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TWN
Info Service on WTO and Trade Issues (Jun24/14) Geneva, 25 Jun (D. Ravi Kanth) — China has told the United States not to interfere in the internal matters of Hong Kong (China) by raising alleged violation of free speech and human rights during a discussion over a dispute at the World Trade Organization, suggesting that only a restored panel mechanism can address Washington’s concerns against the panel ruling in the dispute, said people familiar with the development. At a meeting of the WTO’s Dispute Settlement Body (DSB) on 24 June, China appears to have delivered a strong message to the US over its repeated claims of error made by the panel against Washington’s so-called national security measures in the dispute raised by Hong Kong (China) over the US origin making requirement. The dispute concerns a requirement in US law that imported goods produced in Hong Kong (China) be marked to indicate that their origin is “China” (origin marking requirement). According to a summary of the panel’s findings posted on the WTO website, the panel concluded that “although there was evidence of the United States and other Members being highly concerned about the human rights situation in Hong Kong, China, the situation had not escalated to a threshold of requisite gravity to constitute an emergency in international relations that would provide justification for taking actions that are inconsistent with obligations under the GATT 1994”. Later, the US, which made the Appellate Body dysfunctional after repeatedly blocking the selection process for the appointment of Appellate Body members since December 2019, appealed the panel’s ruling to the Appellate Body, knowing full well that the dispute remains frozen and unresolvable, said people familiar with the development. Yet, the US continued to raise its concerns against the panel ruling for the eleventh time at the DSB meeting on 24 June, provoking strong responses from both Hong Kong (China) and mainland China, said people familiar with the DSB proceedings. While Hong Kong (China) maintained that the constant refrain on the panel ruling at the DSB is an abuse of WTO rules, China said that a restored appeal mechanism is the proper place to address Washington’s claims. US BLOCKS AB APPOINTMENTS The statements from Hong Kong (China) and mainland China at the DSB meeting coincided with Washington’s 77th attempt to block a request from 130 countries to expeditiously fill the seven vacancies on the Appellate Body. Colombia, on behalf of the 130 countries, regretted the continued blockage of the Appellate Body appointments, arguing that ongoing discussions about reform of the WTO’s dispute settlement system should not prevent the Appellate Body from continuing to function fully, and that Members shall comply with their obligations as they arise. In response, the US again repeated its position that it does not support the demand from the 130 countries, as its long-standing concerns over the WTO dispute settlement system remain unaddressed, said people familiar with the development. More than two dozen countries intervened to support the call issued by Colombia at the DSB meeting. EU BLOCKS SOUTH AFRICA’S PANEL REQUESTS At the DSB meeting, South Africa submitted two first-time requests for the establishment of dispute panels against the European Union’s regulations governing the importation of citrus fruits, which impact imports from South Africa. The EU measures relate to the import restrictions imposed by Brussels to control the spread of the insect Thaumatotibia leucotreta, or False Codling Moth, as well as the fungus P. citricarpa, known as “citrus black spot.” South Africa pointed out that in both cases, the EU measures were not based on scientific principles, were maintained without sufficient scientific evidence, and were not necessary to meet the EU’s desired level of protection. It also argued that the EU failed to account for regional differences with regards to pest risk in the application of the measures. Given the severe impact on South Africa’s citrus exports, which provide jobs to more than 140,000 people in the country, South Africa said it wants to safeguard its rights, while suggesting that it is still open to consultations with the EU. While regretting South Africa’s decision to resort to panel proceedings, the EU disagreed with the panel requests, saying that its pest control measures are entirely justified and that it would succeed in any dispute proceedings. +
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