Table I

'Rebalancing' or the random outcome of calculations of the level of nullification or impairment: EU-US cases

Case Applicant's 'ask' (US$) Respondent's 'offer' (US$) (Ask + offer)/2 US$ Award US$
EC – Bananas III(US) 520 m 0 260 m 191.4 m
EC – Bananas (III (ECU) 450 m ?
(assumption: 0)
225 m 201.6 m
EC – Hormones (US) 202 m 53.3 m 127.7 m 116.8 m
EC – Hormones (CAN) 75 m C$ 3.5 m C$ 39.3 m C$ 11.3 m C$
US – FSC 4,043 m 1,110 m 2,576.5 m 4,043 m
US – Byrd CDSO+ 0 0.5 x
CDSO+
0.72 x
CDSO
US – Sec 110(5) Copyright 25.5 m 0.7 m 13.1 m 1.2 m €

CDSO = Continued Dumping and Subsidy Offest Act of 2000 ("Byrd" Amendment)

Source: Spamann (2005), p. 38.

 
 
 
 
 
 

Table II

Active EU-US WTO Dispute Settlement Cases

Dispute Settlement No. Subject Procedural stage
I. Defensive Cases (EC is defendant against USA)
(1) DS 48 + DS 26 Hormones EC bans all imports of US beef and beef products – including those that have not been treated with hormones – as of 15 June 1999 US and Canada maintain sanctions against EC exports (starting with July 1999) by US$ 116.8 million per year and CND$ 11.3 million per year
(2) DS 174 Trademarks & geographical indications Violation of TRIPS and GATT Panel
(3) DS 291
GMOs (Genetically modified organism)
Measures affecting the approval and marketing of certain biotech products Panel
(4) DS 315 Customs procedures EC customs regime (not uniformly applied measures) Panel
(5) DS 316
Aircraft subsidies (Airbus/Boeing)
Airbus/Boeing: measures affecting trade in large civil aircraft; US accuses EC to subsidies Airbus inconsistent with the SCM agreement and the GATT 1994 Consultations/Panel
II. Offensive Cases (EC is complaining against USA)
(1) DS 136
1916 Anti-Dumping Act
US antidumping legislation of 1916 incompatible with the WTO Agreements Implementation; EC has the right to suspend its obligations under the GATT 1994 and the AD Agreement – adopting specific anti-dumping rules for US products as of 24 February 2004
(2) DS 217
"Byrd amendment" The Continued Dumping and Subsidy Offest Act of 2000 (CDSOA)
Byrd amendment (Oct 2000) allows to pay proceeds from anti-dumping and countervailing duty cases to US companies responsible for bringing the cases (more than US$ 1 bio. distributed) Implementation; EC and 6 other co-complainants (Brazil, Canada, India, Japan, Korea, Mexico) obtained DSB's authorization to impose countermeasures on US products; EC imposes additional duty of 15% on imports from USA as of 1 May 2005
(3) DS 212
Follow-up of "British Steel case"
US countervailing measures on privatized EU firms Implementation; final panel report expected to be circulated in June 2005
(4) DS 108
Foreign Sales Corporation (FSC)
FSC scheme of 1984; illegal export subsidy under the Subsidies Agreement Implementation; until new US regime is in force, the EU countermeasures remain in force (up to a maximum of US$ 4.043 bio). EU started with extra duties of 5% in 1 March 2004 and increased it to 17% in March 2005. EU Council Regulation of 31 January 2005 suspended sanctions retroactively as from 1 January 2005.
(5) DS 294
Zero methodologies of dumping margins
EU condemned the "zeroing" methodology of calculating dumping margins Panel
(6) DS 160
Section 110(5) of US Copyright Act
US Copyright Act is incompatible with TRIPs Agreement Implementation; in September 2003, the US made the agreed payment (€ 1.219.900 per year 2001-2003; a special fee to US right holders)
(7) DS 176
Section 211 of the US Omnibus Appropriations Act "Havanna Club"
Section 211 should diminish the rights of owners of U.S. trademarks previously belonged to a Cuban national or company; this is in violation of both the national treatment and the MFN obligations of the TRIPs Agreement Implementation; implementation period to change the US law has been extended until 30 June 2005
(8) DS 317
Aircraft subsidies (Airbus/Boeing)
Boeing – according to EU – gets subsidies inconsistent with SCM Agreement Consultation/Panel
(9) DS 319
AD measures on steel bars (Firth Rixson)
US Department of Commerce (DOC) imposed an anti-dumping duty of 125.77% on imports of stainless steel bars from the UK made by Firth Rixson Special Steels Ltd. (FRSS); possible breach of WTO AD Agreement Consultations
(10) DS 320 Continued suspension of obligations in the Hormones dispute EC requested consultations with Canada and the US against the application of countermeasures. New EC legislation is WTO-consistent Panel established

Source: European Commission (2005).

 
 
 
 
 
 
 

Table III

The Hormones case: Results of Model Simulations

Scenarios Welfare Total*)
(as % of GDP)
Welfare Allocation
(as % of GDP)
Terms of Trade
(%-change)
EU USA EU USA EU USA
(I) -0.000539 -0.000264 -0.000750 -0.000001 0.000676 -0.002122
(II) -0.000334 0.000129 0.000003 -0.000028 -0.001097 0.001288
(III) -0.000873 -0.000135 -0.000747 -0.000029 -0.000420 -0.000830
  Exports with Partner
(%-change)
GDP, nominal
(%-change)
GDP, real
(%-change)
(I) -0.008001 -0.028448 0.001249 -0.001964 -0.000750 -0.000001
(II) -0.061330 -0.012093 -0.002345 0.001747 0.000003 -0.000028
(III) -0.069338 -0.040547 -0.001100 -0.000322 -0.000747 -0.000029

*) Total welfare = allocation plus terms of trade plus other effects.
Hormones case:
(I) = EU bans MEAT imports from the USA amounting to US$ 116.8 million (input in the meat sector).
(II) = USA reduces imports from EU by US$ 116.8 million according to retaliation list of products (inputs in the sectors: meat, foot, other primary and manufactures).
(III) = EU versus USA trade war: Scenarios (I) + (II) combined.
Source: Own simulations with the GTAP5 model.

Table IV

The Bananas case: Results of Model Simulations

Scenarios Welfare Total*)
(as % of GDP)
Welfare Allocation
(as % of GDP)
Terms of Trade
(%-change)
EU USA EU USA EU USA
(I) 0.000201 -0.000756 -0.000139 -0.000171 0.001079 -0.004780
(II) -0.000671 0.000177 -0.000143 -0.000024 -0.001732 0.001558
(III) -0.000470 -0.000579 -0.000281 -0.000196 -0.000653 -0.003221
  Exports with Partner
(%-change)
GDP, nominal
(%-change)
GDP, real
(%-change)
(I) -0.013515 -0.065884 0.003328 -0.004246 -0.000139 -0.000171
(II) -0.105096 -0.018708 -0.003803 0.002279 -0.000143 -0.000024
(III) -0.118611 -0.084593 -0.000476 -0.001967 -0.000281 -0.000196

*) Total welfare = allocation plus terms of trade plus other effects.
Bananas case:
(I) = EU blocks BANANAS imports from the USA amounting to US$ 191.4 million (input in the "bananas" sector).
(II) = USA reduces imports from EU by US$ 191.4 million according to retaliation list of products (input in the manufacturing sector).
(III) = EU versus USA trade war: Scenarios (I) + (II) combined.
Source: Own simulations with the GTAP5 model.

 
 
 

Table V

The FSC case: Results of Model Simulations

Scenarios Welfare Total*)
(as % of GDP)
Welfare Allocation
(as % of GDP)
Terms of Trade
(%-change)
EU USA EU USA EU USA
(I) 0.010163 -0.002143 0.002144 0.000686 0.028071 -0.035651
(II) 0.007094 -0.015304 -0.001326 -0.000983 0.026789 -0.115756
(III) 0.017251 -0.017441 0.000816 -0.000296 0.054861 -0.151408
Exports with Partner
(%-change)
GDP, nominal
(%-change)
GDP, real
(%-change)
(I) 0.239033 1.739642 -0.031311 0.053677 0.002144 0.000687
(II) -0.390677 -1.888334 0.075005 -0.102136 -0.001327 -0.000982
(III) -0.151643 -0.148694 0.043694 -0.048459 0.000817 -0.000295

*) Total welfare = allocation plus terms of trade plus other effects.
FSC case:
(I) = USA subsidizes exports to EU by US$ 4,043 billion (input in all 7 sectors).
(II) = EU reduces imports from USA by US$ 4 billion according to retaliation list of products (inputs in the sectors: meat, food, other primaries, steel and manufactures).
(III) = EU versus USA trade war: Scenarios (I) + (II) combined.
Source: Own simulations with the GTAP5 model.

Table VI

The Steel case: Results of Model Simulations

Scenarios Welfare Total*)
(as % of GDP)
Welfare Allocation
(as % of GDP)
Terms of Trade
(%-change)
EU USA EU USA EU USA
(I) -0.003174 0.001096 -0.000614 -0.000412 -0.008291 0.013025
(II) 0.002142 -0.004161 -0.000181 -0.000278 0.007402 -0.031401
(III) -0.001030 -0.003065 -0.000795 -0.000690 -0.000889 -0.018376
  Exports with Partner
(%-change)
GDP, nominal
(%-change)
  GDP, real
(%-change)
(I) -0.467466 -0.110962 -0.016206 0.013390 -0.000614 -0.000412
(II) -0.106857 -0.511811 0.020733 -0.027991 -0.000181 -0.000278
(III) -0.574330 -0.622773 0.004527 -0.014602 -0.000795 -0.000690

*) Total welfare = allocation plus terms of trade plus other effects.
Steel case:
(I) = USA introduces safeguard measures for steel imports from the rest of the world (tariffs increase to 30%; inputs in the steel sector in seven regions: EU, EFTA, Turkey, Brazil, China, Japan and Korea); USA reduces steel imports from EU by US$ 1 billion.
(II) = EU reduces imports from USA by around US$ 1 billion (inputs in the sectors: food and manufactures).
(III) = EU versus USA trade war: Scenarios (I) + (II) combined.
Source: Own simulations with the GTAP5 model.


©2005 byFritz Breuss
formated and tagged by KH., 5.10.2005