WTO Advances EU's Olives Request, Adopts Panel Ruling for Japan; US Objections Continue

The Dispute Settlement Body (DSB) of the World Trade Organization (WTO) has advanced the European Union's request to establish a compliance panel, seeking to verify whether the United States has adhered to an earlier panel ruling concerning US countervailing duties on Spanish ripe olives. 

In a separate move, the DSB adopted a panel ruling related to a complaint filed by Japan against China's anti-dumping duties on Japanese stainless steel imports. China has chosen not to appeal the panel's findings.

Guatemala's Deputy Permanent Representative, Marco Molina, provided an update on informal discussions regarding dispute settlement reform. Despite expressing confidence in members' capacity to resolve remaining differences, Molina acknowledged the significant work that still lies ahead.

The United States continued to abstain from agreeing to a proposal to initiate the selection process for filling vacancies on the Appellate Body. This marks the 68th instance of such a blockade by the US.

Under other business, the US brought members' attention to a recent agreement it reached with India, resolving six outstanding WTO disputes between the two countries.

The US also expressed concerns about the panel ruling in the WTO case DS597 “Origin Marking Requirement” highlighting the "serious systemic and practical implications" of the decision and criticizing the WTO's competence and authority to evaluate the country's national security assessments.

Marco Molina updated the DSB on progress in discussions about dispute settlement reform. According to Molina, members have reached consensus on 80% of the issues under consideration, half of the remaining issues are close to maturation for drafting, while the rest involve highly sensitive subjects with divergent views. He outlined plans to continue consultations after the WTO's summer break, aiming to reach common understanding of potential solutions by the end of September.

However, the African Group, represented by Cameroon, requested that the dispute settlement reform discussions be formalized through the DSB, expressing concerns about the pace and transparency of the discussions. Others commended the current transparent, inclusive, and multilateral nature of the process.

Despite ongoing efforts, the WTO continues to struggle to fill vacancies on its Appellate Body, primarily due to opposition from the United States. In response to the US's refusal, 30 delegations supported the proposal to initiate the selection process. Guatemala, representing the 130-member group, emphasized that discussions on dispute settlement reform should not impede the operation of the Appellate Body.