 12:5 o& he >4= Agreement allo%s

he ?inis erial -on&eren'e o %aive0 in e3'ep ional 'ir'$ms an'es an" b# a "e'ision a@en b# a leas hree &o$r hs o& )TO ?embers0 an obliga ion impose" on a ?ember b# he >4= Agreement an" b# an# o& he m$l ila eral agreemen s/ Ar i'le 12:9 o& he >4= Agreement s a es: A "e'ision b# he ?inis erial -on&eren'e gran ing a %aiver shall s a e he e3'ep ional 'ir'$ms an'es N$s i&#ing he "e'ision0 he erms an" 'on"i ions governing he appli'a ion o& he %aiver0 an" he "a e on %hi'h he %aiver shall ermina e/ An# %aiver gran e" &or a perio" o& more han one #ear shall be revie%e" b# he ?inis erial -on&eren'e no la er han one #ear a& er i is gran e"0 an" herea& er ann$all# $n il he %aiver ermina es/ 1n ea'h revie%0 he ?inis erial -on&eren'e shall e3amine %he her he e3'ep ional 'ir'$ms an'es N$s i&#ing he %aiver s ill e3is an" %he her he erms an" 'on"i ions a a'he" o he %aiver have been me / The ?inis erial -on&eren'e0 on he basis o& he ann$al revie%0 ma# e3 en"0 mo"i&# or ermina e he %aiver/ 9/ Ar i'le 12:9 reD$ires ha he "e'ision gran ing he %aiver s a e he "a e on %hi'h he %aiver

shall ermina e0 h$s ens$ring ha %aivers are gran e" &or limi e" perio"s o& ime/ A %aiver m$s s a e he e3'ep ional 'ir'$ms an'es N$s i&#ing he "e'ision0 he erms an" 'on"i ions governing he appli'a ion o& he %aiver0 an" he "a e i ermina es/ The /ruguay *ound /nderstanding in *espect of >aivers of =$ligations under the 1eneral Agreement on 4ariffs and 4rade ,??5 "es'ribes0 in "e ail0 he 'on en s o& a reD$es &or a %aiver/ 7aragraph 4 o& his .n"ers an"ing s a es: A reD$es &or a %aiver or &or an e3 ension o& an e3is ing %aiver shall "es'ribe he meas$res %hi'h he ?ember proposes o a@e0 he spe'i&i' poli'# obNe' ives %hi'h he ?ember see@s o p$rs$e an" he reasons %hi'h preven he ?ember &rom a'hieving i s poli'# obNe' ives b# meas$res 'onsis en %i h i s obliga ions $n"er AATT 4999/ 5/ These provisions spe'i&# he elemen s ha m$s be in'l$"e" in %aiver reD$es s an"

"e'isions/ The nee" o s a e he e3'ep ional 'ir'$ms an'es0 o spe'i&# he erms an" 'on"i ions governing he appli'a ion o& he %aiver0 an" o "es'ribe he spe'i&i' poli'# obNe' ives ha a ?ember see@s o p$rs$e0 ma@e 'lear ha a %aiver is a spe'i&i' an" e3'ep ional ins r$men s$bNe' o s ri' "is'iplines/ These elemen s "o no s$gges ha a %aiver sho$l" be 'ons r$e" as an agreemen on

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 429 iss$es no e3pli'i l# re&le' e" in i s erms an" 'on"i ions0 N$s i&#ing 'ir'$ms an'es0 an" s a e" poli'# obNe' ives/ 1n he original E) Bananas III pro'ee"ings0 he Appella e !o"# emphasi=e": Al ho$gh he >4= Agreement "oes no provi"e an# spe'i&i' r$les on he in erpre a ion o& %aivers0 Ar i'le 12 o& he >4= Agreement an" he /nderstanding in *espect of >aivers of =$ligations under the 1eneral Agreement on 4ariffs and 4rade ,??50 %hi'h provi"e reD$iremen s &or gran ing an" rene%ing %aivers0 s ress he e3'ep ional na $re o& %aivers an" s$bNe' %aivers o s ri' "is'iplines/ Th$s0 %aivers sho$l" be in erpre e" %i h grea 'are/ 56 6/ 1n o$r vie%0 he &$n' ion o& a %aiver is o relieve a ?ember0 &or a spe'i&ie" perio" o& ime0

&rom a par i'$lar obliga ion provi"e" &or in he 'overe" agreemen s0 s$bNe' o he erms0 'on"i ions0 N$s i&#ing e3'ep ional 'ir'$ms an'es or poli'# obNe' ives "es'ribe" in he %aiver "e'ision/ 1 s p$rpose is no o mo"i&# e3is ing provisions in he agreemen s0 le alone 'rea e ne% la% or a"" o or amen" he obliga ions $n"er a 'overe" agreemen or ,'he"$le/ There&ore0 %aivers are e3'ep ional in na $re0 s$bNe' o s ri' "is'iplines an" sho$l" be in erpre e" %i h grea 'are/ 7/ ?$l ila eral in erpre a ions o& provisions o& )TO la% are he ne3 me ho" i"en i&ie" above/

Ar i'le 12:2 o& he >4= Agreement se s o$ spe'i&i' reD$iremen s &or "e'isions ha ma# be a@en b# he ?inis erial -on&eren'e or he Aeneral -o$n'il o a"op in erpre a ions o& provisions o& he ?$l ila eral Tra"e Agreemen s/ ,$'h m$l ila eral in erpre a ions are mean o 'lari&# he meaning o& e3is ing obliga ions0 no o mo"i&# heir 'on en / Ar i'le 12:2 emphasi=es ha s$'h in erpre a ions Lshall no be $se" in a manner ha %o$l" $n"ermine he amen"men provisions in Ar i'le 2L/ A m$l ila eral in erpre a ion sho$l" also be "is ing$ishe" &rom a %aiver0 %hi'h allo%s a ?ember o "epar &rom an e3is ing )TO obliga ion &or a limi e" perio" o& ime/ )e 'onsi"er ha a m$l ila eral in erpre a ion p$rs$an o Ar i'le 12:2 o& he >4= Agreement 'an be li@ene" o a s$bseD$en agreemen regar"ing he in erpre a ion o& he rea # or he appli'a ion o& i s provisions p$rs$an o Ar i'le 54(5)(a) o& he 8ienna )onvention0 as &ar as he in erpre a ion o& he )TO agreemen s is 'on'erne"/ 8/ The hir" me ho" men ione" above is amen"men s o he )TO agreemen s/ Ar i'le 2 o&

he >4= Agreement se s o$ r$les an" pro'e"$res o amen" he provisions in he ?$l ila eral Tra"e Agreemen s/ Ar i'le 2 spe'i&ies he pro'ess an" D$or$m reD$ire" o amen" par i'$lar provisions or 'overe" agreemen s/ Amen"men s0 $nli@e %aivers0 are no limi e" in ime an" 'rea e ne% or mo"i&# e3is ing righ s an" obliga ions &or )TO ?embers/ ,pe'ial r$les on a''ep an'e an" en r# in o &or'e appl#0 "epen"ing on he provisions ha are being amen"e" an" on %he her he amen"men L%o$l"

56

Appella e !o"# (epor 0 E) Bananas III0 para/ 485/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 450 9/ al er he righ s an" obliga ions o& he ?embersL/ Amen"men s o he >4= Agreement an"

o a ?$l ila eral Tra"e Agreemen in Anne3 4 en er in o &or'e &ollo%ing a &ormal a''ep an'e pro'ess p$rs$an o Ar i'le 2:7/ 40/ The mo"i&i'a ion o& ,'he"$les o& -on'essions0 %hi'h are an in egral par o& he AATT

49990 "oes no reD$ire a &ormal amen"men p$rs$an o Ar i'le 2 o& he >4= Agreement0 b$ is ena' e" hro$gh a spe'ial pro'e"$re se o$ in Ar i'le 22;111 o& he AATT 4999 or hro$gh m$l ila eral ro$n"s o& ari&& nego ia ions/ 7$rs$an o Ar i'le 22;1110 a ?ember ma# mo"i&# or %i h"ra% a 'on'ession anne3e" o he AATT 4999 b# nego ia ion an" agreemen %i h o her ?embers ha are Lprimaril# 'on'erne"L0 an" in 'ons$l a ion %i h ?embers ha have a s$bs an ial in eres in he 'on'ession/ Ar i'le 22;111:2 provi"es ha 0 in an agreemen on he renego ia ion o& a 'on'ession0 %hi'h ma# in'l$"e 'ompensa or# a"N$s men 0 )TO ?embers Lshall en"eavo$r o main ain a general level o& re'ipro'al an" m$ $all# a"van ageo$s 'on'essions no less &avo$rable o ra"e han ha provi"e" &or in his Agreemen prior o s$'h nego ia ionsL/ 1& an agreemen 'anno be rea'he"0 he mo"i&#ing ?ember is &ree o mo"i&# or %i h"ra% he 'on'ession0 %hile o her ?embers ha are primaril# 'on'erne" or have a s$bs an ial in eres in he 'on'ession are &ree o %i h"ra% s$bs an iall# eD$ivalen 'on'essions ini iall# nego ia e" %i h he mo"i&#ing ?ember/ 2/ )he her he +oha Ar i'le 1 )aiver is a L,$bseD$en Agreemen L %i hin he ?eaning o& Ar i'le 54(5)(a) o& he 8ienna )onvention

4/

The E$ropean -omm$ni ies arg$es ha he 7anel erre" in &in"ing ha he +oha Ar i'le 1

)aiver L%as a 6s$bseD$en agreemen 60 o he E$ropean -omm$ni ies6 ,'he"$le0 %hi'h "eal %i h he provisions o& he ,'he"$leL/57 The E$ropean -omm$ni ies arg$es ha L he +oha %aiver %o$l" no D$ali&# as a 6s$bseD$en agreemen regar"ing he in erpre a ion6 o& he original rea # &or p$rposes o& Ar i'le 54(5)(a) o& he ;ienna -onven ionL be'a$se0 a''or"ing o he 7anel6s o%n in erpre a ion0 i "oes no Lin erpre L b$ Lmo"i&iesL he E$ropean -omm$ni ies6 ,'he"$le an" e3 en"s he ari&& D$o a 'on'ession ( ha is0 he ari&& D$o a o& 2/2 million m bo$n" a an in-D$o a ra e o& M75*m ) be#on" 54 +e'ember 20020 he "a e on %hi'h he !ananas :rame%or@ Agreemen %as o e3pire/ 58 2/ )e re'all ha Ar i'le 54(5)(a) o& he 8ienna )onvention provi"es: There shall be a@en in o a''o$n 0 oge her %i h he 'on e3 : (a) an# s$bseD$en agreemen be %een he par ies regar"ing he in erpre a ion o& he rea # or he appli'a ion o& i s provisions/

57 58

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 498 (E'$a"or)/ E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 494 (E'$a"or)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 454 5/ )e agree %i h he 7anel ha he +oha Ar i'le 1 )aiver %as a"op e" b# he same par ies o he en r# in o &or'e o& he

ha approve" he E$ropean -omm$ni ies6 ,'he"$le0 in'l$"ing he !ananas :rame%or@ Agreemen anne3e" here o/ The )aiver "e'ision %as also a@en s$bseD$en E$ropean -omm$ni ies6 ,'he"$le/ <o%ever0 %e are no pers$a"e" ha he +oha Ar i'le 1 )aiver 'o$l" D$ali&# as a Ls$bseD$en agreemen L regar"ing he in erpre a ion o& he rea # or appli'a ion o& i s provisions %i hin he meaning o& Ar i'le 54(5)(a) o& he 8ienna )onvention/ 9/ )e have 'onsi"ere" above he "i&&eren'es be %een a %aiver as oppose" o a m$l ila eral

in erpre a ion an" an amen"men o a 'overe" agreemen / As no e" earlier0 a %aiver "e'ision relieves a ?ember0 &or a limi e" perio"0 &rom a par i'$lar e3is ing obliga ion $n"er he 'overe" agreemen s0 s$bNe' o he erms an" 'on"i ions0 N$s i&#ing e3'ep ional 'ir'$ms an'es0 or poli'# obNe' ives "es'ribe" in he %aiver "e'ision/ The p$rpose o& a %aiver is no o mo"i&# he in erpre a ion or appli'a ion o& e3is ing provisions in he agreemen s0 le alone o a"" o or amen" he obliga ions $n"er a 'overe" agreemen or ,'he"$le/ As %e "is'$ss belo%0 he "e'ision o gran he +oha Ar i'le 1 )aiver p$rs$an o Ar i'le 12:5 o& he >4= Agreement "oes no D$ali&# as an agreemen on he in erpre a ion or appli'a ion o& a rea # provision %i hin he meaning o& Ar i'le 54(5)(a) o& he 8ienna )onvention/ 5/ )e &$r her observe ha 0 in i s 'ommen ar# on he +ra& Ar i'les on he >a% o& Trea ies0 he

1n erna ional >a% -ommission ( he L1>-L) "es'ribes a s$bseD$en agreemen %i hin he meaning o& Ar i'le 54(5)(a) o& he 8ienna )onvention Las a &$r her authentic element of interpretation o be a@en in o a''o$n oge her %i h he 'on e3 L/59 1n o$r vie%0 b# re&erring o La$ hen i' in erpre a ionL0 he 1>- rea"s Ar i'le 54(5)(a) as re&erring o agreemen s bearing spe'i&i'all# $pon he in erpre a ion o& a rea #/ 1n he )TO 'on e3 0 m$l ila eral in erpre a ions a"op e" p$rs$an o Ar i'le 12:2 o& he >4= Agreement are mos a@in o s$bseD$en agreemen s %i hin he meaning o& Ar i'le 54(5)(a) o& he 8ienna )onvention0 b$ no %aivers a"op e" p$rs$an o Ar i'les 12:5 an" 9 o& he >4= Agreement/ 6/ Also0 &or ano her reason0 %e "o no believe ha he +oha Ar i'le 1 )aiver D$ali&ies as a

Ls$bseD$en agreemen L %i hin he meaning o& Ar i'le 54(5)(a) o& he 8ienna )onvention be %een all )TO ?embers regar"ing he appli'a ion o& he ari&& D$o a 'on'ession in 7ar 10 ,e' ion 1-! o& he E$ropean -omm$ni ies6 ,'he"$le/90 1n his respe' 0 %e re'all ha he 7anel 'on'l$"e" ha : T he )aiver0 as i rela es o he E$ropean -omm$ni ies6 )TO mar@e -a''ess 'ommi men s rela ing o bananas0 is a Ls$bseD$en agreemen be %een he par iesL o he !ananas :rame%or@
L(epor o& he 1n erna ional >a% -ommission on he )or@ o& i s 48 h ,ession0 Aeneva0 9 ?a#49 C$l# 4966L (4966) 11 Gear$oo0 of the International La% )ommission 4720 a 2240 para/ 49/ (emphasis a""e") 90 E'$a"or 7anel (epor 0 para/ 7/995/ The relevan e3'erp s &rom ,e' ions 1-A an" 1-! o& 7ar 1 o& he E$ropean -omm$ni ies6 ,'he"$le >222 are repro"$'e" in Anne3 ;1 a a'he" o his (epor /
59

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 452 Agreemen (i/e/0 he )TO ?embers)0 regar"ing he application o& he provisions o& he )TO agreemen as i per ains o s$'h mar@e a''ess 'ommi men s/94 (emphasis a""e") 1n o$r vie%0 he erm Lappli'a ionL in Ar i'le 54(5)(a) rela es o he si $a ion %here an agreemen spe'i&ies ho% e3is ing r$les or obliga ions in &or'e are o be Lapplie"LB he erm "oes no 'onno e he 'rea ion o& ne% or he e3 ension o& e3is ing obliga ions ha are s$bNe' o a emporal limi a ion an" are o e3pire/ )e &in" he 7anel6s 'on'l$sion ha he +oha Ar i'le 1 )aiver e3 en"e" he "$ra ion o& he ari&& D$o a 'on'ession be#on" 54 +e'ember 20020 an" hereb# mo"i&ie" or 'hange" he 'on en o& he E$ropean -omm$ni ies6 ,'he"$le0 "i&&i'$l o re'on'ile %i h i s 'on'l$sion ha he )aiver sho$l" be 'onsi"ere" an agreemen on he application o& e3is ing 'ommi men s 'on aine" in ha ,'he"$le/ As s$'h0 %e "o no 'onsi"er ha he +oha Ar i'le 1 )aiver 'o$l" be regar"e" as an agreemen on he appli'a ion o& he ari&& D$o a 'on'ession in he E$ropean -omm$ni ies6 ,'he"$le %i hin he meaning o& Ar i'le 54(5)(a) o& he 8ienna )onvention/ 7/ 1n"ee"0 he 7anel appears o have rea" he +oha Ar i'le 1 )aiver as an agreemen

mo"i&#ing he E$ropean -omm$ni ies6 ,'he"$le0 in ha i %o$l" provi"e &or an e3 ension o& he ari&& D$o a 'on'ession be#on" 54 +e'ember 20020 he e3pir# "a e o& he !ananas :rame%or@ Agreemen / The 7anel spe'i&i'all# &o$n" ha L he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas %as $neD$ivo'all# in en"e" o e3pire on 54 +e'ember 2002L92 an" ha 0 Lin a"op ing he )aiver0 he )TO ?embers agree" o e3 en" he "$ra ion o& he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession be#on" 54 +e'ember 2002L/95 This &in"ing o& he 7anel means ha he 7anel 'onsi"ere" ha he )aiver in &a' modified he E$ropean -omm$ni ies6 original ,'he"$le0 ra her han simpl# interpreted or applied i / There&ore0 b# he 7anel6s o%n logi'0 i 'anno be s$s aine" ha he +oha Ar i'le 1 )aiver 'o$l" be 'hara' eri=e" as a Ls$bseD$en agreemen L %i hin he meaning o& Ar i'le 54(5)(a) o& he 8ienna )onvention on he application o& he mar@e a''ess 'ommi men s &or bananas in he E$ropean -omm$ni ies6 ,'he"$le/ 8/ :or all hese reasons0 %e "isagree %i h he 7anel6s &in"ing ha he L he +oha )aiver0 as i

rela es o he E$ropean -omm$ni ies6 )TO mar@e -a''ess 'ommi men s rela ing o bananas0 is a 6s$bseD$en agreemen be %een he par ies6 o he !ananas :rame%or@ Agreemen (i/e/0 he )TO ?embers)0 regar"ing he appli'a ion o& he provisions o& he F >4= AgreementG as i per ains o s$'h mar@e a''ess 'ommi men s/L99

94 92

E'$a"or 7anel (epor 0 para/ 7/995/ E'$a"or 7anel (epor 0 para/ 7/956/ 95 E'$a"or 7anel (epor 0 para/ 7/996/ 99 E'$a"or 7anel (epor 0 para/ 7/995/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 455 9/ )e are also o& he vie% ha he +oha Ar i'le 1 )aiver "oes no 'ons i $ e an amen"men o& E3 en"ing an obliga ion %i h a emporal limi a ion is a

he E$ropean -omm$ni ies6 ,'he"$le a"op e" in a''or"an'e %i h he reD$iremen s an" pro'e"$res o& Ar i'le 2 o& he >4= Agreement/ mo"i&i'a ion ha Lal erFsG he righ s an" obliga ions o& he ?embersL/ There&ore0 i& implemen e" b# means o& an amen"men 0 Ar i'le 2:5 reD$ires ha s$'h an amen"men Lshall a@e e&&e' &or he ?embers ha have a''ep e" Fi G $pon a''ep an'e b# %o hir"s o& he ?embers an" herea& er &or ea'h ?ember $pon a''ep an'e b# i L/ A''or"ing o Ar i'le 2:70 a''ep an'e o& s$'h an amen"men reD$ires "eposi ing an ins r$men o& a''ep an'e %i h he +ire' or-Aeneral o& he )TO/ The +oha Ar i'le 1 )aiver is a "e'ision a@en b# he ?inis erial -on&eren'e0 %hi'h "i" no reD$ire &ormal a''ep an'e b# he ?embership as &oreseen $n"er Ar i'le 2:7/ 40/ ?oreover0 %hile i is r$e ha p$rs$an o Ar i'le 11:7 o& he AATT 4999 ?embers6

,'he"$les o& -on'essions are in egral par s o& he 'overe" agreemen s0 ,'he"$les are $s$all# no mo"i&ie" b# means o& an amen"men p$rs$an o Ar i'le 2 o& he >4= Agreement: spe'ial r$les an" pro'e"$res ha ?embers are reD$ire" o &ollo% %hen he# %ish o mo"i&# heir ,'he"$les $nless he# en er in o ari&& 'ommi men s b# means o& he 'on'l$sion o& m$l ila eral ro$n"s o& ra"e nego ia ions are provi"e" in Ar i'le 22;111 o& he AATT 4999/ 1n o$r vie%0 i& he "$ra ion o& he ari&& D$o a 'on'ession in he E$ropean -omm$ni ies6 ,'he"$le ha" o be mo"i&ie" or e3 en"e"0 nego ia ions $n"er Ar i'le 22;111 %o$l" be he proper pro'e"$re o &ollo%/ 95 5/ )he her he Tari&& E$o a -on'ession in he E$ropean -omm$ni ies6 ,'he"$le %as E3 en"e" b# he +oha Ar i'le 1 )aiver

4/

A''or"ing o he 7anel0 he ari&& D$o a 'on'ession in he E$ropean -omm$ni ies6 ,'he"$le

o& -on'essions %as o e3pire $n"er he erms o& he !ananas :rame%or@ Agreemen 0 an" he +oha Ar i'le 1 )aiver e3 en"e" ha 'on'ession be#on" he "a e %hen he !ananas :rame%or@ Agreemen %as o e3pire/ 1n his se' ion0 %e 'onsi"er he arg$men b# he E$ropean -omm$ni ies ha he 7anel erre" in i s in erpre a ion o& he erms an" 'on"i ions in he +oha Ar i'le 1 )aiver %hen i &o$n" ha 0 hro$gh he )aiver0 L)TO ?embers agree" o e3 en" he "$ra ion o& he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas be#on" 54 +e'ember 2002L/96 The E$ropean -omm$ni ies arg$es ha here is no re&eren'e in he +oha Ar i'le 1 )aiver o he E$ropean -omm$ni ies6 ,'he"$le0 le alone o an# agreemen o e3 en" he ari&& D$o a 'on'ession/ 97

)hile he E$ropean -omm$ni ies has ini ia e" Ar i'le 22;111 nego ia ions &or he p$rpose o& in ro"$'ing a ari&&-onl# regime0 hese nego ia ions "i" no involve a possible e3 ension o& he ari&& D$o a 'on'ession be#on" 54 +e'ember 2002/ 1n an# even 0 he renego ia ions $n"er Ar i'les 22;111 an" 221;:6 have no been 'omple e" o "a e/ 96 E'$a"or 7anel (epor 0 para/ 7/996/ 97 E$ropean -omm$ni ies6 appellan 6s s$bmission0 paras/ 465 an" 466 (E'$a"or)/

95

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 459 2/ The 7anel 'onsi"ere" ha he e3 o& he +oha Ar i'le 1 )aiver re&le' e" he 'ommon

in en ion o& )TO ?embers ha 0 pen"ing he 'omple ion o& he Ar i'le 22;111 nego ia ions an" $n il he en r# in o &or'e o& a ne% ari&& regime0 he E$ropean -omm$ni ies6 .r$g$a# (o$n" ari&& D$o a 'on'ession &or bananas %o$l" 'on in$e o appl#/ 98 5/ )e no e" above ha a "e'ision gran ing a %aiver is an e3'ep ional ins r$men / )aivers are

s$bNe' o he s ri' "is'iplines se o$ in Ar i'le 12:5 o& he >4= Agreement/ )e no e ha he +oha Ar i'le 1 )aiver a$ hori=e" he E$ropean -omm$ni ies0 LFsG$bNe' o he erms an" 'on"i ions se o$ F Ghere$n"erL0 o "eroga e0 $n il 54 +e'ember 20070 &rom Ar i'le 1:4 o& he AATT 4999: /// o he e3 en ne'essar# o permi Fi G o provi"e pre&eren ial ari&& rea men &or pro"$' s origina ing in A-7 , a es as reD$ire" b# Ar i'le 56/50 Anne3 ; an" i s 7ro o'ols o& he A-7-E- 7ar nership Agreemen 0 %i ho$ being reD$ire" o e3 en" he same pre&eren ial rea men o li@e pro"$' s o& an# o her member/ (&oo no e omi e") 9/ The )aiver6s erms an" 'on"i ions "o no e3pressl# in erpre or mo"i&# he ari&& D$o a o&

2/2 million m bo$n" in he E$ropean -omm$ni ies6 ,'he"$le0 he in-D$o a ari&& ra e o& M75*m appli'able o ?:N s$ppliers0 or he erms o& he !ananas :rame%or@ Agreemen as anne3e" o he E$ropean -omm$ni ies6 ,'he"$le/ E$ropean -omm$ni ies6 ,'he"$le/ 5/ The re&eren'e in he re'i al o& he preamble o& he +oha Ar i'le 1 )aiver o ari&& D$o as LAL The +oha Ar i'le 1 )aiver is 'on'erne" %i h he =ero-"$ # pre&eren'e &or A-7 s$ppliers0 no %i h he ari&& D$o a 'on'ession &or ?:N s$ppliers spe'i&ie" in he

an" L!L &or banana impor s &rom ?:N s$ppliers0 an" o he in-D$o a ari&& ra e o& M75*m appli'able o ?:N s$ppliers0 "oes no pers$a"e $s o her%ise/ 1n &a' 0 ari&& D$o as A an" ! a"" $p o 2/55 million m 0 %hi'h is no he same as he 2/2 million m ins'ribe" in he E$ropean -omm$ni ies6 ,'he"$le/ ?oreover0 he preamble re'i al is in ro"$'e" b# he %or" Lno ingL0 an" "oes no &orm par o& he opera ional se' ion o& he )aiver "e'ision/ There&ore0 he re&eren'e in he preamble o& he

98

E'$a"or 7anel (epor 0 para/ 7/956/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 455 6/ +oha Ar i'le 1 )aiver o he ari&& D$o as rela ing o ?:N s$ppliers 'anno be "eeme" o

'ons i $ e a "e'ision o e3 en" he ari&& D$o a 'on'ession be#on" 54 +e'ember 2002/99 7/ 1n rea'hing his 'on'l$sion0 he 7anel also relie" on he Anne3 on !ananas o he +oha

Ar i'le 1 )aiver0 %hi'h s a es ha 0 in he rebin"ing o& he E$ropean -omm$ni ies6 ari&& 'on'ession p$rs$an o Ar i'le 22;111 o& he AATT 49990 Lall E- )TO mar@e -a''ess 'ommi men s rela ing o bananas sho$l" be a@en in o a''o$n L/50 The Anne3 also pres'ribe" he arbi ra ors6 man"a e o be he "e ermina ion o& %he her s$'h rebin"ing Lres$l Fe"G in a leas main aining o al mar@e a''ess &or ?:N banana s$ppliers0 a@ing in o a''o$n he above-men ione" E- 'ommi men sL/ 54 :inall#0 he Anne3 on !ananas provi"e" ha LF Ghe Ar i'le 22;111 nego ia ions an" he arbi ra ion pro'e"$res shall be 'on'l$"e" be&ore he en r# in o &or'e o& he ne% E- ari&& onl# regime on 4 Can$ar# 2006/L52 The 7anel &$r her 'on'l$"e" ha 0 'onsi"ering ha he E$ropean -omm$ni ies ha" no 'omplie" %i h he provisions in he Anne3 on !ananas 550 an" ha Ar i'le 22;111 nego ia ions ha" no been 'on'l$"e"0 L he ne% E- ari&& regimeL ha" no #e en ere" in o &or'e/ 59
99

(e'i al 9 o& he preamble rea"s: 6oting ha he ari&& applie" o bananas impor e" in he LAL an" L!L D$o as shall no e3'ee" 75 M* onne $n il he en r# in o &or'e o& he ne% E- ari&&onl# regime/ 50 Anne3 on !ananas0 se'on" ire 0 rea"s: No la er han 40 "a#s a& er he 'on'l$sion o& Ar i'le 22;111 nego ia ions0 in eres e" par ies %ill be in&orme" o& he E- in en ions 'on'erning he rebin"ing o& he E- ari&& on bananas/ 1n he 'o$rse o& s$'h 'ons$l a ions0 he E- %ill provi"e in&orma ion on he me ho"olog# $se" &or s$'h rebin"ing/ 1n his regar"0 all E- )TO mar@e -a''ess 'ommi men s rela ing o bananas sho$l" be a@en in o a''o$n / 54 Anne3 on !ananas0 &o$r h ire 0 rea"s: The arbi ra or shall be appoin e" %i hin 40 "a#s0 &ollo%ing he reD$es s$bNe' o agreemen be %een he %o par ies0 &ailing %hi'h he arbi ra or shall be appoin e" b# he +ire' or-Aeneral o& he )TO0 &ollo%ing 'ons$l a ions %i h he par ies0 %i hin 50 "a#s o& he arbi ra ion reD$es / The man"a e o& he arbi ra or shall be o "e ermine0 %i hin 90 "a#s o& his appoin men 0 %he her he envisage" rebin"ing o& he E- ari&& on bananas %o$l" res$l in a leas main aining o al mar@e a''ess &or ?:N banana s$ppliers0 a@ing in o a''o$n he above-men ione" E- 'ommi men s/ 52 Anne3 on !ananas0 &i& h ire 0 rea"s: 1& he arbi ra or "e ermines ha he rebin"ing %o$l" no res$l in a leas main aining o al mar@e a''ess &or ?:N s$ppliers0 he E- shall re' i&# he ma er/ )i hin 40 "a#s o& he no i&i'a ion o& he arbi ra ion a%ar" o he Aeneral -o$n'il0 he E- %ill en er in o 'ons$l a ions %i h hose in eres e" par ies ha reD$es e" he arbi ra ion/ 1n he absen'e o& a m$ $all# sa is&a' or# sol$ ion0 he same arbi ra or %ill be as@e" o "e ermine0 %i hin 50 "a#s o& he ne% arbi ra ion reD$es 0 %he her he E- has re' i&ie" he ma er/ The se'on" arbi ra ion a%ar" %ill be no i&ie" o he Aeneral -o$n'il/ 1& he E- has &aile" o re' i&# he ma er0 his %aiver shall 'ease o appl# o bananas $pon en r# in o &or'e o& he ne% E- ari&& regime/ The Ar i'le 22;111 nego ia ions an" he arbi ra ion pro'e"$res shall be 'on'l$"e" be&ore he en r# in o &or'e o& he ne% E- ari&& onl# regime on 4 Can$ar# 2006/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 456 8/ The provisions in he Anne3 on !ananas %ere aime" a ens$ring0 in he 'o$rse o& he

in ro"$' ion o& a ari&&-onl# s#s em0 he rebin"ing o& he E$ropean -omm$ni ies6 ari&& a a level ha %o$l" res$l in a leas main aining o al mar@e a''ess &or ?:N banana s$ppliers0 a@ing in o a''o$n all he E$ropean -omm$ni ies6 'ommi men s0 in'l$"ing he si=e o& he ari&& D$o a an" he in-D$o a ari&& appli'able o ?:N s$ppliers/ )e "o no see in his provision an# e3press or implie" e3 ension o& he ari&& D$o a 'on'ession $n il he pro'ess o& rebin"ing o& a ari&&-onl# s#s em is 'omple e"/ ,everal paragraphs o& he Anne3 on !ananas re&er o he nee" o a@e in o a''o$n 0 in he rebin"ing o& he E$ropean -omm$ni ies6 banana ari&&0 Lall E- )TO mar@e -a''ess 'ommi men s rela ing o bananasL/ <o%ever0 he obNe' o& ha Anne3 is o se o$ he ben'hmar@ an" he arbi ra ion pro'ess &or assessing %he her he Lenvisage" rebin"ing o& he E- ari&& on bananas %o$l" res$l in a leas main aining o al mar@e a''ess &or ?:N banana s$ppliersL/ 1 "oes no provi"e &or he e3 ension o& he E$ropean -omm$ni ies6 ari&& D$o a 'on'essionB ra her0 i appears o ass$me he 'on in$e" vali"i # o& he ari&& D$o a 'on'ession ha &orms par o& he e3is ing o al mar@e a''ess 'ommi men s vis-U-vis ?:N s$ppliers ha a ari&& rebin"ing b# he E$ropean -omm$ni ies %o$l" have o a leas main ain/ 9/ :or hese reasons0 %e 'anno "is'ern &rom he erms an" 'on"i ions0 an" he 'ir'$ms an'es

i"en i&ie" as N$s i&i'a ion &or he +oha Ar i'le 1 )aiver0 a "e'ision mo"i&#ing he ari&& D$o a 'on'ession rela ing o impor s &rom ?:N s$ppliers in he E$ropean -omm$ni ies6 ,'he"$le/ The &o'$s o& he Anne3 is 'learl# he pre&eren ial ari&& rea men &or A-7 'o$n ries/ )e also no e ha no par # arg$e" be&ore he 7anel ha he +oha Ar i'le 1 )aiver0 a$ hori=ing he E$ropean -omm$ni ies o provi"e0 s$bNe' o 'er ain erms an" 'on"i ions0 pre&eren ial ari&& rea men o pro"$' s o& A-7 origin0 e3 en"e" he "$ra ion o& he ari&& D$o a 'on'ession rela ing o impor s &rom ?:N s$pplier 'o$n ries/

1n he se'on" a%ar" b# he arbi ra ors a' ing p$rs$an o he Anne3 on !ananas a a'he" o he +oha Ar i'le 1 )aiver0 he arbi ra ors &o$n" ha he se'on" propose" ari&& rebin"ing (a he level o& M487*m ) b# he E$ropean -omm$ni ies "i" no Lres$l in a leas main aining o al mar@e a''ess &or ?:N banana s$ppliers0 a@ing in o a''o$n he above-men ione" E- 'ommi men sL an" ha 0 here&ore0 he E$ropean -omm$ni ies ha" &aile" o re' i&# he ma er in a''or"an'e %i h he &i& h ire o& he Anne3 on !ananas/ (A%ar" o& he Arbi ra or0 E) 4he A)P E) Partnership Agreement II0 para/ 427) 59 E'$a"or 7anel (epor 0 paras/ 7/954 an" 7/952/

55

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 457 40/ :inall#0 he E$ropean -omm$ni ies arg$es ha he 7anel ma"e 'on ra"i' or# s a emen s in
55

i s legal in erpre a ion an" reasoning/ The E$ropean -omm$ni ies arg$es ha he 7anel ha" &o$n" earlier in i s (epor ha he +oha Ar i'le 1 )aiver e3pire" on 4 Can$ar# 2006 an" here&ore 'o$l" no appl# o he E- !ananas 1mpor (egime0 in 'lear 'on ra"i' ion %i h i s la er &in"ing ha he +oha Ar i'le 1 )aiver e3 en"e" he ari&& D$o a 'on'ession be#on" ha "a e/ 56 44/ )e no e ha 0 in i s reasoning regar"ing Ar i'le 1:4 o& he AATT 49990 he 7anel s a e" ha

he +oha Ar i'le 1 )aiver no longer applie" o he E- !ananas 1mpor (egime0 'onsi"ering ha i ha" e3pire" on 4 Can$ar# 20060 be'a$se all he in erme"ia e pro'e"$ral s eps $n"er he Anne3 on !ananas ha" been 'omple e" an" he Lne% E- ari&& regimeL ha" en ere" in o &or'e/ 57 1n 'on ras 0 in i s &in"ings $n"er Ar i'le 11 o& he AATT 49990 he 7anel &o$n" ha 0 hro$gh he same +oha Ar i'le 1 )aiver0 )TO ?embers ha" agree" o e3 en" he ari&& D$o a 'on'ession be#on" 4 Can$ar# 2006 an" $n il he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions &or bananas ha" been rebo$n" in a''or"an'e %i h he Ar i'le 22;111 pro'e"$res/58 42/ )e have some "i&&i'$l # $n"ers an"ing ho% he +oha Ar i'le 1 )aiver 'o$l" e3 en" he

vali"i # o& a 'on'ession be#on" he e3pir# "a e o& he )aiver/ On he one han"0 he 7anel s a e" ha he +oha Ar i'le 1 )aiver ha" e3pire" on 4 Can$ar# 2006 an" 'o$l" no appl# o he E- !ananas 1mpor (egime/ On he o her han"0 he 7anel 'onsi"ere" ha an aspe' o& he )aiver s ill applie" o he E- !ananas 1mpor (egime0 inso&ar as i 'on ains an agreemen o e3 en" he ari&& D$o a 'on'ession be#on" 4 Can$ar# 2006/ 59 )e 'onsi"er ha his in'oheren'e in he 7anel6s reasoning &$r her $n"ermines he 7anel6s &in"ing ha 0 hro$gh he +oha Ar i'le 1 )aiver0 )TO ?embers agree" o e3 en" he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas/ 45/ !ase" on he above men ione" 'onsi"era ions0 %e are no pers$a"e" ha he erms an"

'on"i ions0 e3'ep ional 'ir'$ms an'es0 an" N$s i&i'a ions i"en i&ie" in he +oha Ar i'le 1 )aiver re&le' a "e'ision b# )TO ?embers o e3 en" he "$ra ion o& he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananasP ha 0 a''or"ing o he 7anel0 %as o e3pire on 54 +e'ember 2002P$n il he rebin"ing o& he E$ropean -omm$ni ies6 ari&& 'on'ession %as 'omple e"/

E'$a"or 7anel (epor 0 paras/ 7/200 an" 7/204/ E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 472 (E'$a"or)/ 57 E'$a"or 7anel (epor 0 paras/ 7/200 an" 7/204/ 1n i s appeal0 he E$ropean -omm$ni ies "oes no 'hallenge his &in"ing b# he 7anel/ The 7anel ha" earlier &o$n" ha he e3pression L he ne% E- Tari&& regimeL $se" in he &i& h ire o& he Anne3 on !ananas applie" o E- (eg$la ion 4969*2005/ (E'$a"or 7anel (epor 0 para/ 7/485) 58 E'$a"or 7anel (epor 0 para/ 7/956/ 59 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 472 (E'$a"or)/
56

55

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 458 9/ 4/ ,$pplemen ar# ?eans o& 1n erpre a ion

)e e3plaine" above %h# %e believe ha he 7anel erre" in &in"ing ha he erms an"

'on"i ions in he +oha Ar i'le 1 )aiver re&le' he 'ommon in en ion o& )TO ?embers o e3 en" he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession be#on" 54 +e'ember 2002 $n il he rebin"ing o& i s ari&& 'on'ession is 'omple e"/ The 7anel 'ombine" i s anal#sis b# 'onsi"ering s$pplemen ar# means o& in erpre a ion o 'on&irm i s rea"ing o& he +oha Ar i'le 1 )aiver/ The 7anel 'onsi"ere" he ?o"ali ies 7aper an" he Ar i'le 22;111 nego ia ions ini ia e" b# he E$ropean -omm$ni ies/ )e "o no see ho% he 'onsi"era ion o& s$pplemen ar# means o& in erpre a ion re&erre" o b# he 7anel 'o$l" 'hange o$r 'on'l$sion on his iss$e/ 1n his respe' 0 %e agree %i h he 7anel ha bo h he ?o"ali ies 7aper an" he Ar i'le 22;111 nego ia ions ini ia e" b# he E$ropean -omm$ni ies "o no in hemselves Lprovi"e a "e&ini ive orien a ion regar"ing he 'ommon in en ion o& he )TO ?embers0 as i per ains o he E$ropean -omm$ni ies6 )TO mar@e -a''ess 'ommi men s rela ing o bananasL/ 60 5/ 4/ -on'l$sion

:or he above reasons0 %e "o no 'onsi"er ha he +oha Ar i'le 1 )aiver 'ons i $ e" a

Ls$bseD$en agreemen L $n"er Ar i'le 54(5)(a) o& he 8ienna )onvention regar"ing he in erpre a ion or appli'a ion o& he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions/ )e also "o no 'onsi"er ha he +oha Ar i'le 1 )aiver 'ons i $ e" an agreemen b# )TO ?embers o e3 en" he "$ra ion o& he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas0 %hi'h0 in he 7anel6s vie%0 %as o e3pire on 54 +e'ember 2002/ )e0 here&ore0 reverse he 7anel6s &in"ings0 in paragraphs 7/956 an" 7/992 o& he E'$a"or 7anel (epor 0 ha he +oha Ar i'le 1 )aiver 'ons i $ e" a s$bseD$en agreemen he E$ropean -omm$ni ies6 ari&& D$o a re&le' ing he 'ommon in en ion o& )TO ?embers ha

'on'ession &or bananas %o$l" 'on in$e o 'ons i $ e i s s'he"$le" 'ommi men s regar"ing bananas0 pen"ing he 'omple ion o& he Ar i'le 22;111 nego ia ions &or he p$rpose o& he rebin"ing o& he E$ropean -omm$ni ies6 ari&& on bananas an" he s$bseD$en en r# in o &or'e o& a ne% E$ropean -omm$ni ies ari&& regime/ +/ 4/ )laims and Arguments relating to EcuadorFs =ther Appeal

E'$a"or6s o her appeal is 'on"i ional $pon a reversal o& he 7anel6s &in"ing ha 0 hro$gh he

+oha Ar i'le 1 )aiver0 )TO ?embers agree" o e3 en" he ari&& D$o a 'on'ession be#on" 54 +e'ember 2002 $n il he rebin"ing o& he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions &or bananas/ <aving reverse" his &in"ing0 %e no% $rn o 'onsi"er E'$a"or6s o her appeal/

60

E'$a"or 7anel (epor 0 paras/ 7/978 an" 7/988/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 459 2/ E'$a"or s$bmi s ha he 7anel erre" in &in"ing ha he e3pira ion o& he !ananas

:rame%or@ Agreemen L%o$l" a$ oma i'all# impl# F heG e3pira ion o& he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession $n"er he erms o& i s ,'he"$leL/ 64 E'$a"or 'laims ha paragraph 9 o& he !ananas :rame%or@ Agreemen "i" no es ablish an e3pira ion "a e &or he en ire 'on'ession as i rela es o bananasB ra her0 i es ablishe" an e3pira ion "a e onl# &or he erms an" 'on"i ions in he !ananas :rame%or@ Agreemen 0 o her han hose se o$ in 'ol$mns 4 o 6 in he E$ropean -omm$ni ies6 ,'he"$le i sel&/62 5/ E'$a"or here&ore reD$es s he Appella e !o"# o reverse he 7anel6s &in"ing ha he

E$ropean -omm$ni ies6 ari&& D$o a 'on'ession %as in en"e" o e3pire on 54 +e'ember 2002 p$rs$an o paragraph 9 o& he !ananas :rame%or@ Agreemen / E'$a"or reD$es s he Appella e !o"# o &in"0 ins ea"0 ha he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession remains in e&&e' an"0 a''or"ingl#0 o $phol" he 7anel6s 'on'l$sion L ha he ari&& applie" b# he E$ropean -omm$ni ies o ?:N impor s o& bananas se a M476*m /// %i ho$ 'onsi"era ion o& he ari&& D$o a &or 2/2 million m bo$n" a an in-D$o a ari&& ra e o& M75*m 0 FisG in e3'ess o& ha se &or h /// in he E$ropean -omm$ni ies6 ,'he"$leL an"0 'onseD$en l#0 in'onsis en %i h Ar i'le 11:4(b) o& he AATT 4999/L65 9/ The E$ropean -omm$ni ies respon"s ha he ari&& D$o a o& 2/2 million m o& bananas an"

he in-D$o a ari&& o& M75*m ins'ribe" in he E$ropean -omm$ni ies6 ,'he"$le %ere s$bNe' o he erms0 'on"i ions0 an" D$ali&i'a ions se o$ in he !ananas :rame%or@ Agreemen anne3e" o he ,'he"$le an"0 here&ore0 'anno be rea" in isola ion &rom ha Agreemen / 69 The E$ropean -omm$ni ies agrees %i h he 7anel6s 'on'l$sion ha he ari&& D$o a 'on'ession %as $neD$ivo'all# in en"e" o e3pire on 54 +e'ember 2002 in a''or"an'e %i h he erms o& he !ananas :rame%or@ Agreemen /65 The E$ropean -omm$ni ies here&ore reD$es s he Appella e !o"# o reverse he 7anel6s &in"ing ha he ari&& o& M476*m is in'onsis en %i h Ar i'le 11 o& he AATT 4999/ E/ Analysis of EcuadorFs =ther Appeal 4/ 1n erpre a ion o& he E$ropean -omm$ni ies6 ?ar@e A''ess -ommi men s on !ananas

4/ D$o a
64 62

The 7anel &o$n" ha Lall elemen s o& he E$ropean -omm$ni ies6 ari&& D$o a &or bananas

are "es'ribe" in he !ananas :rame%or@ Agreemen L an" ha L he E$ropean -omm$ni ies6 ari&&

E'$a"or6s o her appellan 6s s$bmission0 para/ 26/ E'$a"or6s o her appellan 6s s$bmission0 paras/ 44 an" 28/ 65 E'$a"or6s o her appellan 6s s$bmission0 para/ 9/ (&oo no e omi e") 69 E$ropean -omm$ni ies6 appellee6s s$bmission0 paras/ 42 an" 45 (E'$a"or)/ 65 E$ropean -omm$ni ies6 appellee6s s$bmission0 para/ 46/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 490 2/ 'on'ession &or bananas m$s here&ore be $n"ers oo"0 $n"er he 6 erms0 'on"i ions or

D$ali&i'a ions6 se &or h /// in he !ananas :rame%or@ Agreemen L an" L'anno be rea" in isola ion &rom he erms in he !ananas :rame%or@ Agreemen /L66 The 7anel here&ore 'on'l$"e": F1Gn ligh o& he or"inar# meaning o be given o he erms o& he E$ropean -omm$ni ies6 ,'he"$le0 a@ing in o a''o$n 7ar 10 ,e' ions 1/A (Tari&&s) an" 1/! (Tari&& D$o as)0 an" he !ananas :rame%or@ Agreemen 0 in heir 'on e3 an" in he ligh o& he rea #6s obNe' an" p$rpose0 he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas %as $neD$ivo'all# in en"e" o e3pire on 54 +e'ember 2002/67 5/ )e no e ha Ar i'le 11:4(b) o& he AATT 4999 s a es: The pro"$' s "es'ribe" in 7ar 1 o& he ,'he"$le rela ing o an# ?ember0 %hi'h are he pro"$' s o& erri ories o& o her ?embers0 shall0 on heir impor a ion in o he erri or# o %hi'h he ,'he"$le rela es0 an" s$bNe' o he erms0 'on"i ions or D$ali&i'a ions se &or h in ha ,'he"$le0 be e3emp &rom or"inar# '$s oms "$ ies in e3'ess o& hose se &or h an" provi"e" herein/ 9/ )hile i is $n$s$al ha a ari&& 'on'ession ins'ribe" in a ?ember6s ,'he"$le %o$l" be

limi e" in ime0 s$'h limi a ion "oes no appear o be pre'l$"e" b# he %or"ing o& Ar i'le 11:4(b)0 %hi'h re&ers o L erms0 'on"i ions or D$ali&i'a ionsL se &or h in a ?ember6s ,'he"$le/ The par ies agree in prin'iple ha Ar i'le 11:4(b) allo%s )TO ?embers o s$bNe' ari&& 'on'essions o he L erms0 'on"i ions or D$ali&i'a ions se &or h in F heirG ,'he"$leL/ 68 <o%ever0 he par ies "isagree on he legal s a $s o& he !ananas :rame%or@ Agreemen anne3e" o he E$ropean -omm$ni ies6 ,'he"$le an"0 in par i'$lar0 on %he her0 an" i& so ho%0 i sho$l" be rea" o 'on"i ion he ari&& D$o a 'on'ession &or bananas in he E$ropean -omm$ni ies6 ,'he"$le/

E'$a"or 7anel (epor 0 paras/ 7/925 an" 7/926/ E'$a"or 7anel (epor 0 para/ 7/956/ 68 E'$a"or arg$es ho%ever ha 0 i& a ime-limi is a a'he" o a spe'i&i' 'on'ession0 his sho$l" be "one 'learl# an" $neD$ivo'all#/ (E'$a"or6s o her appellan 6s s$bmission0 para/ 27) The onl# o her e3ample provi"e" b# he 7anel an" 'i e" b# he E$ropean -omm$ni ies in i s appellee6s s$bmission o& a ari&& 'on'ession s$bNe' o a L"a e o& e3pir#L is he .ni e" , a es6 ari&& 'on'ession on s$gar revie%e" b# he AATT panel in /# #ugar >aiver/ 1 sho$l" be no e"0 ho%ever0 ha his 'on'ession0 $nli@e he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas0 %as no se o e3pire on a &i3e" "a e0 b$ %as ma"e "epen"en on he 'on in$e" e3is en'e o& 'er ain "omes i' legisla ion/ The panel in /# #ugar >aiver no e" ha he .ni e" , a es6 'on'ession on s$gar %as: /// s$bNe' o he 'on"i ion ha he bo$n" ra es Lshall be e&&e' ive onl# "$ring s$'h ime as Ti le 11 o& he ,$gar A' o& 4998 or s$bs an iall# eD$ivalen legisla ion is in e&&e' in he .ni e" , a esL an" ha he# Lshall res$me &$ll e&&e' iveness /// i& legisla ion s$bs an iall# eD$ivalen o Ti le 11 o& he ,$gar A' o& 4998 sho$l" s$bseD$en l# be'ome e&&e' iveL/ (AATT 7anel (epor 0 /# #ugar >aiver 0 para/ 2/5) )e &$r her no e ha he .ni e" , a es6 'on'ession on s$gar %as s$bNe' o he e3is en'e o& LTi le 11 o& he ,$gar A' o& 4998 or s$bs an iall# eD$ivalen legisla ionL0 ma@ing i 'lear ha s$'h 'on"i ion applie" o he 'on'ession in i s en ire #/
67

66

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 494 5/ 1n AATT an" )TO N$rispr$"en'e0 i has been re'ogni=e" ha here are limi s o he erms0

'on"i ions0 or D$ali&i'a ions ha ma# be in'orpora e" in a ?ember6s ,'he"$le o& -on'essions/ 1n E) Bananas III0 he Appella e !o"# s a e" ha L he or"inar# meaning o& he erm 6'on'ession6 s$gges s ha a ?ember ma# #iel" righ s an" gran bene&i s0 b$ i 'anno "iminish i s obliga ionsL $n"er he )TO 'overe" agreemen s hro$gh an en r# in i s ,'he"$le/ 69 The AATT panel in /# #ugar &o$n" ha : Ar i'le 11 gives ?embers he possibili # o in'orpora e in o he legal &rame%or@ o& he Aeneral Agreemen 'ommi men s a""i ional o hose alrea"# 'on aine" in he Aeneral Agreemen an" o D$ali&# s$'h a""i ional 'ommi men s0 no ho%ever o re"$'e heir 'ommi men s $n"er o her provisions o& ha Agreemen / 70 6/ 1nso&ar as a emporal limi a ion "oes no "iminish obliga ions or re"$'e 'ommi men s $n"er

o her provisions o& he 'overe" agreemen s0 s'he"$ling a emporal limi a ion o a ari&& 'on'ession "oes no seem in'ompa ible %i h he &in"ings o& he Appella e !o"# in E) Bananas III an" he AATT panel in /# #ugar/ 7/ The &ollo%ing bin"ings in he E$ropean -omm$ni ies6 ,'he"$le are relevan o his "isp$ e/

7ar 10 ,e' ion 1-A (Tari&&s) o& he E$ropean -omm$ni ies6 ,'he"$le 74 'on ains a ari&& bin"ing on bananas a he level o& M680*m / The par ies agree ha i %o$l" appl# o o$ -o&-D$o a ?:N impor s an" has no emporal limi a ion/ The 'on es e" ari&& D$o a 'on'ession ( ha is0 he ari&& D$o a o& 2/2 million m o& bananas bo$n" a an in-D$o a ari&& o& M75*m ) is &o$n" in 7ar 10 ,e' ion 1-! (Tari&& D$o as) o& he E$ropean -omm$ni ies6 ,'he"$le/ 1 rea"s:
1ni ial D$o a D$an i # an" in-D$o a ari&& ra e 8 2/200/000 75 E-.* :inal D$o a D$an i # an" in-D$o a ari&& ra e @ 2/200/000 75 E-.* 1mplemena ion perio" &rom* o 5 1ni ial nego ia ing righ A O her erms an" 'on"i ions 7 As in"i'a e" in he Anne3

+es'rip ion o& pro"$' 1 :resh bananas0 o her han plan ains

Tari&& i em n$mber(s) 2 0805 00 42

8/

The Anne3 men ione" $n"er LO her erms an" 'on"i ionsL in 'ol$mn 7 'on ains he e3 o&

he !ananas :rame%or@ Agreemen 0 %hi'h rea"s0 in relevan par : 4/

69

The global basi' ari&& D$o a is &i3e" a 2/400/000 &or 4999 an" a 2/200/000 &or 4995 an" he &ollo%ing #ears0 s$bNe'

Appella e !o"# (epor 0 E) Bananas III0 para/ 459 (re&erring o Appella e !o"# (epor 0 E) Export #u$sidies on #ugar0 para/ 220)/ 70 AATT 7anel (epor 0 /# #ugar0 para/ 5/5/ 74 The relevan e3'erp s &rom ,e' ions 1-A an" 1-! o& 7ar 1 o& he E$ropean -omm$ni ies6 ,'he"$le >222 are repro"$'e" in Anne3 ;11 a a'he" o his (epor /

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 492 o an# in'rease res$l ing &rom -omm$ni #/ 2/ he enlargemen o& he

This D$o a is "ivi"e" $p in o spe'i&i' D$o as allo'a e" o he &ollo%ing 'o$n ries: -o$n r# -os a (i'a -olombia Ni'arag$a ;ene=$ela +omini'an (ep$bli' an" o her A-7 'on'erning non- ra"i ional D$an i ies O hers /// 7er'en age o& he global D$o a 25/9 24/0 5/0 2/0

90/000 / 96/52V (4999)896V (4995)

7/ 8/

The in-D$o a ari&& ra e shall be 75 E'$s onne/ The agree" s#s em %ill be opera ional b# 4 O' ober 4999 a he la es 0 %i ho$ preN$"i'e o an# provisional or ransi ional meas$res o be e3amine" &or he #ear 4999/ This agreemen shall appl# $n il 54 +e'ember 2002/ :$ll 'ons$l a ions %i h he >a in Ameri'an s$ppliers ha are AATT ?embers sho$l" s ar no la er han in #ear 2004/ The &$n' ioning o& he agreemen %ill be revie%e" be&ore he en" o& he hir" #ear0 %i h &$ll 'ons$l a ion o& AATT ?ember >a in Ameri'an s$ppliers/

9/

40/ 44/

This agreemen %ill be in'orpora e" in o he -omm$ni #6s .r$g$a# (o$n" ,'he"$le/ This agreemen represen s a se lemen o& he "isp$ e be %een -olombia0 -os a (i'a0 ;ene=$ela0 Ni'arag$a an" he -omm$ni # on he -omm$ni #6s banana regime/ The par ies o his agreemen %ill no p$rs$e he a"op ion o& he AATT panel repor on his iss$e/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 495 9/ 1n "e ermining %he her he ari&& D$o a 'on'ession a iss$e e3pire" on 54 +e'ember 2002 or

remaine" in &or'e0 %e nee" o e3amine he elemen s o& 7ar 10 ,e' ion 1-! o& he E$ropean -omm$ni ies6 ,'he"$le an" he !ananas :rame%or@ Agreemen anne3e" here o in heir en ire #/ All he 'ol$mns o& ,e' ion 1-! o& he ,'he"$le an" he paragraphs o& he !ananas :rame%or@ Agreemen ma# provi"e in erpre a ive g$i"an'e/ 40/ )e s ar b# no ing ha all erms an" 'on"i ions in he E$ropean -omm$ni ies6 ,'he"$le

sho$l" be given meaning an" e&&e' 0 regar"less o& he 'ol$mn in %hi'h he# are ins'ribe"0 or %he her he# are 'on aine" in an anne3 ha is 'ross-re&eren'e" in one o& he 'ol$mns/ 44/ )e observe ha he global ari&& D$o a o& 2/2 million m an" he in-D$o a ra e o& M75*m

bo$n" in 'ol$mns 5 an" 9 o& ,e' ion 1-! are res a e" in paragraphs 4 an" 7 o& he !ananas :rame%or@ Agreemen / 1n o$r vie%0 meaning m$s be given o he &a' ha he ari&& D$o a D$an i # an" he inD$o a ra e are ins'ribe" in 'ol$mns 5 an" 9 o& he ,'he"$le an" res a e" in paragraphs 4 an" 7 o& he !ananas :rame%or@ Agreemen / )e are no pers$a"e" b# he 'on'l$sion ha he same 'on'ession has been s a e" %i'e %i h he same meaning0 &irs in he ,'he"$le an" hen in he !ananas :rame%or@ Agreemen / )e 'onsi"er ha he !ananas :rame%or@ Agreemen per&orms a "i&&eren &$n' ion o ha o& he ,'he"$le an" ha he Agreemen "oes no s$bs$me he erms an" 'on"i ions 'on aine" in 'ol$mns 5 an" 9 o& he ,'he"$le/ 1 is he Lo her erms an" 'on"i ionsL in he !ananas :rame%or@ Agreemen ha sho$l" be rea" in he ligh o& he 'ommi men s in 'ol$mns 5 an" 9 o& he ,'he"$le/ The ari&& D$o a D$an i # an" he in-D$o a ra e0 %hi'h are 'ommi e" in he ,'he"$le0 are res a e" in paragraphs 4 an" 7 o& he !ananas :rame%or@ Agreemen &or he p$rpose o& allo'a ing he ari&& D$o a/ As s$'h0 here&ore0 paragraphs 4 an" 7 o& he !ananas :rame%or@ Agreemen "o no es ablish he ari&& D$o a 'on'ession/ 42/ )e &$r her no e ha paragraphs 2 hro$gh 6 o& he !ananas :rame%or@ Agreemen "eal a

leng h %i h he allo'a ion among s$pplier 'o$n ries o& he Lglobal basi' ari&& D$o aL i"en i&ie" in paragraph 4: paragraph 2 allo'a es spe'i&i' D$o a shares o he s$pplier 'o$n ries ha %ere par ies o he AATT panel in EE) Bananas II an" leaves a resi"$al allo'a ion o Lo hersLB paragraphs 5 an" 9 spe'i&# %hen a 'o$n r# ma# &ill i s allo'a ion %i h "eliveries &rom o her s$ppliers an" ho% shor &alls ma# be re-allo'a e" among s$pplier 'o$n riesB paragraph 5 provi"es ha a$ onomo$s D$o a in'reases b# he E$ropean -omm$ni ies are allo'a e" a''or"ing o he same per'en age shares se o$ in paragraph 20 #e 0 s$ppliers %i h 'o$n r#-spe'i&i' allo'a ions ma# Noin l# reD$es an" he -ommission Lshall agree o a "i&&eren allo'a ionLB an" paragraph 6 'on ains a""i ional r$les on he managemen o& he D$o a shares/ A''or"ing o paragraph 80 LF Ghe agreed system %ill be opera ional b# 4 O' ober 4999LB an" he &irs sen en'e o& paragraph 9 &ollo%s s a ing ha LF Ghis agreement shall appl# $n il

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 499 54 +e'ember 2002/L72 7aragraph 9 &$r her provi"es &or 'ons$l a ions %i h s$ppliers an" he revie% o& he agreemen 6s &$n' ioning a& er hree #ears/ 7aragraph 40 reD$ires in'orpora ion o& L his agreemen L in o he E$ropean -omm$ni ies6 ,'he"$le/ A''or"ing o paragraph 440 LF Ghis agreemen represen s a se lemen L among he par ies o he EE) Bananas II "isp$ e/ 45/ O$r revie% o& hese elemen s reveals ha he !ananas :rame%or@ Agreemen 'ons i $ es an

agreemen on he allo'a ion0 managemen 0 an" reallo'a ion o& 'o$n r#-spe'i&i' shares %i hin he Lglobal basi' ari&& D$o aL re&erre" o in paragraph 4/ There&ore0 %e are o& he vie% ha he sen en'e LF Ghis agreemen shall appl# $n il 54 +e'ember 2002L in paragraph 9 re&ers o an agreemen on he allo'a ion o& shares/ 1 "oes no men ion he Lglobal basi' ari&& D$o aL0 nor "oes i re&er o he ari&& D$o a 'on'ession ins'ribe" in 'ol$mn 9 o& 7ar 10 ,e' ion 1-! o& he E$ropean -omm$ni ies6 ,'he"$le $n"er he hea"ing LFinal D$o a D$an i # an" in-D$o a ari&& ra eL/ 75 )hen a 'ri i'al emporal limi a ion is 'on aine" in an anne3 o a ,'he"$le0 he &a' ha an Lagreemen L is men ione" b$ no re&eren'e is ma"e o he &inal ari&& D$o a 'on'ession0 is signi&i'an an" m$s be given %eigh in an# in erpre a ion/ )e believe ha he emporar# na $re o& he agreemen re&erre" o in paragraph 9 o& he !ananas :rame%or@ Agreemen an" he ari&& D$o a 'on'ession bo$n" in 'ol$mn 9 o& ,e' ion 1-! o& he E$ropean -omm$ni ies6 ,'he"$le 'an bo h be given meaning an" e&&e' / 1n o$r vie%0 he ari&& D$o a D$an i # o& 2/2 million m an" he in-D$o a ari&& are bo$n" in 'ol$mn 9 as L&inalL/ The !ananas :rame%or@ Agreemen 0 a''or"ing o 'ol$mn 7 o& he ,'he"$le $n"er he hea"ing LO her erms an" 'on"i ionsL0 'on'erns elemen s other han hose ins'ribe" in 'ol$mns 5 an" 9/ The e3pira ion "a e an" he revie% 'on empla e" a& er hree #ears in paragraph 9 rela e o he allo'a ion o& shares %i hin he Lglobal basi' ari&& D$o aL o& 2/2 million m as res a e" in paragraph 4 o& he !ananas :rame%or@ Agreemen / This rea"ing o& ,e' ion 1-! o& he E$ropean -omm$ni ies6 ,'he"$le an"0 spe'i&i'all#0 o& paragraph 9 o& he !ananas :rame%or@ Agreemen is also borne o$ b# Ar i'le 2111:2(") an" Ar i'le 2111:9 o& he AATT 4999/ 49/ One o& he op ions $n"er Ar i'le 2111:2(") &or ari&& D$o a managemen is he allo'a ion o&

shares %i h he agreemen o& s$bs an ial s$ppliers a''or"ing o propor ions a@en &rom a previo$s represen a ive perio"0 a@ing "$e a''o$n o& an# spe'ial &a' ors/ E'$a"or poin s o$ ha he 'o$n r#spe'i&i' allo'a ions an" 'er ain erms an" 'on"i ions o& D$o a managemen se o$ in he !ananas :rame%or@ Agreemen have be'ome inappli'able0 be'a$se he# %ere &o$n" o be in'onsis en %i h Ar i'le 2111:2 in he original pro'ee"ings/ 79 The 7anel re'alle" ha L'er ain provisions o& he !ananas :rame%or@ Agreemen 0 s$'h as he allo'a ion o& 'o$n r#-spe'i&i' D$o a shares0 b$ no he !ananas :rame%or@ Agreemen as a %hole0 %ere &o$n" in he original pro'ee"ings o be in'onsis en %i h he
72 75

Emphasis a""e"/ Emphasis a""e"/ 79 E'$a"or6s o her appellan 6s s$bmission0 para/ 25/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 495 )TO agreemen s/L75 1n o$r vie%0 his 'on&irms ha he E$ropean -omm$ni ies6 bo$n" ari&& D$o a 'on'ession remains in &or'e even ho$gh 'er ain erms an" he agreemen se o$ in he !ananas :rame%or@ Agreemen have e3pire"/ 76 This is par i'$larl# so %hen he relevan erms an" 'on"i ions 'on'ern elemen s ha are "is in' an" severable &rom one ano her (s$'h as he overall ari&& D$o a D$an i # an" he in-D$o a ari&& ra e0 on he one han"0 an" he allo'a ion o& he D$o a shares among s$ppliers0 on he o her han")/ 45/ )e &$r her no e ha a ?ember see@ing an allo'a ion agreemen %i h s$ppl#ing 'o$n ries is

reD$ire" $n"er Ar i'le 2111:9 o 'ons$l %i h ?embers having a s$bs an ial in eres in s$ppl#ing he pro"$' Lregar"ing he nee" &or an a"N$s men o& he propor ion "e ermine" or he base perio" sele' e"L/ 1n his respe' 0 %e re'all ha he original panel &o$n" ha : /// al ho$gh he E- rea'he" an agreemen %i h all ?embers %ho ha" a s$bs an ial in eres in s$ppl#ing he pro"$' a one poin in ime0 $n"er he 'ons$l a ion provisions o& Ar i'le 2111:90 he E%o$l" have o 'onsi"er he in eres s o& a ne% ?ember %ho ha" a s$bs an ial in eres in s$ppl#ing he pro"$' i& ha ne% ?ember reD$es e" i o "o so/ The provisions on 'ons$l a ions an" a"N$s men s in Ar i'le 2111:9 mean in an# even ha he F!ananas :rame%or@ Agreemen G 'o$l" no be invo@e" o N$s i&# a permanen allo'a ion o& ari&& D$o a shares/77 (&oo no e omi e") 46/ 1n o$r vie%0 paragraph 9 o& he !ananas :rame%or@ Agreemen 0 %hi'h se an e3pir# "a e

&or he agreemen a 54 +e'ember 20020 provi"e" &or 'ons$l a ions be %een he E$ropean -omm$ni ies an" L>a in Ameri'an s$ppliers ha are AATT ?embersL b# 20040 an" he revie% o& he &$n' ioning o& he agreemen %i hin hree #ears0 re&le' s he reD$iremen s o& Ar i'le 2111:90 %hi'h reD$ires 'ons$l a ion %i h s$bs an ial s$ppliers0 reappraisal o& spe'ial &a' ors0 an" an a"N$s men o& he allo'a ion agreemen / 47/ :or hese reasons0 %e 'onsi"er ha he e3pir# "a e in paragraph 9 o& he !ananas

:rame%or@ Agreemen re&ers onl# o he agreemen on he allo'a ion o& he ari&& D$o a shares/ The overall ari&& D$o a D$an i # an" he in-D$o a ari&& ra e0 on he one han"0 an" he allo'a ion o& he D$o a shares among s$pplier 'o$n ries0 on he o her han"0 are "is in' aspe' s o& he E$ropean -omm$ni ies6 mar@e a''ess 'ommi men s rela ing o bananas/ The main &$n' ion an" 'on en o& he !ananas :rame%or@ Agreemen is he allo'a ion o& he D$o a shares &or a 'er ain perio" o& ime0 %hereas he ari&& D$o a D$an i # an" he in-D$o a ari&& ra e are se o$ as Lini ialL an" L&inalL 'ommi men s in 'ol$mns 5 an" 9 respe' ivel# o& 7ar 10 ,e' ion 1-! o& he E$ropean -omm$ni ies6
75 76

E'$a"or 7anel (epor 0 para/ 7/925/ E'$a"or 7anel (epor 0 paras/ 7/925 an" 7/926/ 77 7anel (epor 0 E) Bananas III &Ecuador'0 para/ 7/92/ (&oo no e omi e")

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 496 ,'he"$le an" i"en i&ie" as he Lglobal basi' ari&& D$o aL in paragraph 4 o& he !ananas :rame%or@ Agreemen / 48/ )e "isagree %i h he 7anel ha L he e3pira ion o& he !ananas :rame%or@ Agreemen on

54 +e'ember 2002 %o$l" a$ oma i'all# impl# e3pira ion o& he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession $n"er he erms o& i s ,'he"$leL/ 78 1n rea'hing his 'on'l$sion0 %e are giving &$ll e&&e' o all erms an" 'on"i ions 'on aine" in he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions/ <o%ever0 in o$r vie%0 paragraph 9 o& he !ananas :rame%or@ Agreemen rela es o he agreemen on he allo'a ion o& D$o a shares se o$ in paragraph 20 no o he en ire D$o a 'on'ession0 an" provi"es ha his agreemen e3pire" on 54 +e'ember 2002/ )e here&ore 'onsi"er ha he ari&& D$o a 'on'ession &or 2/2 million m bo$n" a bananas/ 49/ E'$a"or arg$es ha he 7anel erre" in 'on'l$"ing ha he obNe' an" p$rpose o& he )TO he in-D$o a ra e o& M75*m remaine" in &or'e be#on"

54 +e'ember 2002 $n il he rebin"ing o& he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions &or

agreemen s s$ppor e" i s in erpre a ion ha he ari&& D$o a 'on'ession in he E$ropean -omm$ni ies6 ,'he"$le ha" e3pire"/79 The E$ropean -omm$ni ies agrees %i h he 7anel6s 'onsi"era ions/ 20/ The 7anel relie" on he obNe' an" p$rpose o& he >4= Agreement an" he AATT 49990 as

re&le' e" in he preambles o& hese %o Agreemen s/ 1 no e" ha L'on'essions ma"e b# )TO ?embers sho$l" be in erpre e" so as o &$r her he general obNe' ive o& e3pan"ing ra"e in goo"s an" servi'es an" re"$'ing barriers o ra"e0 hro$gh he nego ia ion o& re'ipro'al an" m$ $all# a"van ageo$s arrangemen s/L80 A he same ime0 he 7anel 'onsi"ere" ha L his general obNe' an" p$rpose is 'onsis en %i h he more spe'i&i' obNe' an" p$rpose o& Ar i'le 11:4(a) an" (b)/L84 1 re&erre"0 in par i'$lar0 o he LobNe' ive o& promo ing se'$ri # an" pre"i' abili # in in erna ional ra"e0 hro$gh he e3'hange o& 'on'essionsL820 %hi'h is s$bNe' o 'on"i ions an" D$ali&i'a ions in ?embers6 ,'he"$les/ A''or"ing o he 7anel0 i s &in"ing ha he ari&& D$o a 'on'ession ha" e3pire" %as 'onsis en %i h he spe'i&i' obNe' ive o& promo ing se'$ri # an" pre"i' abili # in in erna ional ra"e hro$gh he e3'hange o& 'on'essions0 be'a$se i gave e&&e' o he erms an" 'on"i ions in'orpora e" in o he E$ropean -omm$ni ies6 ,'he"$le0 in'l$"ing he emporal limi a ion provi"e" &or in he !ananas :rame%or@ Agreemen / The 7anel 'onsi"ere" ha he general obNe' an" p$rpose o& he >4= Agreement an" he AATT 4999 o& e3pan"ing ra"e an" re"$'ing barriers o ra"e hro$gh

78 79

E'$a"or 7anel (epor 0 para/ 7/927/ E'$a"or6s o her appellan 6s s$bmission0 para/ 29/ 80 E'$a"or 7anel (epor 0 para/ 7/954/ 84 E'$a"or 7anel (epor 0 para/ 7/955/ 82 E'$a"or 7anel (epor 0 para/ 7/955/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 497 24/ he nego ia ion o& re'ipro'al an" m$ $all# a"van ageo$s arrangemen s ha" o be re'on'ile"

%i h he spe'i&i' obNe' ive o& respe' ing s'he"$le" 'on'essions in'l$"ing he erms an" 'on"i ions ins'ribe" in ,'he"$les/ 1n he 7anel6s vie%0 hese 'onsi"era ions o& he obNe' an" p$rpose 'on&irme" i s in erpre a ion ha paragraph 9 o& he !ananas :rame%or@ Agreemen provi"e" a emporal limi a ion o he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas/ 22/ )e agree %i h he 7anel ha L'on'essions ma"e b# )TO ?embers sho$l" be in erpre e" so

as o &$r her he general obNe' ive o& e3pan"ing ra"e in goo"s an" servi'es an" re"$'ing barriers o ra"e0 hro$gh he nego ia ion o& re'ipro'al an" m$ $all# a"van ageo$s arrangemen s/L 85 )e also 'onsi"er ha he LobNe' ive o& promo ing se'$ri # an" pre"i' abili # in in erna ional ra"eL is &$r here" L hro$gh he e3'hange o& 'on'essionsL 890 %hi'h are s$bNe' o 'on"i ions an" D$ali&i'a ions ins'ribe" in ?embers6 ,'he"$les/ <o%ever0 as e3plaine" above0 he emporal limi a ion in paragraph 9 o& he !anana :rame%or@ Agreemen 0 ha L his agreemen shall appl# $n il 54 +e'ember 2002L0 is properl# rea" o rela e o he agreemen on he allo'a ion o& D$o a shares re&le' e" in paragraph 2/ 1n o$r vie%0 i is no 'onsis en %i h he obNe' ive o& promo ing se'$ri # an" pre"i' abili # in in erna ional ra"e hro$gh he e3'hange o& 'on'essions i& erms0 'on"i ions0 an" emporal limi a ions rela ing o an agreemen on D$o a allo'a ion are improperl# rea" o D$ali&# a ari&& D$o a 'on'ession ha is bo$n" as he L&inal D$o a D$an i # an" in-D$o a ari&& ra eL/ To he 'on rar#0 o$r in erpre a ion ha he ari&& D$o a 'on'ession bo$n" in 7ar 10 ,e' ion 1-! ( ha is0 2/2 million m a an in-D$o a ra e o& M75*m ) o& he E$ropean -omm$ni ies6 ,'he"$le remains in &or'e is 'onsis en %i h he obNe' ive o& promo ing se'$ri # an" pre"i' abili # in in erna ional ra"e hro$gh he e3'hange o& 'on'essions0 an" %i h he obNe' ive o& e3pan"ing ra"e an" re"$'ing barriers o ra"e hro$gh he nego ia ion o& re'ipro'al an" m$ $all# a"van ageo$s arrangemen s/ 25/ )e &$r her no e ha he se'on" sen en'e o& paragraph 9 o& he !ananas :rame%or@

Agreemen s a es ha LF&G$ll 'ons$l a ions %i h he >a in Ameri'an s$ppliers ha are AATT ?embers sho$l" s ar no la er han in #ear 2004/L 1& %e ass$me0 arguendo0 ha he ari&& D$o a 'on'ession e3pire" on 54 +e'ember 2002 p$rs$an o he &irs sen en'e o& paragraph 90 his %o$l" leave ?:N s$ppliers %i h he o$ -o&-D$o a ari&& ra e bo$n" a M680*m 0 an" a 'ommi men b# he E$ropean -omm$ni ies o 'ons$l on a possible rebin"ing/ The s$bs an ial s$ppliers o& he E$ropean -omm$ni ies ha nego ia e" he mar@e a''ess 'ommi men s on bananas an" ma"e re'ipro'al ari&& 'on'essions %o$l" remain bo$n" b# heir s'he"$le" 'on'essions0 b$ %o$l" &orego he ari&& D$o a 'on'ession &or bananas he# bargaine" &or %i h he E$ropean -omm$ni ies/ 1& he 7anel6s in erpre a ion ha paragraph 9 o& he !ananas :rame%or@ Agreemen Le3 ing$ishe"L he ari&& D$o a
85 89

E'$a"or 7anel (epor 0 para/ 7/959/ E'$a"or 7anel (epor 0 para/ 7/955/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 498 'on'ession &rom 7ar 10 ,e' ion 1-! o& he E$ropean -omm$ni ies6 ,'he"$le %ere a''ep e"0 onl# he o$ -o&-D$o a ari&& ra e bo$n" in 7ar 10 ,e' ion 1-A a a level o& a M680*m %o$l" remain0 'o$ple" %i h a reD$iremen o 'ons$l on a rebin"ing/ 1n o$r vie%0 his %o$l" no provi"e se'$ri # or pre"i' abili # o& ari&& 'on'essions an" %o$l" no promo e he obNe' ive o& e3pan"ing ra"e an" re"$'ing barriers o ra"e hro$gh he nego ia ion o& re'ipro'al an" m$ $all# a"van ageo$s 'on'essions an" arrangemen s/ 29/ :or hese reasons0 %e believe ha o$r in erpre a ion o& he E$ropean -omm$ni ies6 ,'he"$le

o& -on'essions an" he !ananas :rame%or@ Agreemen anne3e" here o is 'onsis en %i h he obNe' ive o provi"e pre"i' abili # an" se'$ri # o he m$l ila eral ra"ing s#s em an" o promo e he obNe' ive o& e3pan"ing ra"e an" re"$'ing barriers o ra"e hro$gh Lre'ipro'al an" m$ $all# a"van ageo$s arrangemen s "ire' e" o he s$bs an ial re"$' ion o& ari&&s/L85 )e 'onsi"er0 here&ore0 ha paragraph 9 o& he !ananas :rame%or@ Agreemen sho$l" no be rea" o a&&e' he vali"i # o& he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession ins'ribe" in 'ol$mns 5 an" 9 o& 7ar 10 ,e' ion 1-! o& i s ,'he"$le $n il he Ar i'le 22;111 nego ia ions have been 'omple e"0 an" ha his is 'onsis en %i h he obNe' an" p$rpose o& he AATT 4999 an" he >4= Agreement/ 2/ 4/ )e $rn ne3 ,$pplemen ar# ?eans o& 1n erpre a ion o he nego ia ing his or# o& he E$ropean -omm$ni ies6 .r$g$a# (o$n"

,'he"$le o& -on'essions an" he !ananas :rame%or@ Agreemen / The ,'he"$le0 in'l$"ing he ari&& D$o a 'on'ession0 is a m$l ila erall# agree" ins r$men 0 %hi'h is an in egral par o& he AATT 4999 p$rs$an o Ar i'le 11:7 herein/ 1n 'on ras 0 he !ananas :rame%or@ Agreemen Pin'orpora e" in o he ,'he"$le as LO her erms an" 'on"i ionL in 'ol$mn 7P%as originall# a pl$rila eral agreemen 'on'l$"e" be %een he E$ropean -omm$ni ies an" &o$r >a in Ameri'an AATT ?embers (-olombia0 -os a (i'a0 ;ene=$ela0 an" Ni'arag$a) as a se lemen o& he EE) Bananas II "isp$ e/ 2/ The &inal o&&er presen e" b# he E$ropean -omm$ni ies in he &rame%or@ o& he .r$g$a#

(o$n" agri'$l $ral nego ia ions on 49 +e'ember 4995 in'l$"e" re&eren'e o an earlier "ra& o& he !ananas :rame%or@ Agreemen 0 %hi'h allo'a e" shares o& he D$o a also o E'$a"or0 7anama0 <on"$ras0 an" A$a emala (e3'l$"e" &rom he &inal !ananas :rame%or@ Agreemen ) an" provi"e" &or he agreemen o e3pire on 54 +e'ember 2002/ The !ananas :rame%or@ Agreemen in he 4995 o&&er es ablishe" ha i %o$l" be Lregis ere" an" legali=e" in he .r$g$a# (o$n"L/ A he 'on'l$sion o& he .r$g$a# (o$n" nego ia ions0 AATT ?embers agree" o s$bmi L"ra& &inal ,'he"$lesL o& -on'essions on agri'$l $ral an" non-agri'$l $ral mar@e a''ess b# 45 :ebr$ar# 4999/ !e %een 45 :ebr$ar# an" 54 ?ar'h 49990 La pro'ess o& veri&i'a ion F oo@G pla'e o ens$re ha
85

he &inal

7reamble o& he >4= Agreement0 hir" re'i al/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 499 s'he"$les "$l# re&le' e" he nego ia e" 'on'essions e3'hange" be %een par i'ipan s an" ha errors an" omissions %ere re' i&ie"L/86 5/ The L"ra& &inal ,'he"$leL o& -on'essions s$bmi e" b# he E$ropean -omm$ni ies

in'l$"e" a ari&& D$o a 'on'ession &or 2 million m bo$n" a an in-D$o a ra e o& M400*m 0 %i ho$ re&eren'e o he !ananas :rame%or@ Agreemen / The E$ropean -omm$ni ies6 "ra& &inal ,'he"$le o& -on'essions "i" no 0 here&ore0 'on ain an e3pir# "a e &or he ari&& D$o a 'on'ession/ On 29 ?ar'h 49990 "$ring he veri&i'a ion pro'ess0 he E$ropean -omm$ni ies s$bmi e" a L'orrigen"$mL o i s ,'he"$le as regar"s bananas0 %hi'h in'l$"e" re&eren'e o he !ananas :rame%or@ Agreemen in 'ol$mn 7 o& 7ar 10 ,e' ion 1-! o& i s ,'he"$le/ This 'orre' e" version o& he E$ropean -omm$ni ies6 ,'he"$le on bananas %as in'orpora e" in ,'he"$le >2220 %hi'h %as a"op e" b# he )TO ?embers oge her %i h he res$l s o& he .r$g$a# (o$n" o& nego ia ions/ 9/ As no e" earlier0 paragraph 44 o& he !ananas :rame%or@ Agreemen s a es ha i

Lrepresen s a se lemen o& he "isp$ e be %een -olombia0 -os a (i'a0 ;ene=$ela0 Ni'arag$a an" he -omm$ni # on he -omm$ni #6s banana regimeL/ The nego ia ing his or# 'on&irms ha he !ananas :rame%or@ Agreemen %as no originall# a 'omponen o& he E$ropean -omm$ni ies6 ?:N ari&& D$o a 'on'ession &or bananas/ 1 %as an agreemen be %een he E$ropean -omm$ni ies an" a gro$p o& banana s$ppl#ing 'o$n r# ?embers0 %hi'h allo'a e" D$o a shares in e3'hange &or he se lemen o& he AATT "isp$ e in EE) Bananas II/ 5/ The L"ra& &inal ,'he"$leL s$bmi e" b# he E$ropean -omm$ni ies0 be&ore he veri&i'a ion

pro'ess0 in'l$"e" a ari&& D$o a 'on'ession &or bananas &or a D$an i # o& 2 million m a he in-D$o a ra e o& M400*m 0 b$ "i" no 'on ain an e3pir# "a e/ )e $n"ers an" ha he in'l$sion o& he re&eren'e o he !ananas :rame%or@ Agreemen in he E$ropean -omm$ni ies6 ,'he"$le %as mean o Lregis er an" legali=eL (as s a e" in he "ra& 4995 o&&er) he agreemen rea'he" be %een he E$ropean -omm$ni ies0 -olombia0 -os a (i'a0 Ni'arag$a0 an" ;ene=$ela/ 6/ :inall#0 %e $rn o 'onsi"er several arg$men s ma"e b# E'$a"or ha rela e o

s$pplemen ar# means o& in erpre a ion in s$ppor o& i s posi ion ha he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession "i" no e3pire/ E'$a"or arg$es ha : (i) a ime-limi e" 'ommi men %o$l" be 'on rar# o he .r$g$a# (o$n" ?o"ali ies 7aperB (ii) he +oha Ar i'le 1 )aiver is premise" on he bo$n" ari&& D$o a 'on'ession remaining in &or'e $nless an" $n il rebo$n"B an" (iii) he E$ropean -omm$ni ies ini ia e" %i'e Ar i'le 22;111 nego ia ions o mo"i&# i s 'on'essions0 %hi'h have no as #e been 'omple e"/87
86 87

Nego ia ing Aro$p on ?ar@e A''ess0 ?ee ing o& 45 +e'ember 49950 No e b# he ,e're aria 0 para/ 2/ E'$a"or6s o her appellan 6s s$bmission0 para/ 59/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 450 7/ The in ro"$' ion o he ?o"ali ies 7aper s a es ha i is Lbeing re-iss$e" &or he p$rpose o&

'omple ing "ra& ,'he"$les o& 'on'ession an" 'ommi men s in he agri'$l $ral nego ia ions an" &or &a'ili a ing he veri&i'a ion pro'ess lea"ing o he es ablishmen o& &ormal ,'he"$les o be anne3e" o he .r$g$a# (o$n" 7ro o'ol/L 1n o$r vie%0 his in ro"$' or# lang$age an" he 'on en o& he ?o"ali ies 7aper ma@e 'lear ha i D$ali&ies as Lprepara or# %or@ o& he rea #L %i hin he meaning o& Ar i'le 52 o& he 8ienna )onvention/ The ?o"ali ies 7aper e3pli'i l# s a es ha i Lshall no be $se" as a basis &or "isp$ e se lemen pro'ee"ingsLB his means ha i "oes no in i sel& 'on&er on )TO ?embers righ s an" obliga ions en&or'eable in "isp$ e se lemen / <o%ever0 his "oes no pre'l$"e re&eren'e o he ?o"ali ies 7aper %hen in erpre ing he )TO agreemen s an" ?embers6 ,'he"$les o& -on'essions ha %ere prepare" in a''or"an'e %i h hese mo"ali ies/ 88 There&ore0 %e 'onsi"er ha i is no inappropria e o re&er o he ?o"ali ies 7aper as s$pplemen ar# means o& in erpre a ion o 'on&irm o$r in erpre a ion o& he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions an" o& he !ananas :rame%or@ Agreemen / 8/ 1& he 7anel6s in erpre a ion %ere 'orre' 0 an" he ari&& D$o a 'on'ession ha" e3pire" on

54 +e'ember 20020 he "e&a$l ari&& in he E$ropean -omm$ni ies6 ,'he"$le %o$l" be he bo$n" o$ o&-D$o a ari&& ra e o& M680*m / The reD$iremen o 'ons$l %i h >a in Ameri'an s$ppliers b# 2004 p$rs$an o paragraph 9 o& he !ananas :rame%or@ Agreemen %o$l" provi"e no g$aran ee ha a rebin"ing %o$l" be agree" an" 'onsoli"a e" in he E$ropean -omm$ni ies6 ,'he"$le b# he en" o& 20020 le alone an# 'er ain # an" pre"i' abili # regar"ing he level o& an# s$'h rebin"ing/ 1n 'on ras 0 he ?o"ali ies 7aper0 as par o& he .r$g$a# (o$n" ari&&i'a ion pro'ess0 reD$ire" ?embers o main ain L'$rren a''ess oppor $ni iesL ha sho$l" be Lno less han average ann$al impor D$an i ies &or he #ears 4986 o 4988 ( he 6re&eren'e perio"6)/L 89 As %e $n"ers an" i 0 he ari&& D$o a o& 2/2 million m a M75*m &or bananas %as mean o main ain L'$rren a''ess oppor $ni iesL &or ?:N banana s$ppliers in a''or"an'e %i h he ?o"ali ies 7aper/ ?oreover0 he ?o"ali ies 7aper "oes no envisage emporal limi a ions o his 'ommi men res$l ing &rom he ari&&i'a ion pro'ess/ <o%ever0 i& he 7anel6s in erpre a ion o& he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions %ere a''ep e"0

(egar"ing he $se o& he ?o"ali ies 7aper o in erpre ?embers6 ,'he"$les o& -on'essions0 he panel in E) Export #u$sidies on #ugar s a e": -learl#0 he so-'alle" ?o"ali ies 7aper is no a 'overe" agreemen an" h$s 'anno provi"e &or )TO righ s an" obliga ions o ?embers/ None heless0 i 'o$l" be relevan %hen in erpre ing he Agreemen on Agri'$l $re0 in'l$"ing ?embers6 ,'he"$les/ (7anel (epor s0 E) Export #u$sidies on #ugar 0 para/ 7/550 (&oo no es omi e")) The Appella e !o"#0 in ha 'ase0 'on&irme" he panel6s &in"ings ha he ?o"ali ies 7aper %as Lno an agreemen among )TO ?embers an"0 b# i s erms0 F'o$l" no G be he basis o& "isp$ e se lemen L0 b$ "i" no r$le on he relevan'e o& he ?o"ali ies 7aper o he in erpre a ion o& ?embers6 ,'he"$les/ (Appella e !o"# (epor 0 E) Export #u$sidies on #ugar0 para/ 499 (D$o ing Appella e !o"# (epor 0 E) Bananas III0 para/ 457)) 89 ?o"ali ies 7aper0 Anne3 50 para/ 44/

88

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 454 &rom 54 +e'ember 2002 on%ar"s0 he ,'he"$le %o$l" no longer provi"e &or s$'h L'$rren a''ess oppor $ni iesL &or bananas o be main aine"/ 9/ )e here&ore 'onsi"er ha he ?o"ali ies 7aper0 as a s$pplemen ar# means o& he ari&& D$o a 'on'ession in he

in erpre a ion0 'on&irms he 'on'l$sion %e rea'he" above ha he !ananas :rame%or@ Agreemen 0 'onsi"ering ha

E$ropean -omm$ni ies6 ,'he"$le "i" no e3pire on 54 +e'ember 2002 a''or"ing o paragraph 9 o& he reD$iremen in he ?o"ali ies 7aper o main ain L'$rren a''ess oppor $ni iesL is no limi e" in ime/ 40/ (egar"ing he +oha Ar i'le 1 )aiver0 %e 'on'l$"e" above ha he 7anel erre" in &in"ing

ha he )aiver 'ons i $ es a Ls$bseD$en agreemen L %i hin he meaning o& Ar i'le 54(5)(a) o& he 8ienna )onvention0 an" ha i e3 en"e" he ari&& D$o a 'on'ession be#on" 54 +e'ember 2002/ 1 'o$l" be arg$e"0 ho%ever0 ha he +oha Ar i'le 1 )aiver 'o$l" D$ali&# as s$pplemen ar# means o& in erpre a ion o 'on&irm he meaning o& he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions/ 90 44/ The +oha Ar i'le 1 )aiver appears o be pre"i'a e" on he 'on in$e" appli'a ion o& he

E$ropean -omm$ni ies6 ari&& D$o a 'on'ession be#on" 54 +e'ember 20020 inso&ar as i s a es in i s preamble: 6oting ha he ari&& applie" o bananas impor e" in he LAL an" L!L D$o as shall no e3'ee" 75 M* onne $n il he en r# in o &or'e o& he ne% E- ari&&-onl# regime/ 42/ :$r hermore0 he r$les an" pro'e"$res se o$ in he Anne3 on !ananas pres$ppose he

'on in$e" e3is en'e o& he ari&& D$o a 'on'ession0 inso&ar as he# reD$ire ha 0 in L he rebin"ing o& he E- ari&& on bananas /// all E- )TO mar@e -a''ess 'ommi men s rela ing o bananas sho$l" be a@en in o a''o$n /L 1n"ee"0 he a%ar" o& he arbi ra or iss$e" on 4 A$g$s 2005 p$rs$an o he Anne3 on !ananas rei era es ha he ari&& D$o a 'on'ession o& 2/2 million m an" he in-D$o a ari&& ra e o& M75*m 'on in$e o bin" he E$ropean -omm$ni ies/94 45/ There&ore0 in o$r vie%0 he lang$age o& he +oha Ar i'le 1 )aiver 'on&irms he 'on'l$sion

%e rea'he" above ha he ari&& D$o a 'on'ession has no e3pire" an" remains in &or'e $n il he
90

)e re'all in his regar" ha 0 in E) )hic0en )uts0 he Appella e !o"# s a e": )e s ress /// ha Ar i'le 52 "oes no "e&ine e3ha$s ivel# he s$pplemen ar# means o& in erpre a ion o %hi'h an in erpre er ma# have re'o$rse/ 1 s a es onl# ha he# include he prepara or# %or@ o& he rea # an" he 'ir'$ms an'es o& i s 'on'l$sion/ Th$s0 an in erpre er has a 'er ain &le3ibili # in 'onsi"ering relevan s$pplemen ar# means in a given 'ase so as o assis in as'er aining he 'ommon in en ions o& he par ies/ (Appella e !o"# (epor 0 E) )hic0en )uts0 para/ 285) 94 A%ar" o& he Arbi ra or0 E) 4he A)P E) Partnership Agreement0 para/ 45/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 452 rebin"ing pro'ess an" he Ar i'le 22;111 nego ia ions have been 'omple e"0 an" he res$l ing ari&& ra e has been 'onsoli"a e" in o he E$ropean -omm$ni ies6 ,'he"$le/ 49/ :inall#0 E'$a"or arg$es0 i s posi ion ha he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession

"i" no e3pire on 54 +e'ember 2002 is &$r her s$ppor e" b# he &a' ha he E$ropean -omm$ni ies ini ia e" %i'e nego ia ions p$rs$an o Ar i'le 22;111 o& he AATT 4999 o mo"i&# i s 'on'essions/ E'$a"or arg$es ha ini ia ion o& Ar i'le 22;111 pro'e"$res %o$l" no have been ne'essar# i& he E$ropean -omm$ni ies merel# in en"e" o lo%er i s bo$n" ra e &rom M680*m / 92 The E$ropean -omm$ni ies 'on en"s Ar i'le 22;111/ 45/ )e no e ha Ar i'le 22;1110 en i le" L?o"i&i'a ion o& ,'he"$lesL0 s a es ha a ?ember ha an# mo"i&i'a ion o& a ari&& 'on'ession reD$ires re'o$rse o

Lma# /// mo"i&# or %i h"ra% a 'on'essionL0 %i ho$ spe'i&#ing %he her Lmo"i&#L re&ers onl# o a re"$' ion in he s'ope o& he 'on'ession (s$'h as an in'rease in he ari&& bin"ing)/ The or"inar# meaning o& he erm Lmo"i&#L appears o in'l$"e bo h he si $a ion in %hi'h he s'ope o& a 'on'ession is re"$'e" (&or e3ample0 a ari&& in'rease) an" %hen he s'ope is e3pan"e" (&or e3ample0 a ari&& re"$' ion)/ 1n &a' 0 %he her he propose" mo"i&i'a ion a' $all# 'ons i $ es a re"$' ion or an e3pansion o& he 'on'ession ma# onl# be'ome 'lear in he 'o$rse o& he renego ia ions an" %ill "e ermine %he her an" o %ha e3 en he mo"i&#ing ?ember o%es 'ompensa or# a"N$s men %i hin he meaning o& Ar i'le 22;111:2/ 46/ )e also &in" s$ppor &or he arg$men ha an# mo"i&i'a ion o& he s'ope o& a 'on'ession

%o$l" reD$ire ini ia ion o& Ar i'le 22;111 pro'e"$res in he +e'ision on he 7ro'e"$res &or ?o"i&i'a ion an" (e' i&i'a ion o& ,'he"$les o& Tari&& -on'ession a"op e" b# he AATT ?inis erial -on&eren'e on 26 ?ar'h 4980/ 95 These pro'e"$res i"en i&# %o #pes o& 'hanges o he a$ hen i' e3 s o& ,'he"$les0 %hi'h 'an be a"op e" b# ?embers b# means o& 'er i&i'a ion/ The &irs are L'hanges in he a$ hen i' e3 s o& ,'he"$les anne3e" o he Aeneral Agreemen %hi'h re&le' mo"i&i'a ions res$l ing &rom a' ion $n"er Ar i'le 110 Ar i'le 2;1110 Ar i'le 221;0 Ar i'le 22;11 or Ar i'le 22;111L99B he se'on" are L'hanges in he a$ hen i' e3 s o& ,'he"$les /// ma"e %hen amen"men s or rearrangemen s %hi'h "o no al er he s'ope o& a 'on'ession are in ro"$'e" in na ional '$s oms ari&&s in respe' o& bo$n" i emsL/ 95

E'$a"or6s o her appellan 6s s$bmission0 para/ 59/ +e'ision o& 26 ?ar'h 49800 7ro'e"$res &or ?o"i&i'a ion an" (e' i&i'a ion o& ,'he"$les o& Tari&& -on'essions0 AATT "o'$men >*99620 !1,+ ,27*25/ 99 +e'ision o& 26 ?ar'h 49800 7ro'e"$res &or ?o"i&i'a ion an" (e' i&i'a ion o& ,'he"$les o& Tari&& -on'essions0 AATT "o'$men >*99620 !1,+ ,27*250 para/ 4/ 95 +e'ision o& 26 ?ar'h 49800 7ro'e"$res &or ?o"i&i'a ion an" (e' i&i'a ion o& ,'he"$les o& Tari&& -on'essions0 AATT "o'$men >*99620 !1,+ ,27*250 para/ 2/
95

92

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 455 47/ 1n o$r vie%0 he E$ropean -omm$ni ies6 propose" rebin"ing 'anno be regar"e" as a 'hange

ha %o$l" no al er he s'ope o& a 'on'ession/ Th$s0 %e 'onsi"er ha he E$ropean -omm$ni ies ha" o ini ia e Ar i'le 22;111 nego ia ions o rebin" i s ari&& 'on'ession in i s ,'he"$le0 %he her i res$l e" in an in'rease or in a re"$' ion o& he bo$n" ari&& ra e/ :or his reason0 he ini ia ion b# he E$ropean -omm$ni ies o& Ar i'le 22;111 nego ia ions %o$l" no provi"e a 'lear in"i'a ion ha he ari&& D$o a 'on'ession ha" no e3pire" an" he ari&& ra e nee"e" o be in'rease" hro$gh nego ia ions/ )e 'onsi"er0 here&ore0 ha he &a' ha he E$ropean -omm$ni ies ini ia e" %i'e Ar i'le 22;111 nego ia ions o mo"i&# i s 'on'essions is no 'on'l$sive as o %he her he ari&& D$o a 'on'ession "i" no e3pire on 54 +e'ember 2002/ 5/ 4/ -on'l$sion

:or all he above reasons0 %e 'on'l$"e ha he ari&& D$o a 'on'ession o& 2/2 million m

bo$n" a he in-D$o a ra e o& M75*m in he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions "i" no e3pire on 54 +e'ember 2002 an" remains in &or'e $n il he rebin"ing pro'ess an" he Ar i'le 22;111 nego ia ions have been 'omple e"0 an" he res$l ing ari&& ra e has been 'onsoli"a e" in he E$ropean -omm$ni ies6 ,'he"$le/ )e here&ore reverse he 7anel6s &in"ing0 in paragraph 7/956 o& he E'$a"or 7anel (epor 0 ha L he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas %as $neD$ivo'all# in en"e" o e3pire on 54 +e'ember 2002/L 9/ 4/ Ar i'le 11:4(b) o& he AATT 4999

)e have reverse" he 7anel6s &in"ing ha 0 hro$gh he +oha Ar i'le 1 )aiver0 )TO

?embers agree" o e3 en" he ari&& D$o a 'on'ession &or 2/2 million m bo$n" a he in-D$o a ra e o& M75*m in he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions be#on" 54 +e'ember 2002/ )e have also reverse" he 7anel6s &in"ing ha he same ari&& D$o a 'on'ession %as in en"e" o e3pire on 54 +e'ember 2002 in a''or"an'e %i h paragraph 9 o& he !ananas :rame%or@ Agreemen 0 an" &o$n"0 ins ea"0 ha he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession remains in &or'e $n il he rebin"ing pro'ess an" he Ar i'le 22;111 nego ia ions have been 'omple e"0 an" he res$l ing ari&& ra e has been 'onsoli"a e" in he E$ropean -omm$ni ies6 ,'he"$le/ 2/ A''or"ingl#0 %e uphold he 7anel6s &in"ings0 albei &or "i&&eren reasons0 in paragraph

7/509 o& he E'$a"or 7anel (epor 0 ha he ari&& applie" b# he E$ropean -omm$ni ies o ?:N impor s o& bananas0 se a M476*m 0 %i ho$ 'onsi"era ion o& he ari&& D$o a o& 2/2 million m bo$n" a an in-D$o a ari&& ra e o& M75*m 0 is in'onsis en %i h he &irs sen en'e o& Ar i'le 11:4(b) o& he AATT 49990 inso&ar as i 'ons i $ es Lan or"inar# '$s oms "$ # in e3'ess o& ha se &or h an" provi"e" &or in 7ar 1 o& he E$ropean -omm$ni ies6 ,'he"$le0 an" res$l s in a rea men &or he 'ommer'e o& bananas

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 459 &rom ?:N 'o$n ries (i/e/0 non-A-7 )TO ?embers) ha is less &avo$rable han ha provi"e" &or in 7ar 1 Fo& heG E$ropean -omm$ni ies6 ,'he"$le/L >II. 4/ N+**)1),-$)#/ #( I65-)(6%/$ :U/)$%0 S$-$%.; )e no% $rn o he E$ropean -omm$ni ies6 appeal o& he 7anel6s &in"ing ha 0 L o he e3 en

ha he FE- !ananas 1mpor (egimeG 'on ainFe"G meas$res in'onsis en %i h vario$s provisions o& he AATT 49990 i /// n$lli&ie" or impaire" bene&i s a''r$ing o he .ni e" , a es $n"er ha Agreemen /L4 2/ ,e' ion A s$mmari=es he &in"ings ma"e in he original pro'ee"ings/ The '$rren

Ar i'le 24/5 pro'ee"ings are s$mmari=e" in se' ion !/ ,e' ion - provi"es an overvie% o& he arg$men s raise" on appeal b# he par i'ipan s an" he hir" par i'ipan s/ :inall#0 in se' ion +0 %e "is'$ss he iss$es appeale"/ A/ 4/ 4he =riginal Proceedings

1n he original E) Bananas III "isp$ e0 he panel an" he Appella e !o"# relie" on he

'on'l$sions o& he AATT panel in /# #uperfund o &in" ha proving he absen'e o& a' $al ra"e e&&e' s is ins$&&i'ien o reb$ he pres$mp ion o& n$lli&i'a ion or impairmen $n"er Ar i'le 5/8 o& he +,./ The Appella e !o"# agree" %i h he original panel ha L he .ni e" , a es is a pro"$'er o& bananas an" ha a po en ial e3por in eres b# he .ni e" , a es 'anno be e3'l$"e"L0 an" ha L he in ernal mar@e o& he .ni e" , a es &or bananas 'o$l" be a&&e' e" b# he E- bananas regime an" b# i s e&&e' s on %orl" s$pplies an" %orl" pri'es o& bananasL/ 2 The Appella e !o"# here&ore $phel" he original panel6s &in"ings ha L he E$ropean -omm$ni ies haF"G no s$''ee"e" in reb$ ing he pres$mp ion ha i s brea'hes o& he AATT 4999 /// n$lli&ie" or impaire" he bene&i s o& he .ni e" , a es0 %i h he mo"i&i'a ion ha his &in"ing sho$l" be limi e" o he .ni e" , a es an" o he E-6s obliga ions $n"er he AATT 4999L/5 !/ 4/ 4he )urrent Article +,-. Proceedings

1n he '$rren pro'ee"ings0 he 7anel a""resse" he E$ropean -omm$ni ies6 arg$men s ha

L he pre&eren ial ari&& D$o a reserve" &or A-7 'o$n ries has no impa' on he val$e o& relevan Ebanana impor s &rom he .ni e" , a esL0 an" ha he Lpre&eren ial ari&& D$o a here&ore "oes no 'a$se

4 2

., 7anel (epor 0 para/ 8/42/ Appella e !o"# (epor 0 E) Bananas III0 para/ 254/ 5 Appella e !o"# (epor 0 E) Bananas III0 para/ 255(3)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 455 he .ni e" , a es an# n$lli&i'a ion or impairmen o& a bene&i &or %hi'h he E$ropean -omm$ni ies 'an &a'e s$spension o& 'on'essions F$n"er Ar i'le 22 o& he +,.GL/9 2/ The 7anel in hese pro'ee"ings relie" on he &in"ings b# he panel an" he Appella e !o"#

in he original pro'ee"ings reNe' ing a similar 'laim b# he E$ropean -omm$ni ies ha he .ni e" , a es ha" no s$&&ere" n$lli&i'a ion or impairmen be'a$se o& he in'onsis en'ies %i h he AATT 4999 an" he AAT, o& he E$ropean -omm$ni ies6 bananas impor regime a iss$e in he original pro'ee"ings/ The 7anel also emphasi=e" ha hese 'omplian'e pro'ee"ings %ere 'on"$' e" p$rs$an o Ar i'le 24/5 an" h$s LF"i"G no o''$r in isola ion &rom he original pro'ee"ingsL0 b$ L&ormFe"G par o& a 'on in$$m o& even sL/ 5 The 7anel 'on'l$"e" ha 0 LF'Gonsi"ering he lin@ be %een he '$rren 'omplian'e pro'ee"ings an" he original pro'ee"ings /// he E$ropean -omm$ni ies has Fno G s$''ess&$ll# reb$ e" he legal pres$mp ion es ablishe" b# Ar i'le 5/8 o& he +,. ha i s in'onsis en meas$res n$lli&# or impair bene&i s a''r$ing o he .ni e" , a es $n"er he )TO agreemen sL/ 6 -/ 4/ )laims and Arguments on Appeal

The E$ropean -omm$ni ies arg$es ha he 7anel erre" in &in"ing ha he .ni e" , a es ha"

s$&&ere" n$lli&i'a ion or impairmen as a res$l o& he E- !ananas 1mpor (egime/ -onsi"ering ha he .ni e" , a es is a ne impor er o& bananas ha "i" no e3por bananas o an# 'o$n r# in he %orl"0 he pre&eren'e &or A-7 bananas L"i" no "eprive he .ni e" , a es &rom an# 6'ompe i ive oppor $ni #6 o e3por bananas o%ar"s he mar@e o& he E$ropean -omm$ni ies0 nor "i" i 'hange he .ni e" , a es6 6'ompe i ive rela ionship6 %i h an# banana e3por ing 'o$n r# in he %orl"L/ 7 2/ The .ni e" , a es respon"s ha he Appella e !o"# alrea"# reNe' e" similar arg$men s

ma"e b# he E$ropean -omm$ni ies in he original pro'ee"ings0 an" ha he &in"ings o& he Appella e !o"# in he original pro'ee"ings &orme" he basis &or he r$lings an" re'ommen"a ions a""resse" o he E$ropean -omm$ni ies in his pro'ee"ing/8 The .ni e" , a es arg$es ha a sho%ing o& a"verse

., 7anel (epor 0 para/ 8/5/ ., 7anel (epor 0 para/ 8/9 (re&erring o Appella e !o"# (epor 0 )hile Price Band #ystem &Article +,-. Argentina'0 para/ 456)/ 6 ., 7anel (epor 0 para/ 8/40/ 7 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 465 (.,)/ 8 .ni e" , a es6 appellee6s s$bmission0 para/ 96/
5

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 456 5/ ra"e e&&e' s is $nne'essar# &or he p$rpose o& "emons ra ing ha a brea'h o& a AATT

provision res$l s in he n$lli&i'a ion or impairmen o& bene&i s/ 9 The .ni e" , a es &$r her s$bmi s ha he 'lear brea'hes o& Ar i'les 1 an" 2111 o& he AATT 4999 obvia e" he nee" &or he .ni e" , a es o "emons ra e a&&irma ivel# he ra"e e&&e' s 'a$se" b# he E$ropean -omm$ni ies6 banana meas$res/40 +/ 4/ 4he PanelFs Findings under Article 2-H of the !#/

The E$ropean -omm$ni ies 'laims ha he 7anel L'on&$se" he no ion o& 6n$lli&i'a ion or

impairmen 6 in Ar i'le 5/8 o& he +,. %i h he 6in eres 6 ha a 'omplaining par # m$s have in or"er o have 6s an"ing6 o 'ommen'e "isp$ e se lemen pro'ee"ingsL/ 44 !# 'on ras 0 he Ls an"ar" ha nee"s o be sa is&ie" &or a &in"ing o& 6n$lli&i'a ion or impairmen 6 $n"er Ar i'le 5/8 is more "i&&i'$l o sa is&# han he s an"ar" ha nee"s o be sa is&ie" &or a &in"ing o& 6s an"ing6 o bring a 'omplain /L 42 2/ )e 'onsi"er ha he no ion o& Ls an"ingL0 as in erpre e" b# he Appella e !o"# in he

original pro'ee"ings0 is broa"er han he no ion o& Ln$lli&i'a ion or impairmen L/ 1n o her %or"s0 i& here is n$lli&i'a ion or impairmen 0 here %ill also be s an"ing o bring a 'omplain / <o%ever0 s an"ing ma# also e3is in 'ases ha res$l in no &in"ing o& n$lli&i'a ion or impairmen / 1n he original E) Bananas III pro'ee"ings0 he Appella e !o"# &o$n" ha La ?ember has broa" "is're ion in "e'i"ing %he her o bring a 'ase agains ano her ?ember $n"er he +,.L0 an" ha La ?ember is e3pe' e" o be largel# sel&-reg$la ing in "e'i"ing %he her an# s$'h a' ion %o$l" be 6&r$i &$l6L/ 45 The Appella e !o"# &$r her 'on'l$"e" ha 0 'onsi"ering ha he .ni e" , a es %as a pro"$'er an" po en ial e3por er o& bananas0 i %as N$s i&ie" in bringing i s 'laims $n"er he AATT 4999/ 49 The Appella e !o"# hen $se" his same arg$men o &in" ha he .ni e" , a es ha" s$&&ere" n$lli&i'a ion or impairmen o& bene&i s/45 5/ )e "o no believe ha he 7anel in he '$rren pro'ee"ings 'on&$se" he no ions o&

Ln$lli&i'a ion or impairmen L an" Ls an"ingL/ 1n"ee"0 he 7anel a""resse" hese iss$es separa el#0

.ni e" , a es6 appellee6s s$bmission0 paras/ 96-98 (re&erring o AATT 7anel (epor 0 /# #uperfund0 para/ 5/49)/ 40 .ni e" , a es6 appellee6s s$bmission0 para/ 99 44 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 456 (.,)/ 42 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 459 (.,)/ 45 Appella e !o"# (epor 0 E) Bananas III0 para/ 455/ 49 The panel an" he Appella e !o"# in he original pro'ee"ings $se" he same arg$men o 'on'l$"e ha he .ni e" , a es ha" Ls an"ingL o bring he 'ase an" ha i ha" s$&&ere" n$lli&i'a ion or impairmen o& bene&i s ( ha is0 ha he .ni e" , a es is a po en ial e3por er o& bananas o he E$ropean -omm$ni ies an" ha here 'o$l" be e&&e' s on i s in ernal mar@e )/ <o%ever0 he &a' ha n$lli&i'a ion or impairmen implies a higher s an"ar" han Llegal s an"ingL "oes no mean ha Ls an"ingL 'anno be &o$n" base" on s$'h higher s an"ar"/ 45 Appella e !o"# (epor 0 E) Bananas III0 para/ 254/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 457 even ho$gh he E$ropean -omm$ni ies ha" presen e" hese 'laims Noin l#/ 46 1n &a' 0 in a se' ion o& he ., 7anel (epor en i le" L;eri&i'a ion o& he .ni e" , a es6 s an"ing o 'ommen'e hese pro'ee"ingsL0 he 7anel &o$n" ha he .ni e" , a es ha" s an"ing o ini ia e he pro'ee"ings/ 47 1 s a e" in he same se' ion ha i %o$l" $rn o he iss$e o& n$lli&i'a ion or impairmen la er in he (epor onl# La& er having 'onsi"ere" he s$bs an ive 'laims ma"e0 $n"er Ar i'les 1 an" 2111 o& he AATT 49990 b# he .ni e" , a es agains he pre&eren'es gran e" b# he E$ropean -omm$ni iesL/ 48 9/ <aving &o$n" ha he pre&eren ial A-7 ari&& D$o a %as in'onsis en %i h Ar i'les 1:4 (el#ing on panel an" Appella e !o"# &in"ings in he original

an" 21110 he 7anel a""resse" he D$es ion o& n$lli&i'a ion or impairmen in a separa e se' ion a he en" o& he ., 7anel (epor / pro'ee"ings0 he 7anel &o$n" ha 0 'onsi"ering ha L)TO r$les are no 'on'erne" %i h a' $al ra"e e&&e' s0 b$ ra her %i h 'ompe i ive oppor $ni iesL 490 he .ni e" , a es0 as a po en ial e3por er o& bananas0 ha" s$&&ere" n$lli&i'a ion or impairmen be'a$se o& he E$ropean -omm$ni ies6 in'onsis en meas$res/ The 7anel also re&erre" o he s a emen s ma"e b# he panel an" he Appella e !o"# in he original pro'ee"ings ha 0 even i& he .ni e" , a es "i" no have a po en ial e3por in eres 0 LF Ghe in ernal mar@e o& he .ni e" , a es &or bananas 'o$l" be a&&e' e" b# he E- bananas regime b# i s e&&e' s on %orl" s$pplies an" %orl" pri'es o& bananas/L 20 5/ The E$ropean -omm$ni ies 'laims ha he 7anel erre" in &in"ing ha he .ni e" , a es ha"

s$&&ere" n$lli&i'a ion or impairmen as a res$l o& he in'onsis en'ies &o$n" in respe' o& he meas$res a iss$e/ The E$ropean -omm$ni ies arg$es ha 0 as a ne impor er o& bananas0 he .ni e" , a es %as Lno a' ivel# involve" in he b$siness o& e3por ing bananas o an# 'o$n r# in he %orl"0 le alone he E$ropean -omm$ni iesL0 an" ha 0 as a res$l 0 he 'on es e" meas$res L'o$l" no 0 an" "i" no "eprive he .ni e" , a es o& an# 'ompe i ive oppor $ni # o e3por bananas o%ar"s he mar@e o& he E$ropean -omm$ni ies0 nor "i" i 'hange he .ni e" , a es6 6'ompe i ive rela ionship6 %i h an# banana e3por ing 'o$n r# in he %orl"L 'onsi"ering ha L he .ni e" , a es never ha" s$'h a 6'ompe i ive rela ionship6L/24 ?oreover0 he E$ropean -omm$ni ies arg$es ha he 7anel L&aile" o e3plain %ha 'o$l" be he e&&e' o& he 'on es e" meas$res on he 6%orl" s$pplies an" pri'es6 o& bananas an" ho% his po en ial e&&e' 'o$l" res$l in 6n$lli&i'a ion or impairmen 6 &or he .ni e" , a es/L22

., 7anel (epor 0 paras/ 7/47-7/22/ ., 7anel (epor 0 para/ 7/55/ 48 ., 7anel (epor 0 para/ 7/57/ 49 ., 7anel (epor 0 para/ 8/7 (D$o ing 7anel (epor 0 E) Bananas III &/#'0 para/ 7/50)/ 20 Appella e !o"# (epor 0 E) Bananas III0 para/ 254 (re&erring o 7anel (epor s0 E) Bananas III0 paras/ 7/97-7/52)/ 24 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 465 (.,)/ 22 E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 464 (.,)/
47

46

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 458 6/ )e no e ha Ar i'le 5/8 o& he +,. pla'es he b$r"en on he respon"en o& reb$ ing he

pres$mp ion ha he in'onsis en meas$re n$lli&ies or impairs he bene&i s a''r$ing o he 'omplainan $n"er he )TO agreemen 'on'erne"/ Ar i'le 5/8 provi"es: 1n 'ases %here here is an in&ringemen o& he obliga ions ass$me" $n"er a 'overe" agreemen 0 he a' ion is 'onsi"ere" prima facie o 'ons i $ e a 'ase o& n$lli&i'a ion or impairmen / This means ha here is normall# a pres$mp ion ha a brea'h o& he r$les has an a"verse impa' on o her ?embers par ies o ha 'overe" agreemen 0 an" in s$'h 'ases0 i shall be $p o he ?ember agains %hom he 'omplain has been bro$gh o reb$ he 'harge/ 7/ 1n hese pro'ee"ings0 as in he original pro'ee"ings0 he 'on es e" meas$re ma# no have

a' $al ra"e e&&e' s be'a$se0 a presen 0 here are no e3por s o& bananas &rom he .ni e" , a es o he E$ropean -omm$ni ies/ <o%ever0 in or"er o "e ermine %he her he .ni e" , a es has s$&&ere" n$lli&i'a ion or impairmen 0 L'ompe i ive oppor $ni iesL an"0 in par i'$lar0 an# po en ial e3por in eres o& he .ni e" , a es m$s be a@en in o a''o$n / )e "o no 'onsi"er ha he E$ropean -omm$ni ies6 arg$men P ha 0 as a ne impor er o& bananas0 he .ni e" , a es 'o$l" no 're"ibl# have a Lpo en ialL in eres in e3por ing bananas o he E$ropean -omm$ni iesPis s$&&i'ien o reb$ he pres$mp ion o& n$lli&i'a ion or impairmen $n"er Ar i'le 5/8/ As no e" b# he panel an" he Appella e !o"# in he original pro'ee"ings0 %hile presen pro"$' ion in he .ni e" , a es is minimal0 i 'o$l" a an# ime s ar e3por ing he &e% bananas i pro"$'es o he E$ropean -omm$ni ies/ Tha his ma# be $nli@el# "oes no "isprove ha he .ni e" , a es is a po en ial e3por er o& bananas o he E$ropean -omm$ni ies/ 1n his respe' 0 %e re'all he 'on'l$sion o& he AATT panel in /# #uperfund: Ar i'le 111:20 &irs sen en'e0 'anno be in erpre e" o pro e' e3pe' a ions on e3por vol$mesB i pro e' s e3pe' a ions on he 'ompe i ive rela ionship be %een impor e" an" "omes i' pro"$' s/ A 'hange in he 'ompe i ive rela ionship 'on rar# o ha provision m$s 'onseD$en l# be regar"e" ipso facto as a n$lli&i'a ion or impairmen o& bene&i s a''r$ing $n"er he Aeneral Agreemen / A "emons ra ion ha a meas$re in'onsis en %i h Ar i'le 111:20 &irs sen en'e0 has no or insigni&i'an e&&e' s %o$l" here&ore in he vie% o& he 7anel no be a s$&&i'ien "emons ra ion ha he bene&i s a''r$ing $n"er ha provision ha" no been n$lli&ie" or impaire" even i& s$'h a reb$ al %ere in prin'iple permi e"/25 8/ )e "o no 'onsi"er i s$&&i'ien &or he E$ropean -omm$ni ies o allege ha he 7anel

&aile" o e3plain %ha 'o$l" be he e&&e' o& he in'onsis en meas$re on he .ni e" , a es6 in ernal mar@e / 1n &a' 0 i is he E$ropean -omm$ni ies ha bears he b$r"en o& reb$ ing he pres$mp ion

25 Appella e !o"# (epor in E) Bananas III0 para/ 252 (re&erring o AATT 7anel (epor 0 /# #uperfund0 para/ 5/4/9/)

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 459 ha he meas$re &o$n" o be in'onsis en %i h he AATT 4999 n$lli&ies or impairs bene&i s a''r$ing "ire' l# or in"ire' l# o he .ni e" , a es $n"er he 'overe" agreemen s/ 9/ :$r hermore0 %e re'all ha he +,! a"op e" re'ommen"a ions an" r$lings in he original

pro'ee"ings &or he E$ropean -omm$ni ies o bring i sel& in o 'omplian'e %i h he AATT 4999 an" he AAT,/ The meas$re a iss$e in hese 'omplian'e pro'ee"ings %as &o$n" o be in brea'h o& he same provisions o& he 'overe" agreemen s as in he original pro'ee"ings/ The 7anel6s man"a e %as o e3amine %he her he E$ropean -omm$ni ies ha" 'omplie" %i h he +,!6s re'ommen"a ions an" r$lings in he original pro'ee"ings/ )e agree %i h he 7anel ha LF Ghe arg$men s a"van'e" b# he E$ropean -omm$ni ies on he allege" la'@ o& n$lli&i'a ion or impairmen have no ren"ere" irrelevan he 'onsi"era ions ma"e b# he panel an" b# he Appella e !o"# in he 'o$rse o& he original pro'ee"ings0 regar"ing he a' $al an" po en ial ra"e in eres s o& he .ni e" , a es in he "isp$ eL/ 29 40/ 1n a""i ion0 he E$ropean -omm$ni ies 'on en"s ha he 7anel erre" in rel#ing on he

&in"ings o& he panel an" he Appella e !o"# in he original pro'ee"ings Lbe'a$se he &a' s o& he presen 'ase are ver# "i&&eren &rom he &a' s o& 4997L0 %hen he &in"ing o& n$lli&i'a ion or impairmen o& bene&i s a''r$ing o he .ni e" , a es %as base" on he in'onsis en'# o& he E$ropean -omm$ni ies6 bananas impor regime in &or'e a ha ime %i h he AAT, an" he Agreement on Import Licensing Procedures/25 44/ )e observe ha 0 in he original pro'ee"ings0 n$lli&i'a ion or impairmen o& bene&i s

a''r$ing o he .ni e" , a es %as &o$n" o res$l &rom he in'onsis en'ies o& he E$ropean -omm$ni ies6 meas$res %i h 'er ain provisions o& he AATT 4999 an" he AAT,/ As a s$pplier o& %holesale ra"e servi'es in bananas0 he .ni e" , a es6 servi'e s$ppl# o an" in he E$ropean -omm$ni ies %as "ire' l# a&&e' e" b# he in'onsis en meas$res/ )e &$r her no e ha 0 in he original pro'ee"ings0 he Appella e !o"# "i" no hol" ha he .ni e" , a es ha" s$&&ere" n$lli&i'a ion or impairmen e3'l$sivel# as a res$l o& viola ions o& he AAT,/ 1n"ee"0 he Appella e !o"# "e'line" o reverse he original panel6s &in"ing ha he E$ropean -omm$ni ies6 brea'hes o& he AATT ha" 1n n$lli&ie" or impaire" bene&i s a''r$ing o he 'omplainan s (in'l$"ing he .ni e" , a es)/ 26

a""i ion0 %e no e ha he allo'a ion pro'e"$res &or he banana impor li'en'es a iss$e in he original "isp$ e %ere &o$n" o be meas$res a&&e' ing bo h ra"e in goo"s an" servi'es0 an" in'onsis en %i h bo h he na ional an" ?:N rea men provisions o& he AATT 4999 an" he AAT,/ Th$s0 he impor li'ensing pro'e"$res &o$n" o be AATT-in'onsis en %ere also &o$n" o be "is'rimina ing agains .ni e" , a es %holesale servi'e s$ppliers/ There&ore0 he &in"ings o& n$lli&i'a ion or impairmen in
., 7anel (epor 0 para/ 8/40/ E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 467 (.,)/ 26 Appella e !o"# (epor 0 E) Bananas III0 para/ 259 (re&erring o 7anel (epor s0 E) Bananas III0 para/ 7/598)/
25 29

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 460 he original pro'ee"ings %ere no base" e3'l$sivel# on 'overe" agreemen s o her han he AATT 4999/ :or hese reasons0 he &a' ha hese 'omplian'e pro'ee"ings involve onl# AATT 4999 'laims0 an" are h$s narro%er in s'ope han he original pro'ee"ings0 "oes no mean ha he 7anel sho$l" no have relie" on he &in"ings o& n$lli&i'a ion an" impairmen in rela ion o he AATT 4999 in he original pro'ee"ings/ 42/ :inall#0 he E$ropean -omm$ni ies arg$es ha he a%ar" in he arbi ra ion $n"er

Ar i'le 22/6 o& he +,. in 49990 involving he .ni e" , a es0 'on&irme" ha he onl# so$r'e o& n$lli&i'a ion o& impairmen o& bene&i s a''r$ing o he .ni e" , a es in he original pro'ee"ings %ere he AAT,-in'onsis en aspe' s o& he meas$res an"0 in par i'$lar0 he impa' on he .ni e" , a es6 share o& %holesale ra"e servi'es sol" in he E$ropean -omm$ni ies an" on he .ni e" , a es6 share o& allo'a e" banana impor li'en'es/ 27 )e alrea"# 'onsi"ere" above ha he &in"ings o& n$lli&i'a ion or impairmen b# he Appella e !o"# in he original pro'ee"ings also rela e" o he AATT 49990 as "o hose o& his 'omplian'e 7anel/ )e "o no 0 here&ore0 believe ha he &a' ha he original pro'ee"ings res$l e" in a""i ional &in"ings o& viola ion o& he AAT, assis s he E$ropean -omm$ni ies in "is ing$ishing he '$rren 'omplian'e pro'ee"ings &rom he original pro'ee"ings an" in reb$ ing he pres$mp ion o& n$lli&i'a ion or impairmen %i h respe' AATT 4999 &o$n" b# his 7anel/ 45/ 1n ma@ing his arg$men 0 he E$ropean -omm$ni ies re&ers o he Ar i'le 22/6 arbi ra ion o he viola ions o& he

involving he .ni e" , a es in he E) Bananas III "isp$ e/ )e agree %i h he arbi ra ors ha he D$es ion %he her n$lli&i'a ion or impairmen e3is s %i hin he meaning o& Ar i'le 5/8 o& he +,.0 an" he D$es ion o& %ha level o& s$spension o& 'on'essions is eD$ivalen o he level o& n$lli&i'a ion or impairmen $n"er Ar i'le 22/60 are "is in' /28 There&ore0 he D$es ion ho% he arbi ra ors 'al'$la e" he level o& n$lli&i'a ion or impairmen $n"er Ar i'le 22/6 arises in a "i&&eren pro'e"$ral 'on e3 in )TO "isp$ e se lemen / 1n an# even 0 he arbi ra ors s a e" ha here %as L'on in$a ion o& n$lli&i'a ion or impairmen o& ., bene&i s $n"er he revise" E- regimeL0 in'l$"ing as a 'onseD$en'e o& an in'onsis en'# %i h Ar i'le 2111 o& he AATT 4999/29

E$ropean -omm$ni ies6 appellan 6s s$bmission0 para/ 468 (.,)/ The Ar i'le 22/6 arbi ra ors &o$n" ha : F Ghe presumption o& n$lli&i'a ion or impairmen in he 'ase o& an in&ringemen o& a AATT provision as se &or h b# Ar i'le 5/8 o& he +,. 'anno in an" o& i sel& be a@en sim$l aneo$sl# as evidence proving a par i'$lar level o& n$lli&i'a ion or impairmen allege"l# s$&&ere" b# a ?ember reD$es ing a$ hori=a ion o s$spen" 'on'essions $n"er Ar i'le 22 o& he +,. a a m$'h la er s age o& he )TO "isp$ e se lemen s#s em/ (+e'ision b# he Arbi ra ors0 E) Bananas III &/#' &Article ++-3 E)'0 para/ 6/40) 29 +e'ision b# he Arbi ra ors0 E) Bananas III &/#' &Article ++-3 E)'0 paras/ 5/96-5/98/
28

27

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 464 49/ :or hese reasons0 %e find ha he E$ropean -omm$ni ies has no s$''ee"e" in reb$ ing

he prima facie pres$mp ion ha i s brea'hes o& Ar i'les 1 an" 2111 o& he AATT 4999 ha" an a"verse impa' on he .ni e" , a es6 'ompe i ive oppor $ni ies as a po en ial e3por er o& bananas o he E$ropean -omm$ni ies an" on he .ni e" , a es6 in ernal mar@e &or bananas/ )e re'all ha 0 $n"er Ar i'le 5/8 o& he +,.0 he b$r"en o& "emons ra ing ha he .ni e" , a es has no s$&&ere" an# n$lli&i'a ion or impairmen o& bene&i s res s on he E$ropean -omm$ni ies/ 45/ There&ore0 %e uphold he 7anel6s &in"ing0 in paragraph 8/42 o& he ., 7anel (epor 0 ha 0

L o he e3 en ha he FE- !ananas 1mpor (egimeG 'on ainFe"G meas$res in'onsis en %i h vario$s provisions o& he AATT 49990 i /// n$lli&ie" or impaire" bene&i s a''r$ing o he .ni e" , a es $n"er ha Agreemen L/

)T*+,27*A!*()2*E-. 7age E-.-465 >III. F)/0)/2. -/0 C#/,*+.)#/. )/ $'% A55%**-$% B#0= R%5#($ WT/DS27/AB/RW2/ECU :E,+-0#(; 1n he appeal o& he 7anel (epor 0 European )ommunities *egime for the Importation(

4/

#ale and !istri$ution of Bananas #econd *ecourse to Article +,-. of the !#/ $y Ecuador ()T*+,27*()2*E-.)0 &or he reasons se o$ in his (epor 0 he Appella e !o"#: (a) %i h respe' o pro'e"$ral iss$es: (i) &in"s ha he 7anel "i" no a' in'onsis en l# %i h Ar i'le 9/5 o& he +,. b# main aining "i&&eren ime ables in he Ar i'le 24/5 pro'ee"ings be %een he E$ropean -omm$ni ies an" E'$a"or an" be %een -omm$ni ies an" he .ni e" , a esB an" (ii) $phol"s he 7anel6s &in"ing0 albei &or "i&&eren reasons0 in paragraph 7/456 o& he E'$a"or 7anel (epor 0 ha E'$a"or %as no barre" b# he .n"ers an"ing on !ananas &rom ini ia ing his 'omplian'e pro'ee"ingB (b) %i h respe' o Ar i'le 2111 o& he AATT 4999: (i) $phol"s he 7anel6s &in"ings0 in paragraphs 7/265 an" 7/265 o& he E'$a"or 7anel (epor 0 ha 0 o he e3 en ha he E$ropean -omm$ni ies arg$es ha i has implemen e" a s$gges ion p$rs$an o Ar i'le 49/4 o& he +,.0 he 7anel %as no preven e" &rom 'on"$' ing0 $n"er Ar i'le 24/5 o& he +,.0 he assessmen reD$es e" b# E'$a"orB an" ha 0 here&ore0 he 7anel "i" no nee" o assess %he her he E$ropean -omm$ni ies has e&&e' ivel# implemen e" an# o& he s$gges ions o& he &irs 'omplian'e panel reD$es e" b# E'$a"orB an" (ii) $phol"s0 albei &or "i&&eren reasons0 he 7anel6s &in"ing0 in paragraph 7/582 o& he E'$a"or 7anel (epor 0 ha he E- !ananas 1mpor (egime0 in par i'$lar0 i s "$ #-&ree ari&& D$o a reserve" &or A-7 'o$n ries0 %as in'onsis en %i h Ar i'le 2111:4 an" Ar i'le 2111:2 o& he AATT 4999B he E$ropean

)T*+,27*A!*()2*E-. 7age E-.-469 (') %i h respe' o Ar i'le 11 o& he AATT 4999: (i) reverses he 7anel6s &in"ing0 in paragraphs 7/956 an" 7/992 o& he E'$a"or 7anel (epor 0 ha he +oha Ar i'le 1 )aiver 'ons i $ e" a s$bseD$en agreemen be %een he par ies e3 en"ing he ari&& D$o a 'on'ession &or bananas lis e" in he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions be#on" 54 +e'ember 20020 $n il he rebin"ing o& he E$ropean -omm$ni ies6 ari&& on bananasB (ii) reverses he 7anel6s &in"ing0 in paragraph 7/956 o& he E'$a"or 7anel (epor 0 ha he E$ropean -omm$ni ies6 ari&& D$o a 'on'ession &or bananas %as in en"e" o e3pire on 54 +e'ember 2002 on a''o$n o& paragraph 9 o& he !ananas :rame%or@ Agreemen B an" (iii) $phol"s0 albei &or "i&&eren reasons0 he 7anel6s &in"ings0 in paragraph 7/509 o& he E'$a"or 7anel (epor 0 ha -omm$ni ies he ari&& applie" b# he E$ropean a M476*m 0 %i ho$ o ?:N impor s o& bananas0 se

'onsi"era ion o& he ari&& D$o a o& 2/2 million m bo$n" a an in-D$o a ari&& ra e o& 75M*m 0 is an or"inar# '$s oms "$ # in e3'ess o& ha provi"e" &or in he E$ropean -omm$ni ies6 ,'he"$le o& -on'essions0 an" h$s in'onsis en %i h Ar i'le 11:4(b) o& he AATT 4999B an" (") $phol"s he 7anel6s &in"ing0 in paragraph 8/9 o& he E'$a"or 7anel (epor 0 ha E$ropean -omm$ni ies0 b# main aining meas$res in'onsis en bene&i s a''r$ing o E'$a"or $n"er ha Agreemen / 2/ The Appella e !o"# re'ommen"s ha he +,! reD$es he E$ropean -omm$ni ies o bring he

%i h "i&&eren

provisions o& he AATT 49990 in'l$"ing Ar i'le 21110 has n$lli&ie" or impaire"

i s meas$re0 &o$n" in his (epor an" in he E'$a"or 7anel (epor 0 as mo"i&ie" b# his (epor 0 o be in'onsis en %i h he AATT 49990 in o 'on&ormi # %i h i s obliga ions $n"er ha Agreemen /

)T*+,27*A!*()2*E-. 7age E-.-465 ,igne" in he original in Aeneva his 49 h "a# o& November 2008 b#:

WWWWWWWWWWWWWWWWWWWWWWWWW >$i= Olavo !ap is a 7resi"ing ?ember

WWWWWWWWWWWWWWWWWWWWWWWWW ,ho aro Oshima ?ember

WWWWWWWWWWWWWWWWWWWWWWWWW +avi" .n erhal er ?ember

)T*+,27*A!*()*.,A 7age .,A-464 >III. F)/0)/2. -/0 C#/,*+.)#/. )/ $'% A55%**-$% B#0= R%5#($ WT/DS27/AB/RW/USA :U/)$%0 S$-$%.; 1n he appeal o& he 7anel (epor 0 European )ommunities *egime for the Importation(

978/

#ale and !istri$ution of Bananas *ecourse to Article +,-. of the !#/ $y the /nited #tates ()T*+,27*()*.,A)0 &or he reasons se o$ in his (epor 0 he Appella e !o"#: (a) %i h respe' o pro'e"$ral iss$es: (i) &in"s ha he 7anel "i" no a' in'onsis en l# %i h Ar i'le 9/5 o& he +,. b# main aining "i&&eren ime ables in he Ar i'le 24/5 pro'ee"ings be %een he E$ropean -omm$ni ies an" E'$a"or an" be %een he E$ropean -omm$ni ies an" he .ni e" , a esB (ii) $phol"s he 7anel6s &in"ing0 albei &or "i&&eren reasons0 in paragraph 7/465 o& he ., 7anel (epor 0 ha he .ni e" , a es %as no barre" b# he .n"ers an"ing on !ananas &rom ini ia ing his 'omplian'e pro'ee"ingB (iii) $phol"s0 albei &or "i&&eren reasons0 he 7anel6s &in"ing0 in paragraph 7/554 o& he ., 7anel (epor 0 ha he E- !ananas 1mpor (egime 'ons i $ e" a Lmeas$re a@en o 'ompl#L %i hin he meaning o& Ar i'le 24/5 o& he +,. an" %as here&ore properl# be&ore he 7anelB (iv) &in"s ha he 7anel "i" no err in ma@ing &in"ings %i h respe' o a meas$re ha ha" 'ease" o e3is s$bseD$en o he es ablishmen o& he 7anel0 b$ be&ore he 7anel iss$e" i s (epor B an" (v) &in"s ha he "e&i'ien'ies in he E$ropean -omm$ni ies6 No i'e o& Appeal "o no lea" o "ismissal o& he E$ropean -omm$ni ies6 appealB (b) %i h respe' o Ar i'le 2111 o& he AATT 4999: $phol"s0 albei &or "i&&eren reasons0 he 7anel6s &in"ing0 in paragraph 7/720 o& he ., 7anel (epor 0 ha he E- !ananas 1mpor (egime0 in par i'$lar0 i s "$ #-&ree ari&& D$o a reserve" &or A-7 'o$n ries0 %as in'onsis en %i h Ar i'le 2111:4 an" Ar i'le 2111:2 o& he AATT 4999B an"

)T*+,27*A!*()*.,A 7age .,A-462 (') $phol"s he 7anel6s &in"ing0 in paragraph 8/42 o& he ., 7anel (epor 0 ha o he e3 en ha he E- !ananas 1mpor (egime 'on aine" meas$res in'onsis en %i h vario$s provisions o& he AATT 49990 i n$lli&ie" or impaire" bene&i s a''r$ing o he .ni e" , a es $n"er ha Agreemen / 979/ As he meas$re a iss$e in his "isp$ e is no longer in e3is en'e0 %e "o no ma@e an#

re'ommen"a ion o he +,! p$rs$an o Ar i'le 49/4 o& he +,./

,igne" in he original in Aeneva his 49 h "a# o& November 2008 b#:

WWWWWWWWWWWWWWWWWWWWWWWWW >$i= Olavo !ap is a 7resi"ing ?ember

WWWWWWWWWWWWWWWWWWWWWWWWW ,ho aro Oshima ?ember

WWWWWWWWWWWWWWWWWWWWWWWWW +avi" .n erhal er ?ember

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age A-4 ANNE2 1

WORLD TRADE ORGANIZATION

WT/DS27/!" 29 A$g$s 2008

(08-9064)

Original:

English

EUROPEAN COMMUNITIES REGIME FOR THE IMPORTATION, SALE AND DISTRIBUTION OF BANANAS ,e'on" (e'o$rse o Ar i'le 24/5 o& he +,. b# E'$a"or No i&i'a ion o& an Appeal b# he E$ropean -omm$ni ies $n"er Ar i'le 46/9 an" Ar i'le 47 o& he .n"ers an"ing on ($les an" 7ro'e"$res Aoverning he ,e lemen o& +isp$ es (+,.)0 an" $n"er ($le 20(4) o& he >or0ing Procedures for Appellate *evie% The &ollo%ing no i&i'a ion0 "a e" 28 A$g$s 20080 &rom he +elega ion o& he E$ropean -ommission0 is being 'ir'$la e" o ?embers/ BBBBBBBBBBBBBBB 4/ 7$rs$an o Ar i'le 46/9 an" Ar i'le 47 o& he +,. an" o ($le 20/4 o& he )or@ing 7ro'e"$res &or Appella e (evie%0 he E$ropean -omm$ni ies s$bmi s i s No i'e o& Appeal on 'er ain iss$es o& la% an" 'er ain legal in erpre a ions "evelope" b# he 7anel in he (epor on European )ommunitiesF regime for the importation( sale and distri$ution of $ananas *ecourse to Article +,-. of the !#/ $y Ecuador/4 The E$ropean -omm$ni ies see@s revie% b# he Appella e !o"# o& he &ollo%ing iss$es o& la% an" legal in erpre a ions in he (epor o& he 7anel: (a) The 7anel6s erroneo$s in erpre a ion an" appli'a ion o& Ar i'le 9/5 o& he +,.B (b) he 7anel6s erroneo$s &in"ings 'on'erning he legal e&&e' s o& he .n"ers an"ing on !ananas signe" b# E'$a"or an" he E$ropean -omm$ni ies in 2004B (') he 7anel6s erroneo$s in erpre a ion an" appli'a ion o& he prin'iple o& goo" &ai h in )TO la%B (") he 7anel6s legal errors 'on'erning he legal e&&e' s o& he +oha %aiver on he E$ropean -omm$ni ies6 ,'he"$le o& -on'essionsB (e) he 7anel6s erroneo$s in erpre a ion o& Ar i'le 2111 o& he AATT an" erroneo$s &in"ing o& a viola ion o& ha provisionB

2/

)T*+,27*()2*E-. 'ir'$la e" on 7 April 2008/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age A-2 (&) he 7anel6s legal errors in 'onsi"ering ha a limi a ion impose" on he D$an i # o& goo"s ha 'an bene&i &rom a pre&eren ial ari&& la%&$ll# gran e" o 'er ain ?embers n$lli&ies or impairs bene&i s a''r$ing $n"er he AATT o all o her ?embers an" he 7anel6s erroneo$s &in"ing ha E'$a"or s$&&ere" n$lli&i'a ion or impairmen arising &rom an# in'onsis en'# o& he E$ropean -omm$ni ies6 meas$res %i h Ar i'le 2111 o& he AATTB (g) he 7anel6s legal errors rela ing o he legal e&&e' s o& s$gges ions ma"e b# panels p$rs$an o Ar i'le 49/4 o& he +,. an" he 7anel6s &ail$re o e3amine he E$ropean -omm$ni ies6 meas$res in he ligh o& hese s$gges ions/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age A-5 ANNE2 11

WORLD TRADE ORGANIZATION

WT/DS27/" 29 A$g$s 2008

(08-9060)

Original:

English

EUROPEAN COMMUNITIES REGIME FOR THE IMPORTATION, SALE AND DISTRIBUTION OF BANANAS (e'o$rse o Ar i'le 24/5 o& he +,. b# he .ni e" , a es No i&i'a ion o& an Appeal b# he E$ropean -omm$ni ies $n"er Ar i'le 46/9 an" Ar i'le 47 o& he .n"ers an"ing on ($les an" 7ro'e"$res Aoverning he ,e lemen o& +isp$ es (+,.)0 an" $n"er ($le 20(4) o& he >or0ing Procedures for Appellate *evie% The &ollo%ing no i&i'a ion0 "a e" 28 A$g$s 20080 &rom he +elega ion o& he E$ropean -ommission0 is being 'ir'$la e" o ?embers/ BBBBBBBBBBBBBBB 4/ 7$rs$an o Ar i'le 46/9 an" Ar i'le 47 o& he +,. an" o ($le 20/4 o& he )or@ing 7ro'e"$res &or Appella e (evie%0 he E$ropean -omm$ni ies s$bmi s i s No i'e o& Appeal on 'er ain iss$es o& la% an" 'er ain legal in erpre a ions "evelope" b# he 7anel in he (epor on European )ommunitiesF regime for the importation( sale and distri$ution of $ananas *ecourse to Article +,-. of the !#/ $y the /nited #tates of America/2 The E$ropean -omm$ni ies see@s revie% b# he Appella e !o"# o& he &ollo%ing iss$es o& la% an" legal in erpre a ions in he (epor o& he 7anel: (a) The 7anel6s erroneo$s in erpre a ion an" appli'a ion o& Ar i'le 9/5 o& he +,.B (b) he 7anel6s erroneo$s &in"ing ha he banana impor regime ha he E$ropean -omm$ni ies ha" in pla'e be %een Can$ar# 40 2006 an" +e'ember 540 2007 %as a Lmeas$re a@en o 'ompl#L %i h he r$lings an" re'ommen"a ions a"op e" b# he +,! in 4997B (') he 7anel6s erroneo$s &in"ings 'on'erning he legal e&&e' s o& he .n"ers an"ing on !ananas signe" b# he .ni e" , a es an" he E$ropean -omm$ni ies in 2004B (") he 7anel6s erroneo$s in erpre a ion an" appli'a ion o& he prin'iple o& goo" &ai h in )TO la%B

2/

)T*+,27*()*.,A 'ir'$la e" on 49 ?a# 2008/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age A-9 (e) he 7anel6s erroneo$s in erpre a ion o& Ar i'le 2111 o& he AATT an" i s erroneo$s &in"ing o& a viola ion o& ha provisionB (&) he 7anel6s erroneo$s &in"ing ha he .ni e" , a es s$&&ere" Ln$lli&i'a ion or impairmen L as a res$l o& he banana impor regime ha he E$ropean -omm$ni ies ha" in pla'e be %een Can$ar# 40 2006 an" +e'ember 540 2007B (g) he 7anel6s &ail$re o a@e in o 'onsi"era ion he repeal o& he 'on es e" meas$re/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age A-5 ANNE2 111

WORLD TRADE ORGANIZATION

WT/DS27/"1 45 ,ep ember 2008

(08-9258)

Original:

English

EUROPEAN COMMUNITIES REGIME FOR THE IMPORTATION, SALE AND DISTRIBUTION OF BANANAS ,e'on" (e'o$rse o Ar i'le 24/5 o& he +,. b# E'$a"or No i&i'a ion o& an O her Appeal b# E'$a"or $n"er Ar i'le 46/9 an" Ar i'le 47 o& he .n"ers an"ing on ($les an" 7ro'e"$res Aoverning he ,e lemen o& +isp$ es (+,.)0 an" $n"er ($le 25(4) o& he >or0ing Procedures for Appellate *evie% The &ollo%ing no i&i'a ion0 "a e" 9 ,ep ember 20080 &rom he +elega ion o& E'$a"or0 is being 'ir'$la e" o ?embers/ BBBBBBBBBBBBBBB 7$rs$an o Ar i'les 46/9 an" 47 o& he /nderstanding on *ules and Procedures 1overning the #ettlement of !isputes (L+,.L) an" ($le 25(4) o& he >or0ing Procedures for Appellate *evie% 0 E'$a"or s$bmi s his No i'e o& O her Appeal on 'er ain iss$es o& la% 'overe" an" 'er ain legal in erpre a ions "evelope" b# he 7anel in he (epor on: European )ommunities *egime for the Importation( #ale an !istri$ution of Bananas #econd *ecourse to Article +,-. of the !#/ $y Ecuador/5 On 28 A$g$s 20080 he E$ropean -omm$ni ies (E-) &ile" i s No i'e o& Appeal p$rs$an o ($le 20(4) o& he >or0ing Procedures for Appellate *evie%/ The E- reD$es e" ha he Appella e !o"# revie% 'er ain &in"ings an" 'on'l$sions o& he 7anel/ 1&0 as a res$l o& i s revie% o& an# o& he ma ers appeale" b# he E-0 he Appella e !o"# 'onsi"ers ha he 7anel6s 'on'l$sion ha he E-6s applie" "$ # on bananas is in'onsis en %i h he &irs sen en'e o& Ar i'le 11:4(b) o& he AATT 4999 is no N$s i&ie" on he bases &o$n" b# he 7anel0 E'$a"or appeals he &ollo%ing iss$es o& la% an" legal in erpre a ion in he (epor o& he 7anel: The 7anel6s erroneo$s &in"ings (e/g/ in paragraphs 7/9270 7/9560 7/9820 7/992) 'on'erning he e&&e' o& he e3pira ion 'la$se (paragraph 9) o& he !anana :rame%or@ Agreemen on he 'on in$e" bin"ing e&&e' $n"er Ar i'le 11 o& he AATT 4999 o& he E-6s ari&& D$o a a 75 e$ro*m /

7anel (epor 0 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas #econd *ecourse to Article +,-. of the !#/ $y Ecuador 0 )T*+,27*()2*E-.0 'ir'$la e" on 7 April 2008 ( he L7anel (epor L)/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age A-6 ANNE2 1; ORGANISATION MONDIALE DU COMMERCE WORLD TRADE ORGANIZATION APPELLATE BODY European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas ,e'on" (e'o$rse o Ar i'le 24/5 o& he +,. b# E'$a"or A!-2008-8 European )ommunities *egime for the Importation( #ale and !istri$ution of Bananas (e'o$rse o Ar i'le 24/5 o& he +,. b# he .ni e" , a es A!-2008-9 7ro'e"$ral ($ling 4/ On 29 A$g$s 20080 he Appella e !o"# +ivision hearing he above appeals re'eive" %o Noin reD$es s &rom E'$a"or an" he E$ropean -omm$ni ies0 an" &rom he .ni e" , a es an" he E$ropean -omm$ni ies0 o allo% observa ion b# he p$bli' o& he oral hearing in he appella e pro'ee"ings/9 The par i'ipan s arg$e" ha no hing in he /nderstanding on *ules and Procedures 1overning the #ettlement of !isputes ( he L+,.L) or he >or0ing Procedures for Appellate *evie% ( he L>or0ing ProceduresL) pre'l$"es he Appella e !o"# &rom a$ hori=ing p$bli' observa ion o& he oral hearing/ 2/ On 4 ,ep ember 20080 %e invi e" he hir" par i'ipan s o 'ommen in %ri ing on he reD$es s o& he par i'ipan s/ 1n par i'$lar0 %e as@e" he hir" par i'ipan s o provi"e heir vie%s on he permissibili # o& opening he hearing $n"er he +,. an" he >or0ing Procedures0 an"0 i& he# so %ishe"0 on he spe'i&i' logis i'al arrangemen s propose" in he reD$es s/ )e re'eive" 'ommen s on 5 ,ep ember &rom -olombia0 on 9 ,ep ember &rom 7anama an" Ni'arag$a0 an" on 40 ,ep ember &rom !ra=il0 Camai'a0 an" Capan/ -olombia0 Camai'a0 Capan0 Ni'arag$a0 an" 7anama e3presse" heir s$ppor &or he reD$es o& he par i'ipan s/ !ra=il e3presse" he vie% ha he provision o& he +,. e3pressl# "isallo% p$bli' hearings a he appella e s age/ A''or"ing o !ra=il0 opening he oral hearing in hese pro'ee"ings o p$bli' observa ion %o$l" e3 rapola e he &le3ibili # gran e" o ?embers in Ar i'le 48/2 o& he +,. an" r$n 'o$n er o he obliga ion o& 'on&i"en iali # impose" b# Ar i'le 47/40 o& he +,./ 5/ )e 'onsi"er i ne'essar# ha a r$ling is ma"e b# $s on he reD$es s o& he par i'ipan s/ A''or"ingl#0 %e ma@e he &ollo%ing r$ling/ 9/ ,imilar reD$es s %ere ma"e in he /nited #tates )ontinued #uspension of =$ligations in the E) Hormones !ispute an" )anada )ontinued #uspension of =$ligations in the E) Hormones !ispute appeals0 in %hi'h he Appella e !o"# se o$ i s reasoning &or gran ing he reD$es s/ The salien reasoning re&le' e" in ha 'ase is as &ollo%s: ORGANIZACICN MUNDIAL DEL COMERCIO

The par i'ipan s e3presse" a pre&eren'e &or sim$l aneo$s0 'lose"-'ir'$i elevision broa"'as o ano her room0 %i h he broa"'as being in err$p e" %hen an# hir" par i'ipan ha "oes no %ish o ma@e i s s a emen p$bli'0 a@es he &loor/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age A-7 The hir" par i'ipan s ha obNe' o he reD$es o allo% p$bli' observa ion arg$e ha he 'on&i"en iali # reD$iremen in Ar i'le 47/40 is absol$ e an" permi s o& no "eroga ion/ )e "isagree %i h his in erpre a ion be'a$se Ar i'le 47/40 m$s be rea" in 'on e3 0 par i'$larl# in rela ion o Ar i'le 48/2 o& he +,./ The se'on" sen en'e o& Ar i'le 48/2 e3pressl# provi"es ha LFnGo hing in his .n"ers an"ing shall pre'l$"e a par # o a "isp$ e &rom "is'losing s a emen s o& i s o%n posi ions o he p$bli'L/ Th$s0 $n"er Ar i'le 48/20 he par ies ma# "e'i"e o &orego 'on&i"en iali # pro e' ion in respe' o& heir s a emen s o& posi ion/ )i h he e3'ep ion o& 1n"ia0 he par i'ipan s an" hir" par i'ipan s agree" ha he erm Ls a emen s o& i s o%n posi ionsL in Ar i'le 48/2 e3 en"s be#on" he %ri en s$bmissions re&erre" o in he &irs sen en'e o& Ar i'le 48/20 an" in'l$"es oral s a emen s an" responses o D$es ions pose" b# he Appella e !o"# a he oral hearing/ The hir" sen en'e o& Ar i'le 48/2 s a es ha L?embers shall rea as 'on&i"en ial in&orma ion s$bmi e" b# ano her ?ember o he panel or he Appella e !o"# %hi'h ha ?ember has "esigna e" as 'on&i"en ial/L This provision %o$l" be re"$n"an i& Ar i'le 47/40 %ere in erpre e" o reD$ire absol$ e 'on&i"en iali # in respe' o& all elemen s o& appella e pro'ee"ings/ There %o$l" be no nee" o reD$ire0 p$rs$an o Ar i'le 48/20 ha a ?ember "esigna e 'er ain in&orma ion as 'on&i"en ial/ The las sen en'e o& Ar i'le 48/2 ens$res ha even s$'h "esigna ion b# a ?ember "oes no p$ an en" o he righ o& ano her ?ember o ma@e "is'los$re o he p$bli'/ .pon reD$es 0 a ?ember m$s provi"e a non-'on&i"en ial s$mmar# o& he in&orma ion 'on aine" in i s %ri en s$bmissions ha i "esigna e" as 'on&i"en ial0 %hi'h 'an hen be "is'lose" o he p$bli'/ Th$s0 Ar i'le 48/2 provi"es 'on e3 $al s$ppor &or he vie% ha he 'on&i"en iali # r$le in Ar i'le 47/40 is no absol$ e/ O her%ise0 no "is'los$re o& %ri en s$bmissions or o her s a emen s %o$l" be permi e" "$ring an# s age o& he pro'ee"ings/ 1n pra' i'e0 he 'on&i"en iali # reD$iremen in Ar i'le 47/40 has i s limi s/ No i'es o& Appeal an" Appella e !o"# repor s are "is'lose" o he p$bli'/ Appella e !o"# repor s 'on ain s$mmaries o& he par i'ipan s6 an" hir" par i'ipan s6 %ri en an" oral s$bmissions an" &reD$en l# D$o e "ire' l# &rom hem/ 7$bli' "is'los$re o& Appella e !o"# repor s is an inheren an" ne'essar# &ea $re o& o$r r$les-base" s#s em o& a"N$"i'a ion/ -onseD$en l#0 $n"er he +,.0 'on&i"en iali # is rela ive an" ime-bo$n"/ 1n o$r vie%0 he 'on&i"en iali # reD$iremen in Ar i'le 47/40 is more properl# $n"ers oo" as opera ing in a rela ional manner/FSG There are "i&&eren se s o& rela ionships ha are impli'a e" in appella e pro'ee"ings/ Among hem are he &ollo%ing rela ionships/ :irs 0 a rela ionship be %een he par i'ipan s an" he Appella e !o"#/ ,e'on"l#0 a rela ionship be %een he hir" par i'ipan s an" he Appella e !o"#/ The reD$iremen ha he pro'ee"ings o& he Appella e !o"# are 'on&i"en ial a&&or"s pro e' ion o hese separa e rela ionships an" is in en"e" o sa&eg$ar" he in eres s o& he par i'ipan s an" hir" par i'ipan s an" he a"N$"i'a ive &$n' ion o& he Appella e !o"#0 so as o &os er he s#s em o& "isp$ e se lemen $n"er 'on"i ions o& &airness0 impar iali #0 in"epen"en'e an" in egri #/ 1n his 'ase0 he par i'ipan s have Noin l# reD$es e" a$ hori=a ion o &orego 'on&i"en iali # pro e' ion &or heir 'omm$ni'a ions %i h he Appella e !o"# a he oral hearing/ The reD$es o& he par i'ipan s "oes no e3 en" o an# 'omm$ni'a ions0 nor o$'hes $pon he rela ionship0 be %een he hir" par i'ipan s an" he Appella e !o"#/ The righ o 'on&i"en iali # o& hir" par i'ipan s vis I vis he Appella e !o"# is no impli'a e" b# he Noin reD$es / The D$es ion is h$s %he her he reD$es o& he par i'ipan s o &orego 'on&i"en iali # pro e' ion sa is&ies he reD$iremen s o& &airness an" in egri # ha are he essen ial a rib$ es o& he appella e pro'ess an" "e&ine he rela ionship be %een he Appella e !o"# an" he par i'ipan s/ 1& he reD$es mee s hese s an"ar"s0 hen he Appella e !o"# %o$l" in'line o%ar"s a$ hori=ing s$'h a Noin reD$es /
FSGThis rela ional vie% o& righ s an" obliga ions o& 'on&i"en iali # is 'onsis en %i h he approa'h &ollo%e" in "omes i' N$ris"i' ions %i h respe' o similar iss$es0 s$'h as privilege/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age A-8 )e no e ha he +,. "oes no spe'i&i'all# provi"e &or an oral hearing a he appella e s age/ The oral hearing %as ins i $ e" b# he Appella e !o"# in i s >or0ing Procedures0 %hi'h %ere "ra%n $p p$rs$an o Ar i'le 47/9 o& he +,./ The 'on"$' an" organi=a ion o& he oral hearing &alls %i hin he a$ hori # o& he Appella e !o"# ( comp@tence de la comp@tence) p$rs$an o ($le 27 o& he >or0ing Procedures/ Th$s0 he Appella e !o"# has he po%er o e3er'ise 'on rol over he 'on"$' o& he oral hearing0 in'l$"ing a$ hori=ing he li& ing o& 'on&i"en iali # a he Noin reD$es o& he par i'ipan s as long as his "oes no a"versel# a&&e' he righ s an" in eres s o& he hir" par i'ipan s or he in egri # o& he appella e pro'ess/ As %e observe" earlier0 Ar i'le 47/40 also applies o he rela ionship be %een hir" par i'ipan s an" he Appella e !o"#/ Never heless0 in o$r vie%0 he hir" par i'ipan s 'anno invo@e Ar i'le 47/400 as i applies o heir rela ionship %i h he Appella e !o"#0 so as o bar he li& ing o& 'on&i"en iali # pro e' ion in he rela ionship be %een he par i'ipan s an" he Appella e !o"#/ >i@e%ise0 a$ hori=ing he par i'ipan s6 reD$es o &orego 'on&i"en iali #0 "oes no a&&e' he righ s o& hir" par i'ipan s o preserve he 'on&i"en iali # o& heir 'omm$ni'a ions %i h he Appella e !o"#/ ,ome o& he hir" par i'ipan s arg$e" ha he Appella e !o"# is i sel& 'ons raine" b# Ar i'le 47/40 in i s po%er o a$ hori=e he li& ing o& 'on&i"en iali #/ )e agree ha he po%ers o& he Appella e !o"# are hemselves 'ir'$ms'ribe" in ha 'er ain aspe' s o& 'on&i"en iali # are in'apable o& "eroga ionPeven b# he Appella e !o"#P%here "eroga ion ma# $n"ermine he e3er'ise an" in egri # o& he Appella e !o"#6s a"N$"i'a ive &$n' ion/ This in'l$"es he si $a ion 'on empla e" in he se'on" sen en'e o& Ar i'le 47/400 %hi'h provi"es ha LF Ghe repor s o& he Appella e !o"# shall be "ra& e" %i ho$ he presen'e o& he par ies o he "isp$ e an" in he ligh o& he in&orma ion provi"e" an" he s a emen s ma"e/L As no e" b# he par i'ipan s0 he 'on&i"en iali # o& he "elibera ions is ne'essar# o pro e' he in egri #0 impar iali #0 an" in"epen"en'e o& he appella e pro'ess/ 1n o$r vie%0 s$'h 'on'erns "o no arise in a si $a ion %here0 &ollo%ing a Noin reD$es o& he par i'ipan s0 he Appella e !o"# a$ hori=es he li& ing o& he 'on&i"en iali # o& he par i'ipan s6 s a emen s a he oral hearing/ The Appella e !o"# has &os ere" he a' ive par i'ipa ion o& hir" par ies in he appella e pro'ess in "ra%ing $p he >or0ing Procedures an" in appeal pra' i'e/ Ar i'le 47/9 provi"es ha hir" par i'ipan s Lma# ma@e %ri en s$bmissions o0 an" be given an oppor $ni # o be hear" b#0 he Appella e !o"#/L 1n i s >or0ing Procedures0 he Appella e !o"# has given &$ll e&&e' o his righ b# provi"ing &or par i'ipa ion o& hir" par i'ipan s "$ring he en ire # o& he oral hearing0 %hile hir" par ies mee %i h panels onl# in a separa e session a he &irs s$bs an ive mee ing/ Thir" par i'ipan s0 ho%ever0 are no he main par ies o a "isp$ e/ (a her0 he# have a s#s emi' in eres in he in erpre a ion o& he provisions o& he 'overe" agreemen s ha ma# be a iss$e in an appeal/ Al ho$gh heir vie%s on he D$es ions o& legal in erpre a ion ha 'ome be&ore he Appella e !o"# are al%a#s val$able an" horo$ghl# 'onsi"ere"0 hese iss$es o& legal in erpre a ion are no inheren l# 'on&i"en ial/ Nor is i a ma er &or he hir" par i'ipan s o "e ermine ho% he pro e' ion o& 'on&i"en iali # in he rela ionship be %een he par i'ipan s an" he Appella e !o"# is bes "eal %i h/ 1n or"er o s$s ain heir obNe' ions o p$bli' observa ion o& he oral hearing0 hir" par i'ipan s %o$l" have o i"en i&# a spe'i&i' in eres in heir rela ionship %i h he Appella e !o"# ha %o$l" be a"versel# a&&e' e" i& %e %ere o a$ hori=e he par i'ipan s6 reD$es Pin his 'ase0 %e 'an "is'ern no s$'h in eres s/ 5/ )e are no pers$a"e" ha here is an# basis o "epar &rom his reasoning/

6/ The reD$es &or p$bli' observa ion o& he oral hearing in hese "isp$ es has been ma"e Noin l# b# he hree par i'ipan s0 E'$a"or0 he E$ropean -omm$ni ies0 an" he .ni e" , a es/ As %e e3plaine" in o$r reasoning in /nited #tates )ontinued #uspension of =$ligations in the E) Hormones !ispute an" )anada )ontinued #uspension of =$ligations in the E) Hormones

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age A-9 !ispute0 he Appella e !o"# has he po%er o a$ hori=e a Noin reD$es b# he par i'ipan s o li& 'on&i"en iali #0 provi"e" ha his "oes no a&&e' he 'on&i"en iali # o& he rela ionship be %een he hir" par i'ipan s an" he Appella e !o"#0 or impair he in egri # o& he appella e pro'ess/ There is no reason in his 'ase no o a$ hori=e he reD$es s ma"e o $s/ The par i'ipan s have s$gges e" al erna ive mo"ali ies ha allo% &or p$bli' observa ion o& he oral hearing0 %hile sa&eg$ar"ing he 'on&i"en iali # pro e' ion enNo#e" b# he hir" par i'ipan s/ The mo"ali ies in'l$"e sim$l aneo$s or "ela#e" 'lose"-'ir'$i elevision broa"'as ing in a room separa e &rom he room $se" &or he oral hearing/ :inall#0 %e "o no see he p$bli' observa ion o& he oral hearing0 $sing he means "es'ribe" above0 as having an a"verse impa' on he in egri # o& he a"N$"i'a ive &$n' ions per&orme" b# he Appella e !o"#/ 7/ :or hese reasons0 he Appella e !o"# +ivision hearing his appeal a$ hori=es he p$bli' observa ion o& he oral hearing in hese pro'ee"ings on he erms se o$ belo%/ A''or"ingl#0 p$rs$an o ($le 46(4) o& he >or0ing Procedures0 %e a"op he &ollo%ing a""i ional pro'e"$res &or he p$rposes o& his appeal: (a) The oral hearing %ill be open o p$bli' observa ion b# means o& sim$l aneo$s 'lose"-'ir'$i elevision/ The 'lose"-'ir'$i elevision signal %ill be sho%n in a separa e room o %hi'h "$l# regis ere" "elega es o& )TO ?embers an" members o& he general p$bli' %ill have a''ess/ Oral s a emen s an" responses o D$es ions b# hir" par i'ipan s %ishing o main ain he 'on&i"en iali # o& heir s$bmissions %ill no be s$bNe' o p$bli' observa ion/ An# hir" par i'ipan ha has no alrea"# "one so ma# reD$es ha i s oral s a emen s an" responses o D$es ions remain 'on&i"en ial an" no be s$bNe' o p$bli' observa ion/ ,$'h reD$es s m$s be re'eive" b# he Appella e !o"# ,e're aria no la er han 5:00 p/m/ Aeneva ime on :ri"a#0 26 ,ep ember 2008/ An appropria e n$mber o& sea s %ill be reserve" &or "elega es o& )TO ?embers in he room %here he 'lose"-'ir'$i broa"'as %ill be sho%n/ No i'e o& he oral hearing %ill be provi"e" o he general p$bli' hro$gh he )TO %ebsi e/ )TO "elega es an" members o& he general p$bli' %ishing o observe he oral hearing %ill be reD$ire" o regis er in a"van'e %i h he )TO ,e're aria / ,ho$l" pra' i'al 'onsi"era ions no allo% sim$l aneo$s broa"'as o& he oral hearing0 "e&erre" sho%ing o& he vi"eo re'or"ing %ill be $se" in he al erna ive/ Aeneva0 48 ,ep ember 2008

(b)

(')

(") (e)

(&)

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age A-40 ANNE2 ;

WORLD TRADE ORGANIZATION

MINISTERIAL CONFERENCE F#+($' S%..)#/ D#'-, " - 1@ N#4%63%( 2 1

WT/MIN: 1;/15 49 November 2004

(04-5786)

EUROPEAN COMMUNITIES THE ACP-EC PARTNERSHIP AGREEMENT +e'ision o& 49 November 2004 The ?inis erial -on&eren'e0 Having regard o paragraphs 4 an" 5 o& Ar i'le 12 o& he ?arra@e'h Agreemen Es ablishing he )orl" Tra"e Organisa ion ( he L)TO Agreemen L)0 he A$i"ing 7rin'iples o be &ollo%e" in 'onsi"ering appli'a ions &or %aivers a"op e" on 4 November 4956 (!1,+ 5,*25)0 he .n"ers an"ing in (espe' o )aivers o& Obliga ions $n"er he Aeneral Agreemen on Tari&&s an" Tra"e 49990 paragraph 5 o& Ar i'le 12 o& he )TO Agreemen 0 an" +e'ision-?a@ing 7ro'e"$res $n"er Ar i'les 12 an" 211 o& he )TO Agreemen agree" b# he Aeneral -o$n'il ()T*>*95)B 4a0ing note o& he reD$es o& he E$ropean -omm$ni ies (E-) an" o& he Aovernmen s o& he A-7 , a es %hi'h are also )TO members (hereina& er also he L7ar ies o he Agreemen L) &or a %aiver &rom he obliga ions o& he E$ropean -omm$ni ies $n"er paragraph 4 o& Ar i'le 1 o& he Aeneral Agreemen %i h respe' o he gran ing o& pre&eren ial ari&& rea men &or pro"$' s origina ing in A-7 , a es as reD$ire" b# Ar i'le 56/50 Anne3 ; an" i s 7ro o'ols o& he A-7-E7ar nership Agreemen (hereina& er also re&erre" o as L he Agreemen L) 5B )onsidering ha 0 in he &iel" o& ra"e0 he provisions o& he A-7-E- 7ar nership Agreemen reD$ires pre&eren ial ari&& rea men b# he E- o& e3por s o& pro"$' s origina ing in he A-7 , a esB )onsidering ha he Agreemen is aime" a improving he s an"ar" o& living an" e'onomi' "evelopmen o& he A-7 , a es0 in'l$"ing he leas "evelope" among hemB )onsidering also ha he pre&eren ial ari&& rea men &or pro"$' s origina ing in A-7 , a es as reD$ire" b# Ar i'le 56/50 Anne3 ; an" i s 7ro o'ols o& he Agreemen is "esigne" o promo e he e3pansion o& ra"e an" e'onomi' "evelopmen o& bene&i'iaries in a manner 'onsis en %i h he obNe' ives o& he )TO an" %i h he ra"e0 &inan'ial an" "evelopmen nee"s o& he bene&i'iaries an" no o raise $n"$e barriers or o 'rea e $n"$e "i&&i'$l ies &or he ra"e o& o her membersB

As 'on aine" in "o'$men s A*-*)*4870 A*-*)*2090 A*-*)*259 an" A*-*)*269/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age A-44 )onsidering ha he Agreemen es ablishes a prepara or# perio" e3 en"ing $n il 54 +e'ember 20070 b# he en" o& %hi'h ne% ra"ing arrangemen s shall be 'on'l$"e" be %een he 7ar ies o he Agreemen B )onsidering ha he ra"e provisions o& he Agreemen have been applie" sin'e 4 ?ar'h 2000 on he basis o& ransi ional meas$res a"op e" b# he A-7-E- Noin ins i $ ionsB 6oting he ass$ran'es given b# he 7ar ies o he Agreemen ha he# %ill0 $pon reD$es 0 promp l# en er in o 'ons$l a ions %i h an# in eres e" member %i h respe' o an# "i&&i'$l # or ma er ha ma# arise as a res$l o& he implemen a ion o& he pre&eren ial ari&& rea men &or pro"$' s origina ing in A-7 , a es as reD$ire" b# Ar i'le 56/50 Anne3 ; an" i s 7ro o'ols o& he Agreemen B 6oting ha he ari&& applie" o bananas impor e" in he LAL an" L!L D$o as shall no e3'ee" 75 M* onne $n il he en r# in o &or'e o& he ne% E- ari&&-onl# regime/ 6oting ha he implemen a ion o& he pre&eren ial ari&& rea men &or bananas ma# be a&&e' e" as a res$l o& AATT Ar i'le 22;111 nego ia ionsB 6oting he ass$ran'es &rom he 7ar ies o he Agreemen ha an# re-bin"ing o& he E- ari&& on bananas $n"er he relevan AATT Ar i'le 22;111 pro'e"$res sho$l" res$l in a leas main aining o al mar@e a''ess &or ?:N banana s$ppliers an" heir %illingness o a''ep a m$l ila eral 'on rol on he implemen a ion o& his 'ommi men / )onsidering ha 0 in ligh o& he &oregoing0 he e3'ep ional 'ir'$ms an'es N$s i&#ing a %aiver &rom paragraph 4 o& Ar i'le 1 o& he Aeneral Agreemen e3is B !ecides as &ollo%s: 4/ ,$bNe' o he erms an" 'on"i ions se o$ here$n"er0 Ar i'le 10 paragraph 4 o& he Aeneral Agreemen shall be %aive"0 $n il 54 +e'ember 20070 o he e3 en ne'essar# o permi he E$ropean -omm$ni ies o provi"e pre&eren ial ari&& rea men &or pro"$' s origina ing in A-7 , a es as reD$ire" b# Ar i'le 56/50 Anne3 ; an" i s 7ro o'ols o& he A-7-E- 7ar nership Agreemen 06 %i ho$ being reD$ire" o e3 en" he same pre&eren ial rea men o li@e pro"$' s o& an# o her member/ The 7ar ies o he Agreemen shall promp l# no i&# he Aeneral -o$n'il o& an# 'hanges in he pre&eren ial ari&& rea men o pro"$' s origina ing in A-7 , a es as reD$ire" b# he relevan provisions o& he Agreemen 'overe" b# his %aiver/ The 7ar ies o he Agreemen %ill0 $pon reD$es 0 promp l# en er in o 'ons$l a ions %i h an# in eres e" member %i h respe' o an# "i&&i'$l # or ma er ha ma# arise as a res$l o& he implemen a ion o& he pre&eren ial ari&& rea men &or pro"$' s origina ing in A-7 , a es as reD$ire" b# Ar i'le 56/50 Anne3 ; an" i s 7ro o'ols o& he Agreemen B %here a member 'onsi"ers ha an# bene&i a''r$ing o i $n"er he Aeneral Agreemen ma# be or is being impaire" $n"$l# as a res$l o& s$'h implemen a ion0 s$'h 'ons$l a ions shall e3amine he possibili # o& a' ion &or a sa is&a' or# a"N$s men o& he ma er/

2/

5/

6 An# re&eren'e o he 7ar nership Agreemen in his +e'ision shall also in'l$"e he perio" "$ring %hi'h he ra"e provisions o& his Agreemen are applie" on he basis o& ransi ional meas$res a"op e" b# he A-7-E- Noin ins i $ ions/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age A-42 5bis 9/ )i h respe' o bananas0 he a""i ional provisions in he Anne3 shall appl#/ An# member %hi'h 'onsi"ers ha he pre&eren ial ari&& rea men &or pro"$' s origina ing in A-7 , a es as reD$ire" b# Ar i'le 56/50 Anne3 ; an" i s 7ro o'ols o& he Agreemen is being applie" in'onsis en l# %i h his %aiver or ha an# bene&i a''r$ing o i $n"er he Aeneral Agreemen ma# be or is being impaire" $n"$l# as a res$l o& he implemen a ion o& he pre&eren ial ari&& rea men &or pro"$' s origina ing in A-7 , a es as reD$ire" b# Ar i'le 56/50 Anne3 ; an" i s 7ro o'ols o& he Agreemen an" ha 'ons$l a ions have prove" $nsa is&a' or#0 ma# bring he ma er be&ore he Aeneral -o$n'il , %hi'h %ill e3amine i promp l# an" %ill &orm$la e an# re'ommen"a ions ha he# N$"ge appropria e/ The 7ar ies o he Agreemen %ill s$bmi o he Aeneral -o$n'il an ann$al repor on he implemen a ion o& he pre&eren ial ari&& rea men &or pro"$' s origina ing in A-7 , a es as reD$ire" b# Ar i'le 56/50 Anne3 ; an" i s 7ro o'ols o& he Agreemen / This %aiver shall no pre'l$"e he righ o& a&&e' e" members o have re'o$rse o Ar i'les 2211 an" 22111 o& he Aeneral Agreemen /

5/

6/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age A-45 ANNE> The %aiver %o$l" appl# &or A-7 pro"$' s $n"er he -o ono$ Agreemen $n il 54 +e'ember 2007/ 1n he 'ase o& bananas0 he %aiver %ill also appl# $n il 54 +e'ember 20070 s$bNe' o he &ollo%ing0 %hi'h is %i ho$ preN$"i'e o righ s an" obliga ions $n"er Ar i'le 22;111/ The par ies o he -o ono$ Agreemen %ill ini ia e 'ons$l a ions %i h ?embers e3por ing o he E. on a ?:N basis (in eres e" par ies) earl# eno$gh o &inali=e he pro'ess o& 'ons$l a ions $n"er he pro'e"$res hereb# es ablishe" a leas hree mon hs be&ore he en r# in o &or'e o& he ne% E- ari&& onl# regime/ No la er han 40 "a#s a& er he 'on'l$sion o& Ar i'le 22;111 nego ia ions0 in eres e" par ies %ill be in&orme" o& he E- in en ions 'on'erning he rebin"ing o& he E- ari&& on bananas/ 1n he 'o$rse o& s$'h 'ons$l a ions0 he E- %ill provi"e in&orma ion on he me ho"olog# $se" &or s$'h rebin"ing/ 1n his regar"0 all E- )TO mar@e -a''ess 'ommi men s rela ing o bananas sho$l" be a@en in o a''o$n / )i hin 60 "a#s o& s$'h an anno$n'emen 0 an# s$'h in eres e" par # ma# reD$es arbi ra ion/ The arbi ra or shall be appoin e" %i hin 40 "a#s0 &ollo%ing he reD$es s$bNe' o agreemen be %een he %o par ies0 &ailing %hi'h he arbi ra or shall be appoin e" b# he +ire' orAeneral o& he )TO0 &ollo%ing 'ons$l a ions %i h he par ies0 %i hin 50 "a#s o& he arbi ra ion reD$es / The man"a e o& he arbi ra or shall be o "e ermine0 %i hin 90 "a#s o& his appoin men 0 %he her he envisage" rebin"ing o& he E- ari&& on bananas %o$l" res$l in a leas main aining o al mar@e a''ess &or ?:N banana s$ppliers0 a@ing in o a''o$n he above-men ione" E- 'ommi men s/ 1& he arbi ra or "e ermines ha he rebin"ing %o$l" no res$l in a leas main aining o al mar@e a''ess &or ?:N s$ppliers0 he E- shall re' i&# he ma er/ )i hin 40 "a#s o& he no i&i'a ion o& he arbi ra ion a%ar" o he Aeneral -o$n'il0 he E- %ill en er in o 'ons$l a ions %i h hose in eres e" par ies ha reD$es e" he arbi ra ion/ 1n he absen'e o& a m$ $all# sa is&a' or# sol$ ion0 he same arbi ra or %ill be as@e" o "e ermine0 %i hin 50 "a#s o& he ne% arbi ra ion reD$es 0 %he her he E- has re' i&ie" he ma er/ The se'on" arbi ra ion a%ar" %ill be no i&ie" o he Aeneral -o$n'il/ 1& he E- has &aile" o re' i&# he ma er0 his %aiver shall 'ease o appl# o bananas $pon en r# in o &or'e o& he ne% E- ari&& regime/ The Ar i'le 22;111 nego ia ions an" he arbi ra ion pro'e"$res shall be 'on'l$"e" be&ore he en r# in o &or'e o& he ne% E- ari&& onl# regime on 4 Can$ar# 2006/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age 49 ANNE2 ;1 SCHEDULE L>>> EUROPEAN COMMUNITIES 7A(T 1 ?O,T-:A;O.(E+-NAT1ON TA(1:: ,E-T1ON 1 8 Agri'$l $ral 7ro"$' s ,E-T1ON 1 - A Tari&&s &*eproduced excerpt'
Tari&& i em n$mber +es'rip ion o& pro"$' s !ase ra e o& "$ # !o$n" ra e o& "$ # 1mplemena ion perio" &rom* o 5 ,pe'ial 1ni ial O her -ommen s sa&eg$ar" nego ia ing "$ ies an" righ 'harges 6 7 8 9

4 080500 0805004 08050044 08050042 08050090

2 !ananas0 in'l$"ing plan ains0 &resh or "rie": -:resh: --7lan ains --O her -+rie"

20/0 V 850 E-.*T 20/0 V

46/0 V 680 E-.*T 46/0 V ,,A

,E-T1ON 1 - ! Tari&& E$o as &*eproduced excerpt'

-$rren A''ess E$o as +es'rip ion o& pro"$' Tari&& i em n$mber(s) 1ni ial D$o a D$an i # an" in-D$o a ari&& ra e 5 2/200/000 75 E-.* :inal D$o a D$an i # an" in-D$o a ari&& ra e 9 2/200/000 75 E-.* 1mplemena ion perio" &rom* o 5 1ni ial nego ia ing righ 6 O her erms an" 'on"i ions

4 :resh bananas0 o her han plan ains

2 0805 00 42

7 As in"i'a e" in he Anne3/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age A-45 ANNE2 ;11 ANNE> SCHEDULE L>>> - EUROPEAN COMMUNITIES FRAMEWORD AGREEMENT ON BANANAS 4/ 2/ The global basi' ari&& D$o a is &i3e" a 2/400/000 &or 4999 an" a 2/200/000 &or 4995 an" he &ollo%ing #ears0 s$bNe' o an# in'rease res$l ing &rom he enlargemen o& he -omm$ni #/ This D$o a is "ivi"e" $p in o spe'i&i' D$o as allo'a e" o he &ollo%ing 'o$n ries: -o$n r# -os a (i'a -olombia Ni'arag$a ;ene=$ela +omini'an (ep$bli' an" o her A-7 'on'erning non ra"i ional D$an i ies O hers 5/ 7er'en age o& he global D$o a 25/9 24/0 5/0 2/0

90/000 / 96/52V (4999) - 96/54V (4995)

1n 'ase o& &or'e maNe$re0 a 'o$n r# lis e" in paragraph 2 %i h a 'o$n r# D$o a0 ma#0 on he basis o& an agreemen no i&ie" in a"van'e o he -ommission0 &$l&ill all or par o& i s D$o a %i h bananas origina ing in ano her 'o$n r# lis e" in paragraph 2/ 1n his 'ase0 he "eliveries &rom he %o 'o$n ries 'on'erne" shall be a"N$s e" a''or"ingl# in he &ollo%ing #ear/ 1& a banana e3por ing 'o$n r# %i h a 'o$n r# D$o a in&orms he -omm$ni # ha i %ill be $nable o "eliver he D$an i # allo'a e" o i 0 he shor -&all shall be reallo'a e" b# he -omm$ni # in a''or"an'e %i h he same per'en age shares in"i'a e" $n"er poin 2 (in'l$"ing Lo hersL)/ <o%ever0 'o$n ries %i h 'o$n r# D$o as ma# Noin l# reD$es an" he -ommission shall agree o a "i&&eren allo'a ion amongs hose 'o$n ries/ The -omm$ni # shall allo'a e an# a$ onomo$s in'rease in he -omm$ni # D$o a a''or"ing o he same per'en age shares as $n"er poin 2 (in'l$"ing Lo hersL)/ <o%ever0 'o$n ries %i h 'o$n r# D$o as ma# Noin l# reD$es an" he -ommission shall agree o a "i&&eren allo'a ion amongs hose 'o$n ries/ ?anagemen o& he D$o as0 in'l$"ing an# in'rease $n"er poin 50 %ill remain as lai" "o%n in reg$la ion 909*95/ <o%ever0 he s$ppl#ing 'o$n ries %i h 'o$n r# D$o as ma# "eliver spe'ial e3por 'er i&i'a es &or $p o 70V o& heir D$o a0 %hi'h0 in $rn0 'ons i $ e a prereD$isi e &or he iss$an'e0 b# he -omm$ni #0 o& 'er i&i'a es &or he impor a ion o& bananas &rom sai" 'o$n ries b# L-a egor# AL an" L-a egor# -L opera ors/

9/

5/

6/

)T*+,27*A!*()2*E-. )T*+,27*A!*()*.,A 7age A-46 The a$ hori=a ion o "eliver he spe'ial e3por 'er i&i'a es shall be gran e" b# he -ommission in or"er o ma@e i possible o improve reg$lar an" s able ra"e rela ions be %een pro"$'ers an" impor ers an" on he 'on"i ion ha he e3por 'er i&i'a es %ill be iss$e" %i ho$ an# "is'rimina ion among opera ors/ 7/ 8/ 9/ The in-D$o a ari&& ra e shall be 75 E'$s* onne/ The agree" s#s em %ill be opera ional b# 4 O' ober 4999 a he la es 0 %i ho$ preN$"i'e o an# provisional or ransi ional meas$res o be e3amine" &or he #ear 4999/ This agreemen shall appl# $n il 54 +e'ember 2002/ :$ll 'ons$l a ions %i h he >a in Ameri'an s$ppliers ha are AATT ?embers sho$l" s ar no la er han in #ear 2004/ The &$n' ioning o& he agreemen %ill be revie%e" be&ore he en" o& he hir" #ear0 %i h &$ll 'ons$l a ion o& AATT ?ember >a in Ameri'an s$ppliers/ 40/ 44/ This agreemen %ill be in'orpora e" in o he -omm$ni #6s .r$g$a# (o$n" ,'he"$le/ This agreemen represen s a se lemen o& he "isp$ e be %een -olombia0 -os a (i'a0 ;ene=$ela0 Ni'arag$a0 an" he -omm$ni # on he -omm$ni #6s banana regime/ The par ies o his agreemen %ill no p$rs$e he a"op ion o& he AATT panel repor on his iss$e/ BBBBBBBBBB