WT/DS135/R

Page 135
VII. INTERIM REVIEW
1
E. INTRODUCTION
7.1 The Panel's interim re!rt "as gi#en t! the arties !n 13 $%ne &'''( %rs%ant t! )rti*le 15.& !+
the Un,erstan,ing. On &7 $%ne &'''( Cana,a an, the E%r!ean C!mm%nities sent a re-%est t! the
Panel in "riting as.ing it t! re#ie" *ertain ase*ts !+ the interim re!rt. Neither !+ the arties
re-%este, the Panel t! h!l, a +%rther meeting "ith them. When sen,ing the interim re!rt t! the
arties( the Panel ga#e ea*h art/ an !!rt%nit/ t! transmit in "riting its *!mments !n the initial
re-%est +!r re#ie" s%0mitte, 0/ the !ther art/( i+ n! meeting "as re-%este,( r!#i,e, that the
*!mments "ere stri*tl/ *!n+ine, t! the -%esti!ns i,enti+ie, 0/ the !ther art/ in its initial re-%est +!r
re#ie". The arties s%0mitte, their *!mments !n 1 $%l/ &'''.
&
7.& )s a reliminar/ remar.( the Panel n!tes that the arties re-%este, the Panel t! imr!#e %!n
s!me !+ its s%mmaries !+ their arg%ments in the +in,ings. The Panel in,i*ates( h!"e#er( that neither
art/ *laime, that the Panel ha, ma,e an/ s%0stanti#e err!r in its assessment !+ the +a*ts.
3
7.3 The Panel als! n!tes that the t"! Parties ha#e %t +!r"ar, *!rre*ti!ns !+ +!rm an, !+
s%0stan*e. Where#er ar!riate( the Panel a**ete, the +!rmer.
1
The +!ll!"ing !0ser#ati!ns
there+!re !nl/ *!n*ern the *!mments "hi*h the Panel *!nsi,ere, t! 0e remar.s *!n*erning the
s%0stan*e.
2. CO33ENTS 45 C)N)D)
7.1 Regar,ing Cana,a's *!mments !n s%0stan*e( the Panel amen,e, +!!tn!te 1 t! ta.e int!
a**!%nt 0!th Cana,a's remar. an, the !06e*ti!ns !+ the E%r!ean C!mm%nities.
5
7.5 Cana,a's +irst s%0stanti#e *!mment *!n*erning the art !+ !%r +in,ings !n the ali*ati!n !+
the )greement !n Te*hni*al 4arriers t! Tra,e t! De*ree N!. 7891133
8
relates t! the Panel's s%mmar/
!+ Cana,a's arg%ments in aras. :.17 an, :.&' !+ the interim re!rt ;aras. :.&' an, :.&1 !+ the +inal
Re!rt<.
7
The Panel *!nsi,ers that this s%mmar/ a,e-%atel/ re+le*ts Cana,a's arg%ments in the
1
P%rs%ant t! )rti*le 15.3 !+ the Un,erstan,ing !n R%les an, Pr!*e,%res =!#erning the Settlement !+
Dis%tes ;hereina+ter the >Un,erstan,ing><( >The +in,ings !+ the +inal anel re!rt shall in*l%,e a ,is*%ssi!n !+
the arg%ments ma,e at the interim re#ie" stage>. The +!ll!"ing se*ti!n entitle, >interim re#ie"> there+!re
+!rms art !+ !%r re!rt's +in,ings.
&
The *!mments re*ei#e, !n 1 $%l/ &''' are ,ealt "ith "here ne*essar/ in the se*ti!ns !n the
*!mments +r!m Cana,a an, the E%r!ean C!mm%nities 0el!".
3
The Panel n!tes that( in the letter atta*he, t! Cana,a's *!mments( the latter in,i*ates that its re-%est
+!r re#ie" >is "ith!%t re6%,i*e t! Cana,a's !siti!n !n all the ase*ts !+ the Panel's Re!rt>. In this
*!nne*ti!n( the Panel *!nsi,ers that( i+ it ha, mis%n,erst!!, !r misreresente, s!me !+ the +a*t%al ase*ts !+ the
*ase in its +in,ings( the arties "!%l, nee, the interim re#ie" stage in !r,er t! ma.e the ne*essar/ *!rre*ti!ns !r
*lari+i*ati!ns 0e*a%se( %nli.e err!rs !+ la"( err!rs !+ +a*t *ann!t %s%all/ 0e m!,i+ie, !n aeal. The arties
sh!%l, ta.e a,#antage !+ this last !!rt%nit/ t! re*ti+/ the +a*t%al assessments !+ the Panel !ther"ise the Panel
*!%l, %nne*essaril/ 0e at ris. !+ 0eing a**%se, !+ n!t ha#ing ma,e an !06e*ti#e e#al%ati!n !+ the +a*ts. It might
0e *laime, that the +a*t that a art/ ,!es n!t in+!rm the Panel !+ a +a*t%al err!r in its +in,ings ma/ 0e *!ntrar/ t!
the !0ligati!n in )rti*le 3.1' !+ the Un,erstan,ing( "hi*h r!#i,es inter alia that >all 3em0ers "ill engage in
these r!*e,%res ?settlement !+ ,is%tes@ in g!!, +aith in an e++!rt t! res!l#e the ,is%te> ;emhasis a,,e,<.
1
2!r eAamle( the Panel .et the "!r,s >in g!!, +aith> in ara. :.&7 0e*a%se the g!!, +aith
re-%irement alies 0!th t! the ers!n interreting the teAt an, the ers!n ha#ing ,ra+te, it ;see Ian Sin*lairB
The Cienna C!n#enti!n !n the Da" !+ Treaties ;17:'( . 117<.
5
Eereina+ter the >EC>.
8
Eereina+ter the >De*ree>.
7
The *hange in the n%m0ering !+ aragrahs is ,%e t! the intr!,%*ti!n !+ a aragrah !n the Panel's
,e*isi!n *!n*erning a "ritten s%0missi!n an, a re-%est +!r a hearing ma,e 0/ a n!n9g!#ernmental !rganiFati!n
,%ring the interim re#ie" r!*e,%re.
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,es*riti#e art. It ,i, n!t there+!re ,eem it ne*essar/ t! rela*e the teAt as s%ggeste, 0/ Cana,a.
The neAt *!mment *!n*erns ara. :.&: ;ara. :.&7 !+ the +inal Re!rt<. In res!nse t! Cana,a's
remar. that the Panel re+erre, t! the !06e*t an, %r!se !+ the WTO )greement "ith!%t eAamining it
s%0se-%entl/( in ara. :.1: !+ the +inal Re!rt "e ha#e ma,e it *lear that "e ,i, n!t +in, an/
arti*%larl/ rele#ant elements in the ream0le t! the WTO )greement relating t! the terms "e ha, t!
interret. )s regar,s the *!mment !n +!!tn!te 37 in the interim re!rt ;+!!tn!te 11 in the +inal
Re!rt<( "e ,i, n!t *!nsi,er it ne*essar/ t! ,elete it 0e*a%se it is n!t a -%esti!n !+ t%rning t! the
rearat!r/ "!r. "ithin the meaning !+ )rti*le 3& !+ the Cienna C!n#enti!n !n the Da" !+
Treaties ;1787<( 0%t !+ a re+eren*e t! a ,!*%ment sh!"ing that the )greement !n Te*hni*al 4arriers
t! Tra,e !+ the T!./! R!%n, "as alrea,/ seen as a ,e#el!ment !+ *ertain r%les !+ the =)TT. We
ha#e ne#ertheless e,ite, the +!!tn!te in !r,er t! ma.e !%r intenti!n *learer. We ha#e als! re"!r,e,
aras. :.81 an, :.8& !+ the +inal Re!rt an, the +!!tn!te *!n*erning ara. :.81 in !r,er t! ma.e it
*lear that( in the light !+ !%r re#i!%s +in,ings( it "as n!t ne*essar/ t! eAamine "hether the De*ree
met the +i#e re-%irements "hi*h( in Cana,a's !ini!n( are *!ntaine, in the ,e+initi!n !+ >te*hni*al
reg%lati!n> in the T4T )greement. Di.e"ise( "e ,i, n!t "ish t! gi#e the imressi!n that Cana,a
*!n+irme, the initial #ie" !+ the Panel that it "!%l, 0e ar!riate t! anal/se the t"! ase*ts !+ the
De*ree searatel/. We ha#e als! *lari+ie, this !int. The same alies t! ara. :.7& !+ the +inal
Re!rt. Ea#ing rea*he, the *!n*l%si!n that the legal *hara*teriFati!n !+ the eA*eti!ns in the De*ree
,i, n!t a++e*t the legal *hara*teriFati!n !+ the 0an( "e ha#e siml/ +!%n, that Cana,a ,i, n!t ma.e
an/ *laims *!n*erning the eA*eti!ns an,( *!nse-%entl/( "e *!%l, n!t rea*h an/ +in,ings there!n
a**!r,ing t! !%r terms !+ re+eren*e.
7.8 With regar, t! the se*ti!n !+ !%r +in,ings !n ali*ati!n !+ )rti*le III an,/!r )rti*le GI !+ the
=)TT 1771( "e ha#e ma,e !%r s%mmar/ !+ Cana,a's arg%ments ;ara. :.:1 !+ the +inal Re!rt<
*learer an, ha#e re#ise, the rest !+ the se*ti!n ;aras. :.:79:.1'' !+ the +inal Re!rt< in !r,er t!
res!n, t! the *!mments *!n*erning aras. :.:5 an, :.75 !+ the interim re!rt.
7.7 In *!nne*ti!n "ith the ,is*%ssi!n !n #i!lati!n !+ )rti*le IIIB1 !+ the =)TT 1771( "e ha#e
als! ma,e aras. :.1'7( :.117( :.1&1 an, :.115 !+ the +inal Re!rt *learer( ta.ing int! a**!%nt
Cana,a's ertinent remar.s.
7.: C!n*erning ali*ati!n !+ )rti*le GG;0< !+ the =)TT 1771( "e ha#e amen,e, +!!tn!te 1&:
in the interim re!rt ;+!!tn!te 11& in the +inal Re!rt< in !r,er t! in*l%,e the EC's arg%ments( "hile
maintaining the re+eren*e t! Dr. Een,ers!n's remar.s. The Panel has als! re#ise, ara. :.1:7 !+ the
+inal Re!rt 0e*a%se this "as n!t a re+eren*e 0/ Cana,a 0%t 0/ a Cana,ian s*ientist *ite, 0/ !ne !+
the eAerts *!ns%lte, %rs%ant t! )rti*le 13 !+ the Un,erstan,ing. The Panel ,i, n!t ,eem the EC's
!06e*ti!n relating t! ara. :.1:7 t! 0e rele#ant. In a,,iti!n( "hile maintaining the !r,er !+
aras. :.178 an, :.177 in the +inal Re!rt( 0e*a%se the EC re+erre, t! )rti*le GG !+ the =)TT 1771(
the Panel *!mlete, the s%mmar/ !+ Cana,a's arg%ments in ara. :.177 0/ in*l%,ing the +a*t%al
elements as "ell( as "as ,!ne in the s%mmar/ !+ the EC's arg%ments. The Panel n!tes that the +a*t%al
elements menti!ne, 0/ Cana,a ha#e alrea,/ 0een s%mmariFe, in ara. :.181 !+ the +inal Re!rt( 0%t
m!re *!n*isel/.
7.7 With regar, t! ara. :.&33 ;ara. :.&3: !+ the +inal Re!rt<( the Panel ,!es n!t *!nsi,er that
the +all in 2ren*h im!rts !+ as0est!s +r!m 1778 !n"ar,s ;see ara. 3.&' a0!#e< is r!!+ !+
r!te*ti!nist intenti!ns %n,erl/ing the a,!ti!n !+ the De*ree. In this *!nne*ti!n( the Panel n!tes that
Cana,a ,e#!tes a l!ng assage ;aras. 3.&8 an, 3.&7 a0!#e< t! sh!"ing that the De*ree "as a,!te,
hastil/ %n,er the ress%re !+ %0li* !ini!n. Regar,ing the in,%strial an, *!mmer*ial ase*ts(
Cana,a's ,es*riti!n in ara. 3.&: a0!#e ma.es this a se*!n,ar/ element. The 2ren*h =!#ernment's
*all +!r resear*h r!!sals in $%l/ 1778( se*i+i*all/ t! ,e#el! s%0stit%te +i0res( ,!es n!t aear t! 0e
the *!nse-%en*e !+ the *h!i*e alrea,/ ma,e +!r reas!ns that 0ear n! ,ire*t relati!n t! in,%strial !r
*!mmer*ial *!nsi,erati!ns.
7.1' Dastl/( in !%r *!nsi,erati!ns !n )rti*le GGIIIB1;0< !+ the =)TT 1771( "e ha#e harm!niFe,
!%r termin!l!g/ in aras. :.&73( :.&71 an, :.3'3 !+ the +inal Re!rt.
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C. CO33ENTS 45 TEE EUROPE)N CO33UNITIES
7.11 Di.e Cana,a( the EC ha#e ma,e a n%m0er !+ *!mments "ith a #ie" t! amen,ing the Panel's
s%mmar/ !+ their arg%ments in its +in,ings. )s "as the *ase +!r Cana,a( "e ha#e generall/ ta.en
these *!mments int! a**!%nt r!#i,e, that "e "ere a0le t! i,enti+/ them in the s%0missi!ns ma,e t!
the Panel in the *!%rse !+ the r!*e,%re.
7.1& This is the *ase +!r ara. :.7 in relati!n t! ara. 3.8. Regar,ing the ,es*riti!n !+ the EC's
arg%ments in ara. :.&5 !+ the +inal Re!rt( "e ha#e ta.en the rele#ant arts !+ aras. 3.&81 an, 3.&85
a0!#e( "hi*h *!ntain the EC's arg%ments !n these !ints. We ,i, n!t a**et Cana,a's *!mments !+ 1
$%l/ &''' 0e*a%se the/ essentiall/ reeate, arg%ments alrea,/ ma,e an, ta.en int! a**!%nt ,%ring
the r!*e,%re.
7.13 We ha#e ma,e *learer the last senten*e !+ ara. :.3& an, the +irst senten*e !+ ara. :.11 !+ the
+inal Re!rt. We ha#e als! amen,e, the *!ntent !+ +!!tn!tes 55 an, 5: !+ the +inal Re!rt an, ha#e
re#ise, the teAt !+ aras. :.117( :.117( :.18& an, :.1:5 !+ the +inal Re!rt( ta.ing int! a**!%nt
Cana,a's *!mments !+ 1 $%l/ &''' an, r!#i,e, that the EC's s%ggesti!ns "ere in line "ith their
s%0missi!ns t! the Panel !r the terms !+ the De*ree. We ha#e als! ma,e the +irst senten*e !+
ara. :.117 !+ the +inal Re!rt *learer. On the !ther han,( "e ,i, n!t *!nsi,er it ar!riate t!
rela*e the "!r,s >Cana,a's !siti!n> in ara. :.58 !+ the +inal Re!rt 0/ the "!r,s >Cana,a's
*!nteAt%al interretati!n>( arti*%larl/ sin*e Cana,a !!se, this in its *!mments !+ 1 $%l/ &'''.
Di.e"ise( "e ,i, n!t *!nsi,er that the *!mlementar/ nat%re !+ the EC's arg%ment !n the transiti!nal
nat%re !+ the eA*eti!ns in the De*ree "arrante, the ,eleti!n !r amen,ment !+ ara. :.85 !+ the +inal
Re!rt. In this *!nne*ti!n( the Panel n!tes that the EC ,i, n!t *learl/ state "hat the/ "ishe, the
Panel t! ,! "ith this aragrah.
7.11 The EC als! re-%este, the Panel t! amen, aras. :.889:.7' an, 7.1;a< !+ the interim re!rt t!
ta.e a**!%nt !+ the +a*t that Cana,a ,i, n!t in*l%,e the imlementing De*ree re+erre, t! in )rti*le &
!+ the De*ree in the terms !+ re+eren*e !+ the Panel an, that( *!nse-%entl/( n! +in,ing *!%l, 0e ma,e
in this rese*t. )lth!%gh "e agree "ith the EC that "e *ann!t rea*h an/ findings regar,ing the art
!+ the De*ree !n eA*eti!ns( "e *!nsi,er that this is rimaril/ ,%e t! the a0sen*e !+ allegati!ns 0/
Cana,a regar,ing these eA*eti!ns. In this sense( !%r assessment is +%ll/ in *!mlian*e "ith the
ra*ti*e !+ the )ellate 4!,/ !n interretati!n !+ the terms !+ re+eren*e +!r anels. On the !ther
han,( "e ,! n!t *!nsi,er that the +a*t that the imlementing De*ree "as n!t se*i+i*all/ menti!ne, in
the Panel's terms !+ the re+eren*e re#ents %s +r!m ta.ing it int! a**!%nt "hen e#al%ating the legal
characterization !+ the art !+ the De*ree !n eA*eti!ns. I+ this "ere the *ase( the legal
*hara*teriFati!n !+ a meas%re *!%l, ,een, !n the s*!e !+ the terms !+ re+eren*e ,e+ine, 0/ the
*!mlaining art/( "hi*h is %na**eta0le +r!m a legal !int !+ #ie". It th%s aears ar!riate t! %s
t! *!nsi,er the De*ree in the light !+ the imlementing meas%res it r!#i,es. 2!r %s( the
imlementing ,e*ree is a +a*t.
:
In a,,iti!n( "e *an in+er its eAisten*e siml/ 0/ rea,ing the teAt !+
the De*ree. C!nse-%entl/( "e ,! n!t *!nsi,er that "e ha#e eA*ee,e, !%r terms !+ re+eren*e 0/
e#al%ating the legal *hara*teriFati!n !+ !ne art !+ the De*ree in the light !+ the +a*ts 0e+!re %s. We
are a"are that !%r e++!rts t! ,e+ine the legal *hara*teriFati!n !+ the eA*eti!ns in the De*ree might( at
+irst sight an, in the a0sen*e !+ *laims +r!m Cana,a( aear t! 0e an obiter dictum. Ne#ertheless( this
r!*e,%re "as ne*essar/ +!r t"! reas!nsB ;a< it r!#i,es !siti#e *!n+irmati!n !+ !%r anal/sis !+ the
s*!e !+ the T4T )greementH an, ;0< it ermits a *!mrehensi#e anal/sis !+ the elements !+ the
De*ree( +%l+illing !%r !0ligati!n t! ma.e an !06e*ti#e eAaminati!n !+ the +a*ts. We ,i, n!t there+!re
,eem it ne*essar/ t! amen, the aragrahs in -%esti!n( eA*et +!r ara. 7.1;a<( in !r,er t! ma.e the
meaning !+ !%r *!n*l%si!ns *learer in the light !+ the *!mments a0!#e.
:
In this *!nne*ti!n( see the ar!a*h a,!te, 0/ the )ellate 4!,/ in India Patent Protection for
Pharmaceutical and Agricultural Chemical Products, a,!te, !n 18 $an%ar/ 177:( WT/DS5'/)4/R(
aras. 85987. See als! the Re!rt !+ the Panel in United States Sections 301-310 of the rade Act of 1!"#,
a,!te, !n &' $an%ar/ &'''( WT/DS15&/R( aras. 7.1: an, 7.&597.&7.
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Page 13:
7.15 In res!nse t! the EC's *!mments an, als! th!se !+ Cana,a in its *!mm%ni*ati!n !+
1 $%l/ &'''( "e ha#e eAlaine, in ara. :.&73 !+ the +inal Re!rt "h/ "e *!nsi,ere, that the ris. !+
an e++e*ti#e in*rease in the *!st !+ health meas%res +!ll!"ing ali*ati!n !+ )rti*le GGIIIB1;0< t!
meas%res 6%sti+ie, %n,er )rti*le GG;0< "!%l, 0e marginal. We ha#e als! ma,e the last senten*e !+
ara. :.&78 !+ the +inal Re!rt *learer.
7.18 2inall/( the Panel *!nsi,ere, it ne*essar/ t! a,, a aragrah *!n*erning the re-%est 0/ a n!n9
g!#ernmental !rganiFati!n( re*ei#e, !n &7 $%ne &'''( t! 0e all!"e, t! ma.e a "ritten s%0missi!n an,
t! 0e hear, 0/ the Panel. 3!re!#er( 0earing in min, the nat%re !+ the *!mments 0/ the arties( the
Panel *!nsi,ere, it ar!riate t! a,, a +!!tn!te t! ara. :.35( t! re#ise +!!tn!tes 11 an, 5'( an, t!
amen, the +irst senten*e !+ ara. :.1:3 !+ the +inal Re!rt. The Panel has als! *lari+ie, its *!mments
in aras. :.&11 an, :.&11. Other *hanges !+ +!rm ha#e 0een ma,e in !r,er t! ta.e int! a**!%nt the
*hange in the n%m0ering !+ *ertain aragrahs. Dastl/( the Panel a,!te, the "!r, >eA*eti!ns> t!
,es*ri0e the regime ali*a0le %n,er )rti*les & et se$% !+ the De*ree( in *!n+!rmit/ "ith the term %se,
in the De*ree itsel+.
IIIIIIIIIIIIIIIIIIII
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VIII. VIII. FINDINGS
E. SU33)R5 O2 TEE 2)CTS )T TEE ORI=IN O2 TEIS DISPUTE )ND CD)I3S 45 TEE P)RTIES
1. Measure at the origin of the dispute
:.1 The meas%re at the !rigin !+ this ,is%te is De*ree N!. 7891133 !+ &1 De*em0er 1778( iss%e,
0/ the Prime 3inister !+ the =!#ernment !+ the 2ren*h Re%0li*( 0anning as0est!s
1
( imlemente,
%rs%ant t! the Da0!%r C!,e an, the C!ns%mer C!,e
&
;hereina+ter the >De*ree><. The rele#ant
r!#isi!ns !+ the De*ree are set !%t 0el!"B
3
&Article 1
I. 2!r the %r!se !+ r!te*ting "!r.ers( an, %rs%ant t! )rti*le D. &3197 !+ the Da0!%r C!,e(
the man%+a*t%re( r!*essing( sale( im!rt( la*ing !n the ,!mesti* mar.et an, trans+er %n,er an/ title
"hats!e#er !+ all #arieties !+ as0est!s +i0res shall 0e r!hi0ite,( regar,less !+ "hether these s%0stan*es
ha#e 0een in*!r!rate, int! materials( r!,%*ts !r ,e#i*es.
II. 2!r the %r!se !+ r!te*ting *!ns%mers( an, %rs%ant t! )rti*le D. &&1.3 !+ the C!ns%mer
C!,e( the man%+a*t%re( im!rt( ,!mesti* mar.eting( eA!rtati!n( !ssessi!n +!r sale( !++er( sale an,
trans+er %n,er an/ title "hats!e#er !+ all #arieties !+ as0est!s +i0res !r an/ r!,%*t *!ntaining as0est!s
+i0res shall 0e r!hi0ite,.
III. The 0ans instit%te, %n,er )rti*les I an, II shall n!t re#ent +%l+ilment !+ the !0ligati!ns
arising +r!m legislati!n !n the eliminati!n !+ "astes.
Article '
I. On an eA*eti!nal an, tem!rar/ 0asis( the 0ans instit%te, %n,er )rti*le 1 shall n!t al/ t!
*ertain eAisting materials( r!,%*ts !r ,e#i*es *!ntaining *hr/s!tile +i0re "hen( t! er+!rm an
e-%i#alent +%n*ti!n( n! s%0stit%te +!r that +i0re is a#aila0le "hi*hB
9 On the !ne han,( in the resent state !+ s*ienti+i* .n!"le,ge( !ses a lesser !**%ati!nal
health ris. than *hr/s!tile +i0re t! "!r.ers han,ling th!se materials( r!,%*ts !r ,e#i*esH
9 !n the !ther( r!#i,es all te*hni*al g%arantees !+ sa+et/ *!rres!n,ing t! the %ltimate %r!se
!+ the %se there!+.
II. The s*!e !+ ali*ati!n !+ aragrah I !+ this )rti*le shall *!#er !nl/ the materials( r!,%*ts
!r ,e#i*es +alling "ithin the *ateg!ries sh!"n in an eAha%sti#e list ,e*ree, 0/ the 3inisters +!r Da0!%r(
C!ns%mti!n( the En#ir!nment( In,%str/( )gri*%lt%re an, Trans!rt. T! as*ertain the 6%sti+i*ati!n +!r
maintaining these eA*eti!ns( the list shall 0e re9eAamine, !n an ann%al 0asis( a+ter "hi*h the Seni!r
C!%n*il +!r the Pre#enti!n !+ O**%ati!nal EaFar,s an, the Nati!nal C!mmissi!n +!r O**%ati!nal
Eealth an, Sa+et/ in )gri*%lt%re shall 0e *!ns%lte,.
1
In these +in,ings( the "!r, >as0est!s> is %se, t! ,es*ri0e all #arieties !+ as0est!s "ith!%t ,istin*ti!n
;see aras. &.1 an, &.& a0!#e +!r a ,es*riti!n !+ the r!,%*t<. >The Panel n!tes that( alth!%gh the !nl/ #ariet/
!+ as0est!s re+erre, t! 0/ Cana,a is *hr/s!tile as0est!s( De*ree N!. 7891133 ,!es n!t ,isting%ish am!ng the
,i++erent #arieties !+ as0est!s. Onl/ )rti*le & !n eA*eti!ns se*i+i*all/ menti!ns *hr/s!tile +i0res.
C!nse-%entl/( "here#er ne*essar/( the Panel "ill in,i*ate "hether it is re+erring t! as0est!s in general !r
*hr/s!tile in arti*%lar.
&
(fficial )ournal of the *rench +e,ublic !+ &8 De*em0er 1778.
3
The +%ll teAt !+ the De*ree is atta*he, t! this re!rt as )nneA I.
WT/DS135/R
Page 11'
Article 3
I. The man%+a*t%re( r!*essing( im!rtati!n an, ,!mesti* mar.eting !+ an/ !+ the materials(
r!,%*ts !r ,e#i*es +alling int! !ne !+ the *ateg!ries menti!ne, !n the list en#isage, %n,er )rti*le &
shall 0e s%06e*t t! a statement( signe,( as ar!riate( 0/ the hea, !+ the 0%siness esta0lishment( the
im!rter !r the art/ res!nsi0le +!r ,!mesti* mar.eting( "hi*h sh!%l, 0e a,,resse, t! the 3inister +!r
Da0!%r. This statement shall 0e +ile, in $an%ar/ !+ ea*h /ear !r( as ar!riate( three m!nths 0e+!re
the start !+ a ne" a*ti#it/ !r the alterati!n !+ an eAisting r!,%*ti!n a*ti#it/( 0/ means !+ a +!rm
,e*ree, 0/ the 3inisters +!r Da0!%r( C!ns%mti!n( In,%str/ an, )gri*%lt%re.
The statement shall 0e a**!manie, 0/ all the s%!rting ,!*%ments in the !ssessi!n !+ the
,e*laring art/ ma.ing it !ssi0le( *!nsi,ering the state !+ s*ienti+i* an, te*hn!l!gi*al r!gress( t!
,etermine that as !+ the ,ate !+ signat%re !+ the statement( the a*ti#it/ *!#ere, 0/ the statement meets
the *!n,iti!ns set +!rth in )rti*le &.I.
II. )*ti#ities that ha#e n!t 0een the s%06e*t !+ a +%ll statement s%0mitte, "ithin the set time9
+rame ma/ n!t 0ene+it +r!m the eA*eti!n grante, %n,er )rti*le &.
III. The 3inister +!r Da0!%r ma/ at all times *!n#e/ t! the a%th!r !+ the statement s%*h
in+!rmati!n as ma/ seem t! him t! esta0lish that the material( r!,%*t !r ,e#i*e in -%esti!n( alth!%gh
+alling int! !ne !+ the *ateg!ries !n the list menti!ne, in )rti*le &( ,!es n!t meet the *!n,iti!ns lai,
,!"n in aragrah I !+ that same )rti*le. )+ter re-%esting *!mments +r!m the ,e*laring art/( he ma/
ser#e n!ti*e t! sai, art/ t! *ease man%+a*t%re( r!*essing( im!rtati!n !r ,!mesti* mar.eting an, t!
!0ser#e the 0an instit%te, %n,er )rti*le 1. Ee ma/ ma.e s%*h n!ti+i*ati!n %0li*.
Article #
The man%+a*t%re an, r!*essing !+ the materials( r!,%*ts an, ,e#i*es +alling int! the
*ateg!ries !n the list menti!ne, in )rti*le & !+ this De*ree m%st *!n+!rm "ith the r%les lai, ,!"n
%n,er Chaters I an, II an, Chater III( Se*ti!n 1 !+ the a+!rementi!ne, De*ree ,ate,
7 2e0r%ar/ 1777.
Da0elling an, mar.ing shall *!n+!rm "ith the re-%irements !+ )rti*le D. &3198 !+ the Da0!%r
C!,e an, the r%les esta0lishe, 0/ the a+!rementi!ne, De*ree ,ate, &: )ril 177:.
1
Article -
With!%t re6%,i*e t! the ali*ati!n !+ the enalties en#isage, %n,er )rti*le D. &839& !+ the
Da0!%r C!,e in the e#ent !+ #i!lati!n !+ the r!#isi!ns !+ )rti*le 1.I !+ this De*ree( the a*t !+
man%+a*t%ring( im!rting( intr!,%*ing int! the ,!mesti* mar.et( eA!rting( !++ering( selling(
trans+erring %n,er an/ title !r !ssessing +!r sale all #arieties !+ as0est!s +i0res !r an/ r!,%*t
*!ntaining as0est!s +i0res( in *!ntra#enti!n !+ the r!#isi!ns !+ )rti*le 1.II shall 0e %nisha0le 0/ the
+ine res*ri0e, +!r +i+th

*lass !++en*es.
Article .
I. )rti*les 1( &( 3 an, )rti*le 8.I !+ the a0!#e9menti!ne, De*ree N!. ::9188 !+ &: )ril 177:
are here0/ reeale,.
5
II. In the +irst s%0aragrah !+ )rti*le 1 !+ the same De*ree( the "!r,sB '0ans en#isage, in
)rti*le & a0!#e' shall 0e rela*e, 0/ the "!r,B '0ans'.
III. In )rti*le 8.II !+ the same De*ree( the "!r,sB '!ther than th!se en#isage, %n,er )rti*le &'
shall 0e rela*e, 0/ the "!r,sB '"hi*h are n!t s%06e*t t! 0ans'.
Article "
1
The ream0%lar aragrahs !+ the De*ree ha#e n!t 0een in*l%,e, here. The +%ll teAt !+ the De*ree is
atta*he, as )nneA I t! this Re!rt.
5
I0i,.
WT/DS135/R
Page 111
Until 31 De*em0er &''1 an, !n a transiti!nal 0asis( the 0an !n !ssessi!n +!r sale( !++ering
+!r sale an, trans+er %n,er an/ title shall n!t al/ t! the %se, #ehi*les n!r t! the agri*%lt%ral !r
+!restr/ ma*hiner/ %t int! *ir*%lati!n 0e+!re the e++e*ti#e ,ate !+ this De*ree( an, *!#ere, 0/
)rti*le R.13: !+ the Tra++i* Da". ?J@>
8
:.& The De*ree entere, int! +!r*e !n 1 $an%ar/ 1777.
2. Main cai!s "# the parties
$
;a< 3ain *laims 0/ Cana,a
:.3 Cana,a *laims( +irstl/ that the De*ree is a te*hni*al reg%lati!n *!#ere, 0/ the )greement !n
Te*hni*al 4arriers t! Tra,e.
:
)s s%*h( it is in*!mati0le "ith aras. 1( &( 1 an, : !+ )rti*le & !+ the
T4T )greement.
:.1 Se*!n,l/( Cana,a *laims that the De*ree is in*!mati0le "ith )rti*les GI an, IIIB1 !+ the
=)TT 1771.
:.5 Dastl/( Cana,a re-%ests that( in the e#ent that the Panel is %na0le t! +in, a #i!lati!n !+
)rti*le GGIIIB1;a< !+ the =)TT 1771( it ne#ertheless +in,s that the r!#isi!ns !+ )rti*le GGIIIB1;0<
!+ the =)TT 1771 al/.
;0< 3ain *laims 0/ the E%r!ean C!mm%nities
:.8 The E%r!ean C!mm%nities
7
as. the Panel t! +in, that the De*ree is n!t *!#ere, 0/ the T4T
)greement an, that( in an/ *ase( it *!mlies "ith the rele#ant r!#isi!ns !+ that )greement.
:.7 With regar, t! the =)TT 1771( the EC re-%est the Panel t! *!n+irm that either the De*ree
,!es n!t esta0lish less +a#!%ra0le treatment +!r im!rte, r!,%*ts than +!r li.e ,!mesti* r!,%*ts
"ithin the meaning !+ )rti*le IIIB1 !r that the De*ree is ne*essar/ t! r!te*t h%man health "ithin the
meaning !+ )rti*le GG;0<. Dastl/( the EC as. the Panel t! +in, that )rti*le GGIIIB1;0< !+ the
=)TT 1771 ,!es n!t al/.
:.: 4e+!re g!ing +%rther int! the *laims 0/ the arties( "e m%st +irst re*all *ertain ,e*isi!ns ta.en
in the *!%rse !+ the r!*e,%re.
2. ISSUES ON WEICE TEE P)NED E)D TO T)KE ) POSITION DURIN= TEE PROCEDURE
%. Introduction
:.7 In the *!%rse !+ the r!*e,%re( the Panel t!!. t"! ,e*isi!ns "hi*h it *!nsi,ers sh!%l, 0e
rer!,%*e, as an integral art !+ these +in,ings. These "ere ;a< its ,e*isi!n t! *!ns%lt s*ienti+i*
eAerts !n an in,i#i,%al 0asis ta.ing int! a**!%nt )rti*le 13.1 !+ the Un,erstan,ing !n R%les an,
Pr!*e,%res =!#erning the Settlement !+ Dis%tesH an, ;0< its ,e*isi!n !n "hether !r n!t t! ta.e int!
a**!%nt >amicus curiae 0rie+s& re*ei#e, ,%ring the r!*e,%re.
8
)rti*les : an, 7 !+ the De*ree ha#e n!t 0een rer!,%*e,. The +%ll teAt !+ the De*ree is atta*he, as
)nneA I t! this re!rt.
7
The +%ll teAt !+ the *laims 0/ the arties *an 0e +!%n, in se*ti!n III.) a0!#e.
:
Eereina+ter the >T4T )greement>.
7
Eereina+ter the >EC>.
WT/DS135/R
Page 11&
&. 'onsutation of e(perts
:.1' )t the +irst s%0stanti#e meeting( the Panel in+!rme, the arties !+ its intenti!n t! see. the
!ini!n !+ in,i#i,%al s*ienti+i* eAerts eA*et "here( in the light !+ the arties' "ritten re0%ttals( it
,eeme, that s%*h a r!*e,%re "as n!t ne*essar/. Ea#ing *!ns%lte, the arties an, re*ei#e, their
*!mments( the Panel ,e*i,e, t! *!ns%lt eAerts in,i#i,%all/( in a**!r,an*e "ith ara. 1 an, the +irst
senten*e !+ ara. & !+ )rti*le 13 !+ the Un,erstan,ing.
1'
The Panel's ,e*isi!n "as rea++irme, !n
& )%g%st 1777. The +!ll!"ing are the rele#ant arts !+ its letterB
>?J@ The Panel *are+%ll/ eAamine, the arg%ments %t +!r"ar, 0/ the arties *!n*erning the meth!, !+
*!ns%lting eAerts( in arti*%lar the arg%ment !+ the E%r!ean C!mm%nities that )rti*le 13.& !+ the
Un,erstan,ing re-%ires that( "hen *!ns%lting s*ienti+i* eAerts( there sh!%l, 0e an eAert re#ie" gr!%
a**!r,ing t! the terms !+ )en,iA 1 t! the Un,erstan,ing.
We ,ra" attenti!n t! )rti*le 13 !+ the Un,erstan,ing "hi*h states inter alia that >ea*h anel shall ha#e
the right t! see. in+!rmati!n an, te*hni*al a,#i*e +r!m an/ in,i#i,%al !r 0!,/ "hi*h it ,eems
ar!riate> an, >anels ma/ see. in+!rmati!n +r!m an/ rele#ant s!%r*e an, ma/ *!ns%lt eAerts t!
!0tain their !ini!n !n *ertain ase*ts !+ the matter.
We als! n!te that )rti*le 13.& r!#i,es that anels 'ma/' re-%est an a,#is!r/ re!rt in "riting +r!m an
eAert re#ie" gr!%( in arti*%lar 0%t n!t eA*l%si#el/ in !r,er t! *!nsi,er a +a*t%al iss%e *!n*erning a
s*ienti+i* matter. We *!nsi,er that this teAt all!"s the esta0lishment !+ s%*h an eAert re#ie" gr!%
0%t ,!es n!t re#ent eAerts 0eing *!ns%lte, !n an in,i#i,%al 0asis "ith rese*t t! s*ienti+i* matters !r
an/ '!ther te*hni*al matter'. In !%r #ie"( this interretati!n !+ )rti*le 13.& !+ the Un,erstan,ing +%ll/
*!mlies "ith the teAt !+ this r!#isi!n interrete, a**!r,ing t! )rti*le 31 !+ the Cienna C!n#enti!n
!n the Da" !+ Treaties an, the interretati!n !+ the )ellate 4!,/ "here0/ )rti*le 13 !+ the
Un,erstan,ing ,!es n!t re#ent a anel +r!m *!ns%lting eAerts in,i#i,%all/ an, lea#es the anel +ree
t! ,etermine "hether it is ne*essar/ !r ar!riate t! esta0lish an eAert re#ie" gr!%.
11
The Panel als! t!!. a**!%nt !+ the arg%ment !+ the E%r!ean C!mm%nities that( i+ the meas%re in
-%esti!n sh!%l, 0e *!nsi,ere, as *!ming %n,er the T4T )greement( "hi*h it *!ntests in an/ *ase(
)rti*le 11.& !+ the )greement "!%l, mean that a te*hni*al eAert gr!% "!%l, ha#e t! 0e *!ns%lte, +!r
an/ s*ienti+i* !r te*hni*al -%esti!n( as "ell as the !siti!n !+ the E%r!ean C!mm%nities that this
r!#isi!n( %rs%ant t! )rti*le 1.& !+ the Un,erstan,ing( "!%l, re#ail !#er the r!#isi!ns in )rti*le 13
!+ the Un,erstan,ing.
)rti*le 11.& !+ the T4T )greement is !ne !+ the r!#isi!ns menti!ne, in )en,iA & t! the
Un,erstan,ing an, "hi*h( a**!r,ing t! )rti*le 1.& !+ the Un,erstan,ing( re#ails !#er the latter i+
there is an/ ,i++eren*e 0et"een the t"!. We n!te( h!"e#er( that it is !nl/ 'i+ there is an/ ,i++eren*e'
0et"een the r%les an, r!*e,%res in the Un,erstan,ing an, a se*ial !r a,,iti!nal r%le !r r!*e,%re
*!#ere, 0/ )en,iA & t! the Un,erstan,ing that the latter "!%l, re#ail. )s the )ellate 4!,/ has
alrea,/ !inte, !%t( it is !nl/ "hen the r!#isi!ns in the Un,erstan,ing an, the se*ial !r a,,iti!nal
r%les an, r!*e,%res in )en,iA & cannot 0e *!nstr%e, as com,lementar/ that the se*ial !r
a,,iti!nal r%les "ill re#ail !#er th!se in the Un,erstan,ing( in !ther "!r,s( in a sit%ati!n "here the
t"! r!#isi!ns "!%l, 0e m%t%all/ in*!mati0le.
1&
In this arti*%lar *ase( )rti*le 11.& !+ the T4T
)greement r!#i,es that a anel 'ma/' esta0lish a te*hni*al eAert gr!%. Di.e )rti*le 13.& !+ the
1'
These *!mments *an 0e +!%n, in aras. 5.& t! 5.18 a0!#e.
11
The letter *!ntains the +!ll!"ing n!teB >See the re!rts !+ the )ellate 4!,/ in 0uro,ean
Communities 1easures Concerning 1eat and 1eat Products 23ormones4 ;WT/DS&89DS1:/)4/R( ara. 117
;'J in ,is%tes in#!l#ing s*ienti+i* !r te*hni*al iss%es( neither )rti*le 11.& !+ the SPS Agreement( n!r )rti*le 13
!+ the DSU re#ents anels +r!m *!ns%lting "ith in,i#i,%al eAerts. Rather( 0!th the SPS Agreement an, the
DSU lea#e t! the s!%n, ,is*reti!n !+ a anel the ,eterminati!n !+ "hether the esta0lishment !+ an eAert re#ie"
gr!% is ne*essar/ !r ar!riate.'< an, in Argentina 1easures Affecting Im,orts of *oot5ear, e6tiles,
A,,arel and (ther Items ;WT/DS58/)4/R<( ara. :1 ;' J )rti*le 13 !+ the DSU ena0les a anel t! see.
in+!rmati!n an, te*hni*al a,#i*e as it ,eems ar!riate in a arti*%lar *ase( an, ;J< the DSU lea#es 't! the
s!%n, ,is*reti!n !+ a anel the ,eterminati!n !+ "hether the esta0lishment !+ an eAert re#ie" gr!% is
ne*essar/ !r ar!riate'.><.
1&
The letter *!ntains the +!ll!"ing n!teB >See the Re!rt !+ the )ellate 4!,/ in 7uatemala Anti-
8um,ing In9estigation +egarding Portland Cement from 1e6ico ;WT/DS8'/)4/R<( aras. 85 an, 88.>
WT/DS135/R
Page 113
Un,erstan,ing( this teAt all!"s the ,ossibilit/ !+ esta0lishing an eAert gr!% an, ,etermines the
r!*e,%res ali*a0le t! it( "here ali*a0le. It ,!es n!t h!"e#er ma.e the esta0lishment !+ s%*h a
gr!% man,at!r/ an,( in !%r #ie"( this !ssi0ilit/ is n!t in*!mati0le "ith the !#erall !ssi0ilit/ gi#en
in )rti*le 13 !+ the Un,erstan,ing !+ *!ns%lting eAerts in,i#i,%all/. The t"! r!#isi!ns *an 0e seen
as *!mlementar/.
In this *ase( it aeare, t! %s that *!ns%ltati!n !+ eAerts !n an in,i#i,%al 0asis "as the m!st
ar!riate meth!, inasm%*h as it "!%l, 0e the m!st ar!riate "a/ !+ all!"ing the Panel t! !0tain
%se+%l in+!rmati!n an, !ini!ns !n the s*ienti+i* an, te*hni*al iss%es raise, 0/ this *ase. In #ie" !+ the
"i,e #ariet/ !+ +iel,s !+ *!meten*e in#!l#e,( in arti*%lar( it aeare, t! %s t! 0e re+era0le t! !0tain
,i++erent in+!rmati!n an, !ini!ns in,i#i,%all/ rather than re-%esting a 6!int re!rt !n the #ari!%s
s*ienti+i* !r te*hni*al iss%es raise,.
?J@
In the light !+ the +!reg!ing( "e emhasiFe that !%r ,e*isi!n t! *!ns%lt eAerts in,i#i,%all/ is "ith!%t
re6%,i*e t! the -%esti!n !+ the ali*a0ilit/ !+ the T4T )greement t! the meas%re in -%esti!n( !n
"hi*h the arties ,isagree.>
:.11 The Panel rea++irms the ,e*isi!n an, the reas!ning in this letter.
). Amicus curiae "riefs
:.1& In the *!%rse !+ the r!*e,%re( the Panel re*ei#e, "ritten s%0missi!ns !r >amicus curiae>
0rie+s +r!m +!%r s!%r*es !ther than 3em0ers !+ the WTO.
13
Re+erring t! the !siti!n ta.en 0/ the
)ellate 4!,/ in United States Im,ort Prohibition of Certain Shrim, and Shrim, Products
1#
!n
the interretati!n !+ )rti*le 13 !+ the Un,erstan,ing *!n*erning amicus curiae 0rie+s( the Panel
in+!rme, the arties a**!r,ingl/ an, transmitte, the s%0missi!ns t! them. The EC in*l%,e, t"! !+
these s%0missi!ns in their !"n s%0missi!n. Ea#ing eAamine, ea*h !+ the amicus curiae 0rie+s( the
Panel ,e*i,e, t! ta.e int! a**!%nt the s%0missi!ns 0/ the Collegium +amazzini an, the American
*ederation of :abor and Congress of Industrial (rganizations( as the/ ha, 0een in*l%,e, 0/ the EC
in their !"n s%0missi!ns !n an e-%al +!!ting. )t the se*!n, meeting "ith the arties( Cana,a "as
gi#en an !!rt%nit/ t! res!n, in "riting an, !rall/ t! the arg%ments in the t"! amicus curiae
0rie+s.
:.13 On the !ther han,( the Panel ,e*i,e, n!t t! ta.e int! a**!%nt the amicus curiae 0rie+s
s%0mitte, rese*ti#el/ 0/ the ;an Asbestos <et5or= an, 0/ the Instituto 1e6icano de *ibro-
Industrias A%C% an, in+!rme, Cana,a an, the EC a**!r,ingl/ at the se*!n, meeting "ith the arties
hel, !n &1 $an%ar/ &'''.
:.11 On &7 $%ne &'''( the Panel re*ei#e, a "ritten 0rie+ +r!m the n!n9g!#ernmental !rganiFati!n
(<0 2&(nl/ <ature 0ndures&4 sit%ate, in 3%m0ai( In,ia. In #ie" !+ the r!#isi!ns in the
Un,erstan,ing !n the interim re#ie"( the Panel *!nsi,ere, that this 0rie+ ha, 0een s%0mitte, at a
stage in the r!*e,%re "hen it *!%l, n! l!nger 0e ta.en int! a**!%nt. It there+!re ,e*i,e, n!t t!
a**et the re-%est !+ (<0 an, in+!rme, the !rganiFati!n a**!r,ingl/. The Panel transmitte, a *!/
!+ the ,!*%ments re*ei#e, +r!m (<0 t! the arties +!r in+!rmati!n an, n!ti+ie, them !+ the ,e*isi!n
it ha, ta.en. )t the same time( it als! in+!rme, the arties that the same ,e*isi!n "!%l, al/ t! an/
0rie+s re*ei#e, +r!m n!n9g!#ernmental !rganiFati!ns 0et"een that !int an, the en, !+ the r!*e,%re.
13
See aras. 8.198.3 a0!#e.
11
),!te, !n &' Setem0er 1777( WT/DS5:/)4/R ;hereina+ter >United States Shrim,&<(
aras. 1'191'7. See als! the re!rt !+ the )ellate 4!,/ in United States Im,osition of Counter9ailing
8uties on Certain 3ot-+olled :ead and ;ismuth Carbon Steel Products (riginating in the United >ingdom(
a,!te, !n 7 $%ne &'''( WT/DS/13:/)4/R( aras. 1'91&.
WT/DS135/R
Page 111
=. ORDER IN WEICE TEE P)NED EG)3INED TEE CD)I3S
:.15 The Panel n!tes that Cana,a *!nsi,ers that the T4T )greement is ali*a0le t! the De*ree
0e*a%se the De*ree is a >te*hni*al reg%lati!n> *!#ere, 0/ the )greement. The EC( !n the !ther han,(
*!nsi,er that the De*ree is n!t a te*hni*al reg%lati!n( that the T4T )greement ,!es n!t al/ t! it an,
that it sh!%l, 0e *!nsi,ere, in the *!nteAt !+ the =)TT 1771 al!ne.
:.18 We n!te that the 3arra.esh )greement Esta0lishing the W!rl, Tra,e OrganiFati!n
15
*!nstit%tes a single treat/ instr%ment that "as a**ete, 0/ the WTO 3em0ers as a >single
%n,erta.ing>
18
"ithin "h!se +rame"!r. all the ali*a0le r!#isi!ns m%st 0e gi#en meaning.
17
4!th
the =)TT 1771 an, the T4T )greement +!rm art !+ )nneA 1) t! the WTO )greement an, ma/
al/ t! the meas%res in -%esti!n. C!nse-%entl/( alth!%gh "e ,! n!t in rin*ile eA*l%,e ali*ati!n
!+ the T4T )greement an,/!r the =)TT 1771 t! the De*ree( "e ha#e t! ,etermine the !r,er in "hi*h
"e sh!%l, *!nsi,er this *ase. )**!r,ing t! the )ellate 4!,/ in 0uro,ean Communities +egime
for the Im,ortation, Sale and 8istribution of ;ananas
1?
, "hen the =)TT 1771 an, an!ther
)greement in )nneA 1) aear a ,riori t! al/ t! the meas%re in -%esti!n( the latter sh!%l, 0e
eAamine, !n the 0asis !+ the )greement that ,eals >se*i+i*all/( an, in ,etail(> "ith s%*h meas%res.
In this arti*%lar *ase( as the arties ,! n!t agree !n the legal nat%re !+ the meas%re itsel+ ;te*hni*al
reg%lati!n *!#ere, 0/ the T4T )greement !r general 0an *!ming %n,er the s*!e !+ the =)TT 1771
al!ne<( it is ,i++i*%lt at this stage t! ,etermine "hi*h )greement( either the =)TT 1771 !r the T4T
)greement( ,eals "ith the meas%re in -%esti!n m!st se*i+i*all/ an, in the m!st ,etaile, manner
"ith!%t %n,erta.ing an in9,eth eAaminati!n !+ the meas%re in the light !+ ea*h )greement.
:.17 In !r,er t! ,e*i,e %!n the !r,er in "hi*h !%r *!nsi,erati!n sh!%l, r!*ee,( in the "a/
s%ggeste, 0/ the )ellate 4!,/( the h/!thesis sh!%l, 0e that( i+ the De*ree is a >te*hni*al
reg%lati!n> "ithin the meaning !+ the T4T )greement( then the latter "!%l, ,eal "ith the meas%re in
the m!st se*i+i* an, m!st ,etaile, manner. C!nse-%entl/( in !%r #ie" it m%st +irst 0e ,etermine,
"hether the De*ree is a te*hni*al reg%lati!n "ithin the meaning !+ the T4T )greement. I+ this is the
*ase( "e shall start *!nsi,ering this *ase 0/ eAamining the "a/s in "hi*h the De*ree #i!lates the T4T
)greement. I+ "e +in, that the De*ree is n!t a >te*hni*al reg%lati!n>( "e shall then imme,iatel/ start
t! *!nsi,er it in the *!nteAt !+ the =)TT 1771.
D. )PPDIC)4IDIT5 O2 TEE T4T )=REE3ENT TO TEE DECREE
1. *rgu!ents of the parties and approach adopted "# the +ane
;0< )rg%ments !+ the arties *!n*erning the ali*a0ilit/ !+ the T4T )greement t! the De*ree
17
:.1: Cana,a *!nsi,ers that the De*ree is a >te*hni*al reg%lati!n> "ithin the meaning !+ the
,e+initi!n gi#en in )nneA 1 t! the T4T )greement. The EC *!nsi,er that the De*ree ,!es n!t *!me
%n,er the ,e+initi!n !+ a te*hni*al reg%lati!n in the T4T )greement.
:.17 The +!ll!"ing is the ,e+initi!n !+ >te*hni*al reg%lati!n> in )nneA 1.1 t! the T4T )greementB
15
Eereina+ter >the WTO )greement>. Re+eren*e "ill als! 0e ma,e in these +in,ings t! the 3arra.esh
)greement Esta0lishing the W!rl, Tra,e OrganiFati!n "ith!%t its )nneAes %sing the "!r,s >)greement
Esta0lishing the WTO>. The "!r,s >WTO )greements> re+er t! the )greements anneAe, t! the )greement
Esta0lishing the WTO.
18
See the Re!rt !+ the )ellate 4!,/ in ;razil 1easures Affecting 8esiccated Coconut( a,!te,
!n &' 3ar*h 1777( WT/DS&&/)4/R ;hereina+ter >;razil 8esiccated Coconut><( . 1& an, 13.
17
See the Re!rts !+ the )ellate 4!,/ in ;razil 8esiccated Coconut( !. *it. . 18 an, 17H
Argentina Safeguard 1easures on Im,orts of *oot5ear( ;hereina+ter >Argentina Safeguards>< a,!te, !n
13 $an%ar/ &'''( WT/DS/1&1/)4/R( ara. :7.
1:
),!te, !n &5 Setem0er 1777( WT/DS&7/)4/R( hereina+ter >0uro,ean Communities ;ananas&,
ara. &'1%
17
The arties' arg%ments are set !%t in ,etail in Se*ti!n III a0!#e.
WT/DS135/R
Page 115
>1. echnical regulation
D!*%ment "hi*h la/s ,!"n r!,%*t *hara*teristi*s !r the relate, r!*esses an, r!,%*ti!n meth!,s(
in*l%,ing the ali*a0le a,ministrati#e r!#isi!ns( "ith "hi*h *!mlian*e is man,at!r/. It ma/ als!
in*l%,e !r ,eal eA*l%si#el/ "ith termin!l!g/( s/m0!ls( a*.aging( mar.ing !r la0elling re-%irements
as the/ al/ t! a r!,%*t( r!*ess !r r!,%*ti!n meth!,.>
:.&' Cana,a *!nten,s that the De*ree *!nsi,ers that all as0est!s +i0res an, all materials( r!,%*ts
!r ,e#i*es *!ntaining s%*h +i0res !se ris.s +!r e!le's health. The De*ree is a >te*hni*al reg%lati!n>
in arti*%lar 0e*a%se it la/s ,!"n a *hara*teristi* !+ a r!,%*t( a r!*ess an, a r!,%*ti!n meth!,( as
"ell as a,ministrati#e r!#isi!ns ali*a0le t! a r!,%*t.
:.&1 Re+erring t! the ,e+initi!n !+ >te*hni*al reg%lati!n> in )nneA 1 t! the T4T )greement(
Cana,a *!nsi,ers that the !r,inar/ meaning !+ the "!r, >*hara*teristi*> is >that "hi*h *!nstit%tes a
re*!gniFa0le ,istin*ti#e +eat%re>. The De*ree ,es*ri0es a re*!gniFa0le ,istin*ti#e +eat%re 0e*a%se it
0ans as0est!s +i0re( arti*%larl/ *hr/s!tile( in the man%+a*t%ring an, r!*essing !+ materials( r!,%*ts
!r ,e#i*es la*e, !n the 2ren*h mar.et. The *hara*teristi* !+ these materials( r!,%*ts an, ,e#i*es is
the a0sen*e !+ as0est!s +i0res. The De*ree in,i*ates re*isel/ !r ,es*ri0es the +eat%res !+ the
materials( r!,%*ts !r ,e#i*es in "h!se man%+a*t%re !r r!*essing the in*!r!rati!n !+ as0est!s is
r!hi0ite,. The De*ree re+ers t! the r!*essing !+ all as0est!s +i0res( "hether !r n!t in*l%,e, in
r!,%*ts. 4/ s! ,!ing( it im!ses restri*ti!ns !n the r!*esses an, r!,%*ti!n meth!,s +!r as0est!s
+i0res. 3!re!#er( the De*ree sti%lates that man%+a*t%ring a*ti#ities are s%06e*t t! the stan,ar,s
g!#erning eA!s%re t! as0est!s ,%st in la*es !+ 0%siness an, this im!ses a man%+a*t%ring r!*ess.
It in*l%,es a,ministrati#e r!#isi!ns an, a ,e*larati!n me*hanism ali*a0le t! r!,%*ts "hi*h(
eA*eti!nall/( *!ntain *hr/s!tile +i0re. Dastl/( the De*ree als! ,eals "ith la0elling re-%irements an,
its rin*ial r!#isi!ns are 0in,ing.
:.&& The EC *laim that the De*ree *ann!t 0e *!nstr%e, as a >te*hni*al reg%lati!n> "ithin the
meaning !+ the T4T )greement 0e*a%se the latter ,!es n!t *!#er general r!hi0iti!ns !n the %se !+ a
r!,%*t +!r reas!ns t! ,! "ith the r!te*ti!n !+ h%man health( "hi*h *!me %n,er the =)TT 1771. It
+!ll!"s +r!m the ream0le( +r!m the 0a*.gr!%n, t! the T4T )greement an, +r!m the a*t%al "!r,ing
!+ se#eral !+ its r!#isi!ns that the +%n,amental !06e*ti#e !+ the )greement is t! m!nit!r the a,!ti!n
an, ali*ati!n !+ the >stan,ar,s> an, >te*hni*al reg%lati!ns> that relate t! the ,etaile, *hara*teristi*s
!+ r!,%*ts !r their meth!,s !+ r!,%*ti!n ;e.g. the minim%m resistan*e le#el +!r seat90elts<. The
,e+initi!n in )nneA 1 means that the T4T )greement ,!es n!t al/ t! the De*ree 0e*a%se( a**!r,ing
t! this ,e+initi!n( a te*hni*al reg%lati!n is a ,!*%ment "hi*h la/s ,!"n the *hara*teristi*s !r
r!*esses !r r!,%*ti!n meth!,s "ith "hi*h a se*i+i*/i,enti+ie, r!,%*t m%st *!ml/( in arti*%lar i+
it is t! 0e release, +!r +ree *ir*%lati!n !n a gi#en mar.et.
:.&3 2!r the EC( an/ !ther ar!a*h "!%l, 0e e-%i#alent t! n%lli+/ing the e++e*t !+ *ertain
r!#isi!ns !+ the =)TT 1771( +!r eAamle( )rti*les I an, III( "hi*h al/ t! general r!hi0iti!ns.
The T4T )greement m%st 0e *!nsi,ere, as the se*i+i* ali*ati!n !+ the rin*iles !+ the =)TT
1771 t! te*hni*al reg%lati!ns. The De*ree r!hi0its as0est!s +i0res at all stages. It ,!es n!t se*i+/
the *hara*teristi*s( the r!*esses !r r!,%*ti!n meth!,s +!r as0est!s +i0res an, as0est!s9*!ntaining
r!,%*ts !r the r!,%*ts eAemt +r!m the r!hi0iti!n meas%re. The EC ,! n!t *!nsi,er that the +a*t
!+ n!t *!ntaining as0est!s ser#es t! *hara*teriFe r!,%*ts la*e, !n the 2ren*h mar.et. 2!r the
De*ree t! 0e a0le t! la/ ,!"n the >*hara*teristi*s> !+ a r!,%*t( it "!%l, ha#e ha, t! i,enti+/ the
r!,%*t;s< t! "hi*h the sai, *hara*teristi*s relate. The De*ree( h!"e#er( ,!es n!t ,esignate an/
r!,%*t. It la/s ,!"n the rin*ile !+ r!hi0iti!n. )s regar,s the >r!*esses an, meth!,s>( the EC
emhasiFe that the De*ree ,!es n!t la/ ,!"n an/ means !r set !+ r%les g!#erning the r!,%*ti!n !+
as0est!s +i0res !r r!,%*ts *!ntaining them.
:.&1 In Cana,a's #ie"( in*l%,ing a general r!hi0iti!n "ithin the s*!e !+ the T4T )greement is
*!ntrar/ neither t! its !06e*t n!r its %r!se. The ,istin*ti!n ma,e 0/ the EC 0et"een r!hi0iti!ns
WT/DS135/R
Page 118
that al/ t! all r!,%*ts "ith!%t ,istin*ti!n an, meas%res aime, arti*%larl/ at a se*i+i* r!,%*t is
n!t s%!rte, 0/ the T4T )greement. The EC's interretati!n is *!ntrar/ t! the rin*ile !+
e++e*ti#enessB it "!%l, s%++i*e t! gi#e a meas%re the +!rm !+ a general r!hi0iti!n in !r,er t! all!" it
t! e#a,e the ,is*ilines !+ the T4T )greement. Cana,a als! *!nsi,ers that( in !r,er t! ,etermine
"hether the De*ree satis+ies the *riteria +!r the ,e+initi!n !+ a >te*hni*al reg%lati!n>( its r!#isi!ns !n
0!th as0est!s an, eA*eti!ns m%st 0e eAamine,.
:.&5 2!r the EC( the +a*t that the ,e+initi!n !+ >te*hni*al reg%lati!n> is narr!" is n!t a matter !+
*han*e( 0%t signi+ies that the a%th!rs inten,e, t! limit the s*!e !+ the )greement. The !06e*t an,
%r!se !+ the T4T )greement is t! ,eal "ith te*hni*al reg%lati!ns an, stan,ar,s( n!t t! res!l#e
mar.et a**ess r!0lems ass!*iate, "ith general r!hi0iti!ns. This ,!es n!t res%lt in a legal #a*%%m
0e*a%se the general r!hi0iti!ns *!ntin%e t! 0e *!#ere, 0/ !ther r!#isi!ns( in arti*%lar )rti*les I
an, III !+ the =)TT 1771. The general r!hi0iti!n eliminates these r!,%*ts +r!m the mar.et. )
te*hni*al reg%lati!n( !n the !ther han,( means that the r!,%*ts a++e*te, 0/ the reg%lati!n *an still 0e
la*e, !n the mar.et. E#en in the *ase !+ limite, an, transiti!nal eA*eti!ns( the s!le re!**%ati!n
!+ the 2ren*h a%th!rities has 0een t! r!te*t h%man health. The De*ree ,!es n!t ,e+ine either the
r!*esses an, r!,%*ti!n meth!,s +!r the r!,%*ts that ma/ 0e eAemte, +r!m the general r!hi0iti!n
a,!te,. The r!#isi!ns !+ the De*ree *!n*erning eA*eti!ns( there+!re( ,! n!t +all "ithin the s*!e
!+ the T4T )greement either.
:.&8 Cana,a *laims that the +a*t that the De*ree -%ali+ies as a >te*hni*al reg%lati!n> is *!n+irme,
0/ 2ran*e's n!ti+i*ati!n t! the C!mmittee !n Te*hni*al 4arriers t! Tra,e. )**!r,ing t! Cana,a(
2ran*e there0/ re*!gniFe, the ali*a0ilit/ !+ the T4T )greement in t! the De*ree. The EC als!
re*!gniFe, the ali*a0ilit/ !+ the T4T )greement in a ,!*%ment +r!m the E%r!ean C!mmissi!n
an, ,%ring the *!ns%ltati!ns relating t! this *ase.
:.&7 )**!r,ing t! the EC( the +a*t that the De*ree "as n!ti+ie, t! the C!mmittee !n Te*hni*al
4arriers t! Tra,e in n! "a/ re6%,ges the ali*a0ilit/ !+ the )greement. The n!ti+i*ati!n "as ma,e
in g!!, +aith +!r the sa.e !+ transaren*/. )n/ !ther interretati!n "!%l, *reate a,,iti!nal
!0ligati!ns +!r 3em0ers an, "!%l, in,%*e them t! ,is*!ntin%e( !r at least re,%*e( n!ti+i*ati!ns.
;0< )r!a*h +!ll!"e, 0/ the Panel
2i4 Criteria for the a,,lication of the ; Agreement
:.&: The Panel *!nsi,ers that( +!r the T4T )greement t! al/ t! the De*ree( the meas%res
im!se, %n,er the De*ree m%st *!me "ithin the ,e+initi!n !+ >te*hni*al reg%lati!n> in )nneA 1.1 t!
the T4T )greement.
&'
On the 0asis !+ the arg%ments %t +!r"ar, 0/ Cana,a an, the EC( it aears
that the arties share this #ie". The Panel "ill there+!re eAamine this ,e+initi!n.
:.&7 )**!r,ing t! )rti*le 3.& !+ the Un,erstan,ing( the Panel m%st *lari+/ the terms !+ the WTO
)greement in a**!r,an*e "ith *%st!mar/ r%les !+ interretati!n !+ %0li* internati!nal la"( m!re
arti*%larl/ th!se set !%t in )rti*les 31( 3& an, 33 !+ the 1787 Cienna C!n#enti!n !n the Da" !+
Treaties.
&1
The Panel "ill there+!re +irst *!nsi,er the !r,inar/ meaning t! 0e gi#en in g!!, +aith t!
the "!r,ing !+ the ,e+initi!n !+ >te*hni*al reg%lati!n> in )nneA 1 t! the T4T )greement( ta.en in
*!nteAt an, in the light !+ the !06e*t an, %r!se !+ the T4T )greement an, the WTO )greement in
general. I+ ne*essar/( a,,iti!nal "a/s !+ interreting )rti*le 3& "ill 0e ta.en int! a**!%nt. )s the
WTO )greement is a treat/ "ith a%thenti* teAts in three lang%ages( it is als! im!rtant t! 0ear in min,
the sirit %n,erl/ing the r!#isi!ns !+ )rti*le 33.
&&
&'
The "!r,ing !+ the ,e+initi!n is gi#en in aragrah :.1: a0!#e.
&1
Unite, Nati!ns D!*%ment )/CON2. 37/&7 ;1787<. Eereina+ter the >Cienna C!n#enti!n>.
&&
The Panel als! n!tes the im!rtan*e atta*he, 0/ the )ellate 4!,/ t! the rin*ile !+ e++e*ti#eness
;ut res magis 9aleat $uam ,ereat4 *!n*erning the interretati!n !+ the r!#isi!ns !+ the WTO )greement in
se#eral *ases ;see( +!r eAamle( United States Standards for +eformulated and Con9entional 7asoline,
a,!te, !n &' 3a/ 1778( WT/DS8'/)4/R ;hereina+ter >United States 7asoline&<( !. *it.( .1: an, &3H
WT/DS135/R
Page 117
2ii4 8ifferentiation among the ,rohibitions as such and the e6ce,tions
:.3' We n!te that Cana,a *laims that the eA*eti!ns t! the 0an !n as0est!s in the De*ree *!n+irm
that the latter is a te*hni*al reg%lati!n. The EC state that neither the r!#isi!ns !n eA*eti!ns n!r the
r!hi0iti!n itsel+ are *!#ere, 0/ the T4T )greement.
:.31 N!t"ithstan,ing the +a*t that the main %r!se !+ the De*ree is t! 0an the %se !+ as0est!s in
2ran*e( "e n!te that the teAt is essentiall/ *!m!se, !+ a general r!hi0iti!n !n the !ne han,
;)rti*les 1 an, 5< an,( !n the !ther( eA*eti!ns( in*l%,ing the a,ministrati#e regime ali*a0le t!
them ;)rti*les &91<. It m%st there+!re 0e ,etermine, "hether "e sh!%l, eAamine the r!hi0iti!ns an,
eA*eti!ns as !ne single meas%re !r as searate meas%res that might *!me %n,er ,i++erent
)greements.
:.3& We n!te +irst !+ all that it is !ssi0le +!r se#eral *!m!nents !+ the same a,ministrati#e a*t t!
0e *!#ere, 0/ a single )greement !r 0/ ,i++erent )greements. While it is the res!nsi0ilit/ !+ the
arties t! r!#e the +a*ts the/ *laim
&3
( it is "ithin the *!meten*e an, is !ne !+ the ,%ties !+ the Panel
t! ,etermine the la" ali*a0le t! the +a*ts( "ith the hel !+ the arties' arg%ments.
&1
N!thing
there+!re re#ents the Panel +r!m eAamining the De*ree as a single an, %ni-%e meas%re( i+ it 0elie#es
there are legal gr!%n,s +!r this. Di.e"ise( i+ the Panel *!nsi,ers that *ertain r!#isi!ns !+ the De*ree
are *!#ere, 0/ r!#isi!ns !+ the WTO )greement !ther than th!se ali*a0le t! the rest !+ the
De*ree( n!thing re#ents it +r!m *!nsi,ering these r!#isi!ns in the light !+ th!se !ther r!#isi!ns !+
the WTO )greement.
&5
:.33 C!nse-%entl/( "ith!%t ta.ing an/ ,e*isi!n at this stage !n the %ltimate nee, +!r a searate
st%,/ !+ the t"! arts !+ the De*ree L "e might in +a*t rea*h the *!n*l%si!n that 0!th arts ha#e the
same legal *hara*teriFati!n !r that !ne sh!%l, 0e *!nsi,ere, as s%lementing the !ther L "e *!nsi,er
that there sh!%l, 0e a searate eAaminati!n !+ the r!#isi!ns se*i+i*all/ *!n*erning the 0an !n
7uatemala Cement, !. *it.( ara. 75H Argentina Safeguards, !. *it%, ara. ::. The Panel als! n!tes in the
+e,orts of the Commission to the 7eneral Assembl/, @earboo= of the International :a5 Commission, 1788(
C!l%me II( )/CN.1/SER.)/1788/),,.1( . &17( that the Internati!nal Da" C!mmissi!n in,i*ates thatB
>?J@ in s! +ar as the maAim ut res magis 9aleat $uam ,ereat re+le*ts a tr%e general r%le !+
interretati!n( it is em0!,ie, in )rti*le ?31@( aragrah 1( "hi*h re-%ires that a treat/ shall 0e
interrete, in good faith in a**!r,an*e "ith the !r,inar/ meaning t! 0e gi#en t! its terms in the *!nteAt
!+ the treat/ and in the light of its obAect and ,ur,ose. When a treat/ is !en t! t"! interretati!ns !ne
!+ "hi*h ,!es an, the !ther ,!es n!t ena0le the treat/ t! ha#e ar!riate e++e*ts( g!!, +aith an, the
!06e*t an, %r!ses !+ the treat/ ,eman, that the +!rmer interretati!n sh!%l, 0e a,!te,.> ?Itali*s in
the !riginal.@
&3
See the re!rt !+ the )ellate 4!,/ in United States 1easures Affecting Im,orts of Bo9en Bool
Shirts and ;louses from India( a,!te, !n &3 3a/ 1777( WT/DS33/)4/R ;hereina+ter >United States Shirts
and ;louses><( . 11 an, Se*ti!n CIII.E.1;0< 0el!".
&1
The Panel is n!t( h!"e#er( !0lige, t! 0ase itsel+ s!lel/ !n the arg%ments !+ the arties. See the
re!rt !+ the )ellate 4!,/ in 0C 1easures Concerning 1eat and 1eat Products 23ormones4, ado,ted on
13 *ebruar/ 1!!?, BC8S'.CA;C+, BC8S#?CA;C+ 2hereinafter >0uro,ean Communities 3ormones&4,
ara. 158B
>Panels are inhi0ite, +r!m a,,ressing legal *laims +alling !%tsi,e their terms !+ re+eren*e. E!"e#er(
n!thing in the DSU limits the +a*%lt/ !+ a anel +reel/ t! %se arg%ments s%0mitte, 0/ an/ !+ the
arties L !r t! ,e#el! its !"n legal reas!ning L t! s%!rt its !"n +in,ings an, *!n*l%si!ns !n the
matter %n,er its *!nsi,erati!n. ) anel might "ell 0e %na0le t! *arr/ !%t an !06e*ti#e assessment !+
the matter( as man,ate, 0/ )rti*le 11 !+ the DSU( i+ in its reas!ning it ha, t! restri*t itsel+ s!lel/ t!
arg%ments resente, 0/ the arties t! the ,is%te.>
See als! the Re!rt !+ the Panel in United States Sections 301-310 of the rade Act of 1!"#( a,!te,
!n &7 $an%ar/ &'''( WT/DS15&/R( ara. 7.18.
&5
With regar, t! the r!#isi!ns "hi*h the Panel m%st ta.e int! a**!%nt "hen *!nsi,ering the De*ree(
the Panel is !+ *!%rse limite, 0/ the r!#isi!ns in its terms !+ re+eren*e ;see the Re!rt !+ the )ellate 4!,/ in
0uro,ean Communities ;ananas, !. *it%, ara. 111<.
WT/DS135/R
Page 11:
as0est!s an, the r!#isi!ns !n eA*eti!ns in !r,er t! ma.e !%r anal/sis *learer. We shall there+!re
+irst *!nsi,er the ali*a0ilit/ !+ the ,e+initi!n !+ >te*hni*al reg%lati!n> in )nneA 1 t! the T4T
)greement t! the r!#isi!ns !+ the De*ree !n the r!hi0iti!n. On the 0asis !+ these *!n*l%si!ns( "e
shall then *!nsi,er the legal nat%re !+ the eA*eti!ns an, an/ e++e*t the/ ma/ ha#e !n the legal stat%s
!+ the De*ree as a "h!le.
2. Is the Decree a technica reguation ,ithin the !eaning of the T-T *gree!ent.
;*< EAaminati!n !+ the art !+ the De*ree r!hi0iting the mar.eting !+ as0est!s an, as0est!s9
*!ntaining r!,%*ts
2i4 Preliminar/ remar=s
:.31 Cana,a %ts +!r"ar, its arg%ments in general in relati!n t! *hr/s!tile +i0res an, r!,%*ts
*!ntaining *hr/s!tile +i0res ;mainl/ *hr/s!tile9*ement r!,%*ts<. )lth!%gh Cana,a *laims that
*hr/s!tile +i0re is siml/ an in%t in !ther r!,%*ts an, is !+ n! %se ,er se( "e *!nsi,er that it is a
r!,%*t. In !%r eAaminati!n !+ the ali*a0ilit/ !+ the T4T )greement t! the De*ree( there is n!
reas!n t! treat *hr/s!tile +i0re ,i++erentl/ t! r!,%*ts *!ntaining *hr/s!tile.
:.35 The Panel n!tes that the meas%re at iss%e in this *ase is a general 0an eA*l%,ing a gi#en
r!,%*t +r!m the 2ren*h mar.et as s%*h !r "hen it is in*!r!rate, in !ther r!,%*ts n!t se*i+ie, in
the De*ree. C!nse-%entl/( the Panel "ishes t! emhasiFe that its +in,ings regar,ing the s*!e !+ the
*!n*et !+ te*hni*al reg%lati!n in the *!nteAt !+ the T4T )greement are lin.e, t! the se*i+i*ities !+
the meas%re in -%esti!n an, in n! "a/ re6%,ge the *!n*l%si!ns that an/ !ther anel might rea*h
*!n*erning the same r!#isi!ns !+ the T4T )greement in !ther +a*t%al *ir*%mstan*es.
&8
2ii4 Anal/sis
Or,inar/ meaning !+ the terms in the ,e+initi!n in )nneA 1 t! the T4T )greement
:.38 The Panel n!tes +irst !+ all that the ,e+initi!n !+ >te*hni*al reg%lati!n> relates t! the
*hara*teristi*s !+ a r!,%*t !r its r!*esses !r r!,%*ti!n meth!,s. The Panel n!tes that the ,e+initi!n
%ses the "!r, ,roduct. )l/ing the rin*ile !+ e++e*ti#eness
&7
( "e m%st ass%me that there "as a
se*i+i* %r!se %n,erl/ing the %se !+ the "!r, >r!,%*t> in the ,e+initi!n in )nneA 1.1 t! the T4T
)greement an, that it ,!es n!t aear 0/ *han*e.
&:
:.37 )n initial eAlanati!n might 0e that the a%th!rs "ishe, t! in,i*ate that this ,e+initi!n relate,
t! r!,%*ts rather than ser#i*es( +!r eAamle. E!"e#er( as the T4T )greement is in )nneA 1) t! the
WTO )greement( "hi*h ,eals "ith tra,e in g!!,s( se*i+/ing that the ,e+initi!n alies t! r!,%*ts
"as n!t ne*essar/.
&7
3!re!#er( it is !ssi0le t! ,e+ine a te*hni*al reg%lati!n ali*a0le t! r!,%*ts
"ith!%t se*i+i*all/ %sing the "!r, >r!,%*t>. )s an eAamle( "e n!te that aragrah 3.5.1 !+ the
ISO =%i,e/IEC &B1771 *!ntains a ,e+initi!n !+ the "!r,s >te*hni*al reg%lati!n> that ,!es n!t eml!/
&8
This is re*isel/ "h/ !%r anal/sis la/s greater emhasis !n the *hara*teristi*s !+ the r!,%*t than !n
the r!*ess an, r!,%*ti!n meth!,s.
&7
See +!!tn!te && a0!#e !n ali*ati!n !+ the rin*ile !+ interretati!n ut res magis 9aleat $uam
,ereat.
&:
See the Re!rt !+ the )ellate 4!,/ in 0uro,ean Communities 3ormones, !. *it%, ara. 181.
&7
)lth!%gh the title !+ )nneA 1) is >3%ltilateral )greements !n Tra,e in =!!,s> ;emhasis a,,e,<(
"e n!te that the )greement !n )gri*%lt%re %ses the "!r, >r!,%*ts>( as ,! the )greement !n TeAtiles an,
Cl!thing an, !ther )greements in )nneA 1). The s*!e !+ )nneA 1) there+!re *!#ers tra,e in >r!,%*ts>. See
als! the Re!rt !+ the Panel in United States +estrictions on Im,orts of una( %na,!te,( DS&1/R(
3 Setem0er 1771( ara. 5.11B >J )rti*le III *!#ers !nl/ meas%res a++e*ting r!,%*ts as s%*h>.
WT/DS135/R
Page 117
the "!r, >r!,%*t>.
3'
We there+!re *!nsi,er that the a%th!rs "hen %sing the "!r, >r!,%*t> "ere
%rs%ing an!ther !06e*ti#e.
:.3: )n!ther interretati!n "!%l, 0e that the %r!se s!%ght 0/ intr!,%*ing the "!r, >r!,%*t>
"as t! *reate a lin. 0et"een the te*hni*al *hara*teristi*s an, !ne !r m!re gi#en r!,%*ts. In !ther
"!r,s( the r!,%*t;s< t! "hi*h the *hara*teristi*s re+er m%st 0e *learl/ i,enti+ia0le in the ,!*%ment in
-%esti!n. I+( in the ,!*%ment( the *hara*teristi*s ,es*ri0e, ,! n!t re+er t! an i,enti+ia0le ,roduct(
the ,!*%ment ,!es n!t meet the *riteria in )nneA 1.1 t! the T4T )greement.
31
We *!nsi,er that this
interretati!n is 0etter a0le t! gi#e a r!er meaning t! the "!r, >r!,%*t> in the ,e+initi!n !+
>te*hni*al reg%lati!n> in )nneA 1.1 t! the T4T )greement.
:.37 We there+!re *!n*l%,e that a te*hni*al reg%lati!n is a reg%lati!n "hi*h sets !%t the se*i+i*
*hara*teristi*s !+ !ne !r m!re i,enti+ia0le r!,%*ts in *!maris!n "ith general *hara*teristi*s that
ma/ 0e share, 0/ se#eral %nse*i+ie, r!,%*ts.
:.1' In this *!nne*ti!n( the Panel n!tes that the 0an intr!,%*e, 0/ the De*ree is generall/
ali*a0le 0!th t! as0est!s an, r!,%*ts *!ntaining it( in !ther "!r,s( a #er/ large n%m0er !+ r!,%*ts
"hi*h the De*ree ,!es n!t i,enti+/ 0/ name n!r e#en 0/ +%n*ti!n !r *ateg!r/.
:.11 The Panel als! n!tes that the EC *!nten, that the De*ree ,!es n!t ,es*ri0e the characteristics
!+ a r!,%*t an, that its %r!se *ann!t 0e t! ,es*ri0e the characteristics !+ an im,orted r!,%*t
0e*a%se la*ing as0est!s an, as0est!s9*!ntaining r!,%*ts !n the 2ren*h mar.et is r!hi0ite,. In !%r
#ie"( a**!r,ing t! the ali*a0le *%st!mar/ r%les !+ interretati!n( it is als! ne*essar/ t! eAamine the
meaning !+ the "!r, >*hara*teristi*s>. The !r,inar/ meaning !+ >*hara*teristi*> is >that "hi*h
*!nstit%tes the ,istin*ti#e +eat%re( is t/i*al !+ a ers!n !r thing>
3&
( >a re*!gniFa0le ,istin*ti#e
+eat%re>.
33
There is th%s a lin. 0et"een the *hara*teristi*s !+ a r!,%*t an, the r!,%*t itsel+.
Ne#ertheless( the >*hara*teristi*s> m%st 0e ,i++erentiate, +r!m the i,enti+i*ati!n !+ the r!,%*t itsel+.
It is in,ee, !ssi0le t! ,es*ri0e te*hni*al *hara*teristi*s "ith!%t se*i+i*all/ i,enti+/ing the
r!,%*t;s< t! "hi*h the/ relate. Di.e"ise( the i,enti+i*ati!n !+ a r!,%*t ,!es n!t s%++i*e t! sh!" its
*hara*teristi*s. The Panel n!tes that the re+eren*e t! >*hara*teristi*s> is the se*ial +eat%re !+ the
,e+initi!n !+ >te*hni*al reg%lati!n> in )nneA 1.1 t! the T4T )greement. The meas%re m%st n!t !nl/
relate t! !ne !r m!re gi#en r!,%*ts( 0%t its ,ur,ose m%st 0e t! ,e+ine the *hara*teristi*s( i.e. the
*riteria !r elements "hi*h the r!,%*t;s< *!n*erne, m%st satis+/ in !r,er t! 0e intr!,%*e, int! the
territ!r/ !+ the 3em0er that a,!te, the meas%re.
:.1& 4/ a,,ing the "!r, >r!,%*t> 0e+!re >*hara*teristi*s>( the a%th!rs !+ )nneA 1.1 there+!re
"ishe, t! se*i+/ the *ir*%mstan*es in "hi*h the T4T )greement alie,. In !r,er %rel/ an, siml/
t! 0an the im!rt !+ a r!,%*t( it is n!t a0s!l%tel/ ne*essar/ t! ,e+ine its *hara*teristi*s. In the same
"a/( i+ it is ,esire, t! eA*l%,e *ertain ra" materials as s%*h( it is n!t ne*essar/ t! se*i+/ the r!,%*ts
in "hi*h the/ *an 0e in*!r!rate,. On the !ther han,( i+ the characteristics of a gi9en ,roduct are
i,enti+ie, L e#en th!se "hi*h mean that im!rt is n!t all!"e, L at the same time the *hara*teristi*s !+
r!,%*ts "hi*h *an 0e intr!,%*e, int! the territ!r/ !+ the *!%ntr/ al/ing the meas%re are i,enti+ie,.
3'
The ,e+initi!n in ara. 3.5.1 !+ the ISO/IEC =%i,e =eneral C!*a0%lar/ C!n*erning Stan,ar,iFati!n
an, Relate, )*ti#ities rea,s as +!ll!"sB
>/.&.1 technica reguation0 reguation that r!#i,es te*hni*al re1uire!ents( either ,ire*tl/ !r 0/
re+erring t! !r in*!r!rating the *!ntent !+ a standard( technica specification !r code of practice> ;in
0!l, in the !riginal( n!te !mitte,<
31
In relati!n t! the +!reg!ing( "e als! n!te that the stan,ar, n!ti+i*ati!n +!rms %n,er the
T4T )greement *!ntain a se*ti!n t! 0e *!mlete, 0/ a ,es*riti!n !+ the r!,%*t a++e*te, 0/ the n!ti+i*ati!n(
"hi*h in !%r #ie" seems t! *!n+irm the se*!n, meaning "e ha#e gi#en +!r the "!r, >r!,%*t>.
3&
Petit Dar!%sse ill%strM ;17:8<( . 18&.
33
De N!%#ea% Petit R!0ert ;1771<( . 3'1.
WT/DS135/R
Page 15'
:.13 The Panel there+!re *!n*l%,es that( ta.ing int! a**!%nt the !r,inar/ meaning !+ the "!r,s
>*hara*teristi*s> an, >r!,%*t>( the ,e+initi!n !+ >te*hni*al reg%lati!n> in )nneA 1.1 t! the T4T
)greement alies t! the meas%res "hi*h ,e+ine the te*hni*al se*i+i*ati!ns that !ne !r m!re gi#en
r!,%*ts m%st meet in !r,er t! 0e a%th!riFe, +!r mar.eting in a 3em0er.
:.11 It ma/( h!"e#er( 0e *!nsi,ere,( as Cana,a ,!es( that the r!hi0iti!ns in the De*ree *!n*ern a
gi#en r!,%*tB as0est!s( 0e*a%se !+ its se*i+i* *hara*teristi*s. Ne#ertheless( as +ar as the 0an !n
as0est!s as s%*h is *!n*erne,( the De*ree ,!es n!t *!n*ern itsel+ "ith the *hara*teristi*s !+ this
r!,%*t( in an/ e#ent( n!t se*i+i*all/. What is 0anne, is n!t as0est!s "hi*h !ssesses *ertain
*hara*teristi*s 0%t all t/es !+ as0est!s. )s regar,s as0est!s9*!ntaining r!,%*ts( the Panel n!tes
Cana,a's arg%ment that the *hara*teristi* !+ the r!,%*ts a%th!riFe, +!r im!rt is the a0sen*e !+
as0est!s. We n!te( h!"e#er( that the ,e+initi!n in )nneA 1.1 t! the T4T )greement re+ers t! the
te*hni*al *hara*teristi*s !+ a gi#en r!,%*t. In this *ase( the r!,%*ts "h!se *hara*teristi* "!%l, 0e
that the/ *!ntaine, as0est!s are n!t i,enti+ie, in the De*ree. )s "e ha#e alrea,/ +!%n,( the
i,enti+i*ati!n !+ a r!,%*t aears t! 0e !ne !+ the *riteria in the ,e+initi!n in )nneA 1.1.
:.15 Dastl/( the Panel n!tes that the 0an ali*a0le t! as0est!s9*!ntaining r!,%*ts is in +a*t !ne
as,ect of !r com,lementar/ to the general 0an !n as0est!s. It *an there+!re !nl/ 0e *!nsi,ere,
t!gether "ith the 0an !n as0est!s as s%*h. It is in +a*t there in !r,er t! ens%re that as0est!s is n!t
im!rte, int! 2ran*e in an/ +!rm "hats!e#er. In s%*h a *!nteAt( n!t ,e+ining the r!,%*ts *!n*erne,
is n!t siml/ a *h!i*e !+ "!r,ing 0%t is the res%lt !+ the l!gi* !+ the !06e*ti#e s!%ght ;a 0an !n all
forms !+ as0est!s<. T! se*i+/ ea*h r!,%*t a++e*te, "!%l, 0e !intless.
O06e*t an, %r!se
:.18 T! the eAtent that )rti*le 31 !+ the Cienna C!n#enti!n *!ntains a single r%le !+ interretati!n
an, n!t a n%m0er !+ alternati#e r%les( the #ari!%s *riteria in the )rti*le sh!%l, 0e *!nsi,ere, as
+!rming art !+ a "h!le. )lth!%gh the Panel s%0,i#i,e, its anal/sis +!r reas!ns !+ *larit/( this ,!es
n!t mean that there has t! 0e a hierar*h/ am!ng the #ari!%s elements in the r%le !+ interretati!n.
31
In
this arti*%lar *ase( "e ,eem it re+era0le t! anal/se the *!nteAt a+ter eAamining the !06e*t an,
%r!se 0e*a%se the latter hel t! *lari+/ the %n,erstan,ing !+ the *!nteAt !+ >te*hni*al reg%lati!n> in
)nneA 1 t! the T4T )greement.
:.17 We n!te that the !06e*t an, %r!se !+ a treat/ *an als! 0e +!%n, in its ream0le.
35
)l/ing
the ra*ti*e !+ the )ellate 4!,/ in this rese*t
38
( it is rele#ant t! l!!. n!t !nl/ at the ream0le t!
the WTO )greement 0%t als! at the ream0le t! the T4T )greement itsel+( "hi*h r!#i,es *ertain
in,i*ati!ns.
:.1: In this *!nne*ti!n( "e n!te +irst !+ all that( alth!%gh the ream0le t! the WTO )greement
re+ers in arti*%lar t! eAan,ing tra,e in g!!,s( it ,!es n!t gi#e s%++i*ientl/ re*ise in+!rmati!n !n the
terms "hi*h "e m%st interret. We there+!re t%rn t! the ream0le t! the T4T )greement. This re+ers
t! stan,ar,s +!r r!,%*ts an, their r!le in imr!#ing e++i*ien*/ !+ r!,%*ti!n.
37
The T4T )greement
th%s aims t! imr!#e mar.et a**ess 0/ en*!%raging inter alia the %se !+ internati!nal stan,ar,s( "hile
31
See +e,ort of the Commission to the 7eneral Assembl/, @earboo= of the International :a5
Commission, 1788( C!l%me II( )/CN.1/SER.)/1788/),,.1( ages &179&&'B
>The C!mmissi!n( 0/ hea,ing the arti*le >=eneral r%le !+ interretati!n> in the sing%lar an, 0/
%n,erlining the *!nneAi!n 0et"een aragrahs 1 an, & ?!+ )rti*le 31@ an, again 0et"een aragrah 3
an, the t"! re#i!%s aragrahs( inten,e, t! in,i*ate that the ali*ati!n !+ the means !+ interretati!n
in the arti*le "!%l, 0e a single *!m0ine, !erati!n. ?J@ the C!mmissi!n ,esire, t! emhasiFe that
the r!*ess !+ interretati!n is a %nit/ an, the r!#isi!ns !+ the arti*le +!rm a single( *l!sel/ integrate,
r%le.>
35
See I. Sin*lairB The Cienna C!n#enti!n !n the Da" !+ Treaties ;17:'<( . 1&7 an, 13'.
38
See the Re!rt !+ the )ellate 4!,/ in 0uro,ean Communities Customs Classification of Certain
Com,uter 0$ui,ment( a,!te, !n && $%ne 177:( WT/DS8&/)4/RH WT/DS87/)4/RH WT/DS8:/)4/R(
ara. ::.
WT/DS135/R
Page 151
at the same time eAer*ising *!ntr!l !#er the ,e#el!ment an, %se !+ stan,ar,s at the nati!nal le#el.
The re+eren*e in the ream0le t! a*.aging( mar.ing an, la0elling
3:
aears t! *!n+irm that the !06e*t
an, %r!se !+ the )greement relate t! the *riteria +!r mar.eting these r!,%*ts.
37
:.17 It might 0e arg%e, that the +a*t that the T4T )greement !nl/ re+ers t! elements relating t! the
mar.eting *riteria +!r a r!,%*t ,!es n!t in itsel+ mean that it ,!es n!t al/ t! im!rt 0ans. Stri*t
ali*ati!n !+ stan,ar,s *an in +a*t lea, t! a 0an !n the im!rt !+ *ertain r!,%*ts. The Panel n!tes(
h!"e#er( that there is n! se*i+i* re+eren*e in the T4T )greement t! the t/e !+ meas%re in#!l#e, in
this arti*%lar *ase ;i.e. a %re an, simle im!rt 0an "ith!%t an/ re+eren*e t! the *hara*teristi*s !+
gi#en r!,%*ts<( e#en th!%gh a 0an is 0/ its #er/ nat%re the m!st restri*ti#e mar.et a**ess meas%re.
C!nse-%entl/( i+ the 3em0ers ha, agree, that the T4T )greement als! alie, t! general 0ans( the/
"!%l, %n,!%0te,l/ ha#e menti!ne, it. It "!%l, aear that the %r!se !+ the T4T )greement is t!
re#ent m%*h m!re *!mleA sit%ati!ns than a straight+!r"ar, %n*!n,iti!nal 0an !n a r!,%*t( "hi*h
is *!#ere, 0/ the #er/ stri*t r!#isi!ns in )rti*le GIB1 !+ the =)TT 1771. In the Panel's #ie"
the %r!se !+ a,!ting the T4T )greement "as t! *!ntr!l the ,e#el!ment an, ali*ati!n !+
stan,ar,s 9 sit%ati!ns in "hi*h r!te*ti!nist aims *an 0e 0etter ,isg%ise, an, +!r "hi*h the eAisting
,is*ilines "ithin the =)TT aeare, t! 0e ina,e-%ate. ) general r!hi0iti!n 0/ nat%re ,!es n!t
%s%all/ in#!l#e an/ te*hni*al se*i+i*ati!ns. It th%s aears that the ,ra+ters "ere *!n*erne, at the
,e#el!ment an, ali*ati!n !+ te*hni*al *hara*teristi*s +!r r!te*ti!nist %r!ses !r lea,ing t!
r!te*ti!nist e++e*ts( as *an 0e seen +r!m the ream0le t! the T4T )greementB
>8esiring h!"e#er t! ens%re that te*hni*al reg%lati!ns an, stan,ar,s( in*l%,ing a*.aging( mar.ing
an, la0elling re-%irements ?J@ ,! n!t *reate %nne*essar/ !0sta*les t! internati!nal tra,eH>. ;Emhasis
a,,e,<.
:.5' It "!%l, there+!re seem that in rin*ile the !06e*t an, %r!se !+ the T4T )greement "ere
that it sh!%l, al/ t! !tentiall/ r!te*ti!nist ase*ts !+ the ali*ati!n !+ te*hni*al reg%lati!ns an,
stan,ar,s "hi*h( e#en i+ their e++e*t might 0e %rel/ an, siml/ a 0an( *!%l, *ir*%m#ent the =)TT
,is*ilines m!re easil/ +!r a n%m0er !+ reas!ns.
:.51 The Panel ne#ertheless n!tes that Cana,a !ints !%t that the im!siti!n !+ te*hni*al
*hara*teristi*s ali*a0le t! the im!rt !+ a r!,%*t imlies a 0an !n r!,%*ts "hi*h ,! n!t meet
these *hara*teristi*s. C!nse-%entl/( an/ te*hni*al reg%lati!n is als! a general r!hi0iti!n !n r!,%*ts
that are n!t in *!n+!rmit/. The Panel ,!es n!t ,isagree. It n!tes h!"e#er that( in this arti*%lar *ase(
n!ne !+ the r!,%*ts *!#ere, 0/ the De*ree *an 0e im!rte,( "ith the eA*eti!n !+ th!se gi#en a
tem!rar/ eAemti!n. This is a ma6!r ,i++eren*e *!mare, "ith a te*hni*al reg%lati!n that ,e+ines
the *hara*teristi*s !+ !ne !r m!re gi#en r!,%*ts. E#en i+ the n%m0er !+ r!,%*ts that *an in +a*t 0e
im!rte, is #er/ restri*te,( im!rt remains !ssi0le( in the!r/ !r in ra*ti*e.
:.5& This ,!es n!t mean either that a te*hni*al reg%lati!n "hi*h ,e+ines the *hara*teristi*s !+ a
r!,%*t negati#el/ ,!es n!t *!me %n,er the T4T )greement. It is al"a/s !ssi0le t! ,e+ine the
*hara*teristi*s !+ a r!,%*t negati#el/ as l!ng as these te*hni*al *hara*teristi*s are se*i+ie, in s%*h a
37
>8esiring( there+!re t! en*!%rage the ,e#el!ment !+ s%*h internati!nal stan,ar,s an, *!n+!rmit/
assessment s/stemsH>.
3:
>8esiring( h!"e#er t! ens%re that te*hni*al reg%lati!ns an, stan,ar,s( in*l%,ing a*.aging( mar.ing
an, la0elling re-%irements( an, r!*e,%res +!r assessment !+ *!n+!rmit/ "ith te*hni*al reg%lati!ns an,
stan,ar,s ,! n!t *reate %nne*essar/ !0sta*les t! internati!nal tra,eH>.
37
)lth!%gh te*hni*all/ these are a,,iti!nal "a/s !+ interreting )rti*le 3&( "e n!te that the
,re,arator/ 5or= *!n+irms this !06e*ti#e. D!*%ment TRE/W/&1 !+ 17 $an%ar/ 1771 n!tes that the ,ra+t C!,e
;Se*;7&<3< ela0!rate, in the *!%rse !+ the rearat!r/ "!r. +!r the T!./! R!%n, re+ers t! the rearati!n an,
a,!ti!n !+ >man,at!r/ stan,ar,s>. The %se !+ the "!r,s >man,at!r/ standards> ;!ne !+ the ,e+initi!ns !+ the
"!r, >stan,ar,> in English is >a ,!*%ment se*i+/ing nati!nall/ !r internati!nall/ agree, r!erties +!r
man%+a*t%re, g!!,s( rin*iles +!r r!*e,%re( et*.>. The Ne" Sh!rter OA+!r, English Di*ti!nar/ ;1773<(
. 3'&:< imlies that the %r!se !+ the )greement "as t! ens%re a r!,%*t's *!n+!rmit/ "ith the *hara*teristi*s
!+ !ther r!,%*ts mar.ete,.
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"a/ as t! all!" the r!,%*t t! 0e mar.ete, in the im!rting *!%ntries. )s "e emhasiFe, in
ara. :.1' a0!#e( the De*ree *!ntains a general r!hi0iti!n that ,!es n!t ,e+ine the *hara*teristi*s !+
se*i+i* r!,%*ts.
C!nteAt
:.53 The Panel n!tes that the r!#isi!ns !+ the T4T )greement are sit%ate, "ithin the 0r!a,er
*!nteAt !+ )nneA 1) t! the WTO )greement. The EC emhasiFe in this *!nne*ti!n that an
interretati!n rea++irming the ali*a0ilit/ !+ the T4T )greement t! a general r!hi0iti!n meas%re
"!%l, 0e e-%i#alent t! n%lli+/ing the e++e*t !+ )rti*les I( III( an, GI !+ the =)TT. Cana,a *!nsi,ers
that( i+ the 0an in the De*ree is n!t ,eeme, t! 0e a >te*hni*al reg%lati!n>( there is a ris. !+
*ir*%m#enting the ,is*ilines !+ the T4T )greement 0/ intr!,%*ing >h!riF!ntal> r!hi0iti!ns instea,
!+ te*hni*al reg%lati!ns in the stri*t sense. We *!nsi,er that these matters sh!%l, 0e eAamine, m!re
se*i+i*all/ in the light !+ the *!nteAt !+ the T4T )greement 0e*a%se it is 0/ ta.ing int! a**!%nt the
*!ntent !+ the !0ligati!ns in the r!#isi!ns that +!rm art !+ the *!nteAt !+ the T4T )greement that
"e "ill 0e a0le t! ,etermine the s*!e !+ the ,e+initi!n !+ >te*hni*al reg%lati!n> in the T4T
)greement.
:.51 The Panel *!nsi,ers that the *!n*et !+ *ir*%m#enti!n imlies that a gi#en attit%,e ma.es it
!ssi0le t! a#!i, an !0ligati!n that "!%l, !ther"ise al/. )n !0ligati!n m%st 0e generall/
ali*a0le 0e+!re *ir*%m#enti!n *an !**%r. 2irstl/( n!thing r!#es that it is in a 3em0er's interest t!
tr/ t! e#a,e the !0ligati!ns in the T4T )greement 0e*a%se its r!#isi!ns reresent a *!m0inati!n !+
rights an, !0ligati!ns "h!se 0alan*e "as *are+%ll/ neg!tiate,. Ne#ertheless( ass%ming that it "as in
the 3em0er's interest( i+ the !06e*t an, %r!se !+ the T4T )greement are t! reg%late the mar.eting
*!n,iti!ns( a meas%re that -%ite siml/ 0anne, mar.et a**ess "!%l, n!t *!me %n,er the )greement.
This ,!es n!t( h!"e#er( mean that s%*h meas%res "!%l, n!t 0e enaliFe, i+ the/ *reate, >%nne*essar/
!0sta*les t! internati!nal tra,e>. T! the eAtent that the =)TT 1771 alies( ese*iall/ )rti*les I( III
!r GI "h!se s*!e is arti*%larl/ 0r!a,( there "!%l, n!t 0e an/ legal #a*%%m.
:.55 We als! n!te that the *riteria !n the rearati!n( a,!ti!n !r ali*ati!n !+ te*hni*al
reg%lati!ns in )rti*le &.& !+ the T4T )greement are #er/ similar t! th!se in )rti*le GG !+ the
=)TT 1771. The ream0le t! the T4T )greement in +a*t reeats s!me !+ the "!r,ing !+ )rti*le GG
!+ the =)TT.
1'
In the Panel's #ie" the T4T )greement is a ,e#el!ment !+ the =)TT. )s
menti!ne, in ara. :.17 a0!#e( the T4T )greement aears t! ha#e 0een a,!te, in !r,er t!
strengthen the ,is*ilines ali*a0le t! the se*i+i* area !+ man%+a*t%ring stan,ar,s( "here the/
aeare, t! 0e ins%++i*ient t! re#ent *ertain +!rms !+ r!te*ti!nism.
11
:.58 We als! n!te that the EC *laim that Cana,a's interretati!n !+ the T4T )greement "!%l, 0e
e-%i#alent t! n%lli+/ing the e++e*t !+ )rti*les I an, III !+ the =)TT 1771. We n!te in this *!nne*ti!n
that the )ellate 4!,/ has !n man/ !**asi!ns( m!st re*entl/ in the Argentina Safeguards *ase(
re*alle, that >a treat/ interreter m%st rea, all ali*a0le r!#isi!ns !+ the treat/ in a "a/ that gi#es
meaning t! all !+ them( harm!ni!%sl/>.
1&
It is there+!re im!rtant that !%r interretati!n !+ the
r!#isi!ns !+ the T4T )greement in this *ase sh!%l, n!t res%lt >in re,%*ing "h!le *la%ses !r
1'
>+ecognizing that n! *!%ntr/ sh!%l, 0e re#ente, +r!m ta.ing meas%res ne*essar/ ?J@ +!r the
r!te*ti!n !+ h%man ?J@ li+e !r health ?J@ s%06e*t t! the re-%irement that the/ are n!t alie, in a
manner "hi*h "!%l, *!nstit%te a means !+ ar0itrar/ !r %n6%sti+ia0le ,is*riminati!n 0et"een *!%ntries
"here the same *!n,iti!ns re#ail !r a ,isg%ise, restri*ti!n !n internati!nal tra,e ?J@> ;i,enti*al
"!r,ing t! that in )rti*le GG !+ the =)TT 1771( emhasis a,,e,<.
11
We n!te in this *!nne*ti!n that the rearat!r/ "!r. !n the )greement !n Te*hni*al 4arriers t!
Tra,e in the T!./! R!%n, sh!" that the T4T )greement that sh!%l, ha#e emerge, +r!m the T!./! R!%n, "as
alrea,/ seen as 0eing a ,e#el!ment !+ the eAisting r%les !+ the =)TT( n!ta0l/ )rti*le GG. See +!r eAamle
the eAtra*t +r!m ,!*%ment 3TN/3E/W/&8( O*t!0er 1771( -%!te, in aragrah 7 !+ ,!*%ment TRE/W/&1(
17 $an%ar/ 1771.
1&
O. *it., ara. :1 an, +!!tn!te 7&( ;%n,erline, in the !riginal<.
WT/DS135/R
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aragrahs !+ a treat/ t! re,%n,an*/ !r in%tilit/>.
13
Cana,a is *!n*erne, that a arti*%lar
interretati!n might all!" 3em0ers t! *ir*%m#ent the !0ligati!ns im!se, 0/ the T4T )greement.
)s alrea,/ in,i*ate, a0!#e( in !%r #ie" the main reas!n +!r *ir*%m#enting a r!#isi!n is t! a#!i,
*ertain !0ligati!ns. I+ a general r!hi0iti!n is n!t *!#ere, 0/ the T4T )greement( this ,!es n!t mean
that it is n!t s%06e*t t! an/ !ther r!#isi!n in the WTO )greement. )t the #er/ least( it "ill *!me
"ithin the s*!e !+ )rti*les I( an,/!r III( an,/!r GI !+ the =)TT 1771 an, ma/ ha#e t! meet the
*riteria in )rti*le GG in !r,er t! 0e 6%sti+ie, %n,er this )greement. There ma/ 0e gr!%n,s +!r
Cana,a's !siti!n i+ it is esta0lishe, that the r!#isi!ns !+ the T4T )greement im!se stri*ter
,is*ilines than th!se in the =)TT 1771 an, that eA*l%,ing general r!hi0iti!ns +r!m their s*!e
"!%l, n%lli+/ their e++e*t. The elements 0e+!re %s( h!"e#er( ,! n!t all!" %s t! *!n*l%,e that this is
the *ase.
:.57 The Panel there+!re *!n*l%,es that( ta.ing int! a**!%nt the terms !+ the ,e+initi!n *!nsi,ere,
"ithin their *!nteAt an, in the light !+ the !06e*t an, %r!se !+ the T4T )greement( a meas%re
*!nstit%tes a >te*hni*al reg%lati!n> i+B
;a< the meas%re a++e*ts !ne !r m!re gi#en r!,%*tsH
;0< the meas%re se*i+ies the te*hni*al *hara*teristi*s !+ the r!,%*t;s< "hi*h all!" them
t! 0e mar.ete, in the 3em0er that t!!. the meas%re
11
H
;*< *!mlian*e is man,at!r/.
:.5: In the light !+ the a0!#e( "e r!#isi!nall/ *!n*l%,e that the art !+ the De*ree ,ealing "ith
the general r!hi0iti!n !n mar.eting as0est!s an, as0est!s9*!ntaining r!,%*ts ,!es n!t *!nstit%te a
>te*hni*al reg%lati!n> "ithin the meaning !+ the ,e+initi!n in )nneA 1.1 t! the T4T )greement.
2i4 Additional arguments b/ Canada
:.57 The Panel n!tes that Cana,a %ts +!r"ar, t"! a,,iti!nal arg%ments that m%st 0e eAamine,
0e+!re *!ming t! a ,e+inite *!n*l%si!n !n this matter. 2irstl/( in Cana,a's #ie"( the EC re*!gniFe,
that the T4T )greement alie, 0/ n!ti+/ing the De*ree t! the C!mmittee !n Te*hni*al 4arriers t!
Tra,e an, ,%ring the *!ns%ltati!ns relating t! this ,is%te.
:.8' 2r!m a legal !int !+ #ie"( the -%esti!n seems t! 0e "hether there is esto,,el !n the art !+
the EC 0e*a%se the/ n!ti+ie, the De*ree !r 0e*a%se !+ their statements( in*l%,ing th!se ,%ring the
*!ns%ltati!ns. This "!%l, 0e the *ase i+ it "as ,etermine, that Cana,a ha, legitimatel/ relie, !n the
n!ti+i*ati!n !+ the De*ree an, "as n!" s%++ering the negati#e *!nse-%en*es res%lting +r!m a *hange
in the EC's !siti!n.
15
In this *ase( h!"e#er( it ,!es n!t aear that Cana,a "as a0le legitimatel/ t!
rel/ !n a n!ti+i*ati!n t! the C!mmittee !n Te*hni*al 4arriers t! Tra,e !r !n a statement ma,e ,%ring
the *!ns%ltati!ns. We *!nsi,er that n!ti+i*ati!ns %n,er the T4T )greement are ma,e +!r reas!ns !+
transaren*/.
18
It has 0een re*!gniFe, that s%*h n!ti+i*ati!ns ,! n!t ha#e an/ re*!gniFe, legal
e++e*ts.
17
2%rtherm!re( n!ti+i*ati!n %n,er the T4T )greement is !ne !+ the +e" "a/s !+ n!ti+/ing
13
Re!rt !+ the )ellate 4!,/ in United States 7asoline, !. *it%, . &3.
11
)**!r,ing t! the ,e+initi!n in )nneA 1.1 t! the T4T )greement( the *riteria +!r la*ing a r!,%*t !n
the mar.et m%st *!n*ern its *hara*teristi*s !r the relate, r!*esses !r r!,%*ti!n meth!,s( in*l%,ing the
ali*a0le a,ministrati#e r!#isi!ns.
15
See the ,e*isi!n 0/ the Internati!nal C!%rt !+ $%sti*e in the <orth Sea Continental Shelf *ase(
Re!rts !+ $%,gements 1787( . &8( ara. 3'. Regar,ing the r!*e,%ral ase*t !+ the %se !+ the "!r,
>est!el>( see als! Daillier N PelletB Dr!it Internati!nal P%0li* ;1771<( . :31( *iting =%ggenheim( TraitM ,e
Dr!it internati!nal %0li*( #!l%me II( . 15:.
18
See the ream0le t! the De*isi!n !n N!ti+i*ati!n Pr!*e,%res( a,!te, 0/ the Tra,e Neg!tiati!ns
C!mmittee !n 15 De*em0er 1773.
17
See the se*!n, aragrah in Se*ti!n I !+ the De*isi!n !n N!ti+i*ati!n Pr!*e,%res( a,!te, 0/ the
C!mmittee !n Tra,e Neg!tiati!ns !n 15 De*em0er 1773( as anneAe, t! the 2inal )*t em0!,/ing the res%lts !+
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this t/e !+ meas%re +!r a 3em0er "h! "ishes t! sh!" transaren*/ in g!!, +aith. Dastl/ "e
*!nsi,er that 0!th the n!ti+i*ati!n an, the *!mments ma,e 0/ the EC ,%ring the *!ns%ltati!ns !r in
an!ther *!nteAt *!nstit%te !0ser#ati!ns !n the legal *hara*teriFati!n !+ the De*ree. Claims regar,ing
the legal *hara*teriFati!n !+ a +a*t 0/ the arties( h!"e#er( *ann!t 0in, the Panel.
:.81 Dastl/( "e n!te that Cana,a asserts that the De*ree *!ntains +i#e !+ the re-%irements in the
,e+initi!n in )nneA 1.1 t! the T4T )greement( namel/( it in,i*ates the *hara*teristi*s !+ a r!,%*t(
the r!*esses an, r!,%*ti!n meth!,s relating t! a r!,%*t( the a,ministrati#e r!#isi!ns ali*a0le
t! a r!,%*t( an, a*.aging !r la0elling re-%irements +!r a r!,%*t. 2inall/( *!mlian*e is
man,at!r/.
1:
We ,! n!t in rin*ile r%le !%t that the De*ree ma/ in*l%,e s!me !r e#en all the
re-%irements menti!ne, 0/ Cana,a. We n!te( h!"e#er( that !%r *!nsi,erati!n !+ the terms !+ the
,e+initi!n !+ >te*hni*al reg%lati!n> in )nneA 1.1 in their *!nteAt an, in light !+ the !06e*t an, %r!se
!+ the T4T )greement in relati!n t! the art !+ the De*ree r!hi0iting the mar.eting !+ as0est!s has
le, %s t! *!n*l%,e that this art !+ the De*ree is n!t *!#ere, 0/ the T4T )greement. C!n*erning
Cana,a's arg%ments( "e ha#e +!%n, that the art !+ the De*ree r!hi0iting as0est!s an, +!r the
r!,%*ti!n !+ as0est!s9*!ntaining r!,%*ts ,!es n!t ,e+ine the *hara*teristi*s !+ the r!,%*ts "h!se
im!rt is 0anne,. We ha#e als! +!%n, that this art !+ the De*ree ,!es n!t *!#er r!*esses !r
meth!,s +!r the r!,%*ti!n !+ as0est!s !r as0est!s9*!ntaining r!,%*ts. E#en i+ "e a,!t the
ar!a*h s%ggeste, 0/ Cana,a +!r the i,enti+i*ati!n !+ the +i#e re-%irements( in !%r #ie"( the a0sen*e
!+ the +irst t"! re-%irements s%++i*es t! *!n*l%,e that the De*ree ,!es n!t meet the *riteria +!r the
,e+initi!n !+ >te*hni*al reg%lati!n> in the T4T )greement. We ,! n!t there+!re thin. it ne*essar/ t!
*!nsi,er "hether the three !ther re-%irements re+erre, t! 0/ Cana,a are t! 0e +!%n, in this art !+ the
De*ree.
:.8& We ne#ertheless n!te that( in its arg%ments( Cana,a ,!es n!t ,isting%ish( as the Panel ,!es(
0et"een the art !+ the De*ree 0anning as0est!s an, the art relating t! eA*eti!ns t! the 0an. It is
th%s !ssi0le that the elements t! "hi*h Cana,a re+ers are t! 0e +!%n, in the art !+ the De*ree !n
eA*eti!ns. I+ this "as the *ase( this "!%l, 0e e#en greater 6%sti+i*ati!n +!r !%r ,e*isi!n t! anal/se
the t"! ase*ts !+ the De*ree searatel/.
:.83 We there+!re *!n*l%,e that the art !+ the De*ree ,ealing "ith the general 0an !n the
mar.eting !+ as0est!s an, as0est!s9*!ntaining r!,%*ts ,!es n!t *!nstit%te a >te*hni*al reg%lati!n>
"ithin the meaning !+ the ,e+initi!n in )nneA 1.1 t! the T4T )greement.
;0< )nal/sis !+ eA*eti!ns an, the e++e*t !+ the t/e !+ eA*eti!ns !n the +in,ings *!n*erning
r!hi0iti!ns
;i4 he e6ce,tions in the 8ecree constitute technical regulations
the Ur%g%a/ R!%n, !+ m%ltilateral tra,e neg!tiati!ns( ,!ne at 3arra.esh !n 15 )ril 1771.
>3em0ers re*all their %n,erta.ings set !%t in the Un,erstan,ing Regar,ing N!ti+i*ati!n( C!ns%ltati!n(
Dis%te Settlement an, S%r#eillan*e a,!te, !n &: N!#em0er 1777 ;4ISD &8S/&1'<. With regar, t!
their %n,erta.ing therein t! n!ti+/( t! the maAim%m eAtent !ssi0le( their a,!ti!n !+ tra,e meas%res
a++e*ting the !erati!n !+ the =)TT 1771( s%*h n!ti+i*ati!n itsel+ 0eing "ith!%t re6%,i*e t! #ie"s !n
the *!nsisten*/ !+ meas%res "ith !r their rele#an*e t! rights an, !0ligati!ns %n,er the 3%ltilateral
Tra,e )greements an,( "here ali*a0le( the Pl%rilateral Tra,e )greements( 3em0ers agree t! 0e
g%i,e,( as ar!riate( 0/ the anneAe, list !+ meas%res. 3em0ers there+!re agree that the intr!,%*ti!n
!r m!,i+i*ati!n !+ s%*h meas%res is s%06e*t t! the n!ti+i*ati!n re-%irements !+ the 1777
Un,erstan,ing.> ;Emhasis a,,e,<
Paragrah 3 !+ the Un,erstan,ing Regar,ing N!ti+i*ati!n( C!ns%ltati!n( Dis%te Settlement an, S%r#eillan*e(
a,!te, !n &: N!#em0er 1777 ;4ISD &8S/&1'< r!#i,es thatB
>C!ntra*ting arties m!re!#er %n,erta.e( t! the maAim%m eAtent !ssi0le( t! n!ti+/ the
CONTR)CTIN= P)RTIES !+ their a,!ti!n !+ tra,e meas%res a++e*ting the !erati!n !+ the =eneral
)greement( it 0eing %n,erst!!, that s%*h n!ti+i*ati!n "!%l, !+ itsel+ 0e "ith!%t re6%,i*e t! #ie"s !n
the *!nsisten*/ !+ meas%res "ith !r their rele#an*e t! rights an, !0ligati!ns %n,er the =eneral
)greement.>
1:
See Cana,a's arg%ments( se*ti!n III.C.1;a< a0!#e( in arti*%lar aras. 3.&18 an, 3.&8'93.&81.
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:.81 4earing in min, the ,is*%ssi!n in the re*e,ing se*ti!n( "e !int !%t that the +!ll!"ing
ase*ts !+ a meas%re are li.el/ t! mean that the meas%re is *!#ere, 0/ the ,e+initi!n !+ >te*hni*al
reg%lati!n> in )nneA 1.1 t! the T4T )greement.
17
;a< The meas%re a++e*ts !ne !r m!re gi#en r!,%*tsH
;0< the meas%re se*i+ies the te*hni*al *hara*teristi*s !+ the r!,%*t;s< "hi*h all!" them
t! 0e mar.ete, in the 3em0er that t!!. the meas%re
5'
H
;*< *!mlian*e is man,at!r/.
:.85 2irst !+ all( "e n!te that the EC *!nten, that eA*eti!ns are transiti!nal meas%res limite, 0/
their %r!se an, tem!rar/ 0/ nat%re. C!nse-%entl/( the/ sh!%l, n!t 0e *!#ere, 0/ the T4T
)greement. We ,! n!t *!nsi,er that the >transiti!nal> nat%re !+ a meas%re s%++i*es t! eA*l%,e it +r!m
the s*!e !+ the T4T )greement. The )greement ,!es n!t ,isting%ish 0et"een meas%res a**!r,ing
t! "hether !r n!t the/ are transiti!nal !r tem!rar/.
:.88 We als! n!te the EC's arg%ments !n the an*illar/ nat%re !+ the eA*eti!ns.
51
We ha#e alrea,/
in,i*ate, a0!#e that( in the!r/( there is n! reas!n "h/ t"! arts !+ the same teAt *!%l, n!t ha#e a
,i++erent legal *hara*teriFati!n. We n!te that( %rs%ant t! the a**ess!r/ the!r/ ;accessorium se$uitur
,rinci,ale4, the legal regime ali*a0le t! a g!!, !r an a*ti!n ma/ 0e relate, !r s%06e*t t! the regime
+!r a rin*ial g!!, !r a*ti!n.
5&
)ss%ming that this the!r/ alies t! a %0li* internati!nal la"
sit%ati!n( "e *!nsi,er that this arti*%lar *ase ,!es n!t *!me "ithin its s*!e. The meas%res 0e+!re %s
,! n!t relate t! ali*ati!n !+ the 0an in the stri*t sense 0%t t! an eA*eti!n "hi*h in ra*ti*e all!"s
*hr/s!tile as0est!s t! enter the 2ren*h mar.et. In s%*h a *!nteAt( "e hesitate t! *!nsi,er the
eA*eti!ns in the De*ree as an*illar/ t! the 0an !n as0est!s.

:.87 We n!te that the art !+ the De*ree *!n*erning eA*eti!ns t! the general 0an !n im!rting
as0est!s !r as0est!s9*!ntaining r!,%*ts ;)rti*les &91< ,!es n!t ,e+ine the r!,%*ts 0ene+iting +r!m
s%*h eA*eti!ns. )rti*le &.II( h!"e#er( *!#ers the i,enti+i*ati!n !+ the materials( r!,%*ts !r ,e#i*es
sh!"n in an eAha%sti#e list ,ra"n % 0/ ,e*ree 0/ the 3inisters +!r Da0!%r( C!ns%mti!n( the
En#ir!nment( In,%str/( )gri*%lt%re an, Trans!rt. We there+!re *!nsi,er that the ali*a0le 2ren*h
reg%lati!n ;i.e. the De*ree as imlemente, 0/ the a0!#e9menti!ne, De*ree< i,enti+ies the r!,%*ts
0ene+iting +r!m an eA*eti!n.
:.8: We als! n!te that )rti*le & !+ the De*ree sets !%t the *riteria +!r mar.eting the r!,%*ts
i,enti+ie, in the De*ree an, n!t s!lel/ the *riteria +!r eA*l%,ing r!,%*ts +r!m the mar.et. The
se*!n, senten*e in )rti*le 3.I !+ the De*ree *!mletes these *riteria.
:.87 In !%r #ie"( the mar.eting *riteria in )rti*le &.I !+ the De*ree relate t! the *hara*teristi*s !+
!ne !r m!re gi#en r!,%*ts !r r!*esses !r r!,%*ti!n meth!,s relating t! them. This is arti*%larl/
tr%e !+ the se*!n, s%0aragrah !n the te*hni*al g%arantees !+ sa+et/ ar!riate t! the %se( "hi*h has
t! 0e rea, in *!n6%n*ti!n "ith the se*!n, aragrah !+ )rti*le 3.I !+ the De*ree. We als! n!te that
)rti*le &.II an, )rti*le 3 in arti*%lar *!#er the a,ministrati#e r!#isi!ns ali*a0le t! the te*hni*al
17
These *riteria are 0/ n! means eAha%sti#e.
5'
)**!r,ing t! the ,e+initi!n in )nneA 1.1 !+ the T4T )greement( the *riteria +!r la*ing a r!,%*t !n
the mar.et m%st *!n*ern its *hara*teristi*s !r the relate, r!*esses !r r!,%*ti!n meth!,s( in*l%,ing the
ali*a0le a,ministrati#e r!#isi!ns.
51
See the rel/ 0/ the EC t! -%esti!n & in the -%esti!ns 0/ the Panel at the se*!n, s%0stanti#e meeting(
aras. &&'9&&1.
5&
See R. =%illien an, $. Cin*entB DeAi-%e ,e termes 6%ri,i-%es ;17:1<( . 3B in *i#il la" >the
s%0si,iar/ +!ll!"s the rin*ial in the sense that the rin*ial g!!, transmits its legal *hara*teriFati!n t! the
g!!, atta*he, t! it>. ;WTO translati!n<. See als! 4la*.'s Da" Di*ti!nar/ ;177'<( . 11( regar,ing the *riminal
la" ali*a0le in *ertain 3em0ers.
WT/DS135/R
Page 158
reg%lati!ns. The se*!n, aragrah !+ )rti*le 1 *!ntains r!#isi!ns !n the la0elling an, mar.ing !+
r!,%*ts 0ene+iting +r!m an eA*eti!n. Dastl/( *!mlian*e "ith these r!#isi!ns is man,at!r/ an,
there is r!#isi!n +!r enalties ;see )rti*le 3.III<.
:.7' We th%s *!n*l%,e that the art !+ the De*ree *!n*erning eA*eti!ns t! the 0an !n as0est!s
*!mes "ithin the s*!e !+ the ,e+initi!n !+ te*hni*al reg%lati!n in )nneA 1.1 t! the T4T )greement.
2i4 0ffect of the legal characterization of the e6ce,tions on the legal characterization of the
,rohibitions
:.71 The Panel n!tes that Cana,a *!nsi,ers that the regime ali*a0le t! eA*eti!ns r!#es that the
De*ree as a "h!le is a te*hni*al reg%lati!n. We are !+ the !ini!n that there is n! legal reas!n "h/
*ertain arts !+ the De*ree sh!%l, n!t *!me %n,er !ne !+ the WTO )greements an, !ther arts %n,er
an!ther )greement. We ha#e alrea,/ re+erre, a0!#e t! ali*ati!n !+ the a**ess!r/ *!n*et in this
arti*%lar *ase. E#en ass%ming that the a**ess!r/ *!n*et might al/ t! this arti*%lar *ase( the +a*t
that it is the eA*eti!ns t! the general 0an "hi*h *!me %n,er the T4T )greement an, n!t the
rin*ial element !+ the De*ree ;namel/ the general 0an !n as0est!s< ma.es it ,i++i*%lt t! *!n*l%,e
that the 0an m%st +!ll!" the eA*eti!ns regime. C!nse-%entl/( the +a*t that the eA*eti!ns in the
De*ree are *!#ere, 0/ the T4T )greement in !%r #ie" sh!%l, n!t a++e*t the legal *hara*teriFati!n !+
the general 0an an, ese*iall/ the +a*t !+ "hether !r n!t the 0an *!mes "ithin the s*!e !+ the
T4T )greement.
:.7& In an/ e#ent( as the legal *hara*teriFati!n !+ the eA*eti!ns ,!es n!t a++e*t that !+ the general
0an an, e#en th!%gh Cana,a *!ntests the legalit/ !+ the De*ree as a "h!le( the Panel sh!%l, n!t g!
+%rther than the -%esti!n !+ the legal *hara*teriFati!n !+ the eA*eti!ns. The Panel *!nsi,ers that
Cana,a ,i, n!t ma.e an/ se*i+i* *laims *!n*erning the eA*eti!ns in the terms !+ re+eren*e ,ra"n
% %n,er )rti*le 8.& !+ the Un,erstan,ing. The Panel there+!re *!n*l%,es that it ,!es n!t ha#e t!
rea*h an/ +in,ings *!n*erning the eA*eti!ns.
2. 'oncusion
;a< The T4T )greement ,!es n!t al/ t! the art !+ the De*ree relating t! the 0an !n
im!rts !+ as0est!s an, as0est!s9*!ntaining r!,%*ts 0e*a%se that art ,!es n!t
*!nstit%te a >te*hni*al reg%lati!n> "ithin the meaning !+ )nneA 1.1 t! the T4T
)greement.
;0< The T4T )greement alies t! the art !+ the De*ree relating t! eA*eti!ns t! the 0an
!n im!rts !+ as0est!s an, as0est!s9*!ntaining r!,%*ts 0e*a%se that art *!nstit%tes
a >te*hni*al reg%lati!n> "ithin the meaning !+ )nneA 1.1 t! the T4T )greement.
This legal *hara*teriFati!n( h!"e#er( ,!es n!t a++e*t the legal *hara*teriFati!n !+ the
art !+ the De*ree 0anning as0est!s n!r !%r *!nsi,erati!n !+ the rest !+ this *ase
0e*a%se Cana,a ,i, n!t ma.e an/ se*i+i* *laims regar,ing the eA*eti!ns t! the
general 0an.
53
:.73 Ea#ing *!n*l%,e, that the art !+ the De*ree 0anning as0est!s an, as0est!s9*!ntaining
r!,%*ts ,!es n!t *!me "ithin the s*!e !+ the T4T )greement( "e shall n!" *!nsi,er Cana,a's
*laims relating t! the =)TT 1771.
53
2!r eAamle( Cana,a ,i, n!t *laim that the WTO )greement ha, 0een #i!late, 0/ the "a/ in "hi*h
2ran*e a,ministere, the eA*eti!ns. 3!re!#er( the Panel n!tes that the/ are eA*eti!nal an, tem!rar/
eAemti!ns. The/ "ill ,isaear as an, "hen relia0le an, e++e*ti#e s%0stit%te r!,%*ts are ,e#el!e,.
WT/DS135/R
Page 157
E. )PPDIC)TION O2 TEE =)TT 1771 TO TEE DECREE
1. +rei!inar# 1uestions
;a< The e++e*t !+ ra*ti*e "ithin the =)TT 1717 an, the WTO
:.71 The Panel n!tes that( in s%!rt !+ their arg%ments( the arties re+er t! anel an, )ellate
4!,/ re!rts a,!te, in the WTO. The/ als! re+er at length t! anel re!rts %n,er the =)TT 1717(
s!me !+ "hi*h "ere a,!te, an, !thers n!t. )s *ertain iss%es raise, 0/ the arties ha#e 0een ,ealt
"ith in ,etail !r e#en eA*l%si#el/ %n,er the =)TT 1717( "e ,eem it %se+%l t! eAlain h!" "e inten,
t! ta.e int! a**!%nt the anel re!rts iss%e, "ithin the +rame"!r. !+ the =)TT 1717. 2!r this
%r!se( "e shall 0ase !%rsel#es !n the ar!a*h +!ll!"e, 0/ the )ellate 4!,/ in )a,an a6es
on Alcoholic ;e9erages%
51

:.75 In this arti*%lar *ase( the )ellate 4!,/ emhasiFe, that( "ith regar, t! the re!rts a,!te,
0/ anels %n,er the =)TT 1717( )rti*le GCIB1 !+ the )greement Esta0lishing the WTO an,
aragrah 1;0<;i#< !+ )nneA 1) in*!r!rating the =)TT 1771 int! the WTO )greement all!" the
>legal hist!r/ an, eAerien*e %n,er the =)TT 1717> t! 0e 0r!%ght int! the ne" WTO. ),!te,
anel re!rts >are an im!rtant art !+ the =)TT ac$uis&%
55
The/ *reate legitimate eAe*tati!ns
am!ng WTO 3em0ers an, sh!%l, th%s 0e ta.en int! a**!%nt "hen the/ are rele#ant t! an/ ,is%te.
:.78 T%rning t! %na,!te, re!rts( the )ellate 4!,/ state, that unado,ted anel re!rts >ha#e
n! legal stat%s in the =)TT !r WTO s/stem sin*e the/ ha#e n!t 0een en,!rse, thr!%gh ,e*isi!ns 0/
the CONTR)CTIN= P)RTIES t! =)TT !r WTO 3em0ers>. ?+!!tn!te !mitte,@. Di.e"ise( >a
anel *!%l, ne#ertheless +in, %se+%l g%i,an*e in the reas!ning !+ an %na,!te, anel re!rt that it
*!nsi,ere, t! 0e rele#ant>. ?+!!tn!te !mitte,@.
:.77 2!ll!"ing this ar!a*h( "e shall ,%l/ ta.e int! a**!%nt the rele#ant a,!te, anel re!rts
an,( t! the eAtent ne*essar/( "e shall ta.e int! a**!%nt the reas!ning set !%t in %na,!te, anel
re!rts "hen "e ,eem it rele#ant t! the iss%es raise, in !%r eAaminati!n.
;0< 4%r,en !+ r!!+
:.7: Cana,a *laims #i!lati!n !+ )rti*les IIIB1 an, GIB1 !+ the =)TT 1771. The EC *!nsi,er that(
e#en i+ there is a #i!lati!n !+ these r!#isi!ns( the meas%re is 6%sti+ie, %rs%ant t! )rti*le GG;0<. We
n!te that the )ellate 4!,/ rea++irme, the general r%les ali*a0le t! the 0%r,en !+ r!!+ in the *ase
!+ United States Shirts and ;louses%
58
:.77 )l/ing these r%les( it is !%r !ini!n that Cana,a( as the *!mlaining art/( sh!%l, n!rmall/
r!#i,e s%++i*ient e#i,en*e t! esta0lish a res%mti!n that there are gr!%n,s +!r ea*h !+ its *laims. I+
it ,!es s!( it "ill then 0e % t! the EC t! a,,%*e s%++i*ient e#i,en*e t! re0%t the res%mti!n. When
the EC %ts +!r"ar, a arti*%lar meth!, !+ ,e+en*e in the a++irmati#e( it is % t! them t! +%rnish
s%++i*ient e#i,en*e( 6%st as Cana,a m%st ,! +!r its !"n *laims. I+ 0!th arties +%rnish e#i,en*e that
meets these re-%irements( it is the res!nsi0ilit/ !+ the Panel t! assess these elements as a "h!le.
Where the e#i,en*e *!n*erning a *laim !r a arti*%lar +!rm !+ ,e+en*e is( in general( e-%all/
51
),!te, !n 1 N!#em0er 1778( WT/DS:H DS1'HDS11/)4/R( hereina+ter >)a,an Alcoholic
;e9erages>( . 11915.
55
I0i,.( age 11.
58
O. *it.( age 11B
>The 0%r,en !+ r!!+ rests %!n the art/( "hether *!mlaining !r ,e+en,ing( "h! asserts the
a++irmati#e !+ a arti*%lar *laim !r ,e+en*e. I+ that art/ a,,%*es e#i,en*e s%++i*ient t! raise a
res%mti!n that "hat is *laime, is tr%e( the 0%r,en then shi+ts t! the !ther art/( "h! "ill +ail %nless it
a,,%*es s%++i*ient e#i,en*e t! re0%t the res%mti!n>.
WT/DS135/R
Page 15:
0alan*e,( a +in,ing has t! 0e ma,e against the art/ !n "hi*h the 0%r,en !+ r!!+ relating t! this
*laim !r this +!rm !+ ,e+en*e is in*%m0ent.
:.:' The Panel als! n!tes the eAtreme +a*t%al an, s*ienti+i* *!mleAit/ !+ this *ase( "hi*h le, t!
the *!ns%ltati!n !+ eAerts %n,er )rti*le 13 !+ the Un,erstan,ing. It n!tes that( in the *!nteAt !+ the
)greement !n the )li*ati!n !+ Sanitar/ an, Ph/t!sanitar/ 3eas%res( "here s*ienti+i* +a*ts an, ,ata
la/ a #er/ im!rtant r!le( the )ellate 4!,/ has ta.en a se*ial ar!a*h. )s it is ne*essar/ t!
eAamine the ali*ati!n !+ )rti*les IIIB1 an, GIB1 !+ the =)TT 1771 0e+!re e#en *!nsi,ering the EC's
arg%ments 0ase, !n )rti*le GG( "e siml/ ta.e n!te !+ this ar!a*h an,( i+ ne*essar/( "ill ret%rn t!
it "hen eAamining the iss%es raise, in *!nne*ti!n "ith )rti*le GG.
:.:1 4earing in min, the a0!#e( "e *!nsi,er that it is im!rtant +!r ea*h art/ t! state *learl/ its
arguments and factual e9idence in s%!rt !+ its *laims. I+ n!t( the Panel "ill !nl/ 0e a0le t!
*!n*l%,e that the art/ *!n*erne, ,i, n!t ma.e the rima +a*ie *ase nee,e, t! esta0lish its *laim.
57
The Panel *!nsi,ers that it *an !nl/ rea*h +in,ings *!n*erning a *laim !r art !+ a *laim( e#en "hen it
is *learl/ ,e+ine, in the terms !+ re+eren*e set 0/ the DS4( i+ the art/ ma.ing the *laim
s!ntane!%sl/ ma.es the rima +a*ie *ase nee,e, t! esta0lish its *laim.
5:
In+!rmati!n r!#i,e, 0/ the
eAerts *!ns%lte, 0/ the Panel %rs%ant t! )rti*le 13 !+ the Un,erstan,ing >t! hel it t! %n,erstan,
an, e#al%ate the e#i,en*e s%0mitte, an, the arg%ments ma,e 0/ the arties>
57
( e#en "here it has 0een
re-%este, 0/ the Panel( *an %n,er n! *ir*%mstan*es 0e %se, 0/ a anel t! r%le in +a#!%r !+ a art/
"hi*h has n!t esta0lishe, a rima +a*ie *ase 0ase, !n se*i+i* legal *laims !r leas asserte, 0/ it.
8'
P%t an!ther "a/( the Panel *ann!t %tiliFe the in+!rmati!n +%rnishe, 0/ the eAerts in !r,er t! esta0lish
the #ali,it/ !+ a *laim 0/ !ne !+ the arties i+ that art/ has n!t alrea,/ esta0lishe, a rima +a*ie *ase.
:.:& On an/ legal matter, n!ta0l/ the interretati!n !+ the )greements *!n*erne,( the Panel "ill
0e assiste, 0/ the arg%ments !+ the arties 0%t "ill n!t 0e 0!%n, 0/ them. P%rs%ant t! )rti*le 3B& !+
the Un,erstan,ing( !%r ,e*isi!n !n these matters m%st 0e in a**!r,an*e "ith the *%st!mar/ r%les !+
interretati!n !+ %0li* internati!nal la" ali*a0le t! the WTO )greement.
;*< )li*ati!n !+ )rti*le IIIB1 an,/!r )rti*le GI !+ the =)TT 1771
2i4 Duestion before the Panel
81
:.:3 The Panel n!tes that the arties ha#e ,i++ering #ie"s *!n*erning the ali*a0ilit/ t! the
De*ree !+ )rti*le IIIB1 an, )rti*le GIB1 !+ the =)TT 1771.
:.:1 Cana,a *!nsi,ers that the De*ree sh!%l, 0e eAamine, in the light !+ these t"! )rti*les
0e*a%se it *!mrises t"! ,istin*t ase*ts. On the !ne han,( it r!hi0its im!rts !+ as0est!s in a
manner in*!mati0le "ith )rti*le GIB1. On the !ther( it in*l%,es internal reg%lati!ns r!hi0iting the
sale an, %se !+ as0est!s in a manner in*!mati0le "ith )rti*le IIIB1. Cana,a *!nsi,ers that t"!
,i++erent ase*ts !+ the same meas%re *an 0e eAamine, in the light !+ t"! ,i++erent arti*les !+ the
same )greement. Cana,a *!nsi,ers that the interretati#e N!te Ad Article III ,!es n!t al/ in this
*ase. I+ the Panel *!nsi,ers that the De*ree *ann!t 0e eAamine, %n,er the t"! )rti*les( it sh!%l, 0e
*!nsi,ere, as a meas%re a++e*ting im!rts an, in*!mati0le "ith )rti*le GIB1. I+ it *ann!t 0e
*!nsi,ere, as a meas%re a++e*ting im!rts( it sh!%l, 0e *!nsi,ere, as a meas%re a++e*ting sales an,
!ther transa*ti!ns !n the 2ren*h mar.et an, s! in*!mati0le "ith )rti*le IIIB1.
:.:5 The EC assert that either the meas%re is an internal reg%lati!n( in "hi*h *ase it is *!#ere, 0/
)rti*le IIIB1( !r it !nl/ *!n*erns the im!rt !+ r!,%*ts( in "hi*h *ase it m%st 0e assesse, in the light
57
Re!rt !+ the )ellate 4!,/ in )a,an 1easures Affecting Agricultural Products, a,!te, !n
17 3ar*h 1777( WT/DS78/)4/R( ara. 1&8.
5:
I0i,.( ara. 13'.
57
I0i,.( aras. 1&:91&7.
8'
I0i,.( ara. 1&7.
81
The arg%ments !+ the arties are set !%t in ,etail in Se*ti!n III a0!#e.
WT/DS135/R
Page 157
!+ )rti*le GIB1. The ,istin*ti!n ma,e 0/ Cana,a +ails t! ta.e a**!%nt !+ the relati!nshi 0et"een the
t"! )rti*les( "hi*h means that a single meas%re that alies 0!th t! ,!mesti* an, im!rte, r!,%*ts
m%st ne*essaril/ 0e *!#ere, as a "h!le 0/ )rti*le IIIB1 i+ it is im!se, !n an im!rte, r!,%*t at the
time !r la*e !+ im!rtati!n. Pre#i!%s ra*ti*e in the =)TT *!n+irms that there *an 0e n! *%m%lati#e
ali*ati!n "ith )rti*le GI. The ra*ti*al ali*ati!n !+ the De*ree means that the same meas%re(
namel/ a general 0an !n as0est!s an, as0est!s9*!ntaining r!,%*ts( alies t! all r!,%*ts
irrese*ti#e !+ their !rigin. )s !ne an, the same meas%re is alie, t! 0!th ,!mesti* an, im!rte,
r!,%*ts L ali*ati!n is at the 0!r,er +!r the latter L !nl/ )rti*le IIIB1 is ali*a0le in this *ase.
2ii4 Anal/sis
8&
:.:8 The Panel n!tes that the rele#ant r!#isi!ns !+ )rti*le IIIB1 r!#i,e the +!ll!"ingB
>The r!,%*ts !+ the territ!r/ !+ an/ *!ntra*ting art/ im!rte, int! the territ!r/ !+ an/ !ther
*!ntra*ting art/ shall 0e a**!r,e, treatment n! less +a#!%ra0le than that a**!r,e, t! li.e r!,%*ts !+
nati!nal !rigin in rese*t !+ all la"s( reg%lati!ns an, re-%irements a++e*ting their internal sale( !++ering
+!r sale( %r*hase( trans!rtati!n( ,istri0%ti!n !r %se.>
N!te Ad Article III in the N!tes an, S%lementar/ Pr!#isi!ns in )nneA I t! the =)TT 1771 states
the +!ll!"ingB
>)n/ internal taA !r !ther internal *harge( !r an/ la"( reg%lati!n !r re-%irement !+ the .in, re+erre, t!
in aragrah 1 "hi*h alies t! an im!rte, r!,%*t an, t! the li.e ,!mesti* r!,%*t an, is *!lle*te,
!r en+!r*e, in the *ase !+ the im!rte, r!,%*t at the time !r !int !+ im!rtati!n( is ne#ertheless t! 0e
regar,e, as an internal taA !r !ther internal *harge( !r a la"( reg%lati!n !r re-%irement !+ the .in,
re+erre, t! in aragrah 1( an, is a**!r,ingl/ s%06e*t t! the r!#isi!ns !+ )rti*le III.>
)rti*le GIB1 !+ the =)TT 1771 states the +!ll!"ingB
>N! r!hi0iti!ns !r restri*ti!ns !ther than ,%ties( taAes !r !ther *harges( "hether ma,e e++e*ti#e
thr!%gh -%!tas( im!rt !r eA!rt li*en*es !r !ther meas%res( shall 0e instit%te, !r maintaine, 0/ an/
*!ntra*ting art/ !n the im!rtati!n !+ an/ r!,%*t !+ the territ!r/ !+ an/ !ther *!ntra*ting art/ !r !n
the eA!rtati!n !r sale +!r eA!rt !+ an/ r!,%*t ,estine, +!r the territ!r/ !+ an/ !ther *!ntra*ting
art/.>
:.:7 The Panel n!tes +irst !+ all that the arties agree that )rti*le IIIB1 alies t! that ase*t !+ the
De*ree "hi*h 0ans in arti*%lar the sale( ,!mesti* mar.eting an, trans+er %n,er an/ title !+ all
#arieties !+ as0est!s +i0res an, an/ r!,%*t *!ntaining them. This ase*t *!n*erns the >treatment
a**!r,e, t! r!,%*ts ?J@ in rese*t !+ all la"s( reg%lati!ns an, re-%irements a++e*ting their internal
sale( !++ering +!r sale( %r*hase( trans!rtati!n( ,istri0%ti!n !r %se> "ithin the meaning !+
)rti*le IIIB1. Cana,a( !n the !ther han,( *!nsi,ers that )rti*le GIB1 alies t! the 0an !n im!rts
a++e*ting r!,%*ts +r!m Cana,a.
83

:.:: The Panel ,ra"s attenti!n t! N!te Ad Article III( "hi*h se*i+i*all/ *!#ers a sit%ati!n in
"hi*h a la"( reg%lati!n !r re-%irement alies 0!th t! an im!rte, r!,%*t an, t! the li.e ,!mesti*
r!,%*t an, is en+!r*e, in the *ase !+ the im!rte, r!,%*t at the time !r !int !+ im!rtati!n. The
latter is in +a*t the *ase. C!nse-%entl/( the Panel *!nsi,ers it r!er t! *!mmen*e its anal/sis 0/
,etermining "hether the N!te Ad Article III alies t! this *ase. )s neither !+ the arties *!ntests the
+a*t that the meas%re ali*a0le t! the im!rte, r!,%*t is im!se, at the time !r !int !+ im!rtati!n(
it is ne*essar/ t! eAamine "hether the De*ree >alies t! an im!rte, r!,%*t an, t! the li.e ,!mesti*
r!,%*t>.
8&
The arg%ments !+ the arties are set !%t in ,etail in Se*ti!n III a0!#e.
83
It is !nl/ i+ the Panel re6e*ts Cana,a's +irst interretati!n that the De*ree *!mes in art %n,er
)rti*le IIIB1 an, in art %n,er )rti*le GI.1 that Cana,a *!nsi,ers that the "h!le !+ the De*ree sh!%l, +all %n,er
)rti*le GIB1 !r( i+ the Panel als! re6e*ts this ar!a*h( )rti*le IIIB1.
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Page 18'
:.:7 In Cana,a's #ie"( interretati#e N!te Ad Article III !nl/ alies i+ the meas%re is ali*a0le
t! the im!rte, r!,%*t an, t! the ,!mesti* r!,%*t. The eAli*it im!rt 0an ,!es n!t( h!"e#er(
al/ t! the ,!mesti* r!,%*t 0e*a%se the ,!mesti* r!,%*t is !0#i!%sl/ n!t im!rte,. 3!re!#er( as
2ran*e neither r!,%*es n!r mines as0est!s +i0res !n its territ!r/( the 0an !n man%+a*t%ring(
r!*essing( selling an, ,!mesti* mar.eting is( in ra*ti*al terms( e-%i#alent t! a 0an !n im!rting
*hr/s!tile as0est!s +i0re.
:.7' 2!r the EC( the im!rt 0an is merel/ the l!gi*al *!r!llar/ !+ the general r!hi0iti!n !n the %se
!+ as0est!s an, as0est!s9*!ntaining r!,%*ts. )rti*le IIIB1 m%st 0e assesse, in the light !+ the
interretati#e N!te relating t! it. When a ,!mesti* meas%re alies t! 0!th ,!mesti* an, im!rte,
r!,%*ts( )rti*le III m%st al/.
:.71 The Panel n!tes that the "!r, >*!mme> in the 2ren*h teAt !+ N!te Ad Article III ?>an,> in the
English teAt@ imlies in the +irst la*e that the meas%re alies t! the im!rte, r!,%*t an, t! the li.e
,!mesti* r!,%*t.
81
The Panel n!tes in this *!nne*ti!n that the +a*t that 2ran*e n! l!nger r!,%*es
as0est!s !r as0est!s9*!ntaining r!,%*ts ,!es n!t s%++i*e t! ma.e the De*ree a meas%re +alling %n,er
)rti*le GIB1. It is in +a*t 0e*a%se the De*ree r!hi0its the man%+a*t%re an, r!*essing !+ as0est!s
+i0res that there is n! l!nger an/ 2ren*h r!,%*ti!n. The *essati!n !+ 2ren*h r!,%*ti!n is the
*!nse-%en*e !+ the De*ree an, n!t the re#erse. C!nse-%entl/( the De*ree is a meas%re "hi*h >alies
t! an im!rte, r!,%*t an, t! the li.e ,!mesti* r!,%*t> "ithin the meaning !+ N!te Ad Article III.
:.7& Se*!n,l/( the Panel n!tes that the "!r,s >an/ la"( reg%lati!n !r re-%irement ?J@ "hi*h
alies t! an im!rte, r!,%*t an, ?>*!mme> in the 2ren*h teAt@ t! the li.e ,!mesti* r!,%*t> in the
N!te Ad Article III *!%l, als! mean that the same regime m%st al/ t! the im!rte, r!,%*t an, the
,!mesti* r!,%*t.
85
In this *ase( %n,er the De*ree( the ,!mesti* r!,%*t ma/ n!t 0e s!l,( la*e, !n
the ,!mesti* mar.et !r trans+erre, %n,er an/ title( !ssesse, +!r sale( !++ere, !r eA!rte,. I+ "e
+!ll!" Cana,a's reas!ning( r!,%*ts +r!m thir, *!%ntries are s%06e*t t! a ,i++erent regime 0e*a%se( as
the/ *ann!t 0e im!rte,( the/ *ann!t 0e s!l,( la*e, !n the ,!mesti* mar.et( trans+erre, %n,er an/
title( !ssesse, +!r sale !r !++ere,. 2irstl/( the reg%lati!ns ali*a0le t! ,!mesti* r!,%*ts an, +!reign
r!,%*ts lea, t! the same res%ltB the halting !+ the srea, !+ as0est!s an, as0est!s9*!ntaining
r!,%*ts !n 2ren*h territ!r/. In ra*ti*e( in !ne *ase ;,!mesti* r!,%*ts<( the/ *ann!t 0e la*e, !n
the ,!mesti* mar.et 0e*a%se the/ *ann!t 0e trans+erre, %n,er an/ title. In the !ther ;im!rte,
r!,%*ts<( the im!rt 0an als! re#ents their mar.eting.
:.73 2!r the +!ll!"ing reas!ns( "e als! *!nsi,er that the "!r,ing !+ N!te Ad Article III an,
ra*ti*e in the =)TT 1717 in this rese*t ,! n!t s%!rt Cana,a's ar!a*h that an identical meas%re
m%st 0e alie, t! the ,!mesti* r!,%*t an, the li.e im!rte, r!,%*t i+ the meas%re ali*a0le t! the
im!rte, r!,%*t is t! +all %n,er )rti*le III.
:.71 We n!te that the rele#ant art !+ the English teAt !+ N!te Ad Article III rea,s as +!ll!"sB
>)n/ ?J@ la"( reg%lati!n !r re-%irement ?J@ "hi*h alies t! an im!rte, r!,%*t and t! the li.e
,!mesti* r!,%*t>.
88
The "!r, >an,> ,!es n!t ha#e the same meaning as >in the same "a/ as>( "hi*h
*an 0e an!ther meaning +!r the "!r, >*!mme> in the 2ren*h teAt. We there+!re *!nsi,er that the
"!r, >*!mme> *ann!t 0e interrete, as re-%iring an i,enti*al meas%re t! 0e alie, t! im!rte,
r!,%*ts an, ,!mesti* r!,%*ts i+ )rti*le III is t! al/.
:.75 We n!te that !%r interretati!n is *!n+irme, 0/ ra*ti*e %n,er the =)TT 1717. In
United States Section 33" of the ariff Act of 1!30
87
, the Panel ha, t! eAamine meas%res se*i+i*all/
81
De N!%#ea% Petit R!0ert( !. *it.( . 111.
85
>In the same "a/ as>( >t! the same eAtent as> are am!ng the alternati#e meanings +!r the "!r,
>*!mme> in the 2ren*h teAt ;De N!%#ea% Petit R!0ert( !. *it%, . 111<. ?In the English teAt the "!r, is >an,>@.
88
Emhasis a,,e,. In the la*e !+ >an,> an, >*!mme>( the Sanish #ersi!n %ses the *!n6%n*ti!n >/>
;>et> in 2ren*h<.
87
See the Re!rt !+ the Panel in United States Section 33" of the ariff Act of 1!30( a,!te, !n
7 N!#em0er 17:7( 4ISD 38S/315( ;hereina+ter >United States Section 33"><.
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ali*a0le t! im!rte, r!,%*ts s%se*te, !+ #i!lating an )meri*an atent right. In this *ase(
re+erring t! N!te Ad Article III( the Panel *!nsi,ere, that the r!#isi!ns !+ )rti*le IIIB1 ,i, al/ t!
the se*ial r!*e,%res res*ri0e, +!r im!rte, r!,%*ts s%se*te, !+ #i!lating a atent r!te*te, in
the Unite, States 0e*a%se these r!*e,%res "ere *!nsi,ere, t! 0e >la"s( reg%lati!ns an,
re-%irements> a++e*ting the internal sale !+ the im!rte, r!,%*ts( "ithin the meaning !+ )rti*le III !+
the =)TT. It sh!%l, 0e n!te, that in this *ase the r!*e,%res eAamine, "ere n!t the same as the
e-%i#alent r!*e,%res ali*a0le t! ,!mesti* r!,%*ts.
8:
:.78 Cana,a als! *laims that the im!rt 0an is n!t an internal meas%re im!se, at the 0!r,er( +!r
a,ministrati#e reas!ns. We *!nsi,er that an internal *harge alie, t! a ,!mesti* r!,%*t m%st als!
0e im!se, !n an im!rte, r!,%*t. Ne#ertheless( i+ it is ,eeme, ar!riate t! im!se the *harge at
the 0!r,er rather than "aiting %ntil the im!rte, r!,%*t is a*t%all/ mar.ete,( the same l!gi* alies
in the *ase !+ a reg%lat!r/ meas%re res*ri0ing a 0an !n mar.eting. Is it n!t e-%all/ re+era0le +r!m
the a,ministrati#e !int !+ #ie" an, in the interests !+ the im!rters themsel#es t! re#ent the entr/
!+ the li.e r!,%*t int! the *!%ntr/ al/ing the meas%re rather than "aiting %ntil it is la*e, in a
"areh!%se 0e+!re 0anning its saleO
:.77 The Panel als! n!tes that Cana,a ma.es re+eren*e t! aras. 1.&1 an, 1.&8 !+ the Re!rt !+ the
Panel in Canada Im,ort, 8istribution and Sale of Certain Alcoholic 8rin=s b/ Pro9incial
1ar=eting Agencies
87
t! s%!rt its *laim that the De*ree sh!%l, 0e eAamine, %n,er )rti*le GIB1 !+
the =)TT 1771. We n!te that in aragrah 1.&1 !+ the Re!rt( the Panel *!nsi,ere, that a**!r,ing t!
the N!te Ad Articles GI( GII( GIII( GIC an, GCIII( restri*ti!ns ma,e e++e*ti#e thr!%gh state9tra,ing
!erati!ns "ere >im!rt restri*ti!ns> !r >eA!rt restri*ti!ns>. It *!nsi,ere, that( in the *ase !+
enterrises en6!/ing a m!n!!l/ !+ 0!th im!rtati!n an, ,istri0%ti!n in the ,!mesti* mar.et( the
,istin*ti!n n!rmall/ ma,e 0et"een restri*ti!ns a++e*ting the im!rtati!n !+ r!,%*ts an, restri*ti!ns
a++e*ting im!rte, r!,%*ts l!st m%*h !+ its signi+i*an*e sin*e 0!th t/es !+ restri*ti!n *!%l, 0e ma,e
e++e*ti#e thr!%gh ,e*isi!n 0/ the m!n!!l/. In this *ase( the De*ree ,i, n!t instit%te a m!n!!l/ !n
the im!rt !r ,istri0%ti!n !+ as0est!s an, li.e r!,%*ts( s! the N!te Ad Articles GI( GII( GIII( GIC
an, GCIII is n!t rele#ant t! settlement !+ this matter.
:.7: )s regar,s Cana,a's re+eren*e t! aragrah 1.&8 !+ the a+!rementi!ne, re!rt
7'
( "e *!nsi,er
that it ,!es n!t s%0stantiate Cana,a's !siti!n in this *ase either. In this aragrah( the Panel re+rains
+r!m r%ling !n a #i!lati!n !+ )rti*le IIIB1. It aears t! ,! s!( h!"e#er( +!r reas!ns !+ legal e*!n!m/
0e*a%se it sim%ltane!%sl/ re*!gniFes that )rti*le IIIB1 *!%l, al/ t! state9tra,ing transa*ti!ns.
C!ntrar/ t! Cana,a's asserti!n( this aragrah ,!es n!t *!n+irm the n!n9ali*a0ilit/ !+ )rti*le IIIB1
t! the art !+ an internal meas%re ,ealing "ith the treatment !+ im!rte, r!,%*ts. )t the m!st( it
8:
The Panel ga#e the gr!%n,s +!r its ,e*isi!n in ara. 5.1' as +!ll!"sB
>The +a*t that Se*ti!n 337 is %se, as a means +!r the en+!r*ement !+ Unite, States Patent Da" at the
0!r,er ,!es n!t r!#i,e an es*ae +r!m the ali*a0ilit/ !+ )rti*le IIIB1H the interretati#e N!te t!
)rti*le III states that an/ la"( reg%lati!n !r re-%irement a++e*ting the internal sale !+ r!,%*ts that is
en+!r*e, in the *ase !+ the im!rte, r!,%*t at the time !r !int !+ im!rtati!n is ne#ertheless s%06e*t
t! the r!#isi!ns !+ )rti*le III. N!r *!%l, the ali*a0ilit/ !+ )rti*le IIIB1 0e ,enie, !n the gr!%n, that
m!st !+ the r!*e,%res in the *ase 0e+!re the Panel are alie, t! ers!ns rather than r!,%*ts( sin*e
the +a*t!r ,etermining "hether ers!ns might 0e s%s*eti0le t! Se*ti!n 337 r!*ee,ings !r +e,eral
,istri*t *!%rt r!*e,%res is the s!%r*e !+ the *hallenge, r!,%*ts( that is "hether the/ are !+
Unite, States !rigin !r im!rte,. 2!r these reas!ns( the Panel +!%n, that the r!*e,%res %n,er Se*ti!n
337 *!me "ithin the *!n*et !+ 'la"s( reg%lati!ns an, re-%irements' a++e*ting the internal sale !+
im!rte, r!,%*ts( as set !%t in )rti*le III !+ the =eneral )greement.>
87
),!te, !n && 3ar*h 177:( 4ISD 35S/37.
7'
>The Panel *!nsi,ere, that it "as n!t ne*essar/ t! ,e*i,e in this arti*%lar *ase "hether the ra*ti*es
*!mlaine, !+ "ere *!ntrar/ t! )rti*le IIIB1 0e*a%se it ha, alrea,/ +!%n, that the/ "ere in*!nsistent "ith
)rti*le GI. E!"e#er( the Panel sa" great +!r*e in the arg%ment that )rti*le IIIB1 "as als! ali*a0le t! state9
tra,ing enterrises at least "hen the m!n!!l/ !+ the im!rtati!n an, m!n!!l/ !+ the ,istri0%ti!n in the
,!mesti* mar.ets "ere *!m0ine,( as "as the *ase !+ the r!#in*ial li-%!r 0!ar,s in Cana,a. This interretati!n
"as *!n+irme, a contrario 0/ the "!r,ing !+ )rti*le IIIB:;a<.>
WT/DS135/R
Page 18&
*!%l, *!n+irm the ali*ati!n !+ 0!th r!#isi!ns. Ne#ertheless( as eAlaine, in the re*e,ing
aragrah( the Panel +!%n, that )rti*le GIB1 alie,( re+erring t! the N!te Ad Articles GI( GII( GIII(
GIC an, GCIII. This N!te !nl/ alies t! state9tra,ing transa*ti!ns. In the resent *ase( h!"e#er(
there is n! -%esti!n !+ a meas%re alie, in the *!nteAt !+ state9tra,ing a*ti#ities.
:.77 2!r the +!reg!ing reas!ns( "e *!nsi,er that )rti*le IIIB1 !+ the =)TT 1771 alies t! the 0an
!n im!rting as0est!s an, as0est!s9*!ntaining r!,%*ts im!se, 0/ the De*ree. On the 0asis !+ the
gr!%n,s +!r this *!n*l%si!n( "e ,! n!t *!nsi,er it ne*essar/ t! eAamine +%rther Cana,a's arg%ments
!n the eA*l%si#e ali*ati!n !+ )rti*le GIB1.
:.1'' D!!.ing at Cana,a's arg%ments( it is ,i++i*%lt t! see "hether Cana,a is *laiming that( e#en i+
the im!rt 0an +alls %n,er )rti*le IIIB1( it is als! *!#ere, 0/ )rti*le GIB1. I+ Cana,a ,!es in +a*t ma.e
s%*h a *laim +!r the *%m%lati#e ali*ati!n !+ )rti*le IIIB1 an, )rti*le GIB1 t! the art !+ the De*ree
0anning im!rts( "e ,! n!t *!nsi,er that this +!rms art !+ the terms !+ re+eren*e gi#en t! the Panel
0/ the DS4 an,( e#en i+ that "ere the *ase( Cana,a's arg%ments ,! n!t ma.e a rima +a*ie *ase in the
sense gi#en t! this *!n*et 0/ the )ellate 4!,/.
71
C!nse-%entl/( "e ,! n!t *!nsi,er it ne*essar/ t!
eAamine this !int an/ +%rther.
7&
2. Vioation of *rtice III of the G*TT 122%
;a< )rg%ments !+ the arties
73
:.1'1 )**!r,ing t! Cana,a the li.eness !+ r!,%*ts sh!%l, 0e assesse, !n a *ase90/9*ase 0asis(
*!nsi,ering( in arti*%lar( the en,9%se !+ the r!,%*t( *!ns%mers' tastes an, ha0its( an, the r!erties(
nat%re an, -%alit/ !+ the r!,%*t. T! these sh!%l, 0e a,,e, tari++ *lassi+i*ati!n. Pre*e,ents %n,er the
=)TT 1717 an, the =)TT 1771 ,! n!t( h!"e#er( re-%ire that all the *riteria 0e alie, "hen
e#al%ating the li.eness !+ gi#en r!,%*ts. 3!re!#er( >li.e> ,!es n!t mean >i,enti*al>( it is a matter !+
sh!"ing that the r!,%*ts *!mare, share man/ similar +eat%res. 2!r Cana,a( al/ing the *riteria in
the re*e,ents *!n+irms the li.eness !+ !l/#in/l al*!h!l ;hereina+ter >PC)><( *ell%l!se an, glass
+i0res an, *hr/s!tile +i0re( !n the !ne han,( an, +i0r!9*ement an, *hr/s!tile9*ement r!,%*ts !n the
!ther.
:.1'& The EC *!nten, that as0est!s an, as0est!s9*!ntaining r!,%*ts( !n the !ne han,( an,
s%0stit%te r!,%*ts( !n the !ther( are n!t li.e r!,%*ts "ithin the meaning !+ )rti*le IIIB1 !+ the
=)TT 1771. 2!%r *riteria in arti*%lar *an 0e %se, t! assess the li.eness !+ r!,%*tsB ;a< their
r!erties( nat%re an, -%alit/H ;0< their tari++ *lassi+i*ati!nH ;*< their en,9%seH an, ;,< *!ns%mers'
tastes an, ha0its. In this *ase( three *riteria are rele#antB the r!erties( nat%re an, -%alit/H the tari++
*lassi+i*ati!n an, the en,9%se !+ the r!,%*t. In the EC's #ie" Cana,a is *!n+%sing the *!n*et !+
>li.e> r!,%*t in )rti*le IIIB1 "ith that !+ >*!metiti#e> !r >,ire*tl/ s%0stit%ta0le> r!,%*t in
)rti*le IIIB&( rea, in *!n6%n*ti!n "ith the rele#ant interretati#e N!te. In this *ase( alth!%gh *ertain
+i0r!%s r!,%*ts are in,ee, >s%0stit%ta0le> +!r *hr/s!tile as0est!s an, r!,%*ts *!ntaining it( the/ are
ne#ertheless n!t >li.e> r!,%*ts. )s0est!s has %ni-%e h/si*al *hara*teristi*s an, r!erties that
71
See the Re!rts !+ the )ellate 4!,/ in United States Shirts and ;louses, !. *it% an, Australia
Salmon, !. *it% See als! Se*ti!n CIII.E.1;0< a0!#e.
7&
We n!te in this *!nne*ti!n that the Re!rt !+ the Panel in Canada Im,ort, 8istribution and Sale of
Certain Alcoholic 8rin=s b/ Pro9incial 1ar=eting Agencies, a,!te, !n 1: 2e0r%ar/ 177&( 4ISD 37S/&7( in
ara. 5.&: se*i+i*all/ eAamines the -%esti!n !+ "hether minim%m ri*es +ell %n,er )rti*le GIB1 !r )rti*le IIIB1
an, n!te, the +!ll!"ingB
>The Panel +irst eAamine, "hether the minim%m ri*es +ell %n,er )rti*le GIB1 !r )rti*le IIIB1. The
Panel n!te, that( a**!r,ing t! the N!te ), )rti*le III( a reg%lati!n is s%06e*t t! the r!#isi!ns !+
)rti*le III i+ it 'alies t! an im!rte, r!,%*t an, t! the li.e ,!mesti* r!,%*t' e#en i+ it is 'en+!r*e, in
*ase !+ the im!rte, r!,%*t at the time !r !int !+ im!rtati!n'. The Panel found that( as the minim%m
ri*es "ere alie, t! 0!th im!rte, an, ,!mesti* 0eer( the/ +ell( a**!r,ing t! this N!te( %n,er
)rti*le III.>
73
The arg%ments !+ the arties are set !%t in ,etail in Se*ti!n III a0!#e.
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Page 183
ma.e it ,i++i*%lt t! rela*e +!r *ertain in,%strial %r!ses. This is "h/ the De*ree en#isages
eA*eti!ns. )s as0est!s has s! man/ %ses( there is n! single nat%ral !r s/ntheti* r!,%*t "hi*h(
al!ne( *!%l, rela*e it in all the r!,%*ts an, materials that *!ntain as0est!s.
;0< Iss%es raise, in *!nne*ti!n "ith the arg%ments !+ the arties relating t! )rti*le IIIB1 !+ the
=)TT 1771
:.1'3 The Panel *!nsi,ers that the arg%ments !+ the arties raise the +!ll!"ing iss%esB
;a< The +irst iss%e is the *riteria t! 0e alie, in !r,er t! ,etermine the li.eness !+ the
r!,%*ts in -%esti!n. The Panel n!tes that the arties ,! n!t in +a*t agree !n the
s*!e !+ the *!n*et !+ li.e r!,%*t %n,er )rti*le IIIB1. Ne#ertheless( "ith regar, t!
the *riteria t! 0e ta.en int! *!nsi,erati!n "hen assessing li.eness( the arties re+erre,
t! the *riteria *!ntaine, inter alia in the Re!rt !+ the W!r.ing Part/ !n ;order a6
AdAustments
71
an, in the Re!rts !+ the Panel an, the )ellate 4!,/ in )a,an
a6es on Alcoholic ;e9erages%
75
The r!0lem *an there+!re 0e s%mmariFe, as
"hether the *riteria ,e#el!e, in these *ases m%st 0e alie, as s%*h !r in a arti*%lar
"a/ in the *!nteAt !+ )rti*le IIIB1( !r "hether a,,iti!nal *riteria sh!%l, 0e ta.en int!
*!nsi,erati!n. Inasm%*h as these are the !nl/ *riteria ,e#el!e, t! ,ate in *!nne*ti!n
"ith )rti*le III( "e *!nsi,er it ar!riate t! *!mmen*e !%r anal/sis 0/ al/ing
them t! the +a*ts in this *ase. I+( "hen al/ing these *riteria( "e en*!%nter
,i++i*%lties se*i+i* t! )rti*le IIIB1( "e shall ,eal "ith them at that stage. 3!re!#er(
"e n!te that in the a0!#e9menti!ne, *ase the )ellate 4!,/ se*i+ie, that ea*h
*riteri!n sh!%l, 0e assesse, !n a *ase90/9*ase 0asis.
78
It is th%s n!t a -%esti!n !+
s/stemati*all/ ,etermining the *riteria ali*a0le in the *!nteAt !+ )rti*le IIIB1 0%t
rather !+ ,e*i,ing "hi*h are rele#ant in this *ase.
;0< The se*!n, iss%e is relate, t! the +a*t that the arties !+ten re+er in general t!
s%0stit%te r!,%*ts +!r *hr/s!tile( r!,%*ts *!ntaining as0est!s in general( *hr/s!tile9
*ement r!,%*ts !r +i0r!9*ement r!,%*ts. Ta.ing int! a**!%nt the ra*ti*e !+ the
)ellate 4!,/ regar,ing ,eterminati!n !+ the li.eness !+ r!,%*ts an, the 0%r,en !+
r!!+ in this *!nne*ti!n( "e *!nsi,er that the i,enti+i*ati!n !+ the r!,%*ts "hi*h
ha#e t! 0e *!mare, %rs%ant t! )rti*le IIIB1 is !+ im!rtan*e in !%r +in,ings.
77
We
als! ha#e t! ,e*i,e h!" t! ,eal "ith the +i0res as s%*h as *!mare, t! r!,%*ts
*!ntaining the +i0res.
7:
:.1'1 In #ie" !+ the arti*%lar imli*ati!ns !+ the se*!n, -%esti!n +!r !%r +in,ings( it aears t! %s
ne*essar/ +irst t! ,e#!te a se*ial se*ti!n !+ the re!rt t! this.
;*< The Panel's ar!a*h t! r!,%*t90/9r!,%*t anal/sis an, *ertain se*i+i* ase*ts !+ the
0%r,en !+ r!!+.
:.1'5 The Panel n!tes that the EC ha#e in,i*ate, that 7' er *ent !+ im!rte, *hr/s!tile +i0re "as
%se, +!r ma.ing as0est!s9*ement r!,%*ts ri!r t! the ali*ati!n !+ the De*ree.
77
The Panel als!
71
Re!rt !+ the W!r.ing Part/ !n ;order a6 AdAustments, a,!te, !n & De*em0er 177'(
4ISD 1:S/77( ara. 1:.
75
O. *it.( . &&9&5.
78
I0i,.( . &&.
77
See the Re!rt !+ the )ellate 4!,/ in )a,an 1easures Affecting Agricultural Products, !. *it.(
aras. 138913:.
7:
4earing in min, Cana,a's rel/ t! -%esti!n N!. 15 0/ the Panel( aras. 71978( "e *!n*l%,e that
Cana,a ,!es n!t raise the iss%e !+ the li.eness !+ n!n9+i0r!%s r!,%*ts( "hether s%0stit%te r!,%*ts !r r!,%*ts
*!ntaining them( as *!mare, t! *hr/s!tile !r r!,%*ts *!ntaining it.
77
See the EC's rel/ t! -%esti!n 3' 0/ the Panel( )nneA II( ara. 113 0el!".
WT/DS135/R
Page 181
n!tes that Cana,a >+!*%ses> its arg%ments !n *hr/s!tile +i0res an, s%0stit%te +i0res +!r *hr/s!tile( as
"ell as !n *hr/s!tile9*ement an, +i0r!9*ement r!,%*ts. With regar, t! s%0stit%te +i0res +!r
*hr/s!tile( Cana,a !ints !%t that there are m!re than 15' s%0stit%te +i0res +!r *hr/s!tile +i0re.
Ne#ertheless( Cana,a in,i*ates that( in #ie" !+ )rti*le IIIB1 !+ the =)TT 1771( it *!nsi,ers that the
Panel's +in,ings an, *!n*l%si!ns sh!%l, ta.e int! a**!%nt the ima*t !+ the De*ree in relati!n t! three
s%0stit%te +i0resB PC)( *ell%l!se +i0res an, glass +i0res( as "ell as the +i0r!9*ement r!,%*ts
in*!r!rating these. Cana,a als! in,i*ates that it ,!es n!t in#!.e the arg%ment !+ li.eness "ith
rese*t t! n!n9+i0r!%s s%0stit%tes +!r *hr/s!tile +i0res ;e.g. PCC !r ,%*tile ir!n<( n!r t! n!n9+i0r!%s
r!,%*ts %se, as s%0stit%tes +!r *hr/s!tile9*ement r!,%*ts.
:.1'8 The EC in,i*ate that in its re-%est +!r *!ns%ltati!ns an, its re-%est +!r the esta0lishment !+ a
anel( Cana,a ne#er *laime, that this ,is%te *!n*erne, high9,ensit/ *ement r!,%*ts *!ntaining
*hr/s!tile. The Panels terms !+ re+eren*e ,! n!t re+er t! these either. 3!re!#er( the EC !int !%t that
Cana,a !nl/ eA!rte, *hr/s!tile as0est!s as a ra" material an, n!t in the +!rm !+ high9,ensit/ *ement
r!,%*ts *!ntaining *hr/s!tile.
:.1'7 Ta.ing int! a**!%nt the r%les g!#erning the 0%r,en !+ r!!+
:'
( the Panel in the +irst la*e
*!nsi,ers that it sh!%l, restri*t its eAaminati!n !+ the li.eness !+ r!,%*ts in the *!nteAt !+
)rti*le IIIB1 t! th!se r!,%*ts i,enti+ie, 0/ Cana,a +!r "hi*h the arties r!#i,e, e#i,en*e !r ma,e
an a,e-%ate rima +a*ie *ase t! esta0lish their li.eness !r their a0sen*e !+ li.eness t! *hr/s!tile an,
r!,%*ts *!ntaining it.
:1
:.1': We n!te( that alth!%gh +ri*ti!n r!,%*ts are menti!ne,( Cana,a ,!es n!t in*l%,e these in its
*!maris!ns relating t! )rti*le IIIB1. We there+!re *!n*l%,e that Cana,a ,!es n!t inten, the Panel t!
r%le !n the li.eness !+ +ri*ti!n r!,%*ts *!ntaining *hr/s!tile an, !ther r!,%*ts.
:&
We shall there+!re
n!t eAamine these r!,%*ts in !%r +in,ings relating t! the r!#isi!ns !+ the =)TT 1771.
:.1'7 Se*!n,l/( alth!%gh Cana,a aears s!metimes t! *!nsi,er that *hr/s!tile +i0re is siml/ an
in%t an, n!t a r!,%*t ,er se( "e n!te that the De*ree re+ers t! >#arieties !+ as0est!s +i0res( J
regar,less !+ "hether these s%0stan*es ha#e 0een in*!r!rate, int! materials( r!,%*ts !r ,e#i*es>.
We als! n!te that the t"! arties ,is*%sse, the li.eness !+ as0est!s +i0res as s%*h( irrese*ti#e !+ the
r!,%*ts int! "hi*h the/ "ere in*!r!rate,.
:.11' C!n*erning the EC's arg%ment that neither in the re-%est +!r *!ns%ltati!ns n!r in the re-%est
+!r the esta0lishment !+ a anel n!r in the Panel's terms !+ re+eren*e is it se*i+ie, that the ,is%te
*!n*erns high9,ensit/ *ement r!,%*ts *!ntaining *hr/s!tile( the Panel "ishes t! re*all that it is n!t
ne*essar/ +!r the re-%est +!r the esta0lishment !+ a anel t! list all the r!,%*ts *!n*erne, in ,etail.
The Panel als! *!nsi,ers that the +a*t that Cana,a ,i, n!t eA!rt high9,ensit/ *ement r!,%*ts
*!ntaining *hr/s!tile *ann!t *!nstit%te an !0sta*le t! *laims relating t! these r!,%*ts.
:3
:.111 In the light !+ the +!reg!ing( it "!%l, aear ar!riate t! str%*t%re !%r anal/sis as +!ll!"sB
:'
See in arti*%lar the re!rts !+ the )ellate 4!,/ in Australia Salmon, !. *it% an, )a,an
Agricultural Products, !. *it..
:1
We are a"are that Cana,a's *laims ;see ara. 3.1 a0!#e< state that the De*ree is in*!mati0le "ith
)rti*le IIIB1 !+ the =)TT 1771 0e*a%se it >+a#!%rs the nati!nal in,%str/ !+ r!,%*ts li.e *hr/s!tile *ement an,
*hr/s!tile9*ement r!,%*ts J> 3!re!#er( !%r terms !+ re+eren*e are n!t *!n+ine, t! PC)( *ell%l!se an, glass
+i0res ;see WT/DS135/3<. We n!te( h!"e#er( that Cana,a ,!es n!t as. +!r +in,ings !n !ther +i0res. We
there+!re limit !%r +in,ings t! the r!,%*ts +!r "hi*h "e *!nsi,er Cana,a ha, re-%este, +in,ings( namel/( PC)(
*ell%l!se an, glass +i0res.
:&
See )nneA II( Cana,a's rel/ t! -%esti!n 15 0/ the Panel( aras. 71 et se$%%
:3
See the Re!rt !+ the )ellate 4!,/ in 0uro,ean Communities ;ananas, !. *it.( ara. 138( "here
it is menti!ne, that the !tential eA!rt interest 0/ the Unite, States *!%l, n!t 0e eA*l%,e, e#en th!%gh at that
time the Unite, States ,i, n!t eA!rt 0ananas +r!m their territ!r/ t! the EC. See als! the Re!rt !+ the Panel in
Indonesia Certain 1easures Affecting the Automobile Industr/( a,!te, !n &3 $%l/ 177:( WT/DS51( 55( 57(
81/R( ara. 11.113.
WT/DS135/R
Page 185
;a< 2irst !+ all( t! eAamine "hether PC)( *ell%l!se an, glass +i0res( ta.en searatel/
;i.e. n!t in*!r!rate, in a r!,%*t<( are r!,%*ts li.e t! *hr/s!tile +i0re. E#en i+ the/
are n!t a +inishe, r!,%*t( the +i0res themsel#es are r!,%*ts "hi*h are eA!rte, an,
mar.ete, an, "e 0elie#e it is rele#ant t! *!mare them.
;0< Se*!n,l/( "ith regar, t! r!,%*ts *!ntaining as0est!s !r s%0stit%te +i0res( "e n!te
that Cana,a *!n+ines its *!maris!n t! r!,%*ts *!m0ining *ement an, *hr/s!tile
;>*hr/s!tile9*ement>< !r !ne !r the !ther !+ the three a+!rementi!ne, +i0res ;>+i0r!9
*ement><. We shall there+!re limit !%r +in,ings t! these *ateg!ries.
;*< Dastl/( "e n!te that( alth!%gh Cana,a ma.es a se*i+i* re+eren*e t! an, *ites as an
eAamle *ertain r!,%*tsB ies( tiles( ins%lating tiles !r 0!ar,s( it ,!es n!t +%rnish an
eAha%sti#e list !+ the r!,%*ts a*t%all/ a++e*te, 0/ the meas%re an, its *laims are n!t
arrange, !n a >r!,%*t90/9r!,%*t> 0asis. Cana,a re+ers in generi* terms t! t"!
ma6!r *ateg!ries !+ r!,%*tB ;a< *hr/s!tile( PC)( *ell%l!se an, glass +i0resH an,
;0< r!,%*ts *!m0ining *hr/s!tile an, *ement !r !ther +i0res an, *ement. We als!
n!te that the EC ,!es n!t ,isting%ish 0et"een #ari!%s +i0r!9*ement !r *hr/s!tile9
*ement r!,%*ts. E#en th!%gh the ,i++erent r!,%*ts *!m!se, !+ *hr/s!tile9*ement
!r +i0r!9*ement ha#e ,i++erent %ses ;"ater ies( thermal ins%lati!n( r!!+ing( et*.<( "e
,! n!t *!nsi,er it ne*essar/ t! i,enti+/ ea*h r!,%*t man%+a*t%re, in *hr/s!tile9
*ement !r +i0r!9*ement 0e*a%se the/ are all *!m!se, !+ either +i0r!9*ement !r
*hr/s!tile9*ement an, the matters ,is*%sse, 0/ the arties *!n*erning their li.eness
are essentiall/ relate, t! "hether !r n!t the/ *!ntain *hr/s!tile.
;,< )nal/sis !+ li.eness
2i4 Introductor/ remar=s
:.11& We n!te that 0!th Cana,a an, the EC re+er t! the Re!rt !+ the W!r.ing Part/ !n ;order a6
AdAustments, "hi*h( %sing the terms !+ the )ellate 4!,/ in )a,an Alcoholic ;e9erages, la/s
,!"n the +%n,amental rin*ile +!r interreting the "!r,s >li.e r!,%*ts> in general in the #ari!%s
r!#isi!ns !+ the =)TT 1717. This Re!rt states the +!ll!"ingB
> J the interretati!n !+ the term ?'li.e r!,%*ts'@ sh!%l, 0e eAamine, !n a *ase90/9*ase 0asis. This
"!%l, all!" a +air assessment in ea*h *ase !+ the ,i++erent elements that *!nstit%te a 'similar' r!,%*t.
S!me *riteria "ere s%ggeste, +!r ,etermining( !n a *ase90/9*ase 0asis( "hether a r!,%*t is 'similar'B
the r!,%*t's en,9%ses in a gi#en mar.etB *!ns%mers' tastes an, ha0its( "hi*h *hange +r!m *!%ntr/ t!
*!%ntr/H the r!,%*t's r!erties( nat%re an, -%alit/>.
:1
:.113 The Panel an, the )ellate 4!,/ in )a,an Alcoholic ;e9erages re*!gniFe, the rele#an*e
!+ this list an, a,,e, tari++ *lassi+i*ati!n in the Earm!niFe, S/stem ;>ES><. The )ellate 4!,/ als!
!inte, !%t that the rin*ile ela0!rate, 0/ the W!r.ing Part/ in ;order a6 AdAustments ha, 0een
+!ll!"e, in alm!st all the re!rts !+ s%0se-%ent anels. We n!te in this *!nne*ti!n that the anel in
United States 7asoline, in the *!nteAt !+ the =)TT 1771( alie, this rin*ile "hen eAamining
li.eness in relati!n t! )rti*le IIIB1.
:5
:.111 2inall/ "e n!te that in )a,an Alcoholic ;e9erages the )ellate 4!,/ rea++irme, that
anels m%st %se their 0est 6%,gement "hen ,etermining "hether( r!,%*ts are in +a*t li.e r!,%*ts(
an, this "!%l, al"a/s ine#ita0l/ in#!l#e a ,egree !+ ,is*reti!nar/ 6%,gement. The )ellate 4!,/
als! *!n+irme, that( "hen ma.ing an assessment( n! single ar!a*h "!%l, 0e ar!riate t! e#er/
single *ase. The *ir*%mstan*es e*%liar t! ea*h *ase m%st 0e ta.en int! a**!%nt. The *riteria !%tline,
:1
O. *it.( ara. 1:.
:5
O. *it.( aras. 8.: an, 8.7.
WT/DS135/R
Page 188
in the re!rt !n ;order a6 AdAustments sh!%l, 0e eAamine,( 0%t there *!%l, 0e n! re*ise an,
a0s!l%te ,e+initi!n !+ li.e.
:.115 We "!%l, a,, that e#en th!%gh( +!r reas!ns !+ *larit/( ea*h *riteri!n has t! 0e eAamine,
searatel/( it is m!re than li.el/ that the/ are largel/ inter,een,ent. In !ther "!r,s( it ,!es n!t
aear ar!riate t! eAamine ea*h !+ the *riteria in is!lati!n. O%r eAaminati!n sh!%l, 0e 0ase, !n
an assessment !+ ea*h *riteri!n in its *!nteAt( that is t! sa/ in the light !+ the !ther *riteria ,eeme,
rele#ant in this *ase.
:.118 Ea#ing ,e+ine, the ar!a*h t! 0e %se,( "e *!mmen*e !%r anal/sis 0/ eAamining the
li.eness !+ +i0res.
2ii4 :i=eness of asbestos fibres and substitute fibres
:.117 We n!te that( in their arg%ments( the arties ha#e n!t al"a/s ,isting%ishe, 0et"een +i0res as
s%*h an, r!,%*ts *!ntaining s%*h +i0res.
:8
In this se*ti!n( there+!re( "e shall eAamine the rele#ant
*riteria r!#i,e, that the/ *an 0e relate, se*i+i*all/ t! the +i0res.
Pr!erties( nat%re an, -%alit/ !+ the r!,%*ts
:.11: Cana,a *!nsi,ers that the nat%re !+ *hr/s!tile an, s%0stit%te +i0res is the same 0e*a%se the/
are all +i0res. E#en i+ the length( ,iameter an, "i,th9,iameter rati! ha#e an e++e*t !n ath!geni*it/(
this ,!es n!t mean that +i0res !+ ,i++erent ,imensi!ns *ann!t 0e li.e +i0res. The ,imensi!nal
arameters set 0/ the WEO ,! n!t *!nstit%te the *riteri!n !+ the nat%re( -%alit/ an, r!erties
a**!r,ing t! "hi*h the li.eness !+ +i0r!%s r!,%*ts is ,etermine,. T!! m%*h im!rtan*e sh!%l, n!t
0e atta*he, t! the se*ial nat%re !+ as0est!s +i0res *laime, 0/ the EC. E#en i+ s%0stit%te +i0res are
m!re *!stl/ than *hr/s!tile +i0res an, ha#e !ther %ses( *hr/s!tile9*ement !r +i0r!9*ement
man%+a*t%rers %se them +!r the same %r!ses an, the li.eness !+ the man%+a*t%ring r!*esses +!r
*hr/s!tile9*ement an, +i0r!9*ement sh!"s the similarities !+ the r!erties an, the nat%re !+ these
+i0res. In !r,er t! !++er the same te*hni*al g%arantees as *hr/s!tile9*ement r!,%*ts ;!ne !+ the
*!n,iti!ns +!r s%0stit%ta0ilit/ in the De*ree<( +i0r!9*ement r!,%*ts m%st in,%0ita0l/ ha#e the same
r!erties( -%alit/ an, nat%re. Similarl/( the >l!"er> ath!geni*it/ !+ s%0stit%te +i0res sh!%l, n!t
re*l%,e the *!n*l%si!n that the/ are li.e as0est!s. Pr!,%*ts ma/ 0e *!nsi,ere, li.e ,esite their
,i++ering ima*t !n health. There is n! *!ntra,i*ti!n 0et"een ,isting%ishing t"! t/es !+ +i0re in
s*ienti+i* terms an, a**!r,ing t! their ath!geni*it/( !n the !ne han,( an,( !n the !ther( al/ing the
*riteria ,eri#e, +r!m WTO an, =)TT ra*ti*e +!r ,etermining "hether r!,%*ts are li.e. The
t!Ai*it/ !+ a r!,%*t is n!t re*!gniFe, as a *riteri!n +!r the e#al%ati!n !+ li.eness.
:.117 The EC *!nsi,er that the r!erties( nat%re an, -%alit/ !+ r!,%*ts are im!rtant "hen
assessing li.eness "ithin the meaning !+ )rti*le IIIB1. Unli.e !ther *riteria( this *riteri!n has al"a/s
0een %se, 0/ anels in *!nne*ti!n "ith )rti*le IIIB1. In the light !+ this *riteri!n( the r!,%*ts are in
an/ *ase ,i++erent. )s0est!s +i0res ha#e a #er/ arti*%lar +i0r!%s teAt%re ;0%n,les !+ +i0rils that *an
easil/ 0e searate, length"a/s an, ha#e a #er/ small ,iameter<. The h/si*al an, *hemi*al
*hara*teristi*s !+ s%0stit%te +i0res are n!t the same as th!se !+ as0est!s +i0res ;+!r eAamle( their
,iameter is m%*h 0igger an, their +i0rillati!n *aa*it/ is m!re limite,<. N! single nat%ral !r s/ntheti*
s%0stit%te r!,%*t is a0le t! *!m0ine( !r *!m0ines( all the r!erties !+ as0est!s( 0earing in min, the
%ni-%e nat%re !+ the *hara*teristi*s !+ as0est!s +i0res. These *hara*teristi*s als! ma.e as0est!s +i0res
arti*%larl/ ,anger!%s +!r health. Sin*e 1777( the WEO has *lassi+ie, as0est!s +i0res in *ateg!r/ 1 !+
r!#en *ar*in!gens. The EC !int !%t that( in *!ntrast( n!ne !+ the s%0stit%te r!,%*ts +!r *hr/s!tile
as0est!s is *lassi+ie, as a r!#en *ar*in!gen +!r h%mans. The nat%re( *!m!siti!n( h/si*al
r!erties an, r!#en e++e*ts !n h%man health !+ *hr/s!tile ma.e it ra,i*all/ ,i++erent +r!m s%0stit%te
r!,%*ts. In s%*h a sit%ati!n( the health ris. !se, 0/ the r!,%*t m%st ne*essaril/ 0e ta.en int!
:8
See( +!r eAamle( the arg%ments !+ the arties !n the *!n*et !+ >li.e r!,%*ts>( Se*ti!n III.C. &;0<;i<
a0!#e.
WT/DS135/R
Page 187
a**!%nt. ) ,anger!%s r!,%*t sh!%l, 0e regar,e, as 0eing ,i++erent in nat%re an, -%alit/ +r!m a
harmless !r less ,anger!%s r!,%*t.
:.1&' The Panel *!nsi,ers that( in a,,iti!n t! the +a*t%al elements( the arties' arg%ments raise a
+irst iss%e( namel/( in "hat *!nteAt sh!%l, the *riteri!n !+ the r!erties( nat%re an, -%alit/ !+ the
+i0res 0e ta.en int! a**!%nt +!r the li.eness test "ithin the meaning !+ )rti*le IIIB1O The arties in
+a*t 0asi*all/ ta.e % the -%esti!n !+ the "a/ in "hi*h the r!erties( nat%re an, -%alit/ !+ the +i0res
sh!%l, 0e ta.en int! a**!%nt 0/ the Panel.
:.1&1 The Panel n!tes that n! art/ *!ntests that the str%*t%re !+ *hr/s!tile +i0res is %ni-%e 0/ nat%re
an, in *!maris!n "ith arti+i*ial +i0res that *an rela*e *hr/s!tile as0est!s. The arties agree that
n!ne !+ the s%0stit%te +i0res menti!ne, 0/ Cana,a in *!nne*ti!n "ith )rti*le IIIB1 has the same
str%*t%re( either in terms !+ its +!rm( its ,iameter( its length !r its !tential t! release arti*les that
!ssess *ertain *hara*teristi*s.
:7
3!re!#er( the/ ,! n!t ha#e the same *hemi*al *!m!siti!n
::
( "hi*h
means that( in %rel/ h/si*al terms( n!ne !+ them has the same nat%re !r -%alit/. It *!%l, there+!re
0e *!n*l%,e, that the/ are n!t li.e r!,%*ts.
:.1&& It sh!%l, 0e re*alle,( ne#ertheless( that the *!nteAt +!r the ali*ati!n !+ )rti*le IIIB1 is n!t a
s*ienti+i* *lassi+i*ati!n eAer*ise. The !06e*ti#e !+ )rti*le III *!n*erns mar.et a**ess +!r r!,%*ts.
:7
Its %r!se is t! re#ent internal meas%res +r!m 0eing alie, in s%*h a "a/ as t! r!te*t ,!mesti*
r!,%*ti!n.
7'
)rti*le IIIB1 %h!l,s this !06e*ti#e in rese*t !+ la"s( reg%lati!ns an, re-%irements
a++e*ting the sale( mar.eting( %r*hase( trans!rtati!n( ,istri0%ti!n an, %se !+ r!,%*ts !n the
,!mesti* mar.et. We als! n!te that the *riteri!n in*l%,es the *!n*et !+ the >-%alit/> !+ a r!,%*t(
"hi*h is in,i*ati#e !+ a *!mmer*ial ar!a*h( !ther"ise the "!r, >-%alit/> "!%l, n! ,!%0t ha#e
0een %se, in the l%ral( in "hi*h *ase it "!%l, ha#e 0een the same as >r!erties> in the sense !+ a
arti*%lar -%alit/ !+ a r!,%*t.
71
It is th%s "ith a #ie" t! mar.et a**ess that the r!erties( nat%re an,
-%alit/ !+ im!rte, an, ,!mesti* r!,%*ts ha#e t! 0e e#al%ate,.
:.1&3 )lth!%gh "e share Cana,a's #ie" that all the r!,%*ts are >+i0res> an, th%s li.e r!,%*ts( "e
,! n!t *!nsi,er that the eAaminati!n !+ the h/si*al str%*t%re an, *hemi*al *!m!siti!n ;"hi*h in !%r
#ie" relate t! the nat%re !+ the r!,%*t< sh!%l, 0e ta.en t! the !ther eAtreme( e#en th!%gh it has 0een
arg%e, that !ther anels +!ll!"e, a narr!"er ar!a*h in this rese*t.
7&
I+ s%*h an ar!a*h "as
a,!te,( man/ r!,%*ts "!%l, ne#er 0e li.e in rese*t !+ their nat%re( e#en i+ the/ ha, a similar %se.
On the !ther han,( r!,%*ts "hi*h 0!re n! relati!n t! ea*h !ther in terms !+ their %se in e#er/,a/ li+e
*!%l, 0e *!nsi,ere, as li.e r!,%*ts 0e*a%se !+ their *hemi*al *!m!siti!n. )s menti!ne, in
ara. :.111 a0!#e( "e n!te the nee, t! e#al%ate these *riteria !n a *ase90/9*ase 0asis( in !ther "!r,s(
0earing in min, the +a*t%al *ir*%mstan*es. In this arti*%lar *ase( 0e*a%se !+ its h/si*al an,
*hemi*al *hara*teristi*s( as0est!s is a %ni-%e r!,%*t. We n!te( ne#ertheless( that +!r man/ in,%strial
%ses !ther r!,%*ts ha#e the same ali*ati!ns as as0est!s. I+ the *hemi*al an, h/si*al
:7
In this *!nne*ti!n( "e n!te the !0ser#ati!n 0/ !ne !+ the eAerts *!ns%lte, 0/ the Panel that the
*hara*teristi*s !+ s!me arti+i*ial s%0stit%te +i0res *an 0e altere, 0/ in,%str/ i+ ne*essar/ ;Dr. Een,ers!n(
ara. 5.3:3 a0!#e<.
::
Regar,ing the *hemi*al *!m!siti!n !+ as0est!s( see the ta0le r!#i,e, 0/ the EC in rel/ t!
-%esti!n &7 0/ the Panel( ara. 1'8.
:7
See the Re!rt !+ the Panel in United States 1easures Affecting Alcoholic and 1alt ;e9erages(
a,!te, !n 17 $%ne 177&( 4ISD 37S/&'8( ara. 5.&5.
7'
I0i,.( ara. 5.71. See als! the Re!rt !+ the Panel in Italian 8iscrimination Against Im,orted
Agricultural 1achiner/( a,!te, !n &3 O*t!0er 175:( 7S/8'( ara. 11( an, the Re!rt !+ the Panel
United States Section 33" of the ariff Act of 1!30( a,!te, !n 7 N!#em0er 17:7( 38S/315( ara. 5.1'.
71
In this *!nne*ti!n( "e n!te that the English teAt !+ the Re!rt !n ;order a6 AdAustments, !. *it.(
ara. 1:( %ses the "!r,s >r!erties> an, >-%alit/>.
7&
See the EC's arg%ments in ara. 3.11 a0!#e *!n*erning the Re!rt !+ the Panel in 00C 1easures
on Animal *eed Proteins( a,!te, !n 11 3ar*h 177:( 4ISD &5S/17. The Panel ,!es n!t *!nsi,er that the
+a*t%al elements e*%liar t! this a++air an, the *!n*l%si!ns !+ the Panel ;see ara. 1.&< ma.e it !ssi0le t! ,ra"
the *!n*l%si!ns s%ggeste, 0/ the EC in the resent *ase.
WT/DS135/R
Page 18:
*hara*teristi*s "ere t! 0e re*!gniFe, as ,e*isi#e in this *ase( "e "!%l, ha#e t! ,isregar, all the !ther
*riteria an, this ,!es n!t aear t! %s t! 0e *!nsistent "ith the +leAi0ilit/ gi#en t! anels 0/ the
)ellate 4!,/ "hen eAamining the rin*ile !+ li.eness.
:.1&1 )s regar,s r!erties( "e n!te that n! s%0stit%te +i0re al!ne *!m0ines all the r!erties an,
-%alities !+ *hr/s!tile +i0re itsel+. )rti*le &( aragrah I( se*!n, s%09aragrah !+ the De*ree
re*!gniFes this 0/ 0asing the *riteria +!r s%0stit%ti!n inter alia !n >all te*hni*al g%arantees !+ sa+et/
*!rres!n,ing t! the %ltimate %r!se !+ the %se there!+>. ) narr!" interretati!n !+ the *!n*et !+
li.e r!,%*t might erhas lea, %s t! eA*l%,e the li.eness !+ r!,%*ts "hi*h ,! n!t al"a/s sh!" the
same r!erties in all *ir*%mstan*es. In the *!nteAt !+ mar.et a**ess( it is n!t ne*essar/ +!r ,!mesti*
r!,%*ts t! !ssess all the r!erties !+ the im!rte, r!,%*t in !r,er t! 0e a li.e r!,%*t. It s%++i*es
that( +!r a gi#en %tiliFati!n( the r!erties are the same t! the eAtent that !ne r!,%*t *an rela*e the
!ther. I+ the r!erties !+ r!,%*ts al"a/s ha, t! 0e the same( the *ateg!r/ !+ li.e r!,%*ts "!%l, 0e
#er/ small( s!metimes e#en 6%st !ne r!,%*t. We n!te in this *!nne*ti!n that the Panel in )a,an
Customs 8uties, a6es and :abelling Practices on Im,orted Bines and Alcoholic ;e9erages
73
*!nsi,ere, that gin( #!,.a( "his./( 0ran,/( li-%e%rs( still "ine an, sar.ling "ine sh!%l, 0e
*!nsi,ere, as li.e r!,%*ts "ithin the meaning !+ )rti*le IIIB& in #ie" !+ their similar r!erties an,
en,9%ses
71
"e *!nsi,er that this Re!rt %h!l,s !%r ar!a*h. I+ r!,%*ts "h!se nat%re is n!t eAa*tl/
the same an, "h!se r!erties are n!t al"a/s i,enti*al( +!r eAamle "ine !n the !ne han, an, "his./
!n the !ther( *an 0e *!nsi,ere, li.e r!,%*ts( the same ar!a*h *an 0e +!ll!"e, %rs%ant t!
)rti*le IIIB1 +!r *hr/s!tile +i0res !n the !ne han, an, PC)( *ell%l!se an, glass +i0res !n the !ther.
:.1&5 In this *ase( e#en i+ the en,9%ses !+ *hr/s!tile +i0res !n the !ne han, an, PC)( *ell%l!se an,
glass +i0res !n the !ther are !nl/ the same +!r a small n%m0er !+ their rese*ti#e ali*ati!ns( in s!me
*ases the ali*ati!ns are similar. Their r!erties are then e-%i#alent( i+ n!t i,enti*al. This is the
6%n*t%re !+ interest t! %s( the m!ment "hen the r!,%*ts are %se, +!r the same %r!se. )s "e ha#e
alrea,/ menti!ne, a0!#e( the *riteria r!!se, +!r ,etermining li.eness sh!%l, n!t 0e eAamine, in
is!lati!n. In this arti*%lar *ase( "e *!nsi,er that the en,9%se !+ the r!,%*ts sh!%l, a++e*t the "a/ in
"hi*h "e eAamine the r!erties !+ the +i0res *!mare,( inasm%*h as n!ne !+ the +i0res menti!ne, 0/
Cana,a al"a/s +%l+ils the same +%n*ti!ns.
:.1&8 We there+!re *!n*l%,e that( ta.ing int! a**!%nt the r!erties *riteri!n( *hr/s!tile +i0res are
li.e PC)( *ell%l!se an, glass +i0res. With regar, t! nat%re an, -%alit/( "e *!nsi,er that these *riteria
sh!%l, n!t 0e alie, narr!"l/ in the +a*t%al *ir*%mstan*es !+ the resent *ase. C!nse-%entl/( the
+a*t that *hr/s!tile +i0res ,! n!t ha#e the same str%*t%re !r *hemi*al *!m!siti!n as PC)( *ell%l!se !r
glass +i0res *ann!t 0e ,e*isi#e +!r the e#al%ati!n !+ the li.eness !+ these r!,%*ts.
:.1&7 The se*!n, -%esti!n that m%st 0e ans"ere, in relati!n t! the ali*ati!n !+ the r!erties(
nat%re an, -%alit/ *riteri!n is that !+ the rele#an*e !+ the ris. !+ the r!,%*t raise, 0/ the EC.
75
:.1&: The Panel has n!te, the EC's arg%ment that the *aa*it/ !+ *hr/s!tile +i0res t! 0rea. % int!
eAtremel/ +ine arti*les that *an enetrate the %lm!nar/ al#e!li ga#e these +i0res a r!ert/ "hi*h
meant that the/ "ere n!t li.e 0e*a%se this r!ert/ "as the 0asis +!r *hr/s!tile's !tential t! *a%se
,iseases !+ the l%ng an, the le%ra( mainl/ l%ng *an*ers an, mes!theli!mas.
78
73
),!te, !n 1' N!#em0er 17:7( 4ISD 31S/:1( hereina+ter >)a,an Alcoholic ;e9erages 21!?"4>.
71
I0i,%( ara. 5.8.
75
We n!te that the EC ,ra" attenti!n t! the ris. !se, 0/ *hr/s!tile +i0res n!t !nl/ in *!nne*ti!n "ith
the r!erties( nat%re an, -%alit/ *riteri!n 0%t als! in relati!n t! the en,9%se an, the tastes an, ha0its !+
*!ns%mers. In this s%0se*ti!n( h!"e#er( "e eAamine the *riteri!n !+ the ris. !+ a r!,%*t inasm%*h as the EC(
in its arg%ments( re+erre, t! this *riteri!n mainl/ in relati!n t! the *riteri!n !+ the r!erties( nat%re an, -%alit/
!+ as0est!s +i0res. The *!n*l%si!ns !+ !%r eAaminati!n( h!"e#er( "ill al/ t! all the *ir*%mstan*es in "hi*h
the EC re+er t! the ris. !+ a r!,%*t in relati!n t! the ,eterminati!n !+ li.eness "ithin the meaning !+
)rti*le IIIB1 !+ the =)TT 1771.
78
3es!theli!ma is a +!rm !+ le%ral *an*er. See +!r eAamle the ,es*riti!n 0/ Dr. Een,ers!n(
ara. 5.&7 a0!#e.
WT/DS135/R
Page 187
:.1&7 We n!te +irst !+ all that the ris. !+ a r!,%*t +!r h%man !r animal health has ne#er 0een %se,
as a +a*t!r !+ *!maris!n 0/ anels entr%ste, "ith al/ing the *!n*et !+ >li.eness> "ithin the
meaning !+ )rti*le III. In a,,iti!n t! the +a*t that n! !ther anel has r!0a0l/ e#er 0een *alle, %!n
t! eAamine a -%esti!n similar t! the !ne 0e+!re %s( in !%r #ie" the reas!n is t! 0e +!%n, in the
econom/ !+ the =)TT 1771. Its rim!r,ial r!le is t! ens%re that a *ertain n%m0er !+ ,is*ilines are
alie, t! ,!mesti* tra,e reg%lati!ns. )rti*le GG !+ the =)TT( h!"e#er( re*!gniFes that *ertain
interests ma/ ta.e re*e,en*e !#er the r%les g!#erning internati!nal tra,e an, a%th!riFes the a,!ti!n
!+ tra,e meas%res aime, at reser#ing these interests "hile at the same time !0ser#ing *ertain
*riteria.
77
:.13' We *!nsi,er that intr!,%*ing a *riteri!n !n the ris. !+ a r!,%*t int! the anal/sis !+ li.eness
"ithin the meaning !+ )rti*le III "!%l, largel/ n%lli+/ the e++e*t !+ )rti*le GG;0<.
7:
The r!te*ti!n !+
h%man health an, li+e is se*i+i*all/ *!#ere, 0/ this )rti*le. )rti*le III( !n the !ther han,( ,!es n!t
re+er t! this. The 0%r,en !+ r!!+ "!%l, n!t !+ *!%rse 0e greatl/ m!,i+ie, 0e*a%se the EC "!%l, still
ha#e t! r!#e the ris. !+ the r!,%*t( al/ing the rin*ile !+ ,robatio incumbit eAus $ue di6it% We
ne#ertheless *!nsi,er that !ther ase*ts that +!rm art !+ the rights an, !0ligati!ns neg!tiate, 0/ the
3em0ers "!%l, 0e a++e*te,. Intr!,%*ing the r!te*ti!n !+ h%man health an, li+e int! the li.eness
*riteria "!%l, all!" the 3em0er *!n*erne, t! a#!i, the !0ligati!ns in )rti*le GG( arti*%larl/ the
test !+ ne*essit/ +!r the meas%re %n,er aragrah ;0< an, the *!ntr!l eAerte, 0/ the intr!,%*t!r/
*la%se t! )rti*le GG *!n*erning an/ a0%se !+ )rti*le GG;0< "hen al/ing the meas%re. )s the
)ellate 4!,/ has emhasiFe, !n a n%m0er !+ !**asi!ns
77
( all these r!#isi!ns in the WTO
)greement m%st 0e gi#en meaning. Intr!,%*ing a ris. *riteri!n int! the eAaminati!n !+ li.eness
%n,er )rti*le III "!%l, 0e *!ntrar/ t! this 0asi* rin*ile !+ interretati!n.
:.131 2inall/( i+ s%*h a *riteri!n "as alie,( it "!%l, ma.e all the !ther *riteria menti!ne, 0/ the
W!r.ing Part/ !n ;order a6 AdAustments
1''
t!tall/ re,%n,ant 0e*a%se it "!%l, 0e*!me ,e*isi#e
"hen assessing the li.eness !+ r!,%*ts in e#er/ *ase in "hi*h it "as in#!.e,( irrese*ti#e !+ the
!ther *riteria alie,.
:.13& We there+!re *!n*l%,e that( 0earing in min, the !#erall e*!n!m/ !+ the WTO )greement( in
arti*%lar the relati!nshi 0et"een )rti*le III an, )rti*le GG;0<( it is n!t ar!riate t! al/ the
>ris.> *riteri!n r!!se, 0/ the EC( neither in the *riteri!n relating t! the r!erties( nat%re an,
-%alit/ !+ the r!,%*t( n!r in the !ther li.eness *riteria in#!.e, 0/ the arties.
En,9%se
:.133 Cana,a *!nsi,ers that( gi#en the nat%re !+ *hr/s!tile +i0re ;a ra" mineral res!%r*e<( se*ial
im!rtan*e m%st 0e atta*he, t! the *riteri!n !+ the r!,%*t's en,9%se. Chr/s!tile +i0re has n! %se in
its ra" +!rm. )+ter in*!r!rati!n int! the *ement( *hr/s!tile +i0re an, PC)( *ell%l!se an, glass +i0res
are %se, +!r the man%+a*t%re !+ *hr/s!tile9*ement an, +i0r!9*ement r!,%*ts rese*ti#el/. )t the
en,9%se stage( these r!,%*ts *!nstit%te !ne single r!,%*t t! 0e %se, +!r the same %r!se.
)**!r,ing t! Cana,a( al/ing the en,9%se *riteri!n s%++i*es t! *!n*l%,e that *hr/s!tile +i0res an, the
a+!rementi!ne, s%0stit%te +i0res are li.e r!,%*ts. I+ en,9%se is a .e/ *riteri!n +!r ,etermining
"hether t"! r!,%*ts are ,ire*tl/ *!metiti#e !r s%0stit%ta0le %rs%ant t! )rti*le IIIB&( it is e-%all/
im!rtant +!r li.eness. It is the mar.et "hi*h ,etermines the en,9%se !+ a r!,%*t.
:.131 )**!r,ing t! the EC( the en,9%ses !+ these +i0res are ,i++erent an, this *riteri!n is n!t
,e*isi#e "hen ,etermining >li.eness> "ithin the meaning !+ )rti*le IIIB1( "hi*h is essentiall/
77
See the re!rt !+ the Panel in Canada 1easures on 06,ort of Un,rocessed 3erring and Salmon(
a,!te, !n && 3ar*h 17::( 4ISD 35S/7:( ara. 1.8.
7:
See the ,is*%ssi!n !n the *!n*et !+ e++e*ti#eness( +!!tn!te && a0!#e.
77
See in arti*%lar Argentina Safeguards, !. *itH ;razil 8esiccated Coconut, !. *it%
1''
See ara. :.11& a0!#e.
WT/DS135/R
Page 17'
>te*hni*al>. E#en "here r!,%*ts ma/ ha#e s!me en,9%ses in *!mm!n( these %ses are n!t s%++i*ient
t! *lassi+/ the r!,%*ts as li.e r!,%*ts "hen ea*h !+ them als! has man/ !ther en,9%ses. The
*riteri!n !+ en,9%se *!%l, n!t( 0/ itsel+( in#ali,ate the *!n*l%si!n 0ase, !n !ther *riteria that these
r!,%*ts are n!t li.e r!,%*ts "ithin the meaning !+ )rti*le IIIB1 !+ the =)TT 1771.
:.135 The Panel n!tes that Cana,a limite, its arg%ments t! the %se !+ *hr/s!tile in *ement r!,%*ts
an,( at the same time( t! the %se !+ PC)( *ell%l!se an, glass +i0res in *ement r!,%*ts.
:.138 We ha#e alrea,/ +!%n, a0!#e
1'1
that the rese*ti#e r!erties !+ *hr/s!tile +i0res !n the !ne
han, an, PC)( *ell%l!se !r glass +i0res !n the !ther all!"e, *ertain i,enti*al !r at least similar en,9
%ses. We ,! n!t there+!re ,eem it ne*essar/ t! ela0!rate this +%rther( eA*et t! re*all that( in !%r
#ie"( the +a*t that all the en,9%ses !+ these +i0res are n!t li.e %ses ,!es n!t mean that the r!,%*ts are
n!t li.e r!,%*ts.
C!ns%mers' tastes an, ha0its
:.137 )s regar,s *!ns%mers' tastes an, ha0its( Cana,a is !+ the #ie" that man%+a*t%rers !+
*hr/s!tile9*ement !r +i0r!9*ement r!,%*ts are the *!ns%mers. The ,r! in *hr/s!tile as0est!s
im!rts in 1778 an, 1777 is a res%lt !+ the De*ree an, n!t !+ a *hange in *!ns%mers' tastes an, ha0its.
It is th%s inar!riate t! *!nsi,er this *riteri!n. Cana,a agrees "ith the ra*ti*e !+ anels *ite, 0/
the EC
1'&
( an, as.s the Panel n!t t! ta.e int! a**!%nt *!ns%mers' tastes an, ha0its "hen ,etermining
the li.eness !+ r!,%*ts in this *ase.
:.13: In the #ie" !+ the EC( the *!ns%mers' tastes an, ha0its *riteri!n is n!t a ri!ri rele#ant
0e*a%se the r!,%*ts *!n*erne, are n!t e#er/,a/ *!ns%mer g!!,s. It might ne#ertheless 0e
interesting t! anal/se the *!ns%mers' er*eti!n !+ these r!,%*ts. In+!rme, %sers "ill n!t *h!!se
as0est!s a+ter the *!metent internati!nal !rganiFati!ns ha#e ,e*i,e, that it is a r!#en *ar*in!gen.
:.137 We n!te +irst !+ all that the arties ,! n!t *!nsi,er it %se+%l !r ne*essar/ +!r %s t! ta.e this
*riteri!n int! a**!%nt. In !%r #ie"( this is n!t in itsel+ s%++i*ient reas!n +!r %s n!t t! ta.e it int!
a**!%nt. We ,! n!t agree either( that( in #ie" !+ )rti*le IIIB1( there are reas!ns +!r eA*l%,ing
*!nsi,erati!n !+ this *riteri!n a ri!ri.
1'3
We *!nsi,er that it is % t! the Panel t! ,e*i,e "hether !ne
!+ the *riteria ali*a0le t! ,etermining the >li.eness> !+ the r!,%*ts *!n*erne, is rele#ant !r n!t.
1'1
What is im!rtant is t! ens%re that !%r anal/sis ta.es int! a**!%nt all the rele#ant elements. In this
arti*%lar *ase( "e n!te +irst !+ all that( "hen ,etermining the tastes an, ha0its !+ *!ns%mers( it is
ne*essar/ t! la*e !nesel+ at the time ri!r t! the entr/ int! +!r*e !+ the 0an in the De*ree. E#en i+ "e
1'1
See ara. :.1&5 a0!#e.
1'&
These *ases are *ite, in ara. 3.118 a0!#e an, in the *!rres!n,ing +!!tn!tes.
1'3
In the *ases *ite, 0/ the EC L t! "hi*h Cana,a als! re+ers L "e ,! n!t +in, an/ legal reas!ns
relating t! )rti*le IIIB1 t! 6%sti+/ eA*l%,ing the *riteri!n !+ *!ns%mers' tastes an, ha0its. In 1easures Affecting
Alcoholic and 1alt ;e9erages ;a,!te, !n 17 $%ne 177&( 4ISD 37S/&'8<( ara. 5.73( the anel in,ee, ,i, n!t
agree that l!" al*!h!l 0eer an, high al*!h!l 0eer "ere li.e r!,%*ts !n the 0asis !+ *!ns%mers' tastes an,
ha0its( 0%t it ,i, ne#ertheless %se this *riteri!n. In 00C 1easures on Animal *eed Proteins ;a,!te, !n
11 3ar*h 177:( 4ISD &5S/17<( ara. 1.&( the anel ,i, n!t eA*l%,e the ali*a0ilit/ !+ *!ns%mers' tastes(
n!tingB
>?J@ in this *ase( s%*h +a*t!rs as the n%m0er !+ r!,%*ts an, tari++ items *arr/ing ,i++erent ,%t/ rates
an, tari++ 0in,ings( the #ar/ing r!tein *!ntents an, the ,i++erent #egeta0le( animal an, s/ntheti*
!rigins !+ the r!tein r!,%*ts 0e+!re the Panel L n!t all !+ "hi*h "ere s%06e*t t! the EEC meas%res>.
In #ie" !+ the terms %se, 0/ the anel in this *ase( it ,!es n!t seem that the anel in rin*ile re6e*te, the
rele#an*e !+ *!ns%mers' tastes an, ha0its. In United States 7asoline, !. *it.( e#en th!%gh the anel ,i, n!t
menti!n the *riteri!n !+ *!ns%mers' tastes an, ha0its in its *!n*l%si!ns in ara. 8.7( in ara. 8.: it n!netheless
re*alle, the ali*a0ilit/ %n,er )rti*le IIIB1 !+ the *riteria s%mmariFe, 0/ the W!r.ing Part/ in ;order a6
AdAustments, !. *it.( "hi*h in*l%,e *!ns%mers' tastes an, ha0its. We ha#e n!t +!%n, an/ reas!n either t!
restri*t the meaning !+ the "!r, >*!ns%mers> s!lel/ t! the en,9*!ns%mers !+ *hr/s!tile9*ement r!,%*ts(
i.e. in,i#i,%al *!ns%mers.
1'1
See the Re!rt !+ the )ellate 4!,/ in )a,an Alcoholic ;e9erages( !. *it.( . &1.
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,! la*e !%rsel#es ri!r t! that ,ate( h!"e#er( it "!%l, 0e ,i++i*%lt t! ,etermine re*isel/ "hat "ere
the tastes an, ha0its !+ *!ns%mers at that time. The gr!%s !+ *!ns%mers t! 0e ta.en int! a**!%nt are
#er/ #arie, an, their tastes an, ha0its 0ase, !n an e-%all/ "i,e #ariet/ !+ *!nsi,erati!ns. 4e*a%se
this *riteri!n "!%l, n!t r!#i,e *lear res%lts( the Panel *!nsi,ers that it is n!t rele#ant t! ta.e it int!
a**!%nt in the se*ial *ir*%mstan*es !+ this *ase.
:.11' We shall there+!re re+rain +r!m ta.ing a !siti!n !n the ima*t !+ this *riteri!n !n the li.eness
!+ the r!,%*ts *!nsi,ere,.
Tari++ *lassi+i*ati!n
:.111 )s regar,s tari++ *lassi+i*ati!n( Cana,a re*alls that the 1'7 siA !r eight9,igit *!,es +!r
*hr/s!tile9*ement r!,%*ts in the Earm!niFe, C!mm!,it/ Des*riti!n an, C!,ing S/stem !+ the
C%st!ms C!!erati!n C!%n*il
1'5
are i,enti*al t! the 1'7 *!,es +!r +i0r!9*ement r!,%*ts.
:.11& The EC *!nsi,er that the tari++ *lassi+i*ati!ns are ,i++erent( "hether +!r as0est!s +i0res an,
s%0stit%te +i0res !r +!r r!,%*ts *!ntaining as0est!s an, s%0stit%tes +!r as0est!s. 2!r eAamle( in the
Earm!niFe, S/stem( as0est!s +i0res are *lassi+ie, in their !"n hea,ing.
:.113 We ,! n!t *!nsi,er that the +a*t that as0est!s +i0res are *lassi+ie, in their !"n hea,ing is
,e*isi#e in this *ase. PC)( *ell%l!se an, glass +i0res rese*ti#el/ are als! *lassi+ie, in ,i++erent tari++
hea,ings. We n!te( h!"e#er( that s%*h a *lassi+i*ati!n re+le*ts the ,i++eren*e in their nat%re( "hether
the/ are mineral !r #egeta0le( arti+i*ial !r nat%ral. We ha#e alrea,/ +!%n, that this +a*t!r ,i, n!t
a++e*t the +a*t that their r!erties an, en,9%se are the same %n,er *ertain *ir*%mstan*es.
1'8
C!n*l%si!n
:.111 )0!#e "e *!n*l%,e, that *hr/s!tile +i0res( !n the !ne han,( an, PC)( *ell%l!se an, glass
+i0res( !n the !ther( are( in *ertain *ir*%mstan*es( similar in r!erties( nat%re an, -%alit/. We als!
*!n*l%,e, that these r!,%*ts ha#e similar en,9%ses. 2r!m this it +!ll!"s that *hr/s!tile +i0res( !n the
!ne han,( an, PC)( *ell%l!se an, glass +i0res( !n the !ther( are li.e r!,%*ts "ithin the meaning !+
)rti*le IIIB1 !+ the =)TT 1771.
2iii4 :i=eness bet5een ,roducts containing asbestos and certain other ,roducts
:.115 The Panel *!nsi,ers that man/ !+ the arg%ments %t +!r"ar, in relati!n t! as0est!s( PC)(
*ell%l!se an, glass +i0res are ali*a0le mutatis mutandis t! r!,%*ts *!ntaining th!se +i0res. Th%s( i+
a +i0r!9*ement r!,%*t( +!r eAamle( a tile( is *!mare, "ith a similar tile !+ *hr/s!tile9*ement( the
!nl/ ,i++eren*e 0et"een the r!,%*ts *!n*erne, is the resen*e !+ either *hr/s!tile !r a s%0stit%te
+i0re in the tile( the r!,%*t itsel+ 0eing a tile an, the !ther *!m!nent !+ the material 0eing in 0!th
*ases *ement. It is the resen*e !+ *hr/s!tile !r s!me !ther +i0re that gi#es the *ement r!,%*t its
se*i+i* +%n*ti!nB me*hani*al strength( resistan*e t! heat( *!mressi!n( et*.
1'5
Eereina+ter >Earm!niFe, S/stem> !r >ES>.
1'8
)s0est!s in its nat%ral state +alls in hea,ing &5.&1. P!l/#in/l al*!h!l +alls in hea,ing 37.'5(
*ell%l!se in 37.1& an, glass +i0re in 7'.17. We n!te that in )a,an Alcoholic ;e9erages 21!?"4( the Panel
re+erre, t! the >N!men*lat%re !+ the C%st!ms C!!erati!n C!%n*il ;CCCN< +!r the *lassi+i*ati!n !+ g!!,s in
*%st!ms tari++s>. We als! n!te that the )ellate 4!,/ in )a,an Alcoholic ;e9erages !. *it. . &1 rea++irme,
that that tari++ *lassi+i*ati!n( i+ s%++i*ientl/ ,etaile,( "as a %se+%l 0asis +!r *!n+irming the li.eness !+ r!,%*ts.
We n!te that in this *ase the arties 0ase, themsel#es !n the tari++ *lassi+i*ati!n in the Earm!niFe, S/stem( an,
n!t !n tari++ 0in,ings( "hi*h the )ellate 4!,/ %rges sh!%l, 0e %se, "ith *a%ti!n. We ,! n!t *!nsi,er
h!"e#er( that the arti*%lar *ir*%mstan*es !+ this *ase 6%sti+/ that( "hen ,etermining the li.eness !r a0sen*e !+
li.eness !+ as0est!s( PC)( *ell%l!se an, glass +i0res( !#erri,ing signi+i*an*e sh!%l, 0e atta*he, t! the +a*t that
the r!,%*ts +all in ,i++erent tari++ hea,ings !+ the ES.
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:.118 3!re!#er( "e n!te that( in Cana,a's !ini!n( *hr/s!tile9*ement an, +i0r!9*ement r!,%*ts are
0!th in,%strial r!,%*ts "hi*h *ann!t 0e ,isting%ishe, !n the 0asis !+ their eAternal aearan*e.
2r!m the stan,!int !+ the tastes an, ha0its !+ the 2ren*h *!ns%mer( the/ are inter*hangea0le.
)**!r,ing t! the EC( in+!rme, %sers "!%l, n!t %se r!,%*ts *!ntaining as0est!s a+ter the
internati!nal !rganiFati!ns ha, ,e*i,e, that as0est!s "as a r!#en *ar*in!gen.
:.117 C!nse-%entl/( "e *!nsi,er that in +a*t the li.eness 0et"een a *hr/s!tile9*ement r!,%*t an, a
+i0r!9*ement r!,%*t ,een,s !n t"! +a*t!rsB ;a< the nat%re !+ the r!,%*t itsel+ an, ;0< the resen*e
!+ *hr/s!tile +i0res !r !+ PC)( *ell%l!se !r glass +i0res in the r!,%*t.
:.11: Using the *riteria a,!te, 0/ the Panel an, the )ellate 4!,/ in )a,an Alcoholic
;e9erages, "e n!te( +irst !+ all( that the ES tari++ *lassi+i*ati!n ;hea,ing 8:.11< is the same +!r arti*les
!+ as0est!s9*ement( !+ *ell%l!se +i0r!9*ement !r the li.e. This hea,ing *!#ers har,ene, arti*les
*!nsisting essentiall/ !+ an intimate miAt%re !+ +i0res ;+!r eAamle( as0est!s( *ell%l!se !r !ther
#egeta0le +i0res( s/ntheti* !l/mer !r glass +i0res< an, *ement !r !ther h/,ra%li* 0in,ers( the +i0res
a*ting as strengthening agents. Other r!,%*ts ma/ +all int! ,i++erent tari++ hea,ings. E!"e#er( man/
!+ the r!,%*ts menti!ne, 0/ Cana,a aear t! +all "ithin this s%0,i#isi!n.
1'7
:.117 We *!nsi,er( m!re!#er( that !ne !+ the EC's main arg%ments against the li.eness 0et"een
+i0r!9*ement an, *hr/s!tile9*ement r!,%*ts "ith rese*t t! their r!erties( nat%re an, -%alit/ an,
their en,9%se is 0ase, !n the ris. ass!*iate, "ith the *hr/s!tile "hi*h the/ *!ntain. T! the eAtent that
in aragrah :.13& "e *!n*l%,e, that the >ris.> *riteri!n *ann!t 0e in*l%,e, am!ng the *riteria
ali*a0le t! the ,eterminati!n !+ li.eness %n,er )rti*le IIIB1( "e ,! n!t *!nsi,er it ne*essar/ t!
,is*%ss the ali*a0ilit/ !+ this *riteri!n "ith rese*t t! *hr/s!tile9*ement r!,%*ts. The same alies
"ith rese*t t! *!ns%mers' tastes an, ha0its.
:.15' We there+!re *!n*l%,e that *hr/s!tile9+i0re r!,%*ts an, +i0r!9*ement r!,%*ts are li.e
r!,%*ts "ithin the meaning !+ )rti*le IIIB1 !+ the =)TT 1771.
;e< Dess +a#!%ra0le treatment !+ Cana,ian r!,%*ts
1':
:.151 With rese*t t! the eAisten*e !+ less +a#!%ra0le treatment( Cana,a arg%es that the De*ree
alters the *!n,iti!ns !+ *!metiti!n 0et"een( !n the !ne han,( s%0stit%te +i0res an, r!,%*ts
*!ntaining them !+ 2ren*h !rigin an,( !n the !ther han,( *hr/s!tile +i0re an, r!,%*ts *!ntaining it
+r!m Cana,a. The De*ree ,!es n!t a++!r, *hr/s!tile +i0re im!rte, +r!m Cana,a an, r!,%*ts
*!ntaining it e++e*ti#e e-%alit/ !+ !!rt%nities +!r im!rte, r!,%*ts in rese*t !+ the ali*ati!n !+
la"s( reg%lati!ns an, re-%irements a++e*ting the internal sale( !++ering +!r sale( %r*hase(
trans!rtati!n( ,istri0%ti!n !r %se !+ r!,%*ts. N!t !nl/ ,!es the 0an al/ !nl/ t! as0est!s +i0re an,
r!,%*ts *!ntaining it 0%t it is ali*a0le !nl/ i+ there are r!,%*ts li.e t! *hr/s!tile +i0re !r t! the
r!,%*ts *!ntaining it. Th%s( the De*ree im!ses less +a#!%ra0le treatment in all *ases "here li.e
r!,%*ts eAist. )**!r,ingl/( the De*ree *!nstit%tes de Aure ,is*riminati!n 0et"een *hr/s!tile +i0res
1'7
In +a*t( the ES EAlanat!r/ N!tes ,es*ri0e the r!,%*ts that +all "ithin hea,ing 8:.11 ;>)rti*les !+
as0est!s9*ement( !+ *ell%l!se +i0r!9*ement !r the li.e>< as +!ll!"sB
>This hea,ing *!#ers har,ene, arti*les *!nsisting essentiall/ !+ an intimate miAt%re !+ +i0res ;+!r
eAamle( as0est!s( *ell%l!se !r !ther #egeta0le +i0res( s/ntheti* !l/mer( glass !r metalli* +i0res< an,
*ement !r !ther h/,ra%li* 0in,ers( the +i0res a*ting as strengthening agents. ?J@
The hea,ing in*l%,es sheets !+ all siFes an, thi*.nesses( !0taine, as ,es*ri0e, a0!#e( an, als! arti*les
ma,e 0/ *%tting these sheets !r 0/ ressing( m!%l,ing !r 0en,ing them 0e+!re the/ ha#e set(
e.g.( r!!+ing( +a*ing !r artiti!n sheets an, tilesH sheets +!r ma.ing +%rnit%reH "in,!" sillsH sign9
lates( letters an, n%m0ersH 0arrier 0arsH *!rr%gate, sheetsH reser#!irs( tr!%ghs( 0asins( sin.sH t%0ing
6!intsH a*.ing "ashers an, 6!intsH anels imitating *ar#ingH ri,ge tiles( g%tters( "in,!" +ramesH
+l!"er9!tsH #entilati!n !r !ther t%0ing( *a0le *!n,%itsH *himne/ *!"ls( et*.
)ll these arti*les ma/ 0e *!l!%re, in the mass( #arnishe,( rinte,( enamelle,( ,e*!rate,( ,rille,( +ile,(
lane,( sm!!the,( !lishe, !r !ther"ise "!r.e,H the/ ma/ als! 0e rein+!r*e, "ith metal( et*.>
1':
The arg%ments !+ the arties are set !%t in ,etail in Se*ti!n III a0!#e.
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an, r!,%*ts *!ntaining them( !n the !ne han,( an, li.e r!,%*ts ;PC)( *ell%l!se !r glass +i0res an,
+i0r!9*ement r!,%*ts *!ntaining them<( !n the !ther.
:.15& Cana,a als! alleges ,e +a*t! ,is*riminati!n. The 2ren*h PC) +i0res in,%str/ is in 0etter
shae than e#er. 3!re!#er( it is n!t 0e*a%se 2ran*e has im!rte, a marginal a,,iti!nal -%antit/ !+
Cana,ian *ell%l!se +i0res that the 2ren*h ,!mesti* in,%str/ has n!t 0ene+ite, +r!m the 0an. The
De*ree ,!es in,ee, im!se a *h!i*e !n the 2ren*h *!ns%mer "h! is n!" re#ente, +r!m %sing
*hr/s!tile +i0re !r r!,%*ts *!ntaining it.
:.153 The EC maintain that the *!nteste, meas%re a**!r,s "ith the +%n,amental %r!se !+
)rti*le III( "hi*h is t! re#ent r!te*ti!nism( an, is n!t ,is*riminat!r/( neither de Aure n!r ,e +a*t!(
inasm%*h as it g%arantees e++e*ti#e e-%alit/ !+ !!rt%nities +!r ,!mesti* an, im!rte, r!,%*ts. The
*!nteAt in "hi*h the De*ree "as a,!te, an, its r!#isi!ns sh!" that the intenti!n !+ the 2ren*h
a%th!rities "as in n! "a/ t! r!te*t ,!mesti* s%0stit%te r!,%*ts 0%t t! r!te*t h%man health against
the ris.s ass!*iate, "ith as0est!s. The/ als! sh!" that the De*ree ma.es n! ,istin*ti!n 0et"een
im!rte, an, ,!mesti* r!,%*ts( "hether it 0e a -%esti!n !+ s%0stit%te !r as0est!s r!,%*ts( an, that
neither its !06e*t n!r its e++e*t is t! r!te*t ,!mesti* r!,%*ti!n. The De*ree ,!es n!t *reate an/
,e +a*t! ,is*riminati!n( sin*e in 2ran*e m!st s%0stit%te r!,%*ts are im!rte, +r!m #ari!%s thir,
*!%ntries. 3!re!#er( 2ran*e has a negati#e tra,e 0alan*e in s%0stit%te r!,%*ts. The 0an !n the %se
!+ as0est!s !n %0li* health gr!%n,s has re-%ire, a ain+%l *hange!#er( in h%man an, +inan*ial terms(
in*l%,ing the l!ss !+ eAternal !%tlets +!r 2ren*h in,%str/. 2inall/( the De*ree is >ne%tral> in rese*t !+
the *h!i*es that 0%sinesses *an ma.e *!n*erning rela*ement r!,%*ts.
:.151 We n!te that "ith regar, t! the esta0lishment !+ the eAisten*e !+ less +a#!%ra0le treatment( it
is +irst ne*essar/ t! ,etermine( as "e ha#e ,!ne( "hether there is a li.eness 0et"een the im!rte, an,
the ,!mesti* r!,%*ts. )0!#e( 0!th "ith regar, t! *hr/s!tile +i0res( !n the !ne han,( an, PC)(
*ell%l!se an, glass +i0res( !n the !ther
1'7
( an, "ith regar, t! r!,%*ts ma,e !+ *hr/s!tile9*ement( !n
the !ne han,( an, +i0r!9*ement( !n the !ther( "e *!n*l%,e, that the/ "ere >li.e> "ithin the meaning
!+ )rti*le IIIB1. With rese*t t! the treatment !+ these r!,%*ts as *!mare, "ith the li.e ,!mesti*
r!,%*ts( "e n!te( +irst !+ all( that 2ran*e ,!es r!,%*e s%0stit%tes +!r *hr/s!tile +i0res an, *hr/s!tile9
*ement r!,%*ts. We neAt n!te that the terms !+ the De*ree in themsel#es esta0lish less +a#!%ra0le
treatment +!r as0est!s an, r!,%*ts *!ntaining as0est!s as *!mare, "ith s%0stit%te +i0res an,
r!,%*ts *!ntaining s%0stit%te +i0res. Th%s( aragrahs I an, II !+ )rti*le 1 !+ the De*ree rea, as
+!ll!"sB
>I. 2!r the %r!se !+ r!te*ting "!r.ers( an, %rs%ant t! )rti*le D. &3197 !+ the Da0!%r C!,e( the
man%+a*t%re( r!*essing( sale( im!rt( la*ing !n the ,!mesti* mar.et an, trans+er %n,er an/ title
"hats!e#er !+ all #arieties !+ as0est!s +i0res shall 0e r!hi0ite,( regar,less !+ "hether these s%0stan*es
ha#e 0een in*!r!rate, int! materials( r!,%*ts !r ,e#i*es.
II. 2!r the %r!se !+ r!te*ting *!ns%mers( an, %rs%ant t! )rti*le D. &&1.3 !+ the C!ns%mer C!,e(
the man%+a*t%re( im!rt( ,!mesti* mar.eting( eA!rtati!n( !ssessi!n +!r sale( !++er( sale an, trans+er
%n,er an/ title "hats!e#er !+ all #arieties !+ as0est!s +i0res !r an/ r!,%*t *!ntaining as0est!s +i0res
shall 0e r!hi0ite,.>
:.155 Inasm%*h as the De*ree ,!es n!t la*e an i,enti*al 0an !n PC)( *ell%l!se !r glass +i0re an,
+i0r!9*ement r!,%*ts *!ntaining PC)( *ell%l!se !r glass +i0res( "e m%st *!n*l%,e that de Aure it
treats im!rte, *hr/s!tile +i0res an, *hr/s!tile9*ement r!,%*ts less +a#!%ra0l/ than ,!mesti* PC)(
*ell%l!se !r glass +i0re an, +i0r!9*ement r!,%*ts.
:.158 Ea#ing esta0lishe, de Aure ,is*riminati!n !n the 0asis !+ the De*ree an,( m!re!#er( the
E%r!ean C!mm%nities n!t ha#ing s%0mitte, an/ e#i,en*e that might lea, %s t! 0elie#e that the
1'7
We n!te( in*i,entall/( that Cana,a has n!t ma,e an/ allegati!n *!n*erning the less +a#!%ra0le
treatment !+ Cana,ian *hr/s!tile +i0res as *!mare, "ith ,!mesti* *hr/s!tile +i0res. )**!r,ingl/( "e shall n!t
ma.e an/ +in,ing in this rese*t.
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De*ree is alie, in s%*h a "a/ as n!t t! intr!,%*e less +a#!%ra0le treatment +!r *hr/s!tile +i0res an,
*hr/s!tile9*ement r!,%*ts as *!mare, "ith PC)( *ell%l!se an, glass +i0res an, +i0r!9*ement
r!,%*ts *!ntaining PC)( *ell%l!se !r glass +i0res
11'
( "e ,! n!t *!nsi,er it ne*essar/ t! ,etermine
"hether there is an/ de facto ,is*riminati!n 0et"een these r!,%*ts.
:.157 2!r these reas!ns( "e *!n*l%,e that the De*ree alies t! *hr/s!tile an, *hr/s!tile9*ement
r!,%*ts a treatment less +a#!%ra0le than that "hi*h it alies t! PC)( *ell%l!se an, glass +i0res an,
r!,%*ts *!ntaining them( "ithin the meaning !+ )rti*le IIIB1.
;+< C!n*l%si!n
:.15: On the 0asis !+ the a0!#e( "e +in, that the r!#isi!ns !+ the De*ree relating t! the r!hi0iting
!+ the mar.eting !+ *hr/s!tile +i0res an, *hr/s!tile9*ement r!,%*ts #i!late )rti*le IIIB1 !+ the
=)TT 1771.
1. Vioation of *rtice 3I of the G*TT 122%
:.157 In the light !+ !%r !0ser#ati!ns !n the ali*a0ilit/ !+ )rti*le IIIB1 !+ the =)TT 1771 t! the
0!r,er meas%res im!se, !n *hr/s!tile +i0res an, *hr/s!tile9*ement r!,%*ts an, *!nsi,ering !%r
+in,ings "ith regar, t! the #i!lati!n !+ )rti*le IIIB1 0/ the De*ree( "e *!n*l%,e that it is n!t
ne*essar/ t! eAamine the Cana,ian arg%ment *!n*erning the #i!lati!n !+ )rti*le GIB1 !+ the =)TT
1771.
2. *ppica"iit# of *rtice 33 of the G*TT 122%
;a< )rg%ments !+ the arties
111
:.18' The E%r!ean C!mm%nities *!nten, that the De*ree +alls %n,er the eA*eti!n r!#i,e, in
)rti*le GG !+ the =)TT 1771. Th%s( the De*ree is ne*essar/ t! a*hie#e the 2ren*h =!#ernment's
%0li* health g!als %n,er )rti*le GG;0< an, is n!t alie, in s%*h a manner as t! *!nstit%te a means
!+ ar0itrar/ !r %n6%sti+ia0le ,is*riminati!n 0et"een *!%ntries "here the same *!n,iti!ns re#ail !r a
,isg%ise, restri*ti!n !n internati!nal tra,e( "ithin the meaning !+ the intr!,%*t!r/ *la%se !+
)rti*le GG.
:.181 Cana,a n!tes that( in a**!r,an*e "ith anel an, )ellate 4!,/ ra*ti*e( )rti*le GG ermits
a limite, an, *!n,iti!nal eA*eti!n +r!m the !0ligati!ns set !%t in the !ther )rti*les !+ the =)TT an,
m%st 0e interrete, narr!"l/. )lth!%gh the E%r!ean C!mm%nities assert that the/ ha#e the right t!
esta0lish the le#el !+ r!te*ti!n the/ ,esire( in s! ,!ing the/ m%st *!ml/ "ith their !0ligati!ns. In
this *!nne*ti!n( the )ellate 4!,/ has *!n,emne, a0%se !+ rights %n,er )rti*le GG. 3!re!#er( it is
% t! the E%r!ean C!mm%nities t! ,em!nstrate that the De*ree +alls %n,er )rti*le GG;0<.
:.18& The E%r!ean C!mm%nities arg%e that as0est!s +i0res an, r!,%*ts *!ntaining them are a
r!#en haFar, +!r h%man health. The ris.s lin.e, t! the %se !+ these +i0res are re*!gniFe, 0!th 0/
s*ientists an, internati!nal !rganiFati!ns. 4/ r!hi0iting the mar.eting an, %se !+ as0est!s an,
as0est!s9*!ntaining r!,%*ts( the De*ree see.s t! halt the srea, !+ these ris.s( in arti*%lar +!r
e!le !**asi!nall/ an, !+ten %n"ittingl/ eA!se, t! as0est!s( an, there0/ re,%*e the n%m0er !+
,eaths am!ng the 2ren*h !%lati!n. It is the !nl/ meas%re *aa0le !+ re#enting the srea, !+ the
ris.s ,%e t! as0est!s eA!s%re. )**!r,ing t! the EC( the re#ie" in the light !+ )rti*le GG *ann!t 0e
all!"e, t! %n,ermine the health r!te*ti!n g!al set 0/ the 3em0er *!n*erne,. Its s!le %r!se m%st
0e t! assess "hether the tra,e meas%re a,!te, is ne*essar/ t! attain that g!al. This test *!n*erns the
tra,e meas%re an, n!t the le#el !+ r!te*ti!n set 0/ the 3em0er.
11'
See the Re!rt !+ the Panel in United States Sections 301-310 of the rade Act of 1!"#, !. *it.(
ara. 7.&7.
111
The arg%ments !+ the arties are set !%t in ,etail in Se*ti!n III a0!#e.
WT/DS135/R
Page 175
:.183 Cana,a *!nsi,ers that the !nl/ eA!s%res that *!%l, 0e a++e*te, 0/ the De*ree are eA!s%res
t! *hr/s!tile en*as%late, in high9,ensit/ r!,%*ts. In !r,er t! ,etermine "hether there is an e-%all/
e++e*ti#e alternati#e that is less restri*ti#e +!r internati!nal tra,e an, that is *aa0le !+ r!te*ting
h%man li+e !r health 6%st as e++e*ti#el/( the health ris. *an an, m%st 0e eAamine,. Other"ise an/
*!%ntr/ *!%l, *ite the ris. L real !r n!t L in s%!rt !+ a r!hi0iti!n meas%re.
:.181 Cana,a is !+ the !ini!n that the *%rrent %ses !+ *hr/s!tile ,! n!t *!nstit%te a ,ete*ta0le ris.
t! h%man health. )**!r,ing t! Cana,a( the E%r!ean C!mm%nities ,! n!t eAlain that the eA!s%res
!+ se*!n,ar/ %sers are essentiall/ t! +ria0le materials( #er/ !+ten *!ntaining amhi0!les( "hi*h are n!
l!nger mar.ete, an, ha#e 0een in la*e +!r a l!ng time. C!ntrar/ t! "hat the EC aear t! 0elie#e(
*!ntr!lle, %se s%0stantiall/ re,%*es eA!s%re. )s a res%lt !+ re9+a0ri*ati!n( re9ma*hining( the %se
!+ +ittings an, *!mlian*e "ith "!r. stan,ar,s( "!r.ers are n!t s%06e*te, t! high le#els !+ eA!s%re(
as the EC *laim.
:.185 Cana,a *!nsi,ers that( inasm%*h as the !nl/ ris. ass!*iate, "ith as0est!s is that !+ the ast
%se !+ amhi0!les an, the %se !+ +ria0le materials( the De*ree( "hi*h r!hi0its the *!ntem!rar/ %ses
!+ *hr/s!tile( is n!t >ne*essar/> t! r!te*t h%man li+e !r health +r!m the ris.s ass!*iate, "ith ast
%ses !+ as0est!s. ) 0an is n!t >ne*essar/> 0e*a%se high9,ensit/ *hr/s!tile r!,%*ts ,! n!t !se an/
,ete*ta0le ris.. On the !ther han,( *!ntr!lle, %se in,is%ta0l/ *!nstit%tes an alternati#e t! a t!tal 0an
that is signi+i*antl/ less restri*ti#e +!r internati!nal tra,e.
;0< )r!a*h a,!te, 0/ the Panel an, 0%r,en !+ r!!+
2i4 Introductor/ remar=s concerning the a,,roach ado,ted b/ the Panel
:.188 )t this stage( the Panel "ishes t! !int !%t that( inasm%*h as )rti*le GG r!#i,es +!r a *ertain
n%m0er !+ eA*eti!ns t! the r%les !+ the =)TT 1771( it is ne*essar/ an, s%++i*ient t! eAamine the
ali*a0ilit/ !+ these eA*eti!ns s!lel/ "ith regar, t! meas%res
11&
an, in relati!n t! r!,%*ts +!r
"hi*h a #i!lati!n !+ an!ther r!#isi!n !+ the =)TT has 0een i,enti+ie,. In the resent *ase "e ha#e
+!%n, that the De*ree #i!lates )rti*le IIIB1 !+ the =)TT 1771 as regar,s the treatment a**!r,e, t!
im!rte, *hr/s!tile as0est!s +i0res as *!mare, "ith PC)( *ell%l!se an, glass +i0res. We ha#e als!
+!%n, a #i!lati!n !+ )rti*le IIIB1 "ith rese*t t! the treatment !+ *hr/s!tile9*ement r!,%*ts as
*!mare, "ith +i0r!9*ement r!,%*ts *!ntaining PC)( *ell%l!se !r glass +i0res.
:.187 In a**!r,an*e "ith the ar!a*h n!te, 0/ the Panel in United States 7asoline
113
an, the
)ellate 4!,/ in United States Im,ort Prohibition of Certain Shrim, and Shrim, Products
111
, "e
"ill +irst eAamine "hether the meas%re +alls "ithin the s*!e !+ aragrah ;0< !+ )rti*le GG( the
r!#isi!n eAressl/ in#!.e, 0/ the E%r!ean C!mm%nities.
115
I+ "e ,e*i,e that it ,!es( "e "ill
*!nsi,er "hether( in its ali*ati!n( the De*ree satis+ies the *!n,iti!ns !+ the intr!,%*t!r/ *la%se !+
)rti*le GG.
11&
See the Re!rt !+ the )ellate 4!,/ in United States 7asoline, !. *it.( . 11915 an, 1791:. In
the resent *ase( it is the art !+ the De*ree relating t! the r!hi0iting !+ the la*ement !n the 2ren*h mar.et !+
*hr/s!tile as0est!s an, r!,%*ts *!ntaining it that has 0een +!%n, *!ntrar/ t! )rti*le IIIB1 !+ the =)TT 1771
;see aras. :.155 an, :.15: a0!#e<. It is this same >meas%re> that "e shall eAamine in the light !+
)rti*le GG;0<.
113
O. *it.( ara. 8.&'.
111
),!te, 8 N!#em0er 177:( WT/DS5:/)4/R( aras. 11:91&&.
115
In this *!nne*ti!n( "e n!te that it is n!t +!r the Panel t! eAamine !n its !"n initiati#e the eA*eti!ns
+!r "hi*h )rti*le GG r!#i,es %nless the/ ha#e 0een in#!.e, ;see Re!rt !+ the Panel in United States
+estrictions on Im,orts of una, DS&1/R ;%na,!te,<( 3 Setem0er 1771( 4ISD 37S/155( ara. 5.&7( *iting the
Re!rt !+ the Panel in 00C +egulation on Im,orts of Parts and Com,onents, a,!te, 18 3a/ 177'( 37S/13&(
ara. 5.11<. E!"e#er( it is !nl/ ne*essar/ t! ,etermine that the meas%re in -%esti!n satis+ies the *!n,iti!ns !+
!ne !+ the aragrahs !+ )rti*le GG an, the intr!,%*t!r/ *la%se !+ the same arti*le +!r that meas%re t! 0e
6%sti+ie, %n,er )rti*le GG !+ the =)TT 1771.
WT/DS135/R
Page 178
:.18: 2irst !+ all( as regar,s )rti*le GG;0<( "e +in, that the r!#isi!ns !+ this aragrah rele#ant t!
the resent *ase re-%ire that( s%06e*t t! +%l+ilment !+ the *!n,iti!ns !+ the intr!,%*t!r/ *la%se !+
)rti*le GG( n!thing in the =)TT 1771 shall 0e *!nstr%e, t! re#ent the a,!ti!n !r en+!r*ement 0/
an/ 3em0er !+ meas%res
>;0< ne*essar/ t! r!te*t h%man J li+e !r health>
:.187 The Panel n!tes that in United States 7asoline( the Panel sti%late, that "ith rese*t t!
)rti*le GG;0<( the art/ in#!.ing that r!#isi!n m%st r!#eB
;a< That the !li*/ in rese*t !+ the meas%res +!r "hi*h )rti*le GG is in#!.e, +alls
"ithin the range !+ !li*ies ,esigne, t! r!te*t h%man li+e !r healthH an,
;0< the in*!nsistent meas%res +!r "hi*h the eA*eti!n is in#!.e, are ne*essar/ t! +%l+il
the !li*/ !06e*ti#e.
118
:.17' )s regar,s s%0aragrah ;a<( "e *!nsi,er that( inasm%*h as the/ in*l%,e the n!ti!n !+
>r!te*ti!n>( the "!r,s >!li*ies ,esigne, t! r!te*t h%man li+e !r health> iml/ the eAisten*e !+ a
health ris=% We m%st there+!re ,etermine( !n the 0asis !+ the rele#ant r%les !+ e#i,en*e( "hether
*hr/s!tile9as0est!s( in the #ari!%s +!rms "e ha#e *!nsi,ere, s! +ar( !ses a ris. t! h%man li+e !r
health.
:.171 This sai,( "e n!te that the anel in United States 7asoline als! ma,e *lear that it ,i, n!t
ha#e t! eAamine the ne*essit/ !+ the !li*/ g!al.
117
In !ther "!r,s( "e ,! n!t ha#e t! assess the
*h!i*e ma,e 0/ 2ran*e t! r!te*t its !%lati!n against *ertain ris.s( n!r the le#el !+ r!te*ti!n !+
%0li* health that 2ran*e "ishes t! a*hie#e. We m%st siml/ ,etermine i+ the 2ren*h !li*/ !+
r!hi0iting the %se !+ *hr/s!tile9as0est!s +alls "ithin the range !+ !li*ies ,esigne, t! r!te*t h%man
li+e !r health.
:.17& )s regar,s the *riteri!n !+ the necessit/ !+ the meas%re ;s%0aragrah ;0< !+
aragrah :.187<( "e n!te that re#i!%s anels that ha, t! assess the >ne*essit/> !+ a meas%re %n,er
)rti*le GG;0< aear t! ha#e ,!ne s! s!lel/ in relati!n t! the eAisten*e !+ !ther meas%res *!nsistent
!r less in*!nsistent "ith the =)TT in the light !+ the health !06e*ti#e %rs%e,. Th%s( in hailand
Cigarettes( the Panel r%le, thatB
>The im!rt restri*ti!ns im!se, 0/ Thailan, *!%l, 0e *!nsi,ere, t! 0e >ne*essar/> in terms !+
)rti*le GG;0< !nl/ i+ there "ere n! alternati#e meas%re *!nsistent "ith the =eneral )greement( !r less
in*!nsistent "ith it( "hi*h Thailan, *!%l, reas!na0l/ 0e eAe*te, t! eml!/ t! a*hie#e its health
!li*/ !06e*ti#es>.
11:
:.173 In this arti*%lar *ase( the %0li* health !06e*ti#es %rs%e, 0/ Thailan, "ere *!n+irme, 0/ a
WEO eAert an, a**ete, 0/ the arties t! the ,is%te. In the resent *ase( Cana,a ,!es n!t ,en/
that 2ran*e's g!al( namel/ t! r!te*t the health !+ "!r.ers an, *!ns%mers( is a %0li* health !06e*ti#e(
0%t it ,is%tes the eAisten*e !+ a %0li* health r!0lem in relati!n t! *hr/s!tile. Th%s( Cana,a ,enies
that *hr/s!tile +i0re !ses a %0li* health ris. in its ali*ati!ns 0e*a%se !n*e in la*e *hr/s!tile9
*ement ,!es n!t release an/ +i0res an, 0e*a%se it is !ssi0le t! "!r. "ith *hr/s!tile9*ement r!,%*ts
in a sa+e !r *!ntr!lle, +ashi!n.
:.171 2!r the Panel( the assessment !+ the ne*essit/ !+ a meas%re *!%l, 0e +!*%se, !n the eAisten*e
!+ !ther meas%res *!nsistent !r less in*!nsistent "ith the =)TT 1771 i+( as in re#i!%s *ases( the
118
Re!rt !+ the Panel in United States 7asoline( ara. 8.&'.
117
I0i,.( ara. 8.&&. See als! the Re!rt !+ the Panel in United States Section 33", !. *it.( ara. 5.&8
an, the Re!rt !+ the Panel in hailand +estrictions on Im,ortation of and Internal a6es on Cigarettes,
a,!te, !n 7 N!#em0er 177'( 4ISD 37S/&'' ;hereina+ter >hailand Cigarettes&4, ara. 71.
11:
O. *it.( ara. 75.
WT/DS135/R
Page 177
arties "ere agree, !n the e6istence and e6tent of the health ,roblem associated 5ith chr/sotile. In
this rese*t( "e n!te that Cana,a ,!es n!t ,is%te that *hr/s!tile +i0res in themsel#es !se health
ris.s. E!"e#er( Cana,a ,!es n!t *!nsi,er that an/ ris. is !se, 0/ *hr/s!tile en*l!se, in a matriA !+
high9,ensit/ *ement.
:.175 C!nse-%entl/( inasm%*h as the arties ,isagree !n the eAtent !+ the health ris. !se, 0/
*hr/s!tile9*ement r!,%*ts( "e *!nsi,er that !%r eAaminati!n !+ the eAisten*e !+ a general health
!06e*ti#e in the light !+ s%0aragrah ;a< !+ aragrah :.187 sh!%l, in*l%,e the -%esti!n !+ the
eAisten*e !+ a health r!0lem in relati!n ;i< t! *hr/s!tile +i0res as s%*h an, ;ii< t! *hr/s!tile9*ement
r!,%*ts.
117
:.178 This 0eing s!( "e shall ha#e t! ta.e eAressl/ int! a**!%nt the eAtent !+ the health r!0lem in
assessing the ne*essit/ !+ the meas%re. Th%s( i+ "e "ere t! *!n*l%,e that the health haFar,
reresente, 0/ *hr/s!tile !r *hr/s!tile9*ement "as less than the EC allege( less #ig!r!%s meas%res
might then 0e 6%sti+ie,.
1&'
2ii4 ;urden of ,roof
=eneral *!nsi,erati!ns
:.177 With regar, t! the 0%r,en !+ r!!+( "e re+er( +irst !+ all( t! !%r re#i!%s remar.s *!n*erning
th!se *ases in "hi*h a art/ in#!.es a ,e+en*e.
1&1
We *!nsi,er that the reas!ning !+ the )ellate
4!,/ in United States Shirts and ;louses from India
1&&
is ali*a0le t! )rti*le GG( inasm%*h as the
in#!*ati!n !+ that )rti*le *!nstit%tes a >,e+en*e> in the sense in "hi*h that "!r, is %se, in the
a0!#e9menti!ne, re!rt. It is there+!re +!r the E%r!ean C!mm%nities t! s%0mit in rese*t !+ this
,e+en*e a rima +a*ie *ase sh!"ing that the meas%re is 6%sti+ie,. O+ *!%rse( as the )ellate 4!,/
!inte, !%t in United States 7asoline( the 0%r,en !n the E%r!ean C!mm%nities *!%l, #ar/
a**!r,ing t! "hat has t! 0e r!#e,. It "ill then 0e +!r Cana,a t! re0%t that rima +a*ie *ase( i+
esta0lishe,.
:.17: I+ "e menti!n this "!r.ing r%le at this stage( it is 0e*a%se it *!%l, la/ a art in !%r
assessment !+ the e#i,en*e s%0mitte, 0/ the arties. Th%s( the +a*t that a art/ in#!.es )rti*le GG
,!es n!t mean that it ,!es n!t nee, t! s%l/ the e#i,en*e ne*essar/ t! s%!rt its allegati!n.
Similarl/( it ,!es n!t release the *!mlaining art/ +r!m ha#ing t! s%l/ s%++i*ient arg%ments an,
e#i,en*e in res!nse t! the *laims !+ the ,e+en,ing art/. 3!re!#er( "e are !+ the !ini!n that it is
n!t +!r the art/ in#!.ing )rti*le GG t! r!#e that the arg%ments %t +!r"ar, in re0%ttal 0/ the
*!mlaining art/ are in*!rre*t %ntil the latter has 0a*.e, them % "ith s%++i*ient e#i,en*e.
1&3
117
O%r ar!a*h ,!es n!t a++e*t the !ssi0ilit/ !+ ea*h 3em0er ,etermining "hat le#el !+ ris. it "ishes
t! ass%re. =%aranteeing a #er/ l!" ris. !+ eA!s%re "hen the health ris.s are high might re-%ire stri*t
meas%res( 0%t "hen the health ris. is l!" a #er/ l!" le#el !+ eA!s%re might 0e !0taina0le "ith less se#ere
meas%res. This *!mment is ma,e in +%ll a"areness !+ the +a*t that arti*%larl/ seri!%s ris.s *an s!metimes 0e
ne%traliFe, 0/ #er/ simle means.
1&'
In this *ase( the 6%sti+i*ati!n +!r less se#ere meas%res "!%l, n!t 0e the eAisten*e !+ less in*!nsistent
meas%res that meet the !06e*ti#es !riginall/ set 0/ the EC( 0%t the +a*t that the ris. "as a*t%all/ l!"er than the
EC ha, estimate,.
1&1
See Se*ti!n CIII.E.1;0< a0!#e.
1&&
O. *it.( . 15918B
>We a*.n!"le,ge that se#eral =)TT 1717 an, WTO anels ha#e re-%ire, s%*h r!!+ !+ a art/
in#!.ing a ,e+en*e s%*h as th!se +!%n, in )rti*le GG
1&&
!r )rti*le GIB&;*<;i<
1&&
( t! a *laim !+ #i!lati!n
!+ a =)TT !0ligati!n( s%*h as th!se +!%n, in )rti*les IB1( IIB1( III !r GIB1. )rti*les GG an, GIB&;*<;i<
are limite, eA*eti!ns +r!m !0ligati!ns %n,er *ertain !ther r!#isi!ns !+ the =)TT 1771( n!t !siti#e
r%les esta0lishing !0ligati!ns in themsel#es. The/ are in the nat%re !+ a++irmati#e ,e+en*es. It is !nl/
reas!na0le that the 0%r,en !+ esta0lishing s%*h a ,e+en*e sh!%l, rest !n the art/ asserting it.>
1&3
See Re!rt !+ the )ellate 4!,/ in 0uro,ean Communities 3ormones( !. *it.( ara. 1'1.
WT/DS135/R
Page 17:
C!nsi,erati!ns se*i+i* t! the 0%r,en !+ r!!+ as regar,s the s*ienti+i* ase*ts
:.177 )s !inte, !%t a0!#e( three essential elements m%st 0e *!nsi,ere, 0/ the Panel "hen
eAamining the 6%sti+i*ati!n !+ a meas%re in the light !+ )rti*le GG;0<B ;a< the eAisten*e !+ a ris. +!r
h%man healthH ;0< the le#el !+ r!te*ti!n "hi*h the 3em0er *!n*erne, "ishes t! a*hie#eH an, ;*< the
eAisten*e !+ !ther meas%res *!nsistent !r less in*!nsistent "ith the =)TT 1771 an, ena0ling the same
!06e*ti#e !+ r!te*ting %0li* health t! 0e !0taine,. The Panel *!nsi,ers that its eAaminati!n !+ the
s*ienti+i* ,ata sh!%l, 0e eA*l%si#el/ *!n*erne, "ith !ints ;a< an, ;*<( inasm%*h as it has l!ng 0een
esta0lishe, that 3em0ers are +ree t! set the le#el !+ r!te*ti!n !+ their *h!i*e +!r their !%lati!ns.
1&1
:.1:' The Panel has there+!re ha, t! ,etermine h!" it sh!%l, assess the eAisten*e !+ a health ris. in
relati!n t! *hr/s!tile an,( m!re arti*%larl/( *hr/s!tile9*ement an, the ne*essit/ !+ the meas%res in
-%esti!n. The Panel has eAamine, the ra*ti*e in relati!n t! )rti*le GG !+ the =)TT 1771( 0%t als!
in the *!nteAt !+ !ther WTO )greements in "hi*h s*ienti+i* st%,ies are in#!.e,( mainl/ the
)greement !n Sanitar/ an, Ph/t!sanitar/ 3eas%res.
1&5
The Panel n!te, that the SPS )greement
*!ntains m!re ,etaile, r!#isi!ns than )rti*le GG "ith rese*t t! the s*ienti+i* 6%sti+i*ati!n !+ a
sanitar/ !r h/t!sanitar/ meas%re
1&8
an, that these r!#isi!ns ha#e 0een the s%06e*t !+ *lari+i*ati!ns
0/ anels an, 0/ the )ellate 4!,/.
1&7
E!"e#er( it als! n!te, that in the +irst ,is%te settlement
r!*ee,ings initiate, %n,er the WTO )greement *!n*erning )rti*le GG !+ the =)TT 1771( the
)ellate 4!,/ ha, n!t s!%ght t! eAten, the rin*iles !+ the SPS )greement t! the eAaminati!n !+
the meas%res +!r "hi*h )rti*le GG;0< ha, 0een in#!.e, !r e#en t! 0ase itsel+ !n them( alth!%gh the
SPS )greement "as alrea,/ in +!r*e.
1&:
The Panel re+erre, t! *!n+ine itsel+ t! the r!#isi!ns !+ the
=)TT 1771 an, t! the *riteria ,e+ine, 0/ the ra*ti*e relating t! the ali*ati!n !+ )rti*le GG.
:.1:1 In this *!nteAt( in relati!n t! the s*ienti+i* in+!rmati!n s%0mitte, 0/ the arties an, the
eAerts( the Panel +eels 0!%n, t! !int !%t that it is n!t its +%n*ti!n t! settle a s*ienti+i* ,e0ate( n!t
0eing *!m!se, !+ eAerts in the +iel, !+ the !ssi0le h%man health ris.s !se, 0/ as0est!s.
C!nse-%entl/( the Panel ,!es n!t inten, t! set itsel+ % as an ar0iter !+ the !ini!ns eAresse, 0/ the
s*ienti+i* *!mm%nit/.
:.1:& Its r!le( ta.ing int! a**!%nt the 0%r,en !+ r!!+( is t! ,etermine "hether there is s%++i*ient
s*ienti+i* e#i,en*e t! *!n*l%,e that there eAists a ris. +!r h%man li+e !r health an, that the meas%res
ta.en 0/ 2ran*e are ne*essar/ in relati!n t! the !06e*ti#es %rs%e,. The Panel there+!re *!nsi,ers that
it sh!%l, 0ase its *!n*l%si!ns "ith rese*t t! the eAisten*e !+ a %0li* health ris. !n the s*ienti+i*
e#i,en*e %t +!r"ar, 0/ the arties an, the *!mments !+ the eAerts *!ns%lte, "ithin the *!nteAt !+
the resent *ase. The !ini!ns eAresse, 0/ the eAerts "e ha#e *!ns%lte, "ill hel %s t! %n,erstan,
an, e#al%ate the e#i,en*e s%0mitte, an, the arg%ments a,#an*e, 0/ the arties.
1&7
The same
ar!a*h "ill 0e a,!te, "ith rese*t t! the ne*essit/ !+ the meas%re *!n*erne,.
:.1:3 In r!*ee,ing "ith this eAer*ise( the Panel "ill ha#e t! ma.e a ragmati* assessment !+ the
s*ienti+i* sit%ati!n an, the meas%res a#aila0le( as "!%l, the ,e*isi!n9ma.ers res!nsi0le +!r the
1&1
See ara. :.171 a0!#e. See als! the Re!rt !+ the )ellate 4!,/ in United States 7asoline,
!. *it.( . 33%
1&5
Eereina+ter the >SPS )greement>.
1&8
See( in arti*%lar( )rti*les &.&( 3 an, 5 !+ the SPS )greement.
1&7
See( in arti*%lar( the Re!rts !+ the Panels an, )ellate 4!,/ in 0uro,ean Communities
3ormones, !. *it.
1&:
In 0uro,ean Communities 3ormones, !. *it.( ara. 115( the )ellate 4!,/ itsel+ eAresse, its
rel%*tan*e t! a,!t "ithin the *!nteAt !+ the SPS )greement a stan,ar, !+ re#ie" n!t *learl/ r!!te, in the teAt
!+ the SPS )greement( +!r +ear !+ ,ist%r0ing the 0alan*e 0et"een the rights an, !0ligati!ns neg!tiate,.
1&7
Re!rt !+ the )ellate 4!,/ in )a,an Agricultural Products, !. *it.( ara. 1&7. )t this !int( "e
re*all that the eAerts "ere sele*te, in *!ns%ltati!n "ith the arties an, that the latter ,i, n!t *hallenge the
a!intment !+ an/ !+ them( alth!%gh the/ reser#e, the right t! *!mment !n their statements. With rese*t t!
the #ari!%s stages in the sele*ti!n an, *!ns%ltati!n !+ the eAerts( see Se*ti!n C.) an, 4.
WT/DS135/R
Page 177
a,!ti!n !+ a health !li*/.
13'
In this *!nne*ti!n( it n!tes that the ,eterminati!n !+ the eAisten*e !+
!ther meas%res *!nsistent !r less in*!nsistent "ith the =)TT largel/ ,een,s !n a s*ienti+i*
assessment !+ the ris..
131
In an/ e#ent( this ,eterminati!n *ann!t 0e interrete, as restri*ting the
+ree,!m !+ 3em0ers t! ta.e *ertain meas%res rather than !thers %n,er )rti*le GG;0<( in the a0sen*e
!+ a meas%re that "!%l, 0e *!nsistent !r less in*!nsistent "ith the =)TT 1771.
;*< )li*ati!n !+ )rti*le GG;0< !+ the =)TT 1771 t! the De*ree
2i4 &Protection of human life and health&
:.1:1 In a**!r,an*e "ith the ar!a*h ,e+ine, 0/ the Panel in United States 7asoline( "e m%st
+irst esta0lish "hether the !li*/ in rese*t !+ the meas%re +!r "hi*h the r!#isi!ns !+ )rti*le GG;0<
"ere in#!.e, +alls "ithin the range !+ !li*ies ,esigne, t! r!te*t h%man li+e !r health. )s "e ha#e
alrea,/ !inte, !%t( the %se !+ the "!r, >r!te*ti!n> imlies the eAisten*e !+ a ris.. )**!r,ingl/( "e
m%st 0egin 0/ i,enti+/ing a ris. +!r %0li* health. In the light !+ the *!mments !+ the anel in
United States 7asoline an, !%r !"n remar.s in aragrah :.1:&( "e m%st als! ta.e int! a**!%nt the
+a*t that it is a %0li* health !li*/ that "e ha#e t! assess.
:.1:5 2irst !+ all( "e n!te that the EC arg%e that in r!hi0iting the la*ing !n the mar.et an, %se !+
as0est!s an, r!,%*ts *!ntaining it( the De*ree see.s t! halt the srea, !+ the ris.s ,%e t! as0est!s(
arti*%larl/ +!r th!se eA!se, !**asi!nall/ an, #er/ !+ten %n"ittingl/ t! as0est!s "hen "!r.ing !n
as0est!s9*!ntaining r!,%*ts. 2ran*e *!nsi,ers that it *an there0/ re,%*e the n%m0er !+ ,eaths ,%e t!
eA!s%re t! as0est!s +i0res am!ng the 2ren*h !%lati!n( "hether 0/ as0est!sis( l%ng *an*er !r
mes!theli!ma.
13&
:.1:8 In rin*ile( a !li*/ that see.s t! re,%*e eA!s%re t! a ris. sh!%l, +all "ithin the range !+
!li*ies ,esigne, t! r!te*t h%man li+e !r health( ins!+ar as a ris. eAists. )**!r,ing t! the EC( the
internati!nal s*ienti+i* *!mm%nit/ aears t! 0e generall/ !+ the !ini!n that *hr/s!tile +i0res as s%*h
are *ar*in!gens. In this *!nne*ti!n( "e n!te the EC's arg%ment that( sin*e 1777( the Internati!nal
)gen*/ +!r Resear*h !n Can*er ;I)RC< has *lassi+ie, *hr/s!tile am!ng the r!#en *ar*in!gens.
:.1:7 Cana,a ,!es n!t ,is%te that *hr/s!tile as0est!s *a%ses l%ng *an*er. E!"e#er( Cana,a
arg%es that the me*hanism that *!%l, gi#e rise t! an in*rease, ris. !+ l%ng *an*er has n!t /et 0een
+%ll/ eAlaine, an, that the lin. "ith *hr/s!tile might !nl/ 0e in,ire*t.
133
This ris. ,een,s !n the
intensit/ an, ,%rati!n !+ the eA!s%re. On the !ther han,( a**!r,ing t! Cana,a( there is a great ,eal
!+ s*ienti+i* e#i,en*e t! s%!rt the thesis a**!r,ing t! "hi*h *hr/s!tile ,!es n!t *a%se
mes!theli!mas.
131
In arti*%lar( the mes!theli!mas lin.e, t! as0est!s *!%l, 0e the res%lt !+ eA!s%re
t! l!"9,ensit/ r!,%*ts *!ntaining amhi0!les. It has n!t 0een esta0lishe, that( in their %ses(
*hr/s!tile +i0res !se the same ris. as amhi0!les( "h!se *hemi*al *!m!siti!n( in arti*%lar( is
,i++erent.
:.1:: 2irst !+ all( "e n!te that the *ar*in!geni*it/ !+ *hr/s!tile +i0res has 0een a*.n!"le,ge, +!r
s!me time 0/ internati!nal 0!,ies.
135
This *ar*in!geni*it/ "as *!n+irme, 0/ the eAerts *!ns%lte, 0/
the Panel( "ith rese*t t! 0!th l%ng *an*ers an, mes!theli!mas
138
( e#en th!%gh the eAerts aear t!
13'
See Re!rt !+ the Panel in United States 7asoline, !. *it.( ara. 8.&'.
131
See aras. :.1739178.
13&
With regar, t! the gr!% !+ ath!l!gies that as0est!s *an *a%se( see Dr. Een,ers!n( ara. 5.&:.
133
See )nneA II( Cana,ian rel/ t! the EC's -%esti!n N!. 1( ara. 1:'.
131
See )nneA II( Cana,ian relies t! the EC's -%esti!ns n!s. 191( aras. 17591:1.
135
Sin*e 1777 0/ the I)RC ;see :ist of Agents Carcinogenic to 3umans, (9erall 09aluations of
Carcinogenicit/ to 3umans( 3!n!grahs !+ the Internati!nal )gen*/ +!r Resear*h !n Can*er( C!l%mes 1983<(
see als! WEO( IPCS 0n9ironmental 3ealth Criteria 2'034 on Chr/sotile( =ene#a ;177:<( *ite, in ara. 5.5:1
a0!#e. On the ,e#el!ment !+ .n!"le,ge !+ the ris.s ass!*iate, "ith as0est!s( see Dr. Een,ers!n( ara. 5.575.
138
See( in arti*%lar( Dr. Een,ers!n( aras. 5.&7 t! 5.31H 5.11& t! 5.185H Dr. In+ante( aras. 5.&87(
5.&7'95.&7:H Dr. ,e Kler.( ara. 5.&::.
WT/DS135/R
Page 1:'
a*.n!"le,ge that *hr/s!tile is less li.el/ t! *a%se mes!theli!mas than amhi0!les.
137
We als! n!te
that the eAerts *!n+irme, that the t/es !+ *an*er *!n*erne, ha, a m!rtalit/ rate !+ *l!se t!
1'' er *ent.
13:
We there+!re *!nsi,er that "e ha#e s%++i*ient e#i,en*e that there is in +a*t a seri!%s
*ar*in!geni* ris. ass!*iate, "ith the inhalati!n !+ *hr/s!tile +i0res. 3!re!#er( in the light !+ the
*!mments ma,e 0/ !ne !+ the eAerts
137
( the ,!%0ts eAresse, 0/ Cana,a "ith rese*t t! the ,ire*t
e++e*ts !+ *hr/s!tile !n mes!theli!mas an, l%ng *an*ers are n!t s%++i*ient t! *!n*l%,e that an !++i*ial
res!nsi0le +!r %0li* health !li*/ "!%l, +in, that there "as n!t en!%gh e#i,en*e !+ the eAisten*e !+
a %0li* health ris..
:.1:7 We n!te( h!"e#er( that Cana,a ma.es a ,istin*ti!n 0et"een *hr/s!tile +i0res an, *hr/s!tile
en*as%late, in a *ement matriA. In +a*t( Cana,a *hallenges the De*ree ins!+ar as it r!hi0its(
inter alia, the %se !+ *hr/s!tile9*ement r!,%*ts. In this *!nne*ti!n( "e n!te that the eAerts
*!ns%lte, 0/ the Panel agree, that the ris.s !+ +i0res 0eing ,iserse, ,%e t! the ,egra,ati!n !+
*hr/s!tile9*ement "ere limite,. E!"e#er( the eAerts a*.n!"le,ge, that "!r.ing "ith n!n9+ria0le
r!,%*ts *!ntaining *hr/s!tile might res%lt in the ,isersi!n !+ large -%antities !+ +i0res an, that th!se
+i0res !se a ,e+inite health ris..
11'
The eAerts als! n!te, that e#en th!%gh the ris. might 0e l!"er
than +!r r!,%*ti!n !r r!*essing "!r.ers( it *!n*erne, a m%*h larger gr!%.
111
:.17' In this rese*t( the Panel n!tes that the E%r!ean C!mm%nities ha#e state, that the De*ree is
inten,e,( in arti*%lar( t! r!te*t *ateg!ries !+ "!r.ers !r *!ns%mers ,!"nstream !+ the as0est!s
mining !r r!*essing stage( "hate#er the +re-%en*/ an, le#el !+ their eA!s%re. Cana,a *!nsi,ers
that 0el!" a *ertain eA!s%re thresh!l, there is n! ,ete*ta0le health ris.. )**!r,ingl/( Cana,a
0elie#es that e!le !nl/ !**asi!nall/ eA!se, are n!t r%nning a ,ete*ta0le ris..
:.171 The ,ata s%0mitte, t! the Panel 0/ the EC sh!" that the %se !+ t!!ls n!t se*i+i*all/ ,esigne,
t! re#ent the release !+ +i0res
11&
( "hi*h *ann!t 0e eA*l%,e,( ese*iall/ in the *ase !+ DI5
enth%siasts
113
!r r!+essi!nals "h! "!r. !nl/ !**asi!nall/ in an en#ir!nment "here as0est!s is
resent( *an res%lt in an eA!s%re in eA*ess !+ the stat%t!r/ limits %n,er ISO 7337
111
( "hi*h are
themsel#es higher than th!se !+ the WEO ;'.& +i0re/ml< !r th!se alie, 0/ 2ran*e 0e+!re the 0an
;'.1 +i0re/ml<.
115
The Panel als! n!tes the !siti!n !+ the eAerts *!ns%lte, !n this !int. )ll agree
137
See( +!r eAamle( the rati!s s%ggeste, 0/ Dr. Een,ers!n( aras. 5.1'3( 5.111( 5.115( 5.5:7 an, his
remar.s( aras. 5.&8595.&88H see als! Dr. ,e Kler.( ara. 5.&81H Dr. In+ante( aras. 5.&8795.&8: an, )nneA CI(
ara. 17 !+ the trans*rit !+ the meeting "ith eAerts.
13:
Dr. Een,ers!n( meeting "ith eAerts( )nneA CI( ara. 1:&.
137
See the *!mments ma,e 0/ Dr. Een,ers!n( aras. 5.15395.157 *!n*erning the lin. 0et"een +i0r!sis
an, l%ng *an*er.
11'
See the relies !+ the eAerts t! the Panel's -%esti!n 1.;0<( aras. 5.17895.&'7.
111
See Dr. Een,ers!n( aras. 5.178( 5.1:3H Dr. ,e Kler.( ara. 5.1:5.
11&
In rel/ t! a -%esti!n 0/ Cana,a ;see )nneA II( ara. 187< the EC in,i*ate, that the -%esti!n !+ the
eA!s%re ass!*iate, "ith "!r.ing intermittentl/ "ith material s%*h as *hr/s!tile9*ement ha, 0een anal/se, in
the re!rt !+ the Institut national de la science et de la recherche medicale ;INSER3< entitle, +a,,ort sur les
effets sur la santE des ,rinci,au6 t/,es dFe6,osition G lFamiante ;Re!rt !+ the health e++e*ts !+ the main t/es !+
eA!s%re t! as0est!s( INSER3 6!int re!rt( 1777( . 1739&11. The EC aen,e, t! their +irst "ritten
s%0missi!n t! the Panel eA!s%re #al%es meas%re, ,%ring s%*h "!r.ing ;see <ote de ,rEsentation des
orientations du Conseil su,Erieur de ,rE9ention des ris$ues ,rofessionnels( 3 $%l/ 1775<. The/ als! gi#e the
eAamle !+ a r!!+ing "!r.er %sing a grin,er in the !en air t! reair *!rr%gate, r!!+ sheeting ma,e !+ as0est!s9
*ement an, eA!se, t! a ea. le#el !+ 11+/ml. In this *!nne*ti!n( the Panel als! n!tes the re+eren*e 0/
Dr. Een,ers!n( in ara. 5.177 a0!#e( t! a st%,/ 0/ Kam%gai S( Na.a*hi S( K%r%matani N. et al. 0stimation of
Asbestos 06,osure Among Bor=ers +e,airing Asbestos Cement Pi,es Used for Conduits, Sang./! Iga.%
1773H 35.
113
4/ >DI5 enth%siast> ;0ri*!le%r< the Panel means s!me!ne "h! ,!es small reair an, ren!#ati!n
6!0s ;De N!%#ea% Petit R!0ert ;1771<( . &81< "ith!%t engaging in these a*ti#ities in a r!+essi!nal *aa*it/.
111
See Internati!nal OrganiFati!n +!r Stan,ar,iFati!n( ISO 7337 ;17:1<.
115
See De*ree 7897: !+ 7 2e0r%ar/ 1778. The E%r!ean C!mm%nities( in ara. 3.131( n!te( +!r
eAamle( that in the *ase !+ a han,sa" ali*ati!n !+ the ISO stan,ar, lea#es the "!r.er eA!se, t! a le#el
3' times in eA*ess !+ the maAim%m limit !+ '.1 +/ml. In this *!nne*ti!n( the Panel n!tes that the eAerts agree
that at least s!me !+ the +i0res release, ,%ring !erati!ns !n r!,%*ts *!ntaining *hr/s!tile resent the same
WT/DS135/R
Page 1:1
that 0%il,ing "!r.ers n!" *!%nt am!ng th!se m!st eA!se, t! *hr/s!tile +i0res an, hen*e t! the ris.
!+ mes!theli!ma
118
( 0%t the/ als! menti!n *ases !+ mes!theli!ma in atients "h! ha, 0een !nl/
in*i,entall/ eA!se,( "ith!%t an/ relati!n t! their !**%ati!nal a*ti#it/.
117
The s*ientists *!ns%lte, 0/
the Panel als! *!nsi,ere, that the eAisten*e !+ a thresh!l, 0el!" "hi*h eA!s%re ,!es n!t resent an/
ris.s ha, n!t 0een esta0lishe, +!r an/ !+ the ,iseases attri0%ta0le t! *hr/s!tile( eA*et erhas +!r
as0est!sis.
11:
:.17& The Panel t!!. n!te !+ Cana,a's arg%ment a**!r,ing t! "hi*h there has 0een n! st%,/
se*i+i*all/ *!n*erne, "ith the !**%ati!nal se*t!rs t! "hi*h the EC re+er.
117
It als! n!tes that
Cana,a ,is%tes the rele#an*e !+ the ,ata !+ the st%,ies !+ Charlest!n teAtile +a*t!r/ "!r.ers
;Unite, States<
15'
as *!mare, "ith the Cana,ian st%,ies !+ P%e0e* as0est!s se*t!r miners an,
"!r.ers( "hi*h are sai, t! sh!" the limite, ima*t !+ *hr/s!tile !n %0li* health.
151
E!"e#er( the
s*ienti+i* eAerts *!ns%lte, stresse, the rele#an*e an, -%alit/ !+ the Charlest!n st%,/. On the !ther
han,( ,!%0ts "ere eAresse, "ith regar, t! the relia0ilit/ !+ *ertain eA!s%re ,ata in the st%,ies
*arrie, !%t in !**%ati!nal an, n!n9!**%ati!nal en#ir!nments in P%e0e* an, in#!.e, 0/ Cana,a.
15&
Cana,a als! re+ers t! a st%,/ *!n*erne, "ith *ar 0ra.e maintenan*e.
153
We n!te that the s*ientists
*!ns%lte, ,re" attenti!n t! the limits !+ this st%,/ an, r!,%*e, statisti*al ,ata "hi*h( !n the
*!ntrar/( *!n+irme, the ima*t !+ *hr/s!tile !n me*hani*s eA!se, t! that material in a *ar 0ra.e
maintenan*e *!nteAt.
151
*ar*in!geni*it/ as *hr/s!tile +i0res n!t in*!r!rate, in *ement ;see Dr. ,e Kler.( ara. 5.&&'H Dr. Een,ers!n(
aras. 5.&&195.&&1H Dr. In+ante( aras. 5.&&5L5.&&8<.
118
See *ull Public +e,ortH Chr/sotile Asbestos Priorit/ 06isting Chemical <o% !( Nati!nal In,%strial
Chemi*als N!ti+i*ati!n an, )ssessment S*heme ;NICN)S<( Nati!nal O**%ati!n Eealth an, Sa+et/
C!mmissi!n ;NOESC<( )%stralia 1777 ;hereina+ter >NICN)S 77><( *ite, 0/ Dr. Een,ers!n( "hi*h sh!"s that
eA!s%re is srea,ing. Originall/ *!n+ine, t! "!r.ers in the tra,iti!nal in,%stries( eA!s%re t! as0est!s n!"
eAten,s t! r!,%*ts an, the ,!mesti* an, eAternal en#ir!nment ;see ara. 5.177<. Similar !0ser#ati!ns ha#e
0een ma,e in the Unite, King,!m "ith regar, t! the atterns !+ eA!s%re an, the res%ltant ,iseases
;ara. 5.1:'<.
117
See the eAamle !+ the +ireman an, the le*t%rer "h!se eA!s%re "as n!t *!nne*te, "ith their
!**%ati!ns( gi#en 0/ Dr. Een,ers!n( ara. &5' !+ the trans*rit !+ the meeting "ith eAerts.
11:
See Dr. Een,ers!n( ara. 5.31&. C!n*erning the !ini!n !+ the eAerts "ith regar, t! the a0sen*e !+
a thresh!l,( see aras. 5.3'8 et se-. an,( m!re arti*%larl/( Dr. In+ante( ara. 5.315.
117
The a0sen*e !+ a st%,/ !n the ima*t !+ *hr/s!tile !n 0%il,ing "!r.ers "as *!n+irme, 0/ the
s*ientists *!ns%lte, 0/ the Panel ;see Dr. In+ante( ara. 137H Dr. Een,ers!n( ara. 11'H Dr. 3%s.( ara. &'& !+
the trans*rit !+ the meeting "ith eAerts( )nneA CI<. C!n*erning Cana,a's arg%ments an, the *!mments !+ the
eAerts( see the ,is*%ssi!n !+ the rele#an*e !+ the st%,/ !+ Charlest!n teAtile +a*t!r/ "!r.ers ;hereina+ter
>Charlest!n st%,/>( see +!!tn!te 15'< as *!mare, "ith the st%,/ !+ P%e0e* as0est!s mine an, mill "!r.ers
;hereina+ter >P%e0e* "!r.ers st%,/>( see +!!tn!te 151<( aras. 135L153 !+ the trans*rit !+ the meeting "ith
eAerts( )nneA CI.
15'
See( in arti*%lar( Dement $.3.( 4r!"n D.P.( O.%n ).( *ollo5-u, Stud/ of Chr/sotile Asbestos
e6tile Bor=ersH Cohort 1ortalit/ and Case-Control Anal/ses, )m $ In, 3e, 1771H &8H Dement $. 3.( 4r!"n
D.P.( :ung Cancer 1ortalit/ among Asbestos e6tile Bor=ersH A +e9ie5 and U,date, )nn O**% E/g
1771H 3:.
151
See( in arti*%lar( 3*D!nal, ).D.( Case 4.W.( Ch%rg ).( et al%( 1esothelioma in Duebec Chr/sotile
1iners and 1illersH 0,idemiolog/ and Aetiolog/, )nn O**% E/g 1777( 11. With rese*t t! n!n9!**%ati!nal
sit%ati!ns( see Cam%s 3.( Siemiat/*.i $.( 3ee. 4.( <onoccu,ational 06,osure to Chr/sotile Asbestos and the
+is= of :ung Cancer( Ne" Englan, $!%rnal !+ 3e,i*ine 177:( 33:.
15&
See the *!mments !+ Dr. In+ante !n the P%e0e* "!r.ers st%,/ 0/ 3*D!nal, et al( ara. 17 !+ the
trans*rit !+ the meeting "ith eAerts( )nneA CI( an, th!se !+ Dr. Een,ers!n( aras. 5.11: an, 5.15:L5.18&
a0!#e.
153
See W!it!"itF E.$.( RQ,elserger K.( 1esothelioma among Car 1echanicsI )nn O**% E/g(
1771.
151
See Dr. Een,ers!n( aras. 57( :7 an, 1'1 !+ the trans*rit !+ the meeting "ith eAerts( )nneA CI.
We n!te that Cana,a has n!t +!rm%late, a se*i+i* re-%est "ith regar, t! +ri*ti!n r!,%*ts( s%*h as *ar 0ra.es(
+!r eAamle.
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:.173 The Panel there+!re *!nsi,ers that the e#i,en*e 0e+!re it ten,s t! sh!" that han,ling
*hr/s!tile9*ement r!,%*ts *!nstit%tes a ris. t! health rather than the !!site. )**!r,ingl/( a
,e*isi!n9ma.er res!nsi0le +!r ta.ing %0li* health meas%res might reas!na0l/ *!n*l%,e that the
resen*e !+ *hr/s!tile9*ement r!,%*ts !se, a ris. 0e*a%se !+ the ris.s in#!l#e, in "!r.ing "ith
th!se r!,%*ts.
:.171 )**!r,ingl/( the Panel *!n*l%,es that the EC has ma,e a rima +a*ie *ase +!r the eAisten*e !+
a health ris. in *!nne*ti!n "ith the %se !+ *hr/s!tile( in arti*%lar as regar,s l%ng *an*er an,
mes!theli!ma in the !**%ati!nal se*t!rs ,!"nstream !+ r!,%*ti!n an, r!*essing an, +!r the %0li*
in general in relati!n t! *hr/s!tile9*ement r!,%*ts. This rima +a*ie *ase has n!t 0een re0%tte, 0/
Cana,a. 3!re!#er( the Panel *!nsi,ers that the *!mments 0/ the eAerts *!n+irm the health ris.
ass!*iate, "ith eA!s%re t! *hr/s!tile in its #ari!%s %ses. The Panel there+!re *!nsi,ers that the EC
ha#e sh!"n that the !li*/ !+ r!hi0iting *hr/s!tile as0est!s imlemente, 0/ the De*ree +alls "ithin
the range !+ !li*ies ,esigne, t! r!te*t h%man li+e !r health. On the !ther han,( Cana,a has n!t
s%**ee,e, in re0%tting the res%mti!n esta0lishe, !n the 0asis !+ the e#i,en*e s%0mitte, 0/ the EC
an, *!n+irme, 0/ the eAerts. The Panel *!n*l%,es there+!re that the 2ren*h !li*/ !+ r!hi0iting
*hr/s!tile as0est!s +alls "ithin the range !+ !li*ies ,esigne, t! r!te*t h%man li+e !r health( "ithin
the meaning !+ )rti*le GG;0< !+ the =)TT 1771.
:.175 )**!r,ingl/( the Panel "ill n!" t%rn t! the -%esti!n !+ "hether the meas%re is >ne*essar/>
"ithin the meaning !+ )rti*le GG;0<.
2ii4 &<ecessar/&
The 0an !n *hr/s!tile as0est!s in its #ari!%s +!rms
:.178 )**!r,ing t! the E%r!ean C!mm%nities( the ,anger !+ inhaling as0est!s at le#els a0!#e
'.1 +i0re/ml *!n*erns n!t !nl/ the as0est!s mining an, r!*essing se*t!rs 0%t( m!re ese*iall/(
se*!n,ar/ ;teAtile( 0%il,ing an, a%t!m!0ile in,%str/( +!r eAamle<( ara9!**%ati!nal ;ser#i*ing(
maintenan*e< an, ,!mesti* ;DI5< "!r.ers "h!m Cana,a menti!ns !nl/ in art !r n!t at all. E#en in
r!,%*ti!n an, r!*essing( "hi*h in rin*ile are easier t! m!nit!r( there are limits t! the *!ntr!lle,
!r sa+e %se !+ as0est!s( "hi*h ,!es n!t halt the srea, !+ the ris.s. S!9*alle, >*!ntr!lle,> !r >sa+e>
%se is a fortiori *!mletel/ ine++e*ti#e in *ases !+ !**asi!nal eA!s%re t! as0est!s. The 1777
INSER3 re!rt
155
in,i*ates that the ris. !**%rs mainl/ am!ng th!se "h! "!r. "ith materials
*!ntaining as0est!s. The en*as%lati!n !+ as0est!s in a matriA *ann!t 0e g%arantee, t! ma.e
as0est!s9*ement r!,%*ts harmless( inasm%*h as an/ s%0se-%ent "!r.ing !+ the r!,%*t "ill release
large n%m0ers !+ *ar*in!geni* +i0res in the +!rm !+ ,%st. C!ntr!lle, %se is im!ssi0le t! imlement
"here h%n,re,s !+ th!%san,s !+ e!le are in#!l#e, in se*t!rs as %nreg%late, in terms !+ health as the
0%il,ing in,%str/. The 17:1 ISO stan,ar, is ina,e-%ate in relati!n t! the 2ren*h health !06e*ti#e.
The EC als! n!te that( !n*e as0est!s is !n the mar.et( there is n! reas!na0le "a/ !+ *!ntr!lling its %se
an,( in arti*%lar( !+ *!ntr!lling the e#er/,a/ !erati!ns that man/ e!le are li.el/ t! er+!rm.
3!re!#er( the n%mer!%s( arti*%larl/ legal !0sta*les "hi*h *!n+r!nt the #i*tims !+ *%rrent eA!s%re
see.ing re,ress in the *!%rts *!nstit%te an a,,iti!nal s!*ial 6%sti+i*ati!n +!r res!rting t! a t!tal 0an.
:.177 With regar, t! the test !+ ne*essit/( Cana,a ta.es the same ar!a*h as in *!nne*ti!n "ith
)rti*le &.& T4T
158
( *!nsi,ering that in man/ rese*ts the test !+ ne*essit/ is similar in the t"!
r!#isi!ns. )**!r,ing t! Cana,a( the meas%re m%st n!t 0e an eA*essi#e !r !#er9rea*hing means t!
a*hie#e a legitimate en,. The t"! +a*t!rs t! 0e *!nsi,ere, are( !n the !ne han,( the ris.s that the
a0sen*e !+ a te*hni*al reg%lati!n "!%l, *reate an,( !n the !ther( the eAisten*e !+ a less tra,e9
restri*ti#e alternati#e meas%re that "!%l, ma.e it !ssi0le t! +%l+il the state, !06e*ti#e. )s +ar as the
se*!n, test is *!n*erne,( Cana,a n!tes that the *!ntr!lle, %se !+ as0est!s +i0res all!"s +%l+ilment !+
155
INSER3B +a,,ort sur les effets sur la santE des ,rinci,au6 t/,es dFe6,osition G lFamiante(
INSER3 6!int re!rt( 1777. This re!rt "as s%0mitte, 0/ the E%r!ean C!mm%nities as !ne !+ the
%n,erinnings !+ the meas%re a,!te, 0/ 2ran*e.
158
See Cana,a's arg%ments( aras. 3.&77 et se$ a0!#e.
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the 2ren*h !06e*ti#e !+ r!te*ting h%man health "hile a%th!riFing *ertain sa+e !r *!ntr!lle, %ses !+
*hr/s!tile an, r!,%*ts *!ntaining it. )s *!ntr!lle, %se is a less tra,e9restri*ti#e alternati#e 0ase, !n
s*ienti+i* ,ata an, ha#ing internati!nal s%!rt( a t!tal 0an !n as0est!s is n!t ne*essar/. Cana,a is !+
the !ini!n that( t!,a/( high9,ensit/ n!n9+ria0le r!,%*ts ,! n!t !se a ,ete*ta0le ris.. The ris.s
"hi*h eAiste, in the ast an, in *ertain *ases still eAist t!,a/ are ass!*iate, "ith ast %ses( #er/ !+ten
!+ amhi0!les in +ria0le materials. In Cana,a's #ie"( the EC are tr/ing t! mislea, the Panel 0/
in#!.ing the ris.s !+ the as0est!s mining an, r!*essing in,%str/( e#en th!%gh the/ ha#e alrea,/
re*!gniFe, that *!ntr!lle, %se is e++e*ti#e here in eliminating the ris.. The EC als! sh!" 0a, +aith in
*iting the ris.s +!r 0%il,ing maintenan*e "!r.ers an, me*hani*s. The EC ,! n!t eAlain that these
eA!s%res are essentiall/ t! +ria0le materials #er/ !+ten *!ntaining amhi0!les "ith a high ath!geni*
!tential. C!ntr!lle, %se is e++e*ti#e an, *an 0e a**ete, 0/ r!+essi!nals. )**!r,ing t! the ,ata !+
the United States (ccu,ational Safet/ J 3ealth Administration ;OSE)<( the instit%ti!n !+ *!ntr!l
meas%res l!"ers the a#erage eA!s%res !+ "!r.ers han,ling as0est!s9*ement ies t! '.''&53 +/ml
an, th!se !+ "!r.ers han,ling as0est!s9*ement sheets t! '.''7&7 +/ml. The a#erage eA!s%re !+
me*hani*s han,ling +ri*ti!n r!,%*ts is '.''&71 +/ml. 3!re!#er( the %se !+ re9ma*hine, arts an,
+ittings has 0een a 0ig s%**ess. It re,%*es +iel, a*ti#ities an,( at the same time( eA!s%re rates.
:.17: We n!te that in hailand Cigarettes the Panel ,e+ine, the test !+ ne*essit/ ali*a0le %n,er
)rti*le GG;0<B
>The im!rt restri*ti!ns im!se, 0/ Thailan, *!%l, 0e *!nsi,ere, t! 0e 'ne*essar/' in terms !+
)rti*le GG;0< !nl/ i+ there "ere n! alternati#e meas%re *!nsistent "ith the =eneral )greement( !r less
in*!nsistent "ith it( "hi*h Thailan, *!%l, reas!na0l/ 0e eAe*te, t! eml!/ t! a*hie#e its health
!li*/ !06e*ti#es.>
157
:.177 This test has 0een alie, in !ther ,is%tes
15:
( in !r,er t! al/ the test ,e+ine, in hailand
Cigarettes, "e m%st ;a< esta0lish the sco,e !+ the health !li*/ !06e*ti#es %rs%e, 0/ 2ran*e an,
;0< *!nsi,er the eAisten*e !+ meas%res *!nsistent( !r less in*!nsistent( "ith the =)TT 1771.
:.&'' 2irst !+ all( "e n!te that the ris. ,%e t! *hr/s!tile is im!rtant t! the eAtent that( as *!n+irme,
in the re#i!%s se*ti!n( it *an generate l%ng *an*ers an, mes!theli!mas "hi*h are still ,i++i*%lt t! *%re
!r e#en in*%ra0le.
157
The !%lati!ns !tentiall/ at ris. in 2ran*e are #er/ n%mer!%s( sin*e r!,%*ts
*!ntaining *hr/s!tile( in arti*%lar( *hr/s!tile9*ement( ha#e man/ ali*ati!ns in in,%strial(
*!mmer*ial an, resi,ential 0%il,ings. The +iel,s !+ a*ti#it/ *!n*erne, in*l%,e 0%il,ing "!r.ers
;se#eral h%n,re, th!%san,< an, DI5 enth%siasts
18'
These are areas in "hi*h health *!ntr!ls are
,i++i*%lt t! al/( as the *!mments !+ the eAerts ha#e sh!"n.
181
:.&'1 The eAerts als! *!n+irme, that the intensi#e %se !+ as0est!s ;in 2ran*e( mainl/ *hr/s!tile<
!#er se#eral ,e*a,es has res%lte, in the ris.s !+ eA!s%re 0eing ,isla*e, +r!m the mining an,
r!*essing in,%str/ t!"ar,s !ther se*t!rs +%rther ,!"nstream an,( in,ee,( the general %0li*.
18&
In
this *!nteAt( the Panel +in,s that the E%r!ean C!mm%nities ha#e sh!"n that a ris. eAists +!r a #er/
0r!a, se*t!r !+ the 2ren*h !%lati!n.
:.&'& The Panel n!tes that the eA!s%re !+ these gr!%s is generall/ l!"er. E!"e#er( the eAerts
*!n+irm the !siti!n !+ the E%r!ean C!mm%nities a**!r,ing t! "hi*h it has n!t 0een !ssi0le t!
157
4ISD 37S/&''( ara. 75.
15:
See( +!r eAamle( the Re!rt !+ the Panel in United States Section 33"( !. *it.( ara. 5.&8( an, the
Re!rt !+ the Panel in United States 7asoline, !. *it.( ara. 8.&1.
157
See Dr. Een,ers!n( ara. 5.&7 an, the trans*rit !+ the meeting "ith eAerts( )nneA CI( en, !+
ara. 1:&.
18'
See Dr. In+ante( ara. 5.1:3H Dr. ,e Kler.( ara. 5.1:5.
181
See Dr. In+ante +!r the Unite, States ;ara. 181 !+ the trans*rit !+ the meeting "ith eAerts<H
Dr. ,e Kler. an, Dr. Een,ers!n +!r )%stralia ;aras. &&& an, &&5( rese*ti#el/( !+ the trans*rit !+ the meeting
"ith eAerts<.
18&
See Dr. Een,ers!n( aras. 5.171L5.1:1H Dr. In+ante( aras. 5.1:&95.1:3( 5.17'.
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i,enti+/ an/ thresh!l, 0el!" "hi*h eA!s%re t! *hr/s!tile "!%l, ha#e n! e++e*t.
183
The eAerts are
als! agree, that the linear relati!nshi m!,el( "hi*h ,!es n!t i,enti+/ an/ minim%m eA!s%re
thresh!l,( is ar!riate +!r assessing the eAisten*e !+ a ris..
181
We +in, there+!re that n! minim%m
thresh!l, !+ le#el !+ eA!s%re !r ,%rati!n !+ eA!s%re has 0een i,enti+ie, "ith regar, t! the ris. !+
ath!l!gies ass!*iate, "ith *hr/s!tile( eA*et +!r as0est!sis. C!nse-%entl/( the !ssi0ilit/ remains
that l!" eA!s%re !#er a +airl/ l!ng eri!, !+ time *!%l, lea, t! l%ng *an*er !r mes!theli!ma.
Similarl/( high9le#el eA!s%re !#er a sh!rt eri!, *!%l, als! res%lt in l%ng *an*er !r mes!theli!ma.
These t"! !ssi0ilities "ere *!n+irme, 0/ the eAerts.
185
The Panel there+!re *!n*l%,es that e#en
th!%gh s!me tra,es !r the 2ren*h !%lati!n in general are !nl/ intermittentl/ eA!se, t! l!" le#els
!+ as0est!s( a ,e*isi!n9ma.er res!nsi0le +!r %0li* health !li*/ might reas!na0l/ *!n*l%,e that
there "as ne#ertheless a real ris. +!r these *ateg!ries.
:.&'3 In the light !+ the a0!#e( the Panel *!n*l%,es that( in a,,iti!n t! the ris. resente, 0/ l!"9
,ensit/ +ria0le r!,%*ts( there is an %n,enia0le %0li* health ris. in relati!n t! the *hr/s!tile
*!ntaine, in high9,ensit/ *hr/s!tile9*ement r!,%*ts. This ris. eAists e#en at l!" !r intermittent
eA!s%re le#els an, *an a++e*t a 0r!a, se*ti!n !+ the !%lati!n.
:.&'1 We als! n!te that 2ran*e's !06e*ti#e is t! halt the srea, !+ this ris. "hi*h( *!nsi,ering the
ris. i,enti+ie, an, its eAtent( *!%l, in rin*ile 6%sti+/ stri*t meas%res. E!"e#er( it is ne*essar/ t!
*!nsi,er "hether there is n!t( as Cana,a alleges( a meas%re that "!%l, 0e *!nsistent( !r less
in*!nsistent( "ith the =)TT 1771 an, "!%l, all!" the !06e*ti#e %rs%e, 0/ 2ran*e t! 0e a*hie#e,.
Cana,a re+ers t! the !ssi0ilit/ !+ *!ntr!lle, %se "hi*h *!nsists in ta.ing re*a%ti!nar/ meas%res t!
restri*t the release !+ +i0res ;%se !+ se*ial t!!ls( high9,ensit/ r!,%*ts an, se*ial meth!,s !+
han,ling as0est!s r!,%*ts< an, r!te*t the air"a/s an, in a,!ting meth!,s !+ ,e*!ntaminating
e-%iment an, "!r. *l!thing. This *!ntr!lle, !r sa+e %se "!%l, 0e 0ase, !n internati!nal stan,ar,s.
:.&'5 We n!te that( a**!r,ing t! the EC( *!ntr!lle, %se ,!es n!t "!r. in *ertain !**%ati!nal
se*t!rs s%*h as th!se *!nne*te, "ith 0%il,ing.
188
3!re!#er( i+ the internati!nal stan,ar,s s%ggeste,
0/ Cana,a ;in arti*%lar( ISO 7337< "ere alie,( the eA!s%re rate "!%l, still 0e higher than the
le#el !+ ris. that 2ran*e *!nsi,ers a**eta0le.
187
The EC als! stress that the *!nsistent !r less
in*!nsistent meas%res m%st 0e >te*hni*all/ an, e*!n!mi*all/ +easi0le.>
18:
:.&'8 We n!te that the EC ,! n!t ,is%te that *!ntr!lle, %se *!%l, *!nstit%te a meas%re *!nsistent(
!r less in*!nsistent( "ith the =)TT 1771. The/ ne#ertheless *!nsi,er that it "!%l, n!t all!" the
%0li* health !06e*ti#es %rs%e, 0/ 2ran*e t! 0e a*hie#e,. Ins!+ar as Cana,a re+ers s!lel/ t!
*!ntr!lle, !r sa+e %se as an alternati#e t! !%tright r!hi0iti!n( "e "ill +!*%s !%r attenti!n !n this
!ssi0ilit/.
187
E!"e#er( 0e+!re *!ntin%ing "ith !%r anal/sis !+ "hether meas%res *!nsistent( !r less
in*!nsistent( "ith the =)TT are a#aila0le in the resent *ase( "e *!nsi,er it ertinent( in the light !+
the *!ntra,i*t!r/ arg%ments %t +!r"ar, 0/ the arties( t! ret%rn t! the -%esti!n !+ the ali*a0ilit/ !+
the +easi0ilit/ test s%ggeste, 0/ the EC.
:.&'7 We n!te that in United States Section 33", the Panel state, thatB
183
See Dr. Een,ers!n( ara. 5.31&H Dr. In+ante( aras. 5.31395.315.
181
See Dr. ,e Kler.( ara. 5.317H Dr. Een,ers!n( ara. 5.31:H Dr. In+ante( aras. 5.3&195.3&3H
Dr. 3%s.( ara. 5.3&1.
185
See( +!r eAamle( Dr. In+ante( ara. 5.3'1.
188
See( in arti*%lar( )nneA II( rel/ 0/ the EC t! Cana,a's -%esti!n N!. 8( ara. 18:
187
See )nneA II( rel/ 0/ the EC t! Cana,a's -%esti!n N!. 5( ara. 187.
18:
The E%r!ean C!mm%nities re+er t! )rti*le 5.8 !+ the )greement !n the )li*ati!n !+ Sanitar/ an,
Ph/t!sanitar/ 3eas%res. The/ *!nsi,er that the rin*ile in*!r!rate, in that r!#isi!n sh!%l, als! 0e alie,
in the *!nteAt !+ )rti*le GG.
187
In this rese*t( "e n!te that the eAerts li.e"ise ,i, n!t menti!n an/ alternati#es !ther than
*!ntr!lle, %se. 3!re!#er( in the light !+ the ar!a*h ,e+ine, 0/ the )ellate 4!,/ in Australia Salmon(
!. *it. ;see Se*ti!n CIII E.1.;0< a0!#e<( "e *!nsi,er that "e ,! n!t nee, t! as*ertain "hether !ther meas%res
"ere !ssi0le.
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>) *!ntra*ting art/ *ann!t 6%sti+/ a meas%re in*!nsistent "ith an!ther =)TT r!#isi!n as 'ne*essar/'
in terms !+ )rti*les GG;,< i+ an alternati#e meas%re 5hich it could reasonabl/ be e6,ected to em,lo/
an, "hi*h is n!t in*!nsistent "ith !ther =)TT r!#isi!ns is a#aila0le t! it. 4/ the same t!.en( in
*ases "here a meas%re *!nsistent "ith !ther =)TT r!#isi!ns is not reasonabl/ a9ailable( a
*!ntra*ting art/ is 0!%n, t! %se( among the measures reasonabl/ a9ailable to it( that "hi*h entails the
least ,egree !+ in*!nsisten*/ "ith !ther =)TT r!#isi!ns.>
17'
We there+!re +in, that in !r,er t! ,etermine "hether a meas%re is ne*essar/ it is im!rtant t!
assess "hether *!nsistent !r less in*!nsistent meas%res are reasonabl/ a#aila0le. The term
>reas!na0l/> has n!t 0een ,e+ine, as s%*h 0/ the anels that ha#e re+erre, t! it in the *!nteAt !+
)rti*le GG. It s%ggests( h!"e#er( that the a#aila0ilit/ !+ a meas%re sh!%l, n!t 0e eAamine,
the!reti*all/ !r in a0s!l%te terms. Ne#ertheless( in the light !+ the reas!ning !+ these anels( "e +in,
the "!r, >reas!na0l/> sh!%l, n!t 0e interrete, l!!sel/ either. The +a*t that( a,ministrati#el/( !ne
meas%re ma/ 0e easier t! imlement than an!ther ,!es n!t mean that the !ther meas%re is n!t
reas!na0l/ a#aila0le.
171
We *!nsi,er that the eAisten*e !+ a reas!na0l/ a#aila0le meas%re m%st 0e
assesse, in the light !+ the e*!n!mi* an, a,ministrati#e realities +a*ing the 3em0er *!n*erne, 0%t
als! 0/ ta.ing int! a**!%nt the +a*t that the State m%st r!#i,e itsel+ "ith the means !+ imlementing
its !li*ies. Th%s( the Panel *!nsi,ers that it is legitimate t! eAe*t a *!%ntr/ s%*h as 2ran*e "ith
a,#an*e, la0!%r legislati!n an, se*ialiFe, a,ministrati#e ser#i*es t! ,el!/ a,ministrati#e res!%r*es
r!!rti!nate t! its %0li* health !06e*ti#es an, t! 0e reare, t! in*%r the ne*essar/ eAen,it%re.
:.&': )+ter *lari+/ing this !int( "e "ill n!" r!*ee, t! eAamine "hether *!ntr!lle, %se ;a< is
s%++i*ientl/ e++e*ti#e in the light !+ 2ran*e's health !li*/ !06e*ti#es an, ;0< "hether it *!nstit%tes a
reas!na0l/ a#aila0le meas%re.
:.&'7 In relati!n t! the +irst !+ these *!nsi,erati!ns( "e n!te( +irst !+ all( that alth!%gh *!ntr!lle, %se
is alie, in s!me *!%ntries( s%*h as the Unite, States !r Cana,a( an, has als! 0een alie, 0/
2ran*e( in general in *ertain se*t!rs its e++i*a*it/ still remains t! 0e ,em!nstrate,. This is *!n+irme,
0/ a n%m0er !+ st%,ies
17&
( as "ell as 0/ the *!mments !+ the eAerts.
173
Th%s( e#en th!%gh it seems
!ssi0le t! al/ *!ntr!lle, %se s%**ess+%ll/ %stream ;mining an, man%+a*t%ring< !r ,!"nstream
;rem!#al an, ,estr%*ti!n< !+ r!,%*t %se( it "!%l, seem t! 0e m%*h less eas/ t! al/ it in the
0%il,ing se*t!r( "hi*h is !ne !+ the areas m!re arti*%larl/ targete, 0/ the meas%res *!ntaine, in the
De*ree. The Panel there+!re *!n*l%,es that( in #ie" !+ the ,i++i*%lties !+ ali*ati!n !+ *!ntr!lle,
%se( an !++i*ial in *harge !+ %0li* health !li*/ might reas!na0l/ *!nsi,er that *!ntr!lle, %se ,i, n!t
r!#i,e r!te*ti!n that "as a,e-%ate in relati!n t! the !li*/ !06e*ti#es.
:.&1' 3!re!#er( Cana,a re+ers t! the eAisten*e !+ internati!nal stan,ar,s +!r the r!te*ti!n !+
"!r.ers in *!nta*t "ith *hr/s!tile.
171
2irst !+ all( "e +in, that the internati!nal stan,ar,s *!#er !nl/
the re*a%ti!ns t! 0e ta.en i+ a "!r.er has t! han,le as0est!s. The/ *!ntain neither a g%arantee !+
+ree a**ess +!r as0est!s n!r an in*enti#e t! %se as0est!s. On the *!ntrar/( the internati!nal
*!n#enti!ns s%ggest that( as +ar as !ssi0le( as0est!s sh!%l, 0e rela*e, 0/ less haFar,!%s
materials.
175
NeAt( "e n!te that the le#els !+ r!te*ti!n !0taine, 0/ +!ll!"ing internati!nal stan,ar,s(
"hether it 0e the ISO stan,ar, !r the WEO C!n#enti!n( are l!"er than th!se esta0lishe, 0/ 2ran*e(
in*l%,ing th!se ali*a0le 0e+!re the intr!,%*ti!n !+ the De*ree. C!nsi,ering the high le#el !+ ris.
17'
O. *it.( ara. 5.&8.
171
See United States 7asoline( !. *it.( aras. 8.&8 t! 8.&:.
17&
See Pet! et alH Continuing Increase in 1esothelioma 1ortalit/ in ;ritain, he :ancet, #!l%me 315(
5359537 ;1775<. See als! Dr. Een,ers!n( *iting EEC &'3( aras. 5.38595.38:H Dr. In+ante( aras. 5.35195.35&
an, 5.387.
173
See the *!mments !+ the eAerts !n *!ntr!lle, %se an, its +easi0ilit/( aras. 5.33595.373.
171
See( +!r eAamle( ISO 7337.
175
See Internati!nal Da0!%r OrganiFati!n( =ene#a( C!n#enti!n C!n*erning Sa+et/ in the Use !+
)s0est!s ;hereina+ter >C!n#enti!n 18&>( a,!te, !n &1 $%ne 17:8<.
WT/DS135/R
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i,enti+ie,( 2ran*e's !06e*ti#e L "hi*h the Panel *ann!t -%esti!n 9
178
6%sti+ies the a,!ti!n !+ eA!s%re
*eilings l!"er than th!se +!r "hi*h the internati!nal *!n#enti!ns r!#i,e. We there+!re +in, that
*!ntr!lle, %se 0ase, !n internati!nal stan,ar,s "!%l, n!t seem t! ma.e it !ssi0le t! a*hie#e the
le#el !+ r!te*ti!n s!%ght 0/ 2ran*e.
:.&11 The Panel is a"are that in s!me se*t!rs *!ntr!lle, !r sa+e %se *!%l, 0e en#isage, "ith greater
*ertaint/ that it "!%l, r!#e e++e*ti#e. E!"e#er( as *!n+irme, 0/ the eAerts
177
( the *ir*%mstan*es !+
%se m%st 0e *!ntr!lla0le. These *ir*%mstan*es are eAtremel/ #arie, an, "e n!te that the sa+et/
meas%res that "!%l, ma.e !ssi0le res%lts at least e-%i#alent t! the eA!s%re le#el ;'.1 +/ml< alie,
0/ 2ran*e 0e+!re the 0an ;restri*ti!ns !n the n%m0er !+ "!r.ers an, "!r.ing areas an, t!tal
*!ntainment !+ the r!,%*t< eA*ee, the re-%irements !+ the internati!nal stan,ar,s an, *!nsi,era0l/
limit the n%m0er !+ in,%strial se*t!rs that *!%l, al/ them.
17:
E#en in these *ases( a**!r,ing t! !ne
!+ the eAerts( the le#el !+ eA!s%re is still high en!%gh +!r there t! 0e a signi+i*ant resi,%al ris. !+
,e#el!ing as0est!s9relate, ,iseases.
177
)**!r,ing t! an!ther( it is n!t !ssi0le t! g%arantee that +i0re
*!n*entrati!ns "ill ne#er eA*ee, '.1 +/ml.
1:'
In a,,iti!n( "e n!te that +!r the ali*ati!n !+ *!ntr!lle,
%se t! satis+/ 2ran*e's %0li* health !06e*ti#es( mine, !r r!*esse, r!,%*ts sh!%l, ne#er 0e han,le,
0/ an/!ne !%tsi,e the mining an, r!*essing in,%stries. I+ these r!,%*ts "ere s%0se-%entl/ t! 0e
han,le, 0/ %nr!te*te, ers!ns( the +a*t that the/ *!%l, 0e mine, an, r!*esse, an, then ,estr!/e,
%sing *!ntr!lle, %se te*hni-%es "!%l, n!t 0e s%++i*ient t! meet th!se !06e*ti#es. We there+!re +in,
that a ,e*isi!n9ma.er res!nsi0le +!r esta0lishing a health !li*/ might ha#e reas!na0le ,!%0ts a0!%t
the !ssi0ilit/ !+ ens%ring the a*hie#ement !+ 2ran*e's health !li*/ !06e*ti#es 0/ rel/ing !n
*!ntr!lle, %se( e#en in se*t!rs "hi*h might len, themsel#es m!re rea,il/ t! these ra*ti*es.
1:1
:.&1& A fortiori an, +!r the +!ll!"ing reas!ns( "e *!nsi,er that *!ntr!lle, %se is n!t a reas!na0l/
a#aila0le alternati#e in all the !ther se*t!rs in "hi*h "!r.ers ma/ 0e eA!se, t! *hr/s!tile.
:.&13 The Panel n!tes that Cana,a's arg%ments %n,er )rti*le IIIB1 are limite, t! *hr/s!tile an,
*hr/s!tile9*ement r!,%*ts. In +a*t( *hr/s!tile9*ement is mainl/ %se, in the 0%il,ing se*t!r. )s the
eAerts ha#e *!n+irme,( 0e*a%se !+ the m!0ilit/ !+ the "!r.ers an, their s!metimes ina,e-%ate
training( as "ell as the large n%m0er !+ sites an, there+!re !+ e!le lia0le t! eA!s%re( it is #er/
,i++i*%lt t! im!se !n the 0%il,ing se*t!r s!histi*ate, !**%ati!nal sa+et/ ra*ti*es !+ the t/e that
*an 0e alie, in se*t!rs "ith smaller n%m0ers !+ "!r.ers *!n*entrate, in "ell9,e+ine, areas.
1:&
:.&11 3!re!#er( "hile *!ntr!lle, %se ma/ seem ,i++i*%lt t! al/ in the 0%il,ing se*t!r( it is e#en
less +easi0le in the *ase !+ DI5 enth%siasts !r %n,e*lare, "!r.ers !erating !%tsi,e an/ r!er
+rame"!r. !r s/stem !+ *!ntr!ls. 2ran*e's !06e*ti#e is t! halt the srea, !+ the ris.s ass!*iate, "ith
*hr/s!tile. )t least as +ar as DI5 enth%siasts are *!n*erne,( *!ntr!lle, %se is n!t a reas!na0l/
a#aila0le !ti!n. In this *!nteAt( the +a*t that *!ntr!lle, %se might 0e reas!na0l/ a#aila0le in !ther
se*t!rs is irrele#ant. Eere( "e are *!n*erne, "ith a r!,%*t that *!%l, 0e installe, in e!le's h!mes(
n!t !ne limite, t! a restri*te, %se in areas in "hi*h !nl/ r!+essi!nals "!%l, 0e re-%ire, t! "!r..
178
See United States 7asoline( !. *it%, ara. 8.&&. The Panel als! n!tes that GG;0< ,!es n!t im!se
the same *!nstraints as )rti*le 3.3 !+ the SPS )greement !n 3em0ers "ishing t! al/ meas%res that in#!l#e a
le#el !+ r!te*ti!n higher than that "hi*h "!%l, 0e !0taine, "ith meas%res 0ase, !n the rele#ant internati!nal
stan,ar,s.
177
Dr. Een,ers!n( aras. 5.33895.311.
17:
I0i,%( aras. 5.33795.337.
177
Dr. In+ante( ara. 5.313 re+erring t! an !ini!n gi#en 0/ the Unite, States O**%ati!nal Sa+et/ an,
Eealth ),ministrati!n ;OSE)<. See als! Dr. In+ante( aras. 5.35:95.38&.
1:'
Dr. Een,ers!n( aras. 5.35595.357.
1:1
In an/ e#ent( in the light !+ the !ini!n !+ !ne !+ the eAerts ;Dr. Een,ers!n( ara 5.85: an,
+!!tn!te<( the se*t!rs in "hi*h e++e*ti#e *!ntr!lle, %se is +easi0le aear t! 0e eAtremel/ +e" an, *!n*ern
ali*ati!ns +!r "hi*h( at this stage( there are n! *hr/s!tile s%0stit%tes( an area in "hi*h the De*ree r!#i,es +!r
eA*eti!ns t! the r!hi0iti!n !n the %se !+ *hr/s!tile.
1:&
We n!te that the eAerts' *!mments relate t! *!%ntries "ith a le#el !+ e*!n!mi* ,e#el!ment
e-%i#alent t! that !+ 2ran*e an, "ith similar a,ministrati#e res!%r*es.
WT/DS135/R
Page 1:7
Ins!+ar as( !n*e the r!,%*ts ha#e 0een installe,( it is im!ssi0le t! g%arantee that the/ "ill n!t 0e
han,le, 0/ s!me!ne "h! "ill n!t +!ll!" *!ntr!lle, %se ra*ti*es( it seems t! %s that a ,e*isi!n9ma.er
res!nsi0le +!r a,!ting a health !li*/ might "ell *!n*l%,e that there "as still a +la" in the health
r!te*ti!n s/stem i+ !nl/ *!ntr!lle, %se meas%res "ere alie,.
1:3
:.&15 Cana,a als! !ints !%t that( e#en th!%gh their %se might n!t 0e limite, t! !**%ati!nal
a*ti#ities( s!me r!,%*ts "ill ne#er 0e han,le, 0/ %n-%ali+ie, e!le. The Panel n!tes( h!"e#er(
that( as it +!%n, in aragrahs :.&''9:.&'& a0!#e( eA!s%re t! as0est!s +i0res is n!t restri*te,
eA*l%si#el/ t! "!r.ers !r DI5 enth%siasts. Others resent "hile the "!r. is g!ing !n( in s!me *ases
e#en s!%ses( *!%l, 0e ,ire*tl/ !r in,ire*tl/ a++e*te,.
1:1
)s !ne !+ the eAerts has sh!"n( eA!s%re t!
as0est!s ma/ 0e the res%lt !+ %re *han*e.
1:5
:.&18 3!re!#er( the Panel n!tes that r!,%*ts *!ntaining *hr/s!tile ma/ remain in la*e +!r #er/
l!ng eri!,s !+ time. Th%s( e#er/ time the/ are han,le,( the han,ler *!%l, 0e eA!se,. The
*!ntin%e, mar.eting !+ r!,%*ts *!ntaining *hr/s!tile as0est!s m%ltilies the sit%ati!ns in "hi*h
"!r.ers are r!%tinel/ eA!se, an, eA!ses them t! *!n*entrati!ns !+ as0est!s "hi*h ha#e alrea,/
0een relate, t! ath!l!gies in h%mans.
1:8
In !ther "!r,s( e#en i+ the eA!s%re rates are #er/ l!"( the
m%ltili*ati!n !+ s!%r*es !+ eA!s%re ma/ lea, t! *!n*entrati!ns alrea,/ +!%n, t! ha#e *a%se,
,isease.
:.&17 We there+!re *!n*l%,e that the E%r!ean C!mm%nities ha#e sh!"n that *!ntr!lle, %se is
neither e++e*ti#e n!r reas!na0l/ a#aila0le( at least in the 0%il,ing se*t!r an, +!r DI5 enth%siasts.
)**!r,ingl/( *!ntr!lle, %se ,!es n!t *!nstit%te a reas!na0le alternati#e t! the 0anning !+ *hr/s!tile
as0est!s that might 0e *h!sen 0/ a ,e*isi!n9ma.er res!nsi0le +!r ,e#el!ing %0li* health meas%res(
0earing in min, the !06e*ti#es %rs%e, 0/ 2ran*e.
Re*!%rse t! s%0stit%te +i0res an, r!,%*ts
:.&1: Cana,a arg%es that 2ran*e is *reating a +alse sense !+ se*%rit/ 0/ re-%iring *hr/s!tile( "h!se
e++e*ts are "ell .n!"n( t! 0e rela*e, 0/ r!,%*ts "h!se e++e*ts !n health are %n*ertain.
:.&17 The E%r!ean C!mm%nities arg%e that the De*ree ,!es n!t re*!mmen, the in,is*riminate %se
!+ s%0stit%te r!,%*ts. It lea#es it t! 0%sinesses t! rela*e as0est!s 0/ "hi*he#er r!,%*t the/ *h!!se.
In #ie" !+ the r!*e,%re lai, ,!"n in )rti*le & !+ the De*ree( the rela*ement !+ as0est!s +i0res 0/
s%0stit%te +i0res is the res%lt !+ a reas!na0le an, 6%sti+ie, r!*ess.
:.&&' The Panel n!tes( +irst !+ all( that the ris. !se, 0/ *hr/s!tile is re*!gniFe, internati!nall/
1:7
(
"hi*h in itsel+ ma/ 6%sti+/ the ta.ing !+ meas%res t! restri*t its %se. On the !ther han,( "e +in, that
the s%0stit%te +i0res eAamine, in the *!nteAt !+ this *ase ;PC)( *ell%l!se an, glass< are n!t *lassi+ie,
0/ the WEO at the same le#el !+ ris. as *hr/s!tile. 3!re!#er( the eAerts *!ns%lte, 0/ the Panel "h!
*!mmente, in ,etail !n the ris.s ass!*iate, "ith the s%0stit%te +i0res eAamine, in the *!nteAt !+ this
*ase ;PC)( *ell%l!se an, glass< an, !ther +i0res( ;in arti*%lar arami, an, *erami*< *!n+irme, that
these +i0res ,i, n!t resent the same ris. t! health as *hr/s!tile.
1::
In arti*%lar( animal st%,ies ,! n!t
sh!" the +i0res in -%esti!n t! 0e *ar*in!geni*.
1:7
1:3
See the eAerts' *!mments !n this s%06e*tB Dr. ,e Kler.( ara. 5.335H Dr. Een,ers!n( ara. 5.311H
Dr. In+ante( ara 5.313.
1:1
See the st%,ies *ite, 0/ Dr. In+ante( ara. 5.3'1.
1:5
See the eAamles !+ the le*t%rer an, the +ireman menti!ne, 0/ Dr. Een,ers!n ,%ring the meeting
"ith eAerts( ara. &5'( )nneA CI.
1:8
See Dr. In+ante( ara. 5.315.
1:7
See I)RC *lassi+i*ati!n( !. *it.
1::
See Dr. ,e Kler.( aras. 5.37595.377H Dr. Een,ers!n( ara. 5.3:5H Dr. In+ante( ara. 5.3::.
1:7
See Dr. 3%s.( ara. 5.37'.
WT/DS135/R
Page 1::
:.&&1 Cana,a's ar!a*h seems t! 0e 0ase, !n the +a*t that *hr/s!tile *an 0e %se, sa+el/. )s "e
ha#e alrea,/ *!n*l%,e,( this ,!es n!t aear t! 0e a reas!na0l/ a#aila0le !ssi0ilit/( at least as +ar as
0%il,ing "!r.ers an, DI5 enth%siasts are *!n*erne,. I+ "e "ere t! +!ll!" Cana,a's reas!ning( then
s%0stit%te +i0res *!%l, n!t 0e %se, %ntil a ,egree !+ *ertaint/ e-%i#alent t! that "hi*h eAists "ith
rese*t t! *hr/s!tile ha, 0een esta0lishe,. In the !ini!n !+ the Panel( t! ma.e the a,!ti!n !+ health
meas%res *!n*erning a ,e+inite ris. ,een, %!n esta0lishing "ith *ertaint/ a ris. alrea,/ assesse, as
0eing l!"er than that *reate, 0/ *hr/s!tile "!%l, ha#e the e++e*t !+ re#enting an/ !ssi0ilit/ !+
legislating in the +iel, !+ %0li* health. In +a*t( it "!%l, mean "aiting %ntil s*ienti+i* *ertaint/( "hi*h
is !+ten ,i++i*%lt t! a*hie#e( ha, 0een esta0lishe, !#er the "h!le !+ a arti*%lar +iel, 0e+!re %0li*
health meas%res *!%l, 0e imlemente,.
C!n*l%si!n
:.&&& In the light !+ 2ran*e's %0li* health !06e*ti#es as resente, 0/ the E%r!ean C!mm%nities(
the Panel *!n*l%,es that the EC has ma,e a rima +a*ie *ase +!r the n!n9eAisten*e !+ a reas!na0l/
a#aila0le alternati#e t! the 0anning !+ *hr/s!tile an, *hr/s!tile9*ement r!,%*ts an, re*!%rse t!
s%0stit%te r!,%*ts. Cana,a has n!t re0%tte, the res%mti!n esta0lishe, 0/ the EC. We als!
*!nsi,er that the EC's !siti!n is *!n+irme, 0/ the *!mments !+ the eAerts *!ns%lte, in the *!%rse !+
this r!*ee,ing.
:.&&3 )t this stage( "e *!n*l%,e that the De*ree satis+ies the *!n,iti!ns !+ )rti*le GG;0< !+ the
=)TT 1771.
;,< )li*ati!n !+ the intr!,%*t!r/ *la%se ;*haea%< !+ )rti*le GG !+ the =)TT 1771 t! the
ali*ati!n !+ the De*ree
2i4 &1eans of arbitrar/ or unAustifiable discrimination bet5een countries 5here the same
conditions ,re9ail&
:.&&1 With regar, t! the intr!,%*t!r/ *la%se !+ )rti*le GG( the EC !int !%t that it alies t! the
manner in "hi*h the meas%re is alie,. In the resent *ase there is n!thing t! s%!rt the *!ntenti!n
that 2ran*e a*te, >in 0a, +aith> !r in an >%nreas!na0le>( >imr!er> !r >a0%si#e> manner in eAer*ising
its right %n,er )rti*le GG;0<. The 0an is n!t a means !+ im!sing ar0itrar/ !r %n6%sti+ia0le
,is*riminati!n 0et"een *!%ntries "here the same *!n,iti!ns re#ail. It *!#ers r!,%*ts !riginating in
an/ *!%ntr/( in*l%,ing 2ran*e( "here the same *!n,iti!ns re#ail. The E%r!ean C!mm%nities
*!nsi,er that( as the De*ree ,!es n!t meet the ,e+initi!n !+ ,is*riminati!n lai, ,!"n 0/ the )ellate
4!,/( it *ann!t 0e alie, in s%*h a manner as t! *!nstit%te a means !+ ar0itrar/ !r %n6%sti+ia0le
,is*riminati!n 0et"een *!%ntries "here the same *!n,iti!ns re#ail.
:.&&5 Cana,a *laims that it has alrea,/ sh!"n( in rese*t !+ )rti*le IIIB1( that the initial De*ree "as
,is*riminat!r/. The De*ree is als! ar0itrar/ an, %n6%sti+ie, 0e*a%se it is n!t m!ti#ate, 0/ the
!06e*ti#e !+ r!te*ting h%man li+e !r health 0%t rather 0/ the ,esire t! reass%re a ani*.e, !%lati!n.
:.&&8 The Panel n!tes that %n,er the +irst !+ the alternati#es menti!ne, in the intr!,%*t!r/ *la%se !+
)rti*le GG it is re-%ire, t! eAamine "hether the a,,lication !+ the De*ree *!nstit%tes a means !+
ar0itrar/ !r %n6%sti+ia0le ,is*riminati!n 0et"een *!%ntries "here the same *!n,iti!ns re#ail.
17'
The
Panel *!nsi,ers that( "ithin the *!nteAt !+ this alternati#e( its +irst ste sh!%l, 0e t! ,etermine "hether
the meas%re is >,is*riminat!r/> in its ali*ati!n.
171
I+ the ali*ati!n !+ the meas%re is +!%n, t! 0e
17'
See the Re!rts !+ the )ellate 4!,/ in United States 7asoline( !. *it%, . &5( an,
United States Shrim,, !. *it%, ara. 115.
171
The Panel *!nsi,ers that "hat is r!hi0ite, 0/ the intr!,%*t!r/ *la%se t! )rti*le GG is a arti*%lar
+!rm !+ ,is*riminati!n ;that "hi*h is ar0itrar/ !r %n6%sti+ia0le 0et"een *!%ntries "here the same *!n,iti!ns
re#ail< an, n!t all +!rms !+ ,is*riminati!n. I+ the meas%re is n!t ,is*riminat!r/ in general in its ali*ati!n(
then a fortiori it *ann!t *!nstit%te ar0itrar/ !r %n6%sti+ia0le ,is*riminati!n 0et"een *!%ntries "here the same
*!n,iti!ns re#ail. See als! the Re!rt !+ the Panel in United States Im,orts of Certain Automoti9e S,ring
WT/DS135/R
Page 1:7
,is*riminat!r/( it still remains t! 0e seen "hether it is arbitrar/ an,/!r unAustifiable 0et"een
*!%ntries "here the same *!n,iti!ns re#ail. It is in this *!nteAt( an, n!t in the stage !+ the eAisten*e
!+ ,is*riminati!n L "hi*h is an !06e*ti#e +a*t( that "e shall ,etermine "hether the meas%res +alling
"ithin the arti*%lar eA*eti!ns !+ )rti*le GG;0< L in this *ase the initial De*ree as alie, L ha#e
0een alie, reas!na0l/( "ith ,%e regar, t! 0!th the legal ,%ties !+ the art/ *laiming the eA*eti!n
an, the legal rights !+ the !ther arties *!n*erne,.
17&
:.&&7 The Panel als! n!tes that( in United States 7asoline( the )ellate 4!,/ state, that the
"!r, >,is*riminati!n> in the intr!,%*t!r/ *la%se !+ )rti*le GG *!#ers 0!th ,is*riminati!n 0et"een
r!,%*ts +r!m ,i++erent s%lier *!%ntries an, ,is*riminati!n 0et"een ,!mesti* an, im!rte,
r!,%*ts. 2inall/( in the same *ase( the )ellate 4!,/ r%le, that >the r!#isi!ns !+ the *haea% ?!+
)rti*le GG @ *ann!t l!gi*all/ re+er t! the same stan,ar,;s< 0/ "hi*h a #i!lati!n !+ a s%0stanti#e r%le
has 0een ,etermine, t! ha#e !**%rre,.>
173
In !ther "!r,s( "e *ann!t *!n*l%,e that ,is*riminati!n
eAists !n the 0asis !+ the #i!lati!n !+ )rti*le IIIB1 i,enti+ie, a0!#e. This means that the less
+a#!%ra0le treatment !+ as0est!s as *!mare, "ith s%0stit%te +i0res i,enti+ie, 0/ Cana,a is n!t
rele#ant +!r esta0lishing the eAisten*e !+ ,is*riminati!n %n,er )rti*le GG. The -%esti!n is there+!re
*!n+ine, t! the s%liers !+ as0est!s( "hether ,!mesti* !r +!reign. E!"e#er( "e %n,erstan, that
an!ther +!rm !+ ,is*riminati!n( +!r eAamle 0et"een s%lier *!%ntries( n!t in#!.e, 0/ Cana,a as its
rin*ial arg%ment( *!%l, 0e ta.en int! *!nsi,erati!n %n,er the intr!,%*t!r/ *la%se !+ )rti*le GG. It
is !n this ,%al 0asis that "e shall eAamine "hether the meas%re is 0eing alie, in a >,is*riminat!r/>
manner.
:.&&: The Panel n!tes that the E%r!ean C!mm%nities *!nsi,er the De*ree t! *!n*ern r!,%*ts
!riginating in an/ *!%ntr/( in*l%,ing 2ran*e( "here the same *!n,iti!ns re#ail. The teAt !+ the
De*ree as s%*h aears t! *!n+irm this. Onl/ the r!,%*t in -%esti!n is menti!ne,( "ith!%t an/
re+eren*e t! its !rigin. E#en )rti*les & an, 3( "hi*h *!n*ern the esta0lishment an, a,ministrati!n !+
eA*eti!ns( ,! n!t *!ntain an/ eAressl/ ,is*riminat!r/ r!#isi!n. It sh!%l, 0e 0!rne in min,(
h!"e#er( that the intr!,%*t!r/ *la%se !+ )rti*le GG *!n*erns the ali*ati!n !+ the meas%re. It "!%l,
there+!re 0e !ssi0le +!r Cana,ian eA!rts !+ *hr/s!tile !r r!,%*ts *!ntaining it t! re*ei#e less
+a#!%ra0le treatment than im!rts +r!m !ther *!%ntries !r 2ren*h r!,%*ti!n "ith rese*t t! the "a/
in "hi*h the eA*eti!ns are a,ministere, 0/ the 2ren*h a%th!rities. 2!r eAamle( the minister
res!nsi0le might %se the !"ers !+ n!ti*e %n,er )rti*le 3BIII !+ the De*ree t! ,is*riminate against an
!erat!r -%ali+/ing +!r an eA*eti!n "h! im!rts *hr/s!tile +i0res +r!m Cana,a. E!"e#er( "e n!te
that Cana,a has n!t arg%e, that this "as !r ha, 0een the *ase. Cana,a merel/ re*alls that it has
,em!nstrate, the eAisten*e !+ ,is*riminati!n %n,er )rti*le IIIB1. 2!r the reas!ns set !%t a0!#e( "e
*!nsi,er that this ,em!nstrati!n is n!t rele#ant in terms !+ the intr!,%*t!r/ *la%se !+ )rti*le GG.
:.&&7 We there+!re *!n*l%,e that( alth!%gh this is a hea#ier tas. than that in#!l#e, in sh!"ing that
an eA*eti!n +alling "ithin !ne !+ the aragrahs !+ )rti*le GG en*!masses the meas%re at iss%e( the
EC ha#e ma,e a rima +a*ie *ase +!r their arg%ment that the De*ree ,!es n!t *!nstit%te( in its
ali*ati!n( ar0itrar/ !r %n6%sti+ia0le ,is*riminati!n. We ,! n!t *!nsi,er that Cana,a has re0%tte, the
res%mti!n esta0lishe, 0/ the rima +a*ie *ase ma,e 0/ the EC( a**!r,ing t! "hi*h the De*ree ,!es
n!t intr!,%*e ,is*riminati!n.
:.&3' In a**!r,an*e "ith !%r ar!a*h( sin*e ,is*riminati!n has n!t 0een esta0lishe, in relati!n t!
the ali*ati!n !+ the De*ree( there is n! nee, t! *!nsi,er the -%esti!n !+ its ar0itrariness !r
%n6%sti+ia0ilit/.
2ii4 &8isguised restriction on international trade&
Assemblies( a,!te, !n &8 3a/ 17:3( 4ISD 3'S/1'7 ;hereina+ter >United States Automoti9e S,rings><(
ara. 55.
17&
Re!rt !+ the )ellate 4!,/ in United States 7asoline( !. *it.( . &&.
173
I0i,%
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Page 17'
:.&31 )**!r,ing t! the EC( the De*ree ,!es n!t *!nstit%te a >,isg%ise, restri*ti!n !n internati!nal
tra,e>. The EC *!nsi,er that the +a*t that the De*ree is n!t alie, in a manner "hi*h "!%l,
*!nstit%te a means !+ ar0itrar/ !r %n6%sti+ia0le ,is*riminati!n is r!!+ en!%gh that it is n!t 0eing
alie, in a manner "hi*h *!nstit%tes a ,isg%ise, restri*ti!n !n internati!nal tra,e. In arti*%lar( the
EC !int !%t that the restri*ti!n "as %0lishe,( that man/ !ther 3em0ers !+ the WTO als! al/
restri*ti!ns !n these r!,%*ts an, that the restri*ti!n ta.es internati!nal stan,ar,s as a 0ase. )n/
!ther ar!a*h "!%l, iml/ that all legislati!n !n as0est!s an, as0est!s9*!ntaining r!,%*ts( in s! +ar
as it im!ses restri*ti!ns( am!%nts t! a >,isg%ise, restri*ti!n !n internati!nal tra,e>.
:.&3& Cana,a *!nsi,ers that the De*ree is a >,isg%ise, restri*ti!n !n internati!nal tra,e>. The
)ellate 4!,/ has eA*l%,e, a narr!" rea,ing !+ the term >,isg%ise, restri*ti!n>. The +a*t that the
meas%re "as %0lishe, ,!es n!t re#ent it +r!m 0eing a ,isg%ise, restri*ti!n !n internati!nal tra,e.
The De*ree is *!ntrar/ t! the intr!,%*t!r/ *la%se !+ )rti*le GG in the sense that( %n,er the *!#er !+ a
%0li* health ,e*isi!n( it +a#!%rs the 2ren*h nati!nal in,%str/ !+ s%0stit%te r!,%*ts +!r *hr/s!tile an,
r!,%*ts *!ntaining it.
:.&33 The Panel n!tes( +irst !+ all( that the a*t%al s*!e !+ the "!r,s >,isg%ise, restri*ti!n !n
internati!nal tra,e> has n!t 0een *learl/ ,e+ine,. Un,er the =)TT 1717( anels seem mainl/ t! ha#e
*!nsi,ere, that a ,isg%ise, restri*ti!n !n internati!nal tra,e "as a restri*ti!n that ha, n!t 0een ta.en
in the +!rm !+ a tra,e meas%re !r ha, n!t 0een ann!%n*e, 0e+!rehan,
171
!r +!rme, the s%06e*t !+ a
%0li*ati!n( !r e#en ha, n!t 0een the s%06e*t !+ an in#estigati!n.
175
:.&31 In United States 7asoline, the )ellate 4!,/ *!nsi,ere, >that *!n*eale, !r %nann!%n*e,
restri*ti!n J in internati!nal tra,e ,!es n!t eAha%st the meaning !+ ',isg%ise, restri*ti!n'.> This
seems t! iml/ that a meas%re that "as n!t %0lishe, "!%l, n!t satis+/ the re-%irements !+ the se*!n,
r!!siti!n !+ the intr!,%*t!r/ *la%se !+ )rti*le GG. We n!te that the De*ree "as %0lishe, in the
O++i*ial $!%rnal !+ the 2ren*h Re%0li* !n &8 De*em0er 1778 an, entere, int! +!r*e !n 1 $an%ar/
1777. We als! n!te that it alies %ne-%i#!*all/ t! internati!nal tra,e( sin*e as +ar as as0est!s is
*!n*erne, 0!th im!rtati!n an, eA!rtati!n are r!hi0ite,. In this sense( the *riteria ,e#el!e, in
United States una 21!?'4 an, in United States Automoti9e S,rings ha#e alrea,/ 0een satis+ie,.
:.&35 E!"e#er( the remar. ma,e 0/ the )ellate 4!,/ in United States 7asoline als! imlies
that the eAressi!n >,isg%ise, restri*ti!n !n internati!nal tra,e> *!#ers !ther re-%irements. In the
171
The Re!rt !+ the Panel in United States Prohibition of Im,orts of una and una Products from
Canada, a,!te, !n && 2e0r%ar/ 17:&( 4ISD &7S/71 ;hereina+ter >United States una 21!?'4&4, states( in
ara. 1.:B
>?The Panel@ +%rtherm!re +elt that the Unite, States a*ti!n sh!%l, n!t 0e *!nsi,ere, t! 0e a ,isg%ise,
restri*ti!n !n internati!nal tra,e( n!ting that the Unite, States r!hi0iti!n !+ im!rts !+ t%na an, t%na
r!,%*ts +r!m Cana,a ha, 0een ta.en as a tra,e meas%re an, %0li*l/ ann!%n*e, as s%*h. The Panel
there+!re *!nsi,ere, it ar!riate t! eAamine +%rther the Unite, States im!rt r!hi0iti!n !+ t%na an,
t%na r!,%*e +r!m Cana,a in the light !+ the list !+ se*i+i* t/es !+ meas%res *!ntaine, in )rti*le GG
an, n!ta0l/ in )rti*le GG;g<.>
175
The Re!rt !+ the Panel in United States Automoti9e S,rings, !. *it.( states in ara. 58B
>The Panel then *!nsi,ere, "hether !r n!t the eA*l%si!n !r,er "as >alie, in a manner "hi*h "!%l,
*!nstit%te J a ,isg%ise, restri*ti!n !n internati!nal tra,e>. The Panel n!te, that the ream0le !+
)rti*le GG ma,e it *lear that it "as the ali*ati!n !+ the meas%re an, n!t the meas%re itsel+ that
nee,e, t! 0e eAamine,. N!ti*e !+ the eA*l%si!n !r,er "as %0lishe, in the 2e,eral Register an, the
!r,er "as en+!r*e, 0/ the Unite, States *%st!ms at the 0!r,er. The Panel als! n!te, that the ITC
r!*ee,ings in this arti*%lar *ase "ere ,ire*te, against the im!rtati!n !+ a%t!m!ti#e sring
assem0lies r!,%*e, in #i!lati!n !+ a #ali, Unite, States atent an, that( 0e+!re an eA*l%si!n !r,er
*!%l, 0e iss%e, %n,er Se*ti!n 337( 0!th the #ali,it/ !+ the atent an, its in+ringement 0/ a +!reign
man%+a*t%rer ha, t! 0e *learl/ esta0lishe,. 2%rtherm!re( the eA*l%si!n !r,er "!%l, n!t r!hi0it the
im!rtati!n !+ a%t!m!ti#e sring assem0lies r!,%*e, 0/ an/ r!,%*er !%tsi,e the Unite, States "h!
ha, a li*en*e +r!m K%hlman C!r!rati!n t! r!,%*e these g!!,s. C!nse-%entl/( the Panel +!%n, that
the eA*l%si!n !r,er ha, n!t 0een alie, in a manner "hi*h *!nstit%te, a ,isg%ise, restri*ti!n !n
internati!nal tra,e.>
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same *ase( the )ellate 4!,/ menti!ns that >',isg%ise, restri*ti!n' in*l%,es ,isg%ise,
discrimination in internati!nal tra,e>. This aears t! signi+/ that the "!r, >restri*ti!n> sh!%l, n!t 0e
gi#en a narr!" meaning. In aragrah :.&&7 a0!#e( "e +!%n, that the De*ree ,i, n!t *!nstit%te
,is*riminati!n "ithin the meaning !+ the +irst *!n,iti!n !+ the intr!,%*t!r/ *la%se !+ )rti*le GG. We
*!nsi,er that !%r *!n*l%si!n *an als! 0e %se, +!r ,etermining "hether the De*ree *!nstit%tes a
,isg%ise, restri*ti!n. In this rese*t( "e n!te that in the a0!#e9menti!ne, *ase the )ellate 4!,/
*!nsi,ere, thatB
>',isg%ise, restri*ti!n'( "hate#er else it *!#ers( ma/ r!erl/ 0e rea, as em0ra*ing restri*ti!ns
am!%nting t! ar0itrar/ !r %n6%sti+ia0le ,is*riminati!n in internati!nal tra,e ta.en %n,er the g%ise !+ a
meas%re +!rmall/ "ithin the terms !+ an eA*eti!n liste, in )rti*le GG. P%t in a s!me"hat ,i++erent
manner( the .in,s !+ *!nsi,erati!ns ertinent in ,e*i,ing "hether the ali*ati!n !+ a arti*%lar
meas%re am!%nts t! 'ar0itrar/ !r %n6%sti+ia0le ,is*riminati!n'( ma/ als! 0e ta.en int! a**!%nt in
,etermining the resen*e !+ a ',isg%ise, restri*ti!n' !n internati!nal tra,e. The +%n,amental theme is t!
0e +!%n, in the %r!se an, !06e*t !+ a#!i,ing a0%se !r illegitimate %se !+ the eA*eti!ns t! s%0stanti#e
r%les a#aila0le in )rti*le GG.>
178
:.&38 Re+erring als! t! the remar. ma,e 0/ the )ellate 4!,/ in the same *ase a**!r,ing t! "hi*h
>the r!#isi!ns !+ the *haea% ?!+ )rti*le GG@ *ann!t l!gi*all/ re+er t! the same stan,ar,;s< 0/ "hi*h
a #i!lati!n !+ the s%0stanti#e r%le has 0een ,etermine, t! ha#e !**%rre,>( "e *!nsi,er that the .e/ t!
%n,erstan,ing "hat is *!#ere, 0/ >,isg%ise, restri*ti!n !n internati!nal tra,e> is n!t s! m%*h the
"!r, >restri*ti!n>( inasm%*h as( in essen*e( an/ meas%re +alling "ithin )rti*le GG is a restri*ti!n !n
internati!nal tra,e( 0%t the "!r, >,isg%ise,>. In a**!r,an*e "ith the ar!a*h ,e+ine, in )rti*le 31
!+ the Cienna C!n#enti!n( "e n!te that( as !r,inaril/ %n,erst!!,( the #er0 >t! ,isg%ise> imlies an
intention. Th%s( >t! ,isg%ise> ;dEguiser< means( in arti*%lar( >*!n*eal 0eneath ,e*eti#e
aearan*es( *!%nter+eit>( >alter s! as t! ,e*ei#e>( >misreresent>( >,issim%late>.
177
)**!r,ingl/( a
restri*ti!n "hi*h +!rmall/ meets the re-%irements !+ )rti*le GG;0< "ill *!nstit%te an a0%se i+ s%*h
*!mlian*e is in +a*t !nl/ a ,isg%ise t! *!n*eal the %rs%it !+ tra,e9restri*ti#e !06e*ti#es. E!"e#er(
as the )ellate 4!,/ a*.n!"le,ge, in )a,an Alcoholic ;e9erages( the aim !+ a meas%re ma/ n!t
0e easil/ as*ertaine,.
17:
Ne#ertheless( "e n!te that( in the same *ase( the )ellate 4!,/ s%ggeste,
that the r!te*ti#e ali*ati!n !+ a meas%re *an m!st !+ten 0e ,is*erne, +r!m its ,esign( ar*hite*t%re
an, re#ealing str%*t%re.
177
:.&37 It is !n this 0asis that "e shall anal/se Cana,a's arg%ment a**!r,ing t! "hi*h the De*ree
+a#!%rs the 2ren*h ,!mesti* in,%str/ r!,%*ing s%0stit%tes +!r *hr/s!tile an, *hr/s!tile9*!ntaining
r!,%*ts.
&''
We ha#e alrea,/ +!%n, that the De*ree "as ne*essar/ t! a*hie#e a %0li* health !06e*ti#e
an, ,i, n!t( in its ali*ati!n( *!nstit%te ar0itrar/ !r %n6%sti+ia0le ,is*riminati!n. We re*all that in
United States 7asoline( the )ellate 4!,/ *!nsi,ere, that the .in,s !+ *!nsi,erati!ns ertinent in
,e*i,ing "hether the ali*ati!n !+ a arti*%lar meas%re am!%nts t! >ar0itrar/ !r %n6%sti+ia0le
,is*riminati!n> ma/ als! 0e ta.en int! a**!%nt in ,etermining the resen*e !+ a >,isg%ise,
restri*ti!n> !n internati!nal tra,e. Sin*e "e ha#e n!t i,enti+ie, ,is*riminati!n( "e *!nsi,er it is
%nne*essar/ t! ,etermine "hether "e are +a*e, "ith ,is*riminati!n that might *!nstit%te a ,isg%ise,
restri*ti!n !n internati!nal tra,e.
:.&3: )s +ar as the ,esign( ar*hite*t%re an, re#ealing str%*t%re !+ the De*ree are *!n*erne,( "e +in,
n!thing that might lea, %s t! *!n*l%,e that the De*ree has r!te*ti!nist !06e*ti#es. Cana,a imli*itl/
178
United States 7asoline, !. *it.( . &5.
177
Petit Dar!%sse Ill%strM ;17:8<( . &7&H De N!%#ea% Petit R!0ert ;1771<( . 57&.
17:
O. *it%, . 31.
177
I0i,% )lth!%gh this ar!a*h "as ,e#el!e, in relati!n t! )rti*le IIIB1 !+ the =)TT 1771( "e see
n! reas!n "h/ it sh!%l, n!t 0e ali*a0le in !ther *ir*%mstan*es "here it is ne*essar/ t! ,etermine "hether a
meas%re is 0eing alie, +!r r!te*ti#e %r!ses.
&''
In this rese*t( "e *!nsi,er the EC t! ha#e satis+ie, the 0%r,en !+ r!!+ as regar,s the intr!,%*t!r/
*la%se !+ )rti*le GG. We shall there+!re treat Cana,a's arg%ment as an attemt t! re0%t the res%mti!n
esta0lishe, in +a#!%r !+ the EC.
WT/DS135/R
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a,mits as m%*h "hen it asserts that the De*ree is a res!nse !+ the 2ren*h a%th!rities t! ani*.e,
%0li* !ini!n an, !ther health s*ares imli*ating !++i*ials an, mem0ers !+ the g!#ernment.
&'1
I+ this
"as the *ase( it seems ,i++i*%lt t! re*!n*ile the De*ree 0eing a,!te, in great haste "ith the i,ea that
it "as the res%lt !+ a reme,itate, intenti!n t! r!te*t 2ren*h in,%str/.
:.&37 ),mitte,l/( there is al"a/s the !ssi0ilit/ that meas%res s%*h as th!se *!ntaine, in the
De*ree might ha#e the e++e*t !+ +a#!%ring the ,!mesti* s%0stit%te r!,%*t man%+a*t%rers. This is a
nat%ral *!nse-%en*e !+ r!hi0iting a gi#en r!,%*t an, in itsel+ *ann!t 6%sti+/ the *!n*l%si!n that the
meas%re has a r!te*ti!nist aim( as l!ng as it remains "ithin *ertain limits. In +a*t( the in+!rmati!n
ma,e a#aila0le t! the Panel ,!es n!t s%ggest that the im!rt 0an has 0ene+ite, the 2ren*h s%0stit%te
+i0re in,%str/( t! the ,etriment !+ thir, *!%ntr/ r!,%*ers( t! s%*h an eAtent as t! lea, t! the
*!n*l%si!n that the De*ree has 0een s! alie, as t! *!nstit%te a ,isg%ise, restri*ti!n !n internati!nal
tra,e.
&'&
:.&1' C!nse-%entl/( "e *!n*l%,e that the De*ree satis+ies the *!n,iti!ns !+ the intr!,%*t!r/ *la%se
!+ )rti*le GG.
/. 'oncusion
:.&11 In the light !+ the a0!#e( the Panel *!n*l%,es that the r!#isi!ns !+ the De*ree "hi*h #i!late
)rti*le IIIB1 !+ the =)TT 1771 are 6%sti+ie, %n,er )rti*le GG;0<.
I. )DDE=)TION O2 NUDDI2IC)TION OR I3P)IR3ENT O2 ) 4ENE2IT UNDER )RTICDE GGIIIB1;0< O2 TEE
=)TT 1771
%. *rgu!ents of the parties
24/
:.&1& Ea#ing ,etermine, that the De*ree "as 6%sti+ie, in the light !+ )rti*le GG;0< !+ the =)TT
1771 an, *!nsistent in its ali*ati!n "ith the intr!,%*t!r/ r!#isi!ns !+ that )rti*le( "e m%st n!"
eAamine Cana,a's allegati!ns an, arg%ments 0ase, !n )rti*le GGIIIB;0< !+ the =)TT 1771.
:.&13 The main arg%ments !+ the arties "ith regar, t! the eAisten*e !+ n!n9#i!lati!n n%lli+i*ati!n
!r imairment !+ a 0ene+it ;hereina+ter >n!n9#i!lati!n n%lli+i*ati!n>< *an 0e s%mmariFe, as +!ll!"s.
:.&11 Cana,a *!nsi,ers that( in a**!r,an*e "ith anel ra*ti*e %n,er the =)TT 1717( as *!n+irme,
in )a,an 1easures Affecting Consumer Photogra,hic *ilm and Pa,er
&'1
( three *!n,iti!ns m%st 0e
met +!r a *ase !+ n!n9#i!lati!n n%lli+i*ati!nB ;i< the neg!tiati!n !+ a tari++ *!n*essi!nH ;ii< the
s%0se-%ent a,!ti!n !+ a g!#ernmental meas%re that %n+a#!%ra0l/ ,isr%ts *!n,iti!ns !+ *!metiti!n
0et"een the im!rte, r!,%*t +!r "hi*h the *!n*essi!ns "ere grante, an, the li.e !r ,ire*tl/
*!metiti#e ,!mesti* r!,%*tsH an, ;iii< the +a*t that the a,!ti!n !+ the meas%re in -%esti!n *!%l,
n!t reas!na0l/ ha#e 0een +!reseen at the time !+ the tari++ *!n*essi!n neg!tiati!ns.
:.&15 Cana,a *!nsi,ers that these three *!n,iti!ns are resent in this *ase. )s0est!s an, man/
as0est!s9*!ntaining r!,%*ts are s%06e*t t! tari++ *!n*essi!ns 0/ 2ran*e an, the E%r!ean
C!mm%nities starting in 1717 an, 178'91781( rese*ti#el/( as "ell as ,%ring the Ur%g%a/ R!%n,
neg!tiati!ns. 4/ esta0lishing a t!tal 0an( the De*ree ,isr%te, the *!metiti#e relati!nshi in the
2ren*h mar.et 0et"een( !n the !ne han,( *hr/s!tile as0est!s +i0re an, r!,%*ts *!ntaining it an,( !n
the !ther( li.e an, *!metiti#e 2ren*h r!,%*ts( th%s *reating a m!n!!l/ +!r s%0stit%te +i0res.
&'1
See Cana,a's arg%ments( ara. 3.&7. Cana,a re+ers t! a st%,/ entitle, :Famiante dans
lFen9ironnement, ses consE$uences et son a9enir( O++i*e arlementaire ,'M#al%ati!n ,es *h!iA s*ienti+i-%es et
te*hn!l!gi-%es( Nati!nal )ssem0l/ N!. 3&7/Senate N!. 11( . 57.
&'&
See( in arti*%lar( the rel/ !+ the E%r!ean C!mm%nities t! the Panel's -%esti!n N!. 3'(
aras. 1139115( )nneA II.
&'3
The arg%ments !+ the arties are set !%t in ,etail in Se*ti!n III a0!#e.
&'1
),!te, !n && )ril 177:( WT/SD11/R( hereina+ter >)a,an *ilm&%
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2inall/( at the time the tari++ *!n*essi!ns *!n*erning as0est!s "ere neg!tiate,( Cana,a *!%l, n!t
reas!na0l/ ha#e +!reseen that 2ran*e "as g!ing t! a0an,!n its !li*/ !+ *!ntr!lle, %se an,
*!mr!mise the #al%e !+ its *!mmitments 0/ imlementing a t!tal 0an !n *hr/s!tile an, an/ !ssi0le
%se there!+ 0/ means !+ a meas%re as eA*essi#e as the De*ree. 2%rtherm!re( this meas%re "as
in*!nsistent "ith the t/e !+ reg%lat!r/ inter#enti!n then in la*e an, still in e++e*t t!,a/ *!n*erning
r!,%*ts e-%all/ harm+%l( i+ n!t m!re harm+%l( than *hr/s!tile. Cana,a's eAe*tati!ns "ere that this
t/e !+ meas%re "!%l, n!t 0e a,!te, %nless there "ere eA*eti!nal *ir*%mstan*es( 0%t there ha,
0een n! ne" s*ienti+i* ,e#el!ments that ha, *hange, an/thing in terms !+ managing the ris.s !r the
e++e*ts ass!*iate, "ith *hr/s!tile. 2inall/( Cana,a arg%es that it *!%l, n!t reas!na0l/ ha#e eAe*te,
that *hr/s!tile "!%l, 0e 0anne, in +a#!%r !+ s%0stit%te r!,%*ts "ith!%t th!se r!,%*ts ha#ing 0een
s%06e*te, t! a rig!r!%s r!*ess !+ eAaminati!n t! r!#e that their %se satis+ie, the %0li* health
!06e*ti#es in#!.e, 0/ 2ran*e.
:.&18 4/ "a/ !+ a reliminar/ remar.( the E%r!ean C!mm%nities !int !%t that in the *!nteAt !+ a
n!n9#i!lati!n allegati!n the 0%r,en !+ r!!+ is ese*iall/ !ner!%s as a res%lt !+( in arti*%lar(
)rti*le GGCIB1;a< !+ the Un,erstan,ing. The/ als! n!te that in )a,an *ilm( the Panel state, that
)rti*le GGIIIB1;0< !+ the =)TT 1771 sh!%l, 0e ar!a*he, "ith *a%ti!n an, that n!n9#i!lati!n
n%lli+i*ati!n !r imairment !+ 0ene+its sh!%l, 0e treate, as an eA*eti!nal *!n*et.
&'5
The E%r!ean
C!mm%nities als! *laim that the r%les !n n!n9#i!lati!n n%lli+i*ati!n !r imairment al/ !nl/ i+ the
meas%re in -%esti!n ,!es n!t +all %n,er !ther r!#isi!ns !+ the =)TT an, that( "hile there ma/ 0e
>legitimate eAe*tati!ns> in *!nne*ti!n "ith a %rel/ *!mmer*ial meas%re( there *an 0e n! s%*h
eAe*tati!ns "ith rese*t t! a meas%re ta.en t! r!te*t h%man health an, "hi*h *an there+!re 0e
6%sti+ie, "ith regar, t! )rti*le GGB;0< !+ the =)TT 1771.
:.&17 The E%r!ean C!mm%nities maintain that Cana,a +ails t! ,em!nstrate h!" the 2ren*h
meas%re *!%l, n!t reas!na0l/ ha#e 0een anti*iate,. In s%0stan*e( a**!r,ing t! the E%r!ean
C!mm%nities( sin*e 1777( *hr/s!tile has 0een *lassi+ie, as a *ateg!r/ I *ar*in!geni* r!,%*t 0/ the
WEO. Th%s( "hen the tari++ neg!tiati!ns t!!. la*e( Cana,a .ne" that there "as a ,anger that the
r!,%*t %n,er neg!tiati!n *!%l, at an/ time 0e r!hi0ite, 0/ 3em0ers !+ the WTO( arti*%larl/ i+
n!n9haFar,!%s !r less haFar,!%s s%0stit%tes *!%l, 0e %se,. In 17:8( IDO C!n#enti!n 18& !n as0est!s
state, that nati!nal legislati!n sh!%l, r!#i,e "here#er !ssi0le +!r the rela*ement !+ as0est!s !r !+
*ertain t/es !+ as0est!s !r r!,%*ts *!ntaining as0est!s 0/ !ther materials !r r!,%*ts !r the %se !+
alternati#e te*hn!l!g/( s*ienti+i*all/ e#al%ate, 0/ the *!metent a%th!rit/ as harmless !r less
harm+%l. Sin*e 177'( the E%r!ean C!mm%nities( %n,er Dire*ti#e 7'/371/EEC( has r!#i,e, +!r the
rela*ement !+ as0est!s. This Dire*ti#e re*!mmen,s the rin*ile !+ rela*ing a ,anger!%s s%0stan*e
!r r!*ess "ith a n!n9,anger!%s !r less ,anger!%s s%0stan*e !r r!*ess( "here !ne eAists. In 17:3(
WTO 3em0ers 0egan t! 0an the %se !+ as0est!s( in*l%,ing *hr/s!tile. )m!ng EC 3em0ers( )%stria
0anne, *hr/s!tile in 177'( +!ll!"e, 0/ 2inlan, an, Ital/ in 177&( an, =erman/ in 1773. Cana,a
might ha#e eAe*te, 2ran*e t! +!ll!" s%it.
:.&1: 2%rtherm!re( the E%r!ean C!mm%nities assert that there are n! r!#isi!ns in the =)TT !r
the T4T )greement re-%iring *!nsisten*/ in the ali*ati!n !+ health meas%res against s%0stan*es
that !se a *ar*in!geni* ris. +!r h%man health. )**eting Cana,a's arg%ment that it *!%l, n!t
legitimatel/ ha#e anti*iate, the 0an im!se, 0/ the De*ree 0e*a%se 2ran*e ,i, n!t sim%ltane!%sl/
0an !ther !tentiall/ ,anger!%s s%0stan*es ;s%*h as lea, an, *!er< "!%l, 0e e-%i#alent t!
re#enting 3em0ers entirel/ +r!m ta.ing meas%res t! r!te*t h%man health !n their territ!r/.
:.&17 3!re!#er( a**!r,ing t! the E%r!ean C!mm%nities( Cana,a *ann!t *laim a legitimate
eAe*tati!n !+ >imr!#e,> mar.et a**ess "ith rese*t t! a r!,%*t "hi*h entails ris.s +!r h%man
health "hen( as the +a*ts sh!"( the ten,en*/ is +!r eA!rts t! the in,%strialiFe, *!%ntries t! +all.
Cana,a m%st gi#e ,etaile, reas!ns as t! "h/ it *!%l, legitimatel/ ha#e eAe*te, that 2ran*e "!%l,
n!t a,!t meas%res restri*ting !r eliminating the %se !+ an/ as0est!s r!,%*t a+ter the Ur%g%a/ R!%n,
&'5
I0i,.( ara. 1'.38.
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neg!tiati!ns( gi#en the gr!"ing s*ienti+i* e#i,en*e that all t/es !+ as0est!s an, as0est!s9*!ntaining
r!,%*ts are *ar*in!geni* t! h%mans.
:.&5' The E%r!ean C!mm%nities then arg%e that Cana,a +ails t! ,em!nstrate h!" the De*ree
%sets the *!metiti#e relati!nshi 0et"een as0est!s an, +i0r!%s !r n!n9+i0r!%s s%0stit%te r!,%*ts. It
has n!t esta0lishe, a >*lear *!rrelati!n> 0et"een the t"!. The iss%e is n!t "hether e-%alit/ !+
*!metiti#e *!n,iti!ns eAists 0%t "hether the relati#e *!n,iti!ns !+ *!metiti!n "hi*h eAiste,
0et"een ,!mesti* an, +!reign r!,%*ts as a *!nse-%en*e !+ the rele#ant tari++ *!n*essi!ns ha#e 0een
%set. The EC *!nsi,er that the r!,%*ts +!r "hi*h the *!metiti#e *!n,iti!ns m%st 0e eAamine, are
th!se *!#ere, 0/ the tari++ *!n*essi!n. I+ a tari++ *!n*essi!n is grante, +!r as0est!s( the *!metiti#e
*!n,iti!ns t! 0e eAamine, are th!se *!n*erning Cana,ian as0est!s an, 2ren*h as0est!s. It is
irrele#ant t! *!mare *hr/s!tile "ith 2ren*h s%0stit%te r!,%*ts 0e*a%se s%*h r!,%*ts *ann!t 0e
*!nsi,ere, in terms !+ the same rele#ant tari++ *!n*essi!n.
:.&51 Cana,a re6e*ts the EC's *laim that an eAaminati!n !+ the ima*t !+ the De*ree's e++e*t !n
*!metiti#e *!n,iti!ns m%st 0e limite, t! Cana,ian as0est!s an, 2ren*h as0est!s. This ar!a*h is
*!ntra,i*te, 0/ t"! anel re!rts "hi*h ha#e *learl/ esta0lishe, that )rti*le GGIIIB1;0< *an 0e
in#!.e, in the *ase !+ a meas%re "hi*h %sets the *!metiti#e relati!nshi 0et"een t"! n!n9i,enti*al
r!,%*ts.
&'8
&. *na#sis "# the +ane
;a< Preliminar/ iss%es
2i4 Duestions before the Panel
:.&5& )rti*le GGIIIB1;0< !+ the =)TT 1771 ;N%lli+i*ati!n !r imairment< rea,s as +!ll!"sB
>1. I+ an/ *!ntra*ting art/ sh!%l, *!nsi,er that an/ 0ene+it a**r%ing t! it ,ire*tl/ !r in,ire*tl/
%n,er this )greement is 0eing n%lli+ie, !r imaire, !r that the attainment !+ an/ !06e*ti#e !+ the
)greement is 0eing ime,e, as the res%lt !+
?J@
;0< the ali*ati!n 0/ an!ther *!ntra*ting art/ !+ an/ meas%re( "hether !r n!t it *!n+li*ts "ith
the r!#isi!ns !+ this )greement(
?J@
the *!ntra*ting art/ ma/( "ith a #ie" t! the satis+a*t!r/ a,6%stment !+ the matter( ma.e "ritten
reresentati!ns !r r!!sals t! the !ther *!ntra*ting art/ !r arties "hi*h it *!nsi,ers t! 0e *!n*erne,.
)n/ *!ntra*ting art/ th%s ar!a*he, shall gi#e s/matheti* *!nsi,erati!n t! the reresentati!ns !r
r!!sals ma,e t! it.>
:.&53 The Panel n!tes( +irst !+ all( that the EC ha#e %t +!r"ar, t"! arg%ments "hi*h( i+ "ell9
+!%n,e,( sh!%l, lea, %s t! *!n*l%,e that )rti*le GGIIIB1;0< ,!es n!t al/ t! the +a*ts in this *ase. I+
"e +in, that these arg%ments are n!t ertinent( "e shall eAamine the s%0stan*e !+ the Cana,ian
*!mlaint.
:.&51 The EC's t"! arg%ments "hi*h *!%l, ,etermine the ali*a0ilit/ !+ )rti*le GGIIIB1;0< are as
+!ll!"sB
&'8
Cana,a re+ers t! the Re!rt !+ the W!r.ing Part/ !n Australian Subsid/ on Ammonium Sul,hate(
a,!te, !n 3 )ril 175'( II/1:: an, t! the Re!rt !+ the Panel !n C!mlaints in reatment b/ 7erman/ of
Im,orts of Sardines( ;hereina+ter >7erman/ Sardines><( a,!te, !n 31 O*t!0er 175&( 4ISD 1S/53.
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:.&55 2irstl/( the EC *laim that the r%les !n n!n9#i!lati!n n%lli+i*ati!n al/ !nl/ i+ the meas%re in
-%esti!n ,!es n!t +all %n,er !ther r!#isi!ns !+ the =)TT 1771. )rti*le GGIIIB1;0< is ali*a0le
!nl/ i+ the Panel rea*hes the *!n*l%si!n that the De*ree is *!nsistent "ith )rti*le III !+ the =)TT
1771. Other"ise there *ann!t 0e >n!n9#i!lati!n>. In the light !+ the intr!,%*t!r/ *la%se !+ )rti*le
GG !+ the =)TT 1771( the E%r!ean C!mm%nities *!n*l%,e that i+ the 2ren*h meas%re is *!nsi,ere,
>ne*essar/> +!r the r!te*ti!n !+ h%man health 0/ the Panel an, hen*e i+ se*i+i* r%les ha#e 0een
alie, in this rese*t( the r!#isi!ns !+ )rti*le GGIIIB1;0< !+ the =)TT are inali*a0le.
:.&58 Cana,a relies that the *ases Urugua/ +ecourse to Article KKIII
'0"
an, United States
rade 1easures Affecting <icaragua
'0?
,! n!t s%!rt the EC's interretati!n. 3!re!#er( inasm%*h
as )rti*le &8B1;0< !+ the Un,erstan,ing r!#i,es +!r the granting !+ *!mensati!n rather than the
"ith,ra"al !+ a meas%re( re*!%rse in n!n9#i!lati!n a++e*ts neither the a,!ti!n n!r the ali*ati!n !+
the *!nteste, meas%re.
:.&57 The EC's se*!n, arg%ment is that "hile it is !ssi0le t! ha#e legitimate eAe*tati!ns in
*!nne*ti!n "ith a %rel/ *!mmer*ial meas%re( it is n!t !ssi0le t! *laim legitimate eAe*tati!ns "ith
rese*t t! a meas%re that is ta.en t! r!te*t h%man health an, *an there+!re 0e 6%sti+ie,( arti*%larl/ in
the light !+ )rti*le GG;0< !+ the =)TT 1771. The r!te*ti!n !+ h%man health is a +%n,amental ,%t/
an, *ann!t 0e *!mr!mise, !r restri*te, 0/ the *!n*et !+ n!n9#i!lati!n.
:.&5: 2!r Cana,a( the ,istin*ti!n ma,e 0/ the EC 0et"een meas%res !+ a %rel/ *!mmer*ial nat%re
an, meas%res "hi*h ha#e health9r!te*ti!n relate, ase*ts has n! 0asis either in the teAts !+ the WTO
)greement !r in *ase9la". ) legitimate eAe*tati!n ,!es n!t in an/ "a/ *!n*ern a arti*%lar meas%re
a,!te, 0/ a 3em0er( 0%t rather the !!rt%nities +!r *!metiti!n agree, ,%ring m%ltilateral tra,e
neg!tiati!ns !n a gi#en r!,%*t. The C!mm%nit/ reas!ning is als! "r!ng 0e*a%se it ,!es n!t *!n*%r
"ith the rearat!r/ "!r. !n the =)TT 1717( "hi*h sh!"s that the !06e*ti#e !+ )rti*le GGIIIB1;0< is
t! re#ent a0%se !+ the r!#isi!ns !+ the =eneral )greement.
:.&57 The EC *!nsi,er that Cana,a has ta.en a sele*ti#e l!!. at the rearat!r/ ,!*%ments. )s the
)ellate 4!,/ !inte, !%t in the United States Shrim, *ase( the *!n,iti!ns lai, ,!"n in the
*haea% !+ )rti*le GG;0< are meant re*isel/ t! a,,ress sit%ati!ns in "hi*h a 3em0er alies in 0a,
+aith an, in an a0%si#e manner the eA*eti!ns lai, ,!"n in )rti*le GG. There *ann!t 0e t"! sets !+
r!#isi!ns "hi*h a,,ress the same r!0lem t"i*e.
2ii4 he 0CFs argument according to 5hich the rules on non-9iolation nullification a,,l/ onl/ if
the measure in $uestion does not fall under other ,ro9isions of the 7A%
:.&8' The EC seem t! 0elie#e that the +a*t that a meas%re is >6%sti+ie,> !n the 0asis !+ )rti*le GG
*reates a legal sit%ati!n ,i++erent( !n the !ne han,( +r!m the sit%ati!n in "hi*h the meas%re #i!lates a
r!#isi!n !+ the =)TT 1771 an,( !n the !ther( +r!m the sit%ati!n in "hi*h the meas%re ,!es n!t +all
%n,er the r!#isi!ns !+ the =)TT 1771. In s%!rt !+ their !siti!n( the EC *ite a assage +r!m the
Panel Re!rt in )a,an *ilm "hi*h menti!ns that )rti*le GGIIIB1;0< r!#i,es >the means t! re,ress
g!#ernment a*ti!ns n!t !ther"ise reg%late, 0/ =)TT r%les J >. The C!mm%nities als! re+er t! the
intr!,%*t!r/ *la%se !+ )rti*le GG "hi*h states that >n!thing in this )greement shall 0e *!nstr%e, t!
re#ent the a,!ti!n !r en+!r*ement 0/ an/ *!ntra*ting art/ !+ meas%res> ne*essar/ t! r!te*t
h%man li+e !r health.
:.&81 The Panel re*alls( +irst !+ all( that 0!th the ream0le t! )rti*le &8.1 !+ the Un,erstan,ing an,
)rti*le GGIIIB1;0< %se the "!r,s >meas%re( 5hether or not it conflicts 5ith the ,ro9isions ?!+ the
arti*%lar agreement@> ;emhasis a,,e,<. T! 0egin "ith( it sh!%l, 0e n!te, that the "!r,ing !+
)rti*le GGIIIB1;0< sh!"s %ne-%i#!*all/ that this r!#isi!n alies 0!th in sit%ati!ns in "hi*h a
meas%re *!n+li*ts an, in sit%ati!ns in "hi*h it ,!es n!t *!n+li*t "ith the r!#isi!ns !+ the =)TT
&'7
),!te, !n 18 N!#em0er 178&( 4ISD 11S/75.
&':
D/8'53 ;17:8<( %na,!te,.
WT/DS135/R
Page 178
1771. )0!#e( "e +!%n, that the treatment a**!r,e, 0/ the De*ree t! *hr/s!tile as0est!s +i0res
#i!late, )rti*le IIIB1 !+ the =)TT 1771 as s%*h( in as m%*h as these r!,%*ts "ere li.e the s%0stit%te
+i0res menti!ne, 0/ the arties an, the treatment !+ r!,%*ts *!ntaining *hr/s!tile as0est!s an,
r!,%*ts *!ntaining the s%0stit%te +i0res menti!ne, 0/ the arties "as ,is*riminat!r/. )**!r,ingl/(
the De*ree conflicts "ith the r!#isi!ns !+ )rti*le IIIB1( in the sense in "hi*h that "!r, is %se, in
)rti*le GGIIIB1;0<.
&'7
E!"e#er( "e n!te that the intr!,%*t!r/ *la%se !+ )rti*le GG states that
>n!thing in this )greement shall 0e *!nstr%e, t! re#ent the a,!ti!n !r en+!r*ement 0/ an/
*!ntra*ting art/ !+ meas%res> ne*essar/ t! r!te*t h%man li+e !r health( "hi*h might s%ggest that a
r!#isi!n *!nsistent "ith the re-%irements !+ )rti*le GG n! l!nger *!n+li*ts "ith )rti*le IIIB1(
0e*a%se )rti*le IIIB1 *ann!t 0e *!nstr%e, as re#enting this .in, !+ meas%re. E!"e#er( "hether a
meas%re Austified !n the 0asis !+ )rti*le GG !+ the =)TT 1771 is *!nsi,ere, still t! 0e in *!n+li*t
"ith )rti*le IIIB1 !r is *!nsi,ere, n! l!nger t! *!n+li*t "ith )rti*le IIIB1 0e*a%se 6%sti+ie, %n,er
)rti*le GG( %n,er the terms !+ )rti*le GGIIIB1;0< the latter *!ntin%es t! 0e ali*a0le t! it.
:.&8& We als! n!te( +irstl/( that the intr!,%*t!r/ *la%se t! )rti*le GG( t! "hi*h the EC re+er(
*!n*erns the ado,tion or enforcement !+ meas%res ne*essar/ t! r!te*t health. The ali*ati!n !+
)rti*le GGIIIB1;0< ,!es n!t re#ent either the a,!ti!n !r the en+!r*ement !+ the De*ree *!n*erne,.
)rti*le &8B1;0< sti%lates that e#en "here a meas%re has 0een +!%n, t! n%lli+/ !r imair 0ene+its
%n,er( !r ime,e the attainment !+ !06e*ti#es( !+ the =)TT 1771 "ith!%t #i!lati!n there!+( there is n!
!0ligati!n t! "ith,ra" the meas%re. )**!r,ingl/( there is n! *!ntra,i*ti!n 0et"een the in#!*ati!n !+
)rti*le GG an, the ali*ati!n !+ )rti*le GGIIIB1;0<. E!"e#er( that )rti*le m%st 0e alie, in s%*h a
"a/ as t! r!te*t the 0alan*e !+ rights an, ,%ties neg!tiate,.
&1'
)**!r,ingl/( "e ,! n!t *!nsi,er that
the teAt !+ )rti*le GGIIIB1;0< !r that !+ )rti*le GG !r( +inall/( that !+ )rti*le &8.1 !+ the
Un,erstan,ing s%!rts the EC's interretati!n.
:.&83 Se*!n,l/( "e ,! n!t *!nsi,er that the assage +r!m the )a,an *ilm re!rt *ite, 0/ the EC
s%!rts its interretati!n either. ),mitte,l/( the "!r,s %se, 0/ the anel( ta.en in is!lati!n( might at
+irst glan*e aear t! *!n+irm the EC's !siti!n( ins!+ar as it re+ers t! >g!#ernment a*ti!ns n!t
!ther"ise regulated 0/ =)TT r%les> ;emhasis a,,e,<. The %se !+ the "!r, >reg%late,> *!%l,
signi+/ that the +iel, !+ ali*ati!n !+ )rti*le GGIIIB1;0< *!#ere, !nl/ sit%ati!ns in "hi*h n!
r!#isi!n !+ the =)TT "as a,,licable. 2irst !+ all( it is !%r !ini!n that the +a*t that a meas%re ,!es
n!t #i!late )rti*le IIIB1 ,!es n!t ne*essaril/ mean that the latter is n!t ali*a0le t! it. )rti*le IIIB1
alies t! an/ la"( reg%lati!n !r re-%irement a++e*ting the internal sale( !++ering +!r sale( %r*hase(
trans!rtati!n( ,istri0%ti!n !r %se !+ im!rte, r!,%*ts an, li.e r!,%*ts !+ nati!nal !rigin.
C!nse-%entl/( e#en i+ the EC's interretati!n "ere *!rre*t( it "!%l, n!t al/ in the resent *ase
ins!+ar as )rti*le IIIB1 *!ntin%es t! 0e ali*a0le t! the De*ree. NeAt( it sh!%l, 0e n!te, that the
anel in )a,an *ilm re+ers( in the +!!tn!te at the en, !+ the senten*e *ite, 0/ the EEC
&11
( t! the
00C (ilseeds re!rt "hi*h states( in arti*%lar( thatB
>the Panel n!te, that these r!#isi!ns( as *!n*ei#e, 0/ the ,ra+ters an, alie, 0/ the
CONTR)CTIN= P)RTIES( ser#e mainl/ t! r!te*t the 0alan*e !+ tari++ *!n*essi!ns. ?+!!tn!te
!mitte,@ The i,ea %n,erl/ing them is that the imr!#e, *!metiti#e !!rt%nities that *an legitimatel/
&'7
This remar. is ma,e "ith!%t re6%,i*e t! Cana,a's allegati!ns 0ase, !n )rti*le GGIIIB1;a< ;see
Se*ti!n CIII.).&;a< a0!#e<.
&1'
See the Re!rt !+ the Panel in 00C Pa/ments and Subsidies Paid to Processors and Producers of
(ilseeds and +elated Animal-feed Proteins( a,!te, !n &5 $an%ar/ 177'( 4ISD 37S/:8 ;hereina+ter >00C
(ilseeds>( ara.11:( "here the Panel *!nsi,ere, thatB
>J the re*!gniti!n !+ the legitima*/ !+ an eAe*tati!n relating t! the %se !+ r!,%*ti!n s%0si,ies
there+!re in n! "a/ re#ents a *!ntra*ting art/ +r!m %sing r!,%*ti!n s%0si,ies *!nsistentl/ "ith the
=eneral )greement( it merel/ ,elineates the s*!e !+ the r!te*ti!n !+ a neg!tiate, 0alan*e !+
*!n*essi!ns.>
We als! n!te that the )ellate 4!,/ in United States 7asoline, !. *it.( . &5( state,( "ith regar, t!
the ali*ati!n !+ )rti*le GG( that >the meas%res +alling "ithin the arti*%lar eA*eti!ns m%st 0e alie,
reas!na0l/( "ith ,%e regar, 0!th t! the legal ,%ties !+ the Part/ *laiming the eA*eti!n an, the legal rights !+
the !ther Parties *!n*erne,>.
&11
See )a,an *ilm( ara. 1'.5'( +!!tn!te 1&11.
WT/DS135/R
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0e eAe*te, +r!m a tari++ *!n*essi!n *an 0e +r%strate, n!t !nl/ 0/ meas%res r!s*ri0e, 0/ the =eneral
)greement 0%t als! 0/ meas%res *!nsistent "ith that )greement>.
&1&
:.&81 We *!nsi,er that a >meas%re "hi*h is n!t !ther"ise reg%late, 0/ =)TT r%les>( that is t! sa/
t! "hi*h the =)TT ,!es n!t al/( is( a fortiori( >n!t in *!n+li*t> "ith the =)TT "ithin the meaning
!+ )rti*le GGIIIB1;0< !r >*!nsistent> "ithin the meaning !+ the 00C (ilseeds re!rt.
C!nse-%entl/( "e +in, that the assage in the )a,an *ilm re!rt *ite, 0/ the EC( +ar +r!m
s%!rting their !siti!n( *!n+irms the !ini!n a**!r,ing t! "hi*h )rti*le GGIIIB1;0< alies t! a
meas%re "hether it is *!nsistent "ith the =)TT 0e*a%se the =)TT ,!es n!t al/ t! it !r is 6%sti+ie,
0/ )rti*le GG.
&13
:.&85 2!r these reas!ns( "e ,! n!t all!" the EC's +irst arg%ment.
2iii4 he 0CFs argument according to 5hich there cannot be a &legitimate e6,ectation& in the case
of a measure that concerns the ,rotection of human health%
:.&88 With regar, t! the EC's se*!n, arg%ment( "e n!te( +irst !+ all( that neither the teAt !+
)rti*le GGIIIB1;0< !+ the =)TT 1771 n!r that !+ )rti*le &8B1 !+ the Un,erstan,ing eAressl/
in*!r!rates the searati!n s%ggeste, 0/ the EC 0et"een meas%res !+ a %rel/ *!mmer*ial nat%re an,
meas%res ,esigne, t! r!te*t h%man health. )lth!%gh these arti*les re-%ire the eAisten*e !+ a
measure L "hi*h neither !+ the Parties ,is%tes 9 the/ ,! n!t ,isting%ish 0et"een ,i++erent t/,es !+
meas%res. We ha#e als! +!%n,( !n the 0asis !+ )rti*le GG( that the ali*ati!n !+ the latter ,!es n!t
a ,riori eA*l%,e the ali*ati!n !+ )rti*le GGIIIB1;0<.
&11
We there+!re +in, that the terms an, the
*!nteAt !+ )rti*le GGIIIB1;0< ,! n!t s%!rt the interretati!n r!!se, 0/ the EC.
:.&87 Cana,a *ites the rearat!r/ "!r. !n the =)TT 1717. On the 0asis !+ )rti*le 3& !+ the
Cienna C!n#enti!n( "e *!nsi,er that it is n!t ne*essar/ t! ha#e re*!%rse t! the rearat!r/ "!r.
%nless( in arti*%lar( the interretati!n 0ase, !n the *riteria !+ )rti*le 31 lea#es the meaning !+ the
terms am0ig%!%s !r !0s*%re !r lea,s t! a mani+estl/ a0s%r, !r %nreas!na0le res%lt. S%*h is n!t the
*ase. E!"e#er( re*!%rse t! the rearat!r/ "!r. als! ma.es it !ssi0le t! *!n+irm the meaning
res%lting +r!m the ali*ati!n !+ )rti*le 31.
:.&8: In this rese*t( "e n!te that the EC *!nsi,er that Cana,a's rea,ing !+ the rearat!r/ "!r. is
sele*ti#e. )**!r,ing t! them( the !tential r!0lems !+ a0%se an, 0a, +aith t! "hi*h Cana,a all%,es
are a,e-%atel/ *!#ere, 0/ the *haea% !+ )rti*le GG. 2!r the EC( there *ann!t 0e t"! sets !+
r!#isi!ns "hi*h a,,ress the same r!0lem t"i*e.
:.&87 )lth!%gh it is n!t ne*essar/ t! ta.e a !siti!n !n the *!ntent !+ the rearat!r/ "!r.( "e
*!nsi,er that the EC's arg%ment ten,s t! *!n+%se t"! ase*tsB the +irst is a0%se res%lting +r!m the
&1&
00C (ilseeds, !. *it.( ara. 111.
&13
In this *!nne*ti!n( "e n!te that in the *!nteAt !+ the eAaminati!n !+ a Unite, States meas%re grante,
a "ai#er %n,er )rti*le GGC !+ the =)TT 1717( the Panel in United States +estrictions on the Im,ortation of
Sugar and Sugar-containing Products a,,lied under the 1!-- Bai9er and under the 3eadnote to the Schedule
of ariff Concessions( a,!te, !n 7 N!#em0er 177'( 4ISD 37S/&&:( n!te,( in ara.5.&1( thatB
>J )rti*le GGIIIB1;0< alies "hether !r n!t the meas%re at iss%e *!n+li*ts "ith the =eneral
)greement an, that there+!re( the -%esti!n !+ "hether a meas%re in*!nsistent "ith )rti*le GIB1 remains
in*!nsistent "ith the =eneral )greement e#en i+ *!#ere, 0/ a "ai#er *ann!t( 0/ itsel+( ,etermine
"hether it n%lli+ies !r imairs 0ene+its a**r%ing %n,er the =eneral )greement "ithin the meaning !+
that r!#isi!n>.
&11
In this rese*t( "e n!te that anel ra*ti*e *ann!t 0e regar,e, as +alling "ithin )rti*le 31.3;a< !r ;0<
!+ the Cienna C!n#enti!n ;see )rti*le 3.& !+ the Un,erstan,ing( )rti*le IGB & !+ the )greement Esta0lishing the
WTO an, the Re!rt !+ the )ellate 4!,/ in )a,an Alcoholic ;e9erages, !. *it.( .1395<. 3!re!#er( the
=)TT 1717 an, WTO anels ha#e ne#er ,is*%sse, the sit%ati!n "ith rese*t t! a meas%re ,esigne, t! r!te*t
%0li* health. )ll re#i!%s *ases ha#e *!n*erne, sit%ati!ns in "hi*h a meas%re !+ a %rel/ *!mmer*ial nat%re
"as a,!te, %rs%ant t! the neg!tiati!n !+ a *!n*essi!n.
WT/DS135/R
Page 17:
ali*ati!n !+ a meas%re +alling "ithin !ne !+ the aragrahs !+ )rti*le GG. I+ a meas%re ne*essar/ t!
r!te*t h%man health is alie, in a manner that *!n+li*ts "ith the r!#isi!ns !+ the intr!,%*t!r/
*la%se !+ )rti*le GG( the meas%re "ill still 0e in *!n+li*t "ith the r!#isi!ns !+ the =)TT "h!se
#i!lati!n )rti*le GG is s%!se, t! 6%sti+/. This ase*t is #er/ ,i++erent +r!m the sit%ati!n in "hi*h a
meas%re is er+e*tl/ 6%sti+ie, in itsel+ in relati!n t! the =)TT ;as in the *ase !+ a meas%re "hi*h
satis+ies all the *!n,iti!ns !+ )rti*le GG<( 0%t "hi*h( #ie"e, in a gi#en *!nteAt( *!%l, gi#e rise t! a
sit%ati!n !+ n%lli+i*ati!n !r imairment !+ a 0ene+it %n,er a tari++ *!n*essi!n.
:.&7' It remains( h!"e#er( +!r %s t! ,is*%ss the EC's arg%ment t! the e++e*t that the +%n,amental
,%t/ t! r!te*t h%man health *ann!t 0e *!mr!mise, !r restri*te, 0/ the *!n*et !+ n!n9#i!lati!n
n%lli+i*ati!n. We m%st 0egin 0/ a*.n!"le,ging that all the *ases eAamine, 0/ anels s! +ar ha#e
*!n*erne, sit%ati!ns in "hi*h the meas%re a,!te, +!ll!"ing the neg!tiati!n !+ a *!n*essi!n "as
%rel/ *!mmer*ial in nat%re( generall/ a s%0si,/( a tari++ re+eren*e !r a meas%re relating t! r!,%*t
,istri0%ti!n.
&15
)**!r,ingl/( "e ha#e n! re*e,ents t! g%i,e %s. E!"e#er( a reliminar/ remar.(
similar t! that ma,e in aragrah :.&8& a0!#e( is *alle, +!r. ) +in,ing 0ase, !n )rti*le GGIIIB1;0< !+
the =)TT 1771 an, )rti*le &8.1 !+ the Un,erstan,ing ne#er res%lts in an !0ligati!n n!t t! al/ !r t!
"ith,ra" the meas%re in -%esti!n. The 3em0er *!n*erne, *an !nl/ 0e as.e, t! ma.e >a m%t%all/
satis+a*t!r/ a,6%stment>. )rti*le &8B1;0< als! se*i+ies that *!mensati!n ma/ 0e art !+ a m%t%all/
satis+a*t!r/ a,6%stment as +inal settlement !+ the ,is%te.
&18
The 3em0er a,!ting a %0li* health
r!te*ti!n meas%re is t!tall/ +ree t! *!ntin%e t! al/ the meas%re *!n*erne, as it stan,s "hile
!++ering in eA*hange *!mensati!n +!r the 0ene+its n%lli+ie, !r imaire,.
&17
:.&71 The Panel als! *!nsi,ers( as ,i, the anel in )a,an *ilm
'1?
, that n!n9#i!lati!n sh!%l, 0e
ar!a*he, "ith *a%ti!n an, treate, as an eA*eti!nal instr%ment !+ ,is%te settlement. It aears
that 3em0ers "hi*h ha#e neg!tiate, a set !+ rights an, !0ligati!ns "!%l, !nl/ eA*eti!nall/ eAe*t
t! 0e *hallenge, +!r a*ti!ns n!t in *!ntra#enti!n !+ th!se rights !r !0ligati!ns.
:.&7& 3!re!#er( the Panel is !+ the !ini!n that e#en i+ the 6%sti+i*ati!n !+ a meas%re 0/ )rti*le GG
,!es n!t( in rin*ile( ma.e it im!ssi0le t! in#!.e )rti*le GGIIIB1;0< in relati!n t! the ali*ati!n !+
the meas%re 6%sti+ie,( the sit%ati!n !+ a meas%re +alling %n,er )rti*le GG "ith rese*t t!
)rti*le GGIIIB1;0< *ann!t 0e -%ite the same as that !+ a meas%re *!nsistent "ith an!ther r!#isi!n !+
the =)TT 1771. This is 0e*a%se )rti*le GG( "hi*h is hea,e, >=eneral EA*eti!ns>( is inten,e,( in
&15
)art +r!m )a,an *ilm, !. *it.( the *ases in "hi*h "!r.ing arties !r anels ha#e eAamine, the
s%0stan*e !+ *!mlaints +!rm%late, %n,er )rti*le GGIIIB1;0< are as +!ll!"sB W!r.ing Part/ Re!rt in
Australian Subsid/ on Ammonium Sul,hate, a,!te, !n 3 )ril 175'( 4ISD II/1::( Panel Re!rt in 7erman/
Sardines( !. *it.H Urugua/ +ecourse( a,!te, !n 18 N!#em0er 178&( 4ISD 11S/75H W!r.ing Part/ Re!rt in
0uro,ean Communities ariff reatment on Im,orts of Citrus Products from Certain Countries in the
1editerranean +egion 2&0C Citrus Products&4( =)TT ,!*%ment D/5578( ,ate, 7 2e0r%ar/ 17:5 ;%na,!te,<H
Panel Re!rt in 00C Production Aids 7ranted on Canned Peaches, Canned Pears, Canned *ruit Coc=tail and
8ried 7ra,es 2&00C Canned *ruit&4( =)TT ,!*%ment D/577:( ,ate, &' 2e0r%ar/ 17:5 ;%na,!te,<H )a,an
Semi-Conductors( re!rt a,!te, !n 1 3a/ 17::( 4ISD 35S/118H 00C (ilseeds( re!rt a,!te, !n
&5 $an%ar/ 177'( 4ISD 37S/:8H United States Agricultural Bai9er( a,!te, !n 7 N!#em0er 177'( 4ISD
37S/&&:.
&18
See Re!rt !+ the )ellate 4!,/ in India Patent Protection for Pharmaceutical and Agricultural
Chemical Products, a,!te, !n 18 $an%ar/ 177:( WT/DS/5'/)4/R ;hereina+ter >India Patents
2United States4&, en, !+ ara. 11.
&17
See Re!rt !+ the Panel in 00C (ilseeds, !. *it.( aras. 117911:.
&1:
O. *it., ara. 1'.38. Re+erring t! the Re!rt !+ the Panel in 00C (ilseeds, +!!tn!te 1&'5( the
Panel in )a,an *ilm n!te, the +!ll!"ingB
>In 00C (ilseeds, the Unite, States state, that it *!n*%rre, in the r!!siti!n that n!n9#i!lati!n
n%lli+i*ati!n !r imairment sh!%l, remain an eA*eti!nal *!n*et. )lth!%gh this *!n*et ha, 0een in
the teAt !+ )rti*le GGIII !+ the =eneral )greement +r!m the !%tset( a *a%ti!%s ar!a*h sh!%l,
*!ntin%e t! 0e ta.en in al/ing the *!n*et. 00C (ilseeds, 4ISD 37S/:8( 11:( ara. 111. The
EEC in that *ase state, that re*!%rse t! the >n!n9#i!lati!n> *!n*et %n,er )rti*le GGIIIB1;0< sh!%l,
remain eA*eti!nal( sin*e !ther"ise the tra,ing "!rl, "!%l, 0e l%nge, int! a state !+ re*ari!%sness
an, %n*ertaint/. I0i,.( ara. 113.>
WT/DS135/R
Page 177
arti*%lar( t! ens%re the r!te*ti!n !+ %0li* health !r( as state, 0/ the )ellate 4!,/ in
United States 7asoline, t! >ermit im!rtant State interests L in*l%,ing the r!te*ti!n !+ h%man
health J t! +in, eAressi!n>.
&17
The Panel *!nsi,ers that in a**eting the WTO )greement 3em0ers
als! a**et a ,riori( thr!%gh the intr!,%*ti!n !+ these general eA*eti!ns( that 3em0ers "ill 0e a0le(
at s!me !int( t! ha#e re*!%rse t! these eA*eti!ns.
&&'
3!re!#er( 3em0ers ha#e atta*he, t! the %se
!+ these eA*eti!ns a *ertain n%m0er !+ *!n,iti!ns *!ntaine, either in aragrahs ;a< t! ;6< !r in the
intr!,%*t!r/ *la%se !+ )rti*le GG. These *!n,iti!ns ha#e generall/ 0een narr!"l/ interrete,.
&&1
The
res%lt is that
;a< 0!th the inten,e, !06e*ti#e !+ these eA*eti!ns ;%rs%it !+ interests re*!gniFe, a
,riori as 0eing !+ greater im!rtan*e than 3em0ers' *!mmer*ial interests( sin*e the/
*an !%t"eigh the latter< an,
;0< the se*i+i* *!n,iti!ns that m%st 0e satis+ie, 0/ 3em0ers in#!.ing these eA*eti!ns
mean that( "hile re*!gniFing that )rti*le GGIIIB1;0< alies t! meas%res that +all %n,er )rti*le GG(
"e are 6%sti+ie, in treating re*!%rse t! )rti*le GIIIB1;0< as arti*%larl/ eA*eti!nal in relati!n t!
meas%res 6%sti+ie, 0/ )rti*le GG;0<.
:.&73 )ll this lea,s the Panel t! *!nsi,er that( in ra*ti*e( e#en i+ in a arti*%lar *ase a m%t%all/
satis+a*t!r/ a,6%stment ma/ 0e ma,e %n,er )rti*le GGIIIB1;0<( in general( the ris. !+ an e++e*ti#e
in*rease in the *!st !+ meas%res ne*essar/ t! r!te*t %0li* health 0e*a%se !+ the ali*a0ilit/ !+
)rti*le GGIIIB1;0< t! meas%res 6%sti+ie, %n,er )rti*le GG *an !nl/ 0e #er/ marginal. In +a*t(
*!nsi,ering the *riteria menti!ne, in the re#i!%s aragrah( #er/ +e" meas%res !+ this .in, *!%l,
gi#e rise t! the ali*ati!n !+ )rti*le GGIIIB1;0<.
:.&71 2!r these reas!ns "e ,! n!t s%0s*ri0e t! the interretati!n r!!se, 0/ the E%r!ean
C!mm%nities. )**!r,ingl/( "e "ill *!ntin%e !%r eAaminati!n !+ the meas%re in the light !+
)rti*le GIIIB1;0< !+ the =)TT 1771.
;0< EAaminati!n !+ the s%0stantial ase*ts !+ Cana,a's arg%ments %n,er )rti*le GGIIIB1;0< !+ the
=)TT 1771
2i4 ;urden of ,roof
:.&75 The Panel has alrea,/ ,is*%sse, the -%esti!n !+ the 0%r,en !+ r!!+ in general in
Se*ti!n CIII.E.1;0< a0!#e. E!"e#er( it is im!rtant( in the light !+ the arg%ments !+ the arties( t!
*lari+/ the ali*ati!n !+ the 0%r,en !+ r!!+ in the *!nteAt !+ n!n9#i!lati!n n%lli+i*ati!n !r
imairment !+ a 0ene+it.
:.&78 Where the ali*ati!n !+ )rti*le GGIIIB1;0< is *!n*erne,( )rti*le &8.1;a< !+ the
Un,erstan,ing an, anel ra*ti*e in the *!nteAt !+ the WTO )greement an, the =)TT 1717 *!n+irm
that this is an eA*eti!nal *!%rse !+ a*ti!n re-%iring the *!mlaining art/ t! *arr/ the 0%r,en !+
resenting a ,etaile, 6%sti+i*ati!n in s%!rt !+ its *!mlaint. Th%s( )rti*le &8.1;a< sti%lates thatB
>Where the r!#isi!ns !+ aragrah 1;0< !+ )rti*le GGIII !+ the =)TT 1771 are ali*a0le t! a
*!#ere, agreement( a anel !r the )ellate 4!,/ ma/ !nl/ ma.e r%lings an, re*!mmen,ati!ns "here
&17
See the Re!rt !+ the )ellate 4!,/ in United States 7asoline( !. *it%, . 3'. See als! the
Re!rt !+ the Panel Canada 1easures affecting e6,orts of un,rocessed herring and salmon, !. *it.( ara. 1.8
an, the Re!rt !+ the )ellate 4!,/ in United States 7asoline, !. *it., . 1:.
&&'
In hailand Cigarettes( !. *it.( ara. 73( the anel *!nsi,ere, that )rti*le GG >*learl/ all!"e,
*!ntra*ting arties t! gi#e ri!rit/ t! h%man health !#er tra,e li0eraliFati!n>.
&&1
See( in arti*%lar( United States Article 33"( !. *it., ara. 5.7H Canada *oreign In9estment
+e9ie5 Act, a,!te, !n 7 2e0r%ar/ 17:1( 4ISD 3'S/11'( ara. 5.&'( an, United States Prohibition of Im,orts
of una( !. *it.( ara. 5.&&.
WT/DS135/R
Page &''
a art/ t! the ,is%te *!nsi,ers that an/ 0ene+it a**r%ing t! it ,ire*tl/ !r in,ire*tl/ %n,er the rele#ant
*!#ere, agreement is 0eing n%lli+ie, !r imaire, !r the attainment !+ an/ !06e*ti#e !+ that )greement
is 0eing ime,e, as a res%lt !+ the ali*ati!n 0/ a 3em0er !+ an/ meas%re( "hether !r n!t it *!n+li*ts
"ith the r!#isi!ns !+ that )greement. Where an, t! the eAtent that s%*h art/ *!nsi,ers an, the anel
!r the )ellate 4!,/ ,etermines that a *ase *!n*erns a meas%re that ,!es n!t *!n+li*t "ith the
r!#isi!ns !+ a *!#ere, agreement t! "hi*h the r!#isi!ns !+ aragrah 1;0< !+ )rti*le GGIII !+ the
=)TT 1771 are ali*a0le( the r!*e,%res in this Un,erstan,ing shall al/( s%06e*t t! the +!ll!"ingB
;a< the *!mlaining art/ shall resent a ,etaile, 6%sti+i*ati!n in s%!rt !+ an/ *!mlaint relating
t! a meas%re "hi*h ,!es n!t *!n+li*t "ith the rele#ant *!#ere, agreementH>
:.&77 In )a,an *ilm( the Panel se*i+ie, h!" the 0%r,en !+ r!!+ sh!%l, 0e alie, in this
*!nteAtB
>C!nsistent "ith the eAli*it terms !+ the DSU an, esta0lishe, WTO/=)TT 6%risr%,en*e( an,
re*alling the )ellate 4!,/ r%ling that 're*isel/ h!" m%*h an, re*isel/ "hat .in, !+ e#i,en*e "ill
0e re-%ire, t! esta0lish J a res%mti!n ?that "hat is *laime, is tr%e@ "ill ne*essaril/ #ar/ +r!m J
r!#isi!n t! r!#isi!n'( "e th%s *!nsi,er that the Unite, States( "ith rese*t t! its *laim !+ n!n9
#i!lati!n n%lli+i*ati!n !r imairment %n,er )rti*le GGIIIB1;0<( 0ears the 0%r,en !+ r!#i,ing a ,etaile,
6%sti+i*ati!n +!r its *laim in !r,er t! esta0lish a res%mti!n that "hat is *laime, is tr%e. It "ill 0e +!r
$aan t! re0%t an/ s%*h res%mti!n.>
&&&
:.&7: We *!n*l%,e that( "ith rese*t t! its *laims !+ n!n9#i!lati!n( Cana,a 0ears the rimar/
0%r,en !+ resenting a ,etaile, 6%sti+i*ati!n +!r its *laims.
&&3
:.&77 Cana,a maintains that( "hen a *!mlainant r!#es that it en6!/s a tari++ *!n*essi!n an, the
res!n,ent s%0se-%entl/ a,!ts a meas%re that a++e*ts the #al%e !+ this *!n*essi!n( the *!mlainant
0ene+its +r!m the res%mti!n that it *!%l, n!t reas!na0l/ anti*iate that this *!n*essi!n "!%l, 0e
n%lli+ie, !r !ther"ise imaire, 0/ this meas%re. In s%*h *ir*%mstan*es( it is % t! the res!n,ent t!
r!#e that the *!mlainant sh!%l, ha#e anti*iate, the !ssi0ilit/ !+ s%*h a meas%re 0eing a,!te,.
Cana,a re+ers t! the )ellate 4!,/ re!rt in India Patent 2United States4
''#
an, t! the Panel re!rt
in )a,an *ilm.
&&5
:.&:' We ,! n!t *!nsi,er that Cana,a has *!rre*tl/ interrete, the Panel re!rt in )a,an *ilm%
2irst !+ all( the res%mti!n t! "hi*h the Panel re+ers is that( i+ it is sh!"n that a meas%re has 0een
intr!,%*e, a+ter the *!n*l%si!n !+ the tari++ neg!tiati!ns in -%esti!n( then the *!mlainant sh!%l, n!t
0e *!nsi,ere, as ha#ing anti*iate, that meas%re( "hi*h is !nl/ !ne !+ the tests alie, 0/ the Panel.
3!re!#er( i+ the interretati!n !+ the 0%r,en !+ r!!+ s%ggeste, 0/ Cana,a "ere +!ll!"e,( the
!0ligati!n t! resent a ,etaile, 6%sti+i*ati!n +!r "hi*h )rti*le &8.1;a< r!#i,es might in *ertain *ases
0e e#a,e,. )**!r,ingl/( "e ,! n!t +!ll!" the interretati!n r!!se, 0/ Cana,a 0%t the r%le lai,
,!"n in )a,an *ilm%
:.&:1 2%rtherm!re( in the light !+ !%r reas!ning in aragrah :.&7& a0!#e( "e *!nsi,er that the
se*ial sit%ati!n !+ meas%res 6%sti+ie, %n,er )rti*le GG( ins!+ar as the/ *!n*ern n!n9*!mmer*ial
interests "h!se im!rtan*e has 0een re*!gniFe, a ,riori 0/ 3em0ers( re-%ires se*ial treatment. 4/
*reating the right t! in#!.e eA*eti!ns in *ertain *ir*%mstan*es( 3em0ers ha#e re*!gniFe, a ,riori
the !ssi0ilit/ that the 0ene+its the/ ,eri#e +r!m *ertain *!n*essi!ns ma/ e#ent%all/ 0e n%lli+ie, !r
imaire, at s!me +%t%re time +!r reas!ns re*!gniFe, as 0eing !+ !#erri,ing im!rtan*e. This sit%ati!n
is ,i++erent +r!m that in "hi*h a 3em0er ta.es a meas%re !+ a *!mmer*ial !r e*!n!mi* nat%re s%*h
as( +!r eAamle( a s%0si,/ !r a ,e*isi!n !rganiFing a se*t!r !+ its e*!n!m/( +r!m "hi*h it eAe*ts a
%rel/ e*!n!mi* 0ene+it. In this latter *ase( the meas%re remains "ithin the +iel, !+ internati!nal
tra,e. 3!re!#er( the nat%re an, im!rtan*e !+ *ertain meas%res +alling %n,er )rti*le GG *an als!
&&&
)a,an *ilm, !. *it%( ara. 1'.3&.
&&3
Pre#i!%s Panels ha#e n!t ,e+ine, the re*ise s*!e !+ the *!n*et !+ ,etaile, 6%sti+i*ati!n.
&&1
O. *it%, ara. 11.
&&5
O. *it%, ara. 1'.77.
WT/DS135/R
Page &'1
6%sti+/ their 0eing ta.en at an/ time( "hi*h militates in +a#!%r !+ a stri*ter treatment !+ a*ti!ns
0r!%ght against them !n the 0asis !+ )rti*le GGIIIB1;0<.
:.&:& C!nse-%entl/( the Panel *!n*l%,es that 0e*a%se !+ the im!rtan*e *!n+erre, !n them a ,riori
0/ the =)TT 1771( as *!mare, "ith the r%les g!#erning internati!nal tra,e( sit%ati!ns that +all %n,er
)rti*le GG 6%sti+/ a stri*ter 0%r,en !+ r!!+ 0eing alie, in this *!nteAt t! the art/ in#!.ing
)rti*le GGIIIB1;0<( arti*%larl/ "ith regar, t! the eAisten*e !+ legitimate eAe*tati!ns an, "hether !r
n!t the initial De*ree *!%l, 0e reas!na0l/ anti*iate,.
2ii4 06amination of the conditions
:.&:3 )s re*alle, 0/ the Panel in )a,an *ilm( the teAt !+ )rti*le GGIIIB1;0< esta0lishes three
elements "h!se eAisten*e a *!mlainant m%st r!#e in !r,er t! 0e a0le legitimatel/ t! in#!.e that
r!#isi!n( namel/B ;1< the ali*ati!n !+ a meas%re 0/ a 3em0er !+ the WTOH ;&< the eAisten*e !+ a
0ene+it a**r%ing %n,er the ali*a0le agreementH an, ;3< the n%lli+i*ati!n !r imairment !+ a 0ene+it
as a res%lt !+ the ali*ati!n !+ the meas%re.
:.&:1 The eAisten*e !+ a measure is n!t in ,is%te. In this arti*%lar *ase( the meas%re in -%esti!n
is De*ree N!. 7891133 !+ &1 De*em0er 1778 "hi*h( m!re!#er( +!rms the s%06e*t !+ a #i!lati!n
*!mlaint !n the art !+ Cana,a an, "hi*h "e ha#e eAamine, in this rese*t in re#i!%s se*ti!ns.
We als! n!te that( aart +r!m stressing that its !06e*ti#e is t! r!te*t h%man health( the E%r!ean
C!mm%nities ,! n!t *laim that the nat%re !+ the meas%re ;an im!rt an, mar.eting 0an< is s%*h that it
is n!t *!#ere, 0/ the ,e+initi!n !+ the term >meas%re> in )rti*le GGIIIB1;0<. We there+!re *!n*l%,e
that a >meas%re> eAists.
:.&:5 With regar, t! the eAisten*e !+ a benefit, "e n!te that the Panel in )a,an *ilm re*alle, that(
"ith !nl/ !ne eA*eti!n( in all the re#i!%s *ases in "hi*h )rti*le GGIIIB1;0< "as in#!.e, the 0ene+it
*laime, *!nsiste, in the legitimate eAe*tati!n !+ imr!#e, mar.et a**ess !!rt%nities res%lting
+r!m the rele#ant tari++ *!n*essi!ns. We +irst nee, t! .n!" "hat 0ene+it Cana,a *!%l, legitimatel/
ha#e eAe*te, +r!m the C!mm%nit/ *!n*essi!ns !n *hr/s!tile as0est!s. We n!te( h!"e#er( that
re#i!%s anels ar!a*he, the -%esti!n ,i++erentl/( ins!+ar as the/ aear t! ha#e ass%me, the
eAisten*e !+ a 0ene+it in the +!rm !+ imr!#e, mar.et a**ess !!rt%nities an, then *!nsi,ere,
"hether a art/ *!%l, ha#e ha, a legitimate e6,ectation !+ a gi#en 0ene+it.
:.&:8 In the resent *!nteAt( there "!%l, 0e a *ertain l!gi* in ma.ing a ,istin*ti!n 0et"een the
*!n*et !+ legitimate eAe*tati!n !+ a 0ene+it an, that !+ the reas!na0le +!reseea0ilit/ !+ a meas%re.
&&8
In +a*t( it *!%l, 0e arg%e, that( in the *ir*%mstan*es( Cana,a's eAe*tati!ns "ith regar, t! the 0ene+its
it *!%l, ,eri#e +r!m the *!n*essi!n *!%l, n!t 0e as high as +!r a r!,%*t that !se, n! .n!"n ris. t!
health. In s%*h a *!nteAt( in "hi*h it might 0e arg%e, that( at 0est( Cana,a *!%l, anti*iate a gra,%al
,e*line in its *hr/s!tile eA!rts( an >%setting !+ the *!metiti#e relati!nshi> as a res%lt !+ the
meas%re in -%esti!n "!%l, seem t! 0e m!re ,i++i*%lt t! esta0lish. The sit%ati!n is n!t !ne in "hi*h
m!re !r less r!mising r!se*ts !+ mar.et a**ess ,isaear( as in the re#i!%s *ases *!nsi,ere,( 0%t
!+ a mar.et in ,e*line( as *!n+irme, 0/ the tren, in the am!%nts r!,%*e, an, the n%m0er !+ *!%ntries
"hi*h( in the last &5 /ears( ha#e restri*te, !r 0anne, the %se !+ *hr/s!tile
&&7
an, 0/ the in*reasing
relian*e !n s%0stit%te r!,%*ts. In these *ir*%mstan*es( the De*ree *!%l, n!t 0e *!nsi,ere, t! ha#e
u,set the *!metiti#e relati!nshi 0et"een *hr/s!tile an, r!,%*ts *!ntaining it( !n the !ne han,( an,
s%0stit%te +i0res an, r!,%*ts *!ntaining them !n the !ther.
&&8
See the ar!a*h +!ll!"e, in the Re!rt !+ the Panel in 00C Canned *ruit, !. *it%, aras. 51
an, 5&. See als! the Re!rt !+ the Panel in 00C (ilseeds, !. *it.( ara. 111.
&&7
See ara. 3.&& in "hi*h the E%r!ean C!mm%nities !int !%t that "!rl, r!,%*ti!n !+ as0est!s
rea*he, a ea. !+ 5.& milli!n t!nnes( sin*e "hen r!,%*ti!n has stea,il/ ,e*line,( +alling t! 1.7& milli!n t!nnes
in 1777. With regar, t! the *!%ntries that ha#e restri*te, !r 0anne, the %se !+ as0est!s( see the ,es*riti!n
gi#en 0/ the E%r!ean C!mm%nities in aras. 3.31 et se$% a0!#e.
WT/DS135/R
Page &'&
:.&:7 E!"e#er( as this element "!%l, 0e ,i++i*%lt t! -%anti+/ an, in the light !+ !%r reas!ning in
aragrahs :.&7& an, :.&:& a0!#e( "e *!nsi,er it m!re ar!riate t! ,is*%ss the *ir*%mstan*es
"hi*h le, 2ran*e t! a,!t a meas%re 6%sti+ie, %n,er )rti*le GG in the *!nteAt !+ the eAaminati!n !+
the -%esti!n !+ "hether Cana,a *!%l, reas!na0l/ ha#e anti*iate, the 2ren*h meas%re. These
elements seem t! relate m!re arti*%larl/ t! the meas%re at iss%e. We "ill there+!re n!" r!*ee, t!
eAamine the *riteria ,e#el!e, 0/ re#i!%s anels.
:.&:: )**!r,ing t! the *riteria ,e#el!e, in re#i!%s *ases( ;a< the De*ree m%st ha#e ha, the e++e*t
!+ %setting the *!metiti#e relati!nshi 0et"een Cana,ian as0est!s an, r!,%*ts *!ntaining it( !n the
!ne han,( an, s%0stit%te +i0res an, r!,%*ts *!ntaining them( !n the !ther( an, ;0< the Cana,ian
=!#ernment m%st n!t ha#e 0een a0le reas!na0l/ t! anti*iate the De*ree "hen it "as neg!tiating the
#ari!%s tari++ *!n*essi!ns *!#ering the r!,%*ts *!n*erne,.
&&:
:.&:7 )t this stage( the Panel +in,s it ar!riate t! *!nsi,er that in #ie" !+ the t/e !+ meas%re in
-%esti!n the >%setting !+ the *!metiti#e relati!nshi> *an 0e ass%me,. 4/ its #er/ nat%re( an im!rt
0an *!nstit%tes a ,enial !+ an/ !!rt%nit/ +!r *!metiti!n( "hate#er the im!rt #!l%me that eAiste,
0e+!re the intr!,%*ti!n !+ the 0an. We "ill there+!re *!n*entrate !n the -%esti!n !+ "hether the
meas%re *!%l, reas!na0l/ ha#e 0een anti*iate, 0/ the Cana,ian =!#ernment at the time that it "as
neg!tiating the #ari!%s tari++ *!n*essi!ns *!#ering the r!,%*ts *!n*erne,.
:.&7' With regar, t! the tari++ *!n*essi!ns t! 0e ta.en int! a**!%nt in assessing the >re,i*ta0ilit/>
!+ the meas%re( the Panel n!tes that Cana,a re+ers eAressl/ t! the *!n*essi!ns ma,e 0/ 2ran*e in
1717( 0/ the E%r!ean E*!n!mi* C!mm%nit/ in 178& an, 0/ the E%r!ean C!mm%nities at the en, !+
the Ur%g%a/ R!%n,.
&&7
Cana,a n!tes( in arti*%lar( that the *!n*essi!ns in*l%,e, in the 178& Pr!t!*!l
ha#e 0een rene"e, %ntil n!". The E%r!ean C!mm%nities ,! n!t ,is%te the in+!rmati!n s%0mitte,
0/ Cana,a( 0%t re*all that the Panel in )a,an *ilm !inte, !%t that the esta0lishment !+ a *ase 0ase,
!n eAe*tati!ns +r!m r!%n,s *!n*l%,e, 1: !r 3' /ears ag! might 0e ,i++i*%lt. The EC *!nsi,er that
Cana,a sh!%l, r!#i,e ,etaile, eAlanati!ns !+ "h/ it *!%l, legitimatel/ ha#e eAe*te, that 2ran*e
"!%l, n!t a,!t meas%res restri*ting the %se !+ an/ as0est!s r!,%*t a+ter the Ur%g%a/ R!%n,
neg!tiati!ns( gi#en the gr!"ing s*ienti+i* e#i,en*e that all t/es !+ as0est!s "ere *ar*in!geni* t!
h%mans.
:.&71 With regar, t! the +a*t!rs t! 0e ta.en int! a**!%nt ,etermining "hether the meas%re in
-%esti!n *!%l, reas!na0l/ ha#e 0een anti*iate,( re#i!%s anels +!%n, that a n%m0er !+ elements
"ere n!t rele#ant. We *!nsi,er it ne*essar/ t! assess their ali*a0ilit/ in relati!n t! the
*ir*%mstan*es !+ the resent *ase.
;a< 2irst !+ all( "e n!te that the re!rts in )a,an *ilm an, 00C (ilseeds *!n*l%,e,
that a se*i+i* meas%re *!%l, n!t 0e *!nsi,ere, +!reseea0le s!lel/ 0e*a%se it "as
*!nsistent "ith !r a *!ntin%ati!n !+ a ast general g!#ernment !li*/. E!"e#er( "e
n!te that( in *!ntrast t! the t"! *ases menti!ne, a0!#e( 2ran*e ha, alrea,/ ,e#el!e,
a se*i+i* !li*/ in res!nse t! the health r!0lems *reate, 0/ as0est!s 0e+!re the
a,!ti!n !+ the De*ree. This +a*t!r m%st *ertainl/ 0e ta.en int! a**!%nt in !%r
anal/sis.
&3'
&&:
The Panel ,!es n!t *!nsi,er that the EC's arg%ment 0ase, !n a *!maris!n 0et"een r!,%*ts
*!rres!n,ing t! the same tari++ line are rele#ant. The *!n*et !+ *!metiti!n is n!t limite, t! r!,%*ts that +all
in the same tari++ hea,ing an, "as esta0lishe, in the earliest *ases 0ase, !n )rti*le GGIIIB1;0<. See( in
arti*%lar( the Re!rt !+ the W!r.ing Part/ !n Australian Subsid/ on Ammonium Sul,hate, a,!te, !n
3 )ril 175'( II/1::( ara. 1&( the Re!rt !+ the Panel !n C!mlaints in the *ase 7erman/ Sardines( !. *it.(
ara. 18( an, the Re!rt !+ the Panel in )a,an *ilm( !. *it.( ara. 1'.73.
&&7
The *!n*essi!ns *!n*erne, ,! n!t seem t! ha#e 0een a++e*te, 0/ the enlargement !+ the E%r!ean
C!mm%nities t! in*l%,e )%stria( 2inlan, an, S"e,en in 1778.
&3'
In !%r !ini!n( there is a ,i++eren*e 0et"een( !n the !ne han,( an im!rt 0an +!ll!"ing %!n a series
!+ nati!nal meas%res gra,%all/ rein+!r*ing( sin*e 1777( the meas%res ta.en t! r!te*t %0li* health against the
e++e*ts !+ as0est!s an,( !n the !ther( the relati!nshi "hi*h the EC trie, t! esta0lish in 00C (ilseeds 0et"een
WT/DS135/R
Page &'3
;0< The Panel in )a,an *ilm, als! *!n*l%,e, that it "!%l, n!t 0e ar!riate t! *harge
the Unite, States "ith ha#ing reas!na0l/ anti*iate, all =)TT9*!nsistent meas%res.
C!nse-%entl/( "e ,! n!t *!nsi,er that Cana,a reas!na0l/ anti*iate, all =)TT9
*!nsistent meas%res( !r e#en !ssi0le meas%res 6%sti+ia0le %n,er )rti*le GG.
;*< 2inall/( ins!+ar as the De*ree !st,ates the m!st re*ent tari++ neg!tiati!ns( "e *!%l,
al/ the res%mti!n alie, 0/ the Panel in )a,an *ilm, a**!r,ing t! "hi*h
n!rmall/ Cana,a sh!%l, n!t 0e *!nsi,ere, t! ha#e anti*iate, a meas%re intr!,%*e,
a+ter the tari++ *!n*essi!n ha, 0een neg!tiate,. E!"e#er( "e ,! n!t *!nsi,er s%*h a
res%mti!n t! 0e *!nsistent "ith the stan,ar, !+ r!!+ that "e +!%n, t! 0e ali*a0le
in aragrah :.&7& a0!#e in the *ase !+ an allegati!n !+ n!n9#i!lati!n n%lli+i*ati!n
*!n*erning meas%res +alling %n,er )rti*le GG !+ the =)TT 1771.
3!re!#er( the *ir*%mstan*es !+ the resent *ase seem t! %s t! 0e ,i++erent +r!m the
sit%ati!n en#isage, in )a,an *ilm. In that *ase( the meas%res in -%esti!n
*!n*erne, the !rganiFati!n !+ the $aanese ,!mesti* mar.et. The/ "ere there+!re
e*!n!mi* meas%res !+ a .in, that a thir, *!%ntr/ might +in, s%rrising an,(
a**!r,ingl/( ,i++i*%lt t! anti*iate. Eere( it is a -%esti!n !+ meas%res t! r!te*t %0li*
health %n,er )rti*le GG;0<( that is t! sa/( meas%res "h!se a,!ti!n is eAressl/
en#isage, 0/ the =)TT 1771. We there+!re *!nsi,er that the res%mti!n alie, in
)a,an *ilm is n!t ali*a0le t! the resent *ase.
:.&7& Cana,a menti!ns( +irst !+ all( the *!n*essi!ns ma,e 0/ 2ran*e in 1717 an, 0/ the EEC in
178&. E!"e#er( "e *!nsi,er that in #ie" !+ the time that elase, 0et"een th!se *!n*essi!ns an, the
a,!ti!n !+ the De*ree ;0et"een 5' an, 35 /ears<( Cana,a *!%l, n!t ass%me that( !#er s%*h a l!ng
eri!,( there "!%l, n!t 0e a,#an*es in me,i*al .n!"le,ge "ith the ris. that !ne ,a/ a r!,%*t "!%l,
0e 0anne, !n health gr!%n,s. 2!r this reas!n( t!!( "e als! *!nsi,er that the res%mti!n alie, in
)a,an *ilm *ann!t 0e alie, t! the *!n*essi!ns grante, in 1717 an, 178&. )n/ !ther
interretati!n "!%l, eAten, the s*!e !+ the *!n*et !+ n!n9#i!lati!n n%lli+i*ati!n "ell 0e/!n, that
en#isage, 0/ the Panel in )a,an *ilm. On the *!ntrar/( it is +!r Cana,a t! resent ,etaile,
e#i,en*e sh!"ing "h/ it *!%l, legitimatel/ eAe*t the 1717 an, 178& *!n*essi!ns n!t t! 0e a++e*te,
an, *!%l, n!t reas!na0l/ anti*iate that 2ran*e might a,!t meas%res restri*ting the %se !+ all
as0est!s r!,%*ts 5' an, 35 /ears( rese*ti#el/( a+ter the neg!tiati!n !+ the *!n*essi!ns *!n*erne,. In
the resent *ase( the 0%r,en !+ r!!+ m%st 0e all the hea#ier inasm%*h as the inter#ening eri!, has
0een s! l!ng. In,ee,( it is #er/ ,i++i*%lt t! anti*iate "hat a 3em0er "ill ,! in 5' /ears time. It
"!%l, there+!re 0e eas/ +!r a 3em0er t! esta0lish that he *!%l, n!t reas!na0l/ anti*iate the a,!ti!n
!+ a meas%re i+ the 0%r,en !+ r!!+ "ere n!t ma,e hea#ier.
:.&73 In the resent *ase( "e ,! n!t *!nsi,er that Cana,a has r!#i,e, a ,etaile, eAlanati!n !+
"h/ it *!%l, reas!na0l/ eAe*t 2ran*e n!t t! a,!t meas%res restri*ting the %se !+ an/ as0est!s
r!,%*t 5' an, 35 /ears rese*ti#el/( a+ter the *!n*essi!ns *!n*erne,.
:.&71 We there+!re n!" t%rn t! the -%esti!n !+ "hether( at the *!n*l%si!n !+ the Ur%g%a/ R!%n,(
Cana,a *!%l, reas!na0l/ ha#e eAe*te, 2ran*e ;a< n!t t! a,!t a meas%re restri*ting the %se !+
as0est!s an, ;0< n!t t! ,! s! 0/ intr!,%*ing a t!tal 0an.
:.&75 )s "e ha#e +!%n, ;in aragrah :.&:<( the res%mti!n alie, 0/ the Panel in )a,an *ilm
*ann!t 0e alie, t! the resent *ase.
&31
Unli.e Cana,a( "hi*h *laims that n! re*ent s*ienti+i*
the eAisten*e in 178& !+ !il9see,s s%0si,ies in *ertain mem0er States !+ the E%r!ean C!mm%nities an, the
,e#el!ment !+ a s%0si,/ r!gramme ins%lating !il9see, r!,%*ers +r!m *!metiti!n +r!m im!rts ;see
ara. 117 !+ the anel re!rt<.
&31
E#en i+ it "ere ali*a0le( "e *!nsi,er that the EC re0%tte, this res%mti!n 0/ their re+eren*es t!
the s/stems esta0lishe, at internati!nal an, C!mm%nit/ le#el *!n*erning the %se !+ as0est!s.
WT/DS135/R
Page &'1
,e#el!ment *!%l, ha#e ma,e the meas%re +!reseea0le( "e *!nsi,er that there is e#i,en*e t! sh!"
that reg%lati!ns restri*ting the %se !+ as0est!s *!%l, ha#e 0een anti*iate,. 2irst !+ all( the haFar,!%s
nat%re !+ *hr/s!tile has l!ng 0een .n!"n. Th%s( sin*e 1777( *hr/s!tile has 0een *lassi+ie, 0/ the
WEO as a *ateg!r/ I *ar*in!gen. In 17:8( IDO C!n#enti!n 18& re-%ire, nati!nal legislat!rs t! ma.e
r!#isi!n( "hene#er !ssi0le( +!r the rela*ement !+ as0est!s !r !+ *ertain t/es !+ as0est!s !r !+
r!,%*ts *!ntaining as0est!s 0/ !ther materials !r r!,%*ts !r the %se !+ alternati#e te*hn!l!g/(
s*ienti+i*all/ e#al%ate, 0/ the *!metent a%th!rit/ as harmless !r less harm+%l. In 177'( the
E%r!ean C!mm%nities iss%e, Dire*ti#e 7'/371/EEC r!#i,ing +!r the rela*ement !+ as0est!s. This
Dire*ti#e a,#!*ates the rin*ile that a ,anger!%s agent !r r!*e,%re sh!%l, 0e rela*e, 0/ a
harmless !r less harm+%l agent !r r!*e,%re ins!+ar as !ne eAists.
:.&78 3!re!#er( in the light !+ the in+!rmati!n s%0mitte, 0/ the arties an, the eAerts( "e *!nsi,er
that the st%,/ !+ the ,iseases ass!*iate, "ith the inhalati!n !+ as0est!s is a +iel, !+ s*ien*e in "hi*h
an/ !ssi0le *!n*l%si!n "!%l, aear t! 0e 0ase, !n the !0ser#ati!n !+ ath!l!gi*al *ases ,a/ 0/
,a/. In the Panel's !ini!n( the n%mer!%s *!nstraints %n,er "hi*h the s*ientists m%st "!r.( s%*h as
the nee, t! limit themsel#es t! a gi#en n%m0er !+ in,i#i,%als( the esta0lishment !+ the hist!r/ !+
eA!s%re an, the eri!, !#er "hi*h the health e++e*ts !+ as0est!s ,e#el!( ma.e the ima*t !+ these
st%,ies largel/ relati#e. It is the a**%m%lati!n !+ ,ata that gra,%all/ esta0lishes s*ienti+i* *ertaint/.
This imressi!n is *!n+irme, 0/ the eAerts *!ns%lte, 0/ the Panel "h!se !ini!ns are 0ase, !n a
large n%m0er !+ st%,ies( in*l%,ing re*ent !nes. C!nse-%entl/( e#en s%!sing that there has 0een n!
ma6!r re*ent ,is*!#er/( Cana,a *ann!t arg%e that it *!%l, n!t anti*iate the a,!ti!n !+ a meas%re
restri*ting the %se !+ as0est!s.
:.&77 On the !ther han,( the a**%m%lati!n !+ internati!nal an, C!mm%nit/ ,e*isi!ns *!n*erning
the %se !+ as0est!s( e#en i+ it ,i, n!t ne*essaril/ ma.e it *ertain that the %se !+ as0est!s "!%l, 0e
0anne, 0/ 2ran*e( *!%l, n!t ,! !ther than *reate a climate "hi*h sh!%l, ha#e le, Cana,a t!
anti*iate a *hange in the attit%,e !+ the im!rting *!%ntries( ese*iall/ in #ie" !+ the l!ng9
esta0lishe, tren, t!"ar,s e#er tighter restri*ti!ns !n the %se !+ as0est!s. We als! n!te that the %se !+
*hr/s!tile as0est!s "as 0anne, 0/ 3em0ers !+ the WTO "ell 0e+!re it "as 0anne, 0/ 2ran*e.
),mitte,l/( in )a,an *ilm the Panel *!nsi,ere, that the a,!ti!n in !ther 3em0ers' mar.ets !+
meas%res similar t! the meas%res in -%esti!n *!%l, n!t ma.e the latter +!reseea0le. E!"e#er( here
again it "as a -%esti!n !+ *!mmer*ial meas%res. We *!nsi,er that in the resent *ase the sit%ati!n is
,i++erent sin*e it *!n*erns %0li* health an, the *!metent internati!nal !rganiFati!ns ha#e alrea,/
ta.en a !siti!n !n the -%esti!n. The a,!ti!n( in an alrea,/ restri*ti#e *!nteAt( !+ %0li* health
meas%res 0/ !ther States( +a*e, "ith a s!*ial an, e*!n!mi* sit%ati!n similar t! that in 2ran*e( *reates
an en#ir!nment in "hi*h the a,!ti!n !+ similar meas%res 0/ 2ran*e( is n! l!nger %n+!reseea0le.
:.&7: 3!re!#er( as n!te, a0!#e( at the en, !+ the Ur%g%a/ R!%n, 2ran*e alrea,/ ha, in la*e a
n%m0er !+ meas%res reg%lating the %se !+ as0est!s. These in*l%,e,( in arti*%lar( meas%res relating t!
the eA!s%re !+ "!r.ers ta.en a+ter as0est!s "as re*!gniFe, as a *ar*in!gen 0/ the I)RC
;De*ree 779717 !+ 17 )%g%st 1777< an, the a,!ti!n !+ IDO C!n#enti!n 18&( as "ell as +!r the
%r!se !+ imlementing C!mm%nit/ ,ire*ti#es ali*a0le. The Panel als! n!tes that De*ree ::9188
!+ &: )ril 17:: !n r!,%*ts *!ntaining as0est!s ha, r!hi0ite, the %se !+ *hr/s!tile as0est!s in the
man%+a*t%re !+ *ertain r!,%*ts.
&3&
:.&77 In these *ir*%mstan*es( it is ,i++i*%lt +!r Cana,a t! *laim that it ha, legitimate eAe*tati!ns !+
maintaining !r e#en ,e#el!ing its eA!rts !+ *hr/s!tile an, r!,%*ts *!ntaining it. I+ there "as an/
0ene+it +!r Cana,a( the Panel ,!es n!t *!nsi,er Cana,a t! ha#e resente, a ,etaile, 6%sti+i*ati!n t!
sh!" that that 0ene+it "as an/thing !ther than re*ari!%s.
&3&
See )nneA II( rel/ !+ the E%r!ean C!mm%nities t! the Panel's -%esti!n N!. 1 at the Se*!n,
3eeting "ith the Parties( aras. &51 t! &81.
WT/DS135/R
Page &'5
:.3'' We th%s *!n*l%,e that at the *!n*l%si!n !+ the Ur%g%a/ R!%n, Cana,a *!%l, reas!na0l/ ha#e
anti*iate, that 2ran*e might( in the sh!rt term( a,!t m!re restri*ti#e meas%res !n the %se !+
as0est!s.
:.3'1 The -%esti!n that remains t! 0e ,e*i,e, is "hether Cana,a *!%l, reas!na0l/ ha#e anti*iate,
the intr!,%*ti!n !+ a ban !n *hr/s!tile as0est!s 0/ 2ran*e. We *!nsi,er that the s*ienti+i* literat%re
an, the internati!nal reg%lati!ns( as "ell as 3em0ers' %0li* !li*/
&33
( ga#e n%mer!%s in,i*ati!ns
s%*h as t! *reate a *!nteAt in "hi*h Cana,a *!%l, n!t reas!na0l/ n!t ha#e anti*iate, that s!!ner !r
later *hr/s!tile "!%l, 0e 0anne, 0/ 2ran*e. We als! re*all that the legitima*/ !+ meas%res 6%sti+ie,
%n,er )rti*le GG 6%sti+ies a stri*ter 0%r,en !+ r!!+ !n the art/ in#!.ing )rti*le GGIIIB1;0<. In the
resent *ase( Cana,a has n!t resente, a ,etaile, 6%sti+i*ati!n in s%!rt !+ its *laim that it *!%l, n!t
reas!na0l/ ha#e anti*iate, that 2ran*e "!%l,( in the light !+ ,e#el!ments in the s*ienti+i* e#i,en*e
an, the *h!i*es ma,e 0/ !ther 3em0ers( als! ,e*i,e t! al/ a t!tal 0an !n as0est!s !n its mar.et in
the sh!rt term.
:.3'& We n!te Cana,a's arg%ment a**!r,ing t! "hi*h it *!%l, n!t reas!na0l/ ha#e anti*iate, the
a,!ti!n !+ the De*ree 0/ 2ran*e ins!+ar as 2ran*e +aile, t! ,isla/ the ne*essar/ *!nsisten*/ in its
ar!a*h t! *hr/s!tile an, !ther haFar,!%s r!,%*ts( s%*h as lea, an, *!er. We ,! n!t *!nsi,er
this a ertinent arg%ment. )lth!%gh it is tr%e that lea, an, *!er( li.e as0est!s( are haFar,!%s an,
that 2ran*e has n!t /et ta.en an/ meas%re "ith rese*t t! lea, an, *!er( essentiall/ this means that
Cana,a *ann!t legitimatel/ eAe*t the lea, mar.et n!t t! 0e the s%06e*t !+ s!me %0li* health
meas%re( e#en th!%gh 2ran*e has n!t /et ta.en an/ s%*h meas%re. It is !%r !ini!n that ea*h 3em0er
is +ree t! a,!t the health !li*ies it ,eems ar!riate an, t! gi#e ea*h s%*h !li*/ the ri!rit/ it
,eems ne*essar/. T! a**et Cana,a's arg%ment "!%l, n!t !nl/ *!n+li*t "ith that rin*ile 0/
re-%iring an >all !r n!thing> ar!a*h im!ssi0le t! realiFe in ra*ti*e 0%t "!%l, *!nsi,era0l/
+a*ilitate the tas. !+ a 3em0er in#!.ing )rti*le GGIIIB1;0< an, re-%ire, t! r!#e the eAisten*e !+ a
legitimate eAe*tati!n. Th%s( it "!%l, 0e s%++i*ient t! i,enti+/ a r!,%*t "hi*h ha, n!t /et 0een
reg%late, e#en th!%gh it "as re*!gniFe, as 0eing haFar,!%s. There "!%l, then 0e n! nee, t! r!#i,e
,etaile, e#i,en*e !+ the eAisten*e !+ n!n9#i!lati!n n%lli+i*ati!n !r imairment.
:.3'3 In the resent *ase( "e ,! n!t *!nsi,er that Cana,a has resente, a ,etaile, 6%sti+i*ati!n !+
"h/ it *!%l, legitimatel/ ha#e eAe*te, that 2ran*e "!%l, n!t a,!t meas%res restri*ting the %se !+
an/ as0est!s r!,%*t in a *!nteAt in "hi*h meas%res t! limit the %se !+ as0est!s "ere 0eing r!!se,
at the internati!nal le#el an, "hen *!%ntries at the same le#el !+ s!*ial an, e*!n!mi* ,e#el!ment as
2ran*e ha, alrea,/ 0anne, the %se !+ *hr/s!tile as0est!s 0/ the en, !+ the Ur%g%a/ R!%n,.
;*< C!n*l%si!n
:.3'1 On the 0asis !+ the a0!#e( "e *!n*l%,e that Cana,a has n!t esta0lishe, the eAisten*e !+
n%lli+i*ati!n !r imairment !+ a 0ene+it "ithin the meaning !+ )rti*le GGIIIB1;0< !+ the =)TT 1771
as a res%lt !+ the ali*ati!n !+ the meas%re in -%esti!n.
IIIIIIIIIIIIIIIIIIII
&33
The %se !+ *hr/s!tile "as 0anne, in S"e,en an, Denmar. in 17:8( in )%stria in 177'( in the
Netherlan,s in 1771( in 2inlan, an, Ital/ in 177& an, in =erman/ in 1773 ;see ara. 3.3& a0!#e<. Dire*ti#e
71/857/EEC !+ 3 De*em0er 1771( O$ 1771( D 383( . 38( ha, 0anne, the %se !+ as0est!s +!r +!%rteen se*i+i*
*ateg!ries !+ r!,%*t ;see ara. 3.31 a0!#e<.
WT/DS135/R
Page &'8
I3. '5N'67SI5NS
7.1 In the light !+ the a0!#e( the Panel *!n*l%,es as +!ll!"sB
;a< On the 0asis !+ its +in,ings in Se*ti!n CIII.D a0!#e( the Panel *!n*l%,es that the
>r!hi0iti!n> art !+ the De*ree ,!es n!t +all "ithin the s*!e !+ the T4T )greement.
The art !+ the De*ree relating t! >eA*eti!ns> ,!es +all "ithin the s*!e !+ the T4T
)greement. E!"e#er( as Cana,a has n!t ma,e an/ *laim *!n*erning the
*!mati0ilit/ "ith the T4T )greement !+ the art !+ the De*ree relating t!
eA*eti!ns( the Panel re+rains +r!m rea*hing an/ *!n*l%si!n "ith regar, t! the latter.
;0< On the 0asis !+ its +in,ings in Se*ti!n CIII.E.& a0!#e( the Panel *!n*l%,es that
*hr/s!tile as0est!s +i0res as s%*h an, +i0res that *an 0e s%0stit%te, +!r them as s%*h
are li.e r!,%*ts "ithin the meaning !+ )rti*le IIIB1 !+ the =)TT 1771. Similarl/(
the Panel *!n*l%,es that the as0est!s9*ement r!,%*ts an, the +i0r!9*ement r!,%*ts
+!r "hi*h s%++i*ient in+!rmati!n has 0een s%0mitte, t! the Panel are li.e r!,%*ts
"ithin the meaning !+ )rti*le IIIB1 !+ the =)TT 1771.
;*< With rese*t t! the r!,%*ts +!%n, t! 0e li.e( the Panel *!n*l%,es that the De*ree
#i!lates )rti*le IIIB1 !+ the =)TT 1771.
;,< E!"e#er( !n the 0asis !+ its +in,ings in Se*ti!n CIII.E.1 a0!#e( the Panel *!n*l%,es
that the De*ree( ins!+ar as it intr!,%*es a treatment !+ these r!,%*ts that is
,is*riminat!r/ %n,er )rti*le IIIB1( is 6%sti+ie, as s%*h an, in its imlementati!n 0/ the
r!#isi!ns !+ aragrah ;0< an, the intr!,%*t!r/ *la%se !+ )rti*le GG !+ the
=)TT 1771.
;e< 2inall/( the Panel *!n*l%,es( !n the 0asis !+ its +in,ings in Se*ti!n CIII.2 a0!#e( that
Cana,a has n!t esta0lishe, that it s%++ere, n!n9#i!lati!n n%lli+i*ati!n !r imairment
!+ a 0ene+it "ithin the meaning !+ )rti*le GGIIIB1;0< !+ the =)TT 1771.
IIIIIIIIIIIIIIIIIIIIIII