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WT/DS103/R
WT/DS113/R
Page



World Trade

Organization







WT/DS139/R

WT/DS142/R

11 February 2000






(00-0455)










Original: English


Canada – Certain Measures Affecting

the Automotive Industry

Report of the Panel

The report of the Panel on "Canada – Certain Measures Affecting the Automotive Industry" is being circulated to all Members, pursuant to the DSU. The report is being circulated as an unrestricted document from 11 February 2000 pursuant to the Procedures for the Circulation and Derestriction of WTO Documents (WT/L/160/Rev.1). Members are reminded that in accordance with the DSU only parties to the dispute may appeal a panel report, an appeal shall be limited to issues of law covered in the panel report and legal interpretations developed by the panel, and that there shall be no ex parte communications with the panel or Appellate Body concerning matters under consideration by the panel or Appellate Body.



Note by the Secretariat: This Panel Report shall be adopted by the Dispute Settlement Body (DSB) within 60 days after the date of its circulation unless a party to the dispute decides to appeal or the DSB decides by concensus not to adopt the report. If the Panel Report is appealed to the Appellate Body, it shall not be considered for adoption by the DSB until after the completion of the appeal. Information on the current status of the panel Report is available from the WTO Secretariat.

TABLE OF CONTENTS

Page


II. Procedural History 1

A. Consultations 1

B. Establishment and Composition of the Panel 1

C. Panel Proceedings 2



III. Background 2

B. The Auto Pact 2

C. The Canada - United States Free Trade Agreement (CUSFTA) 3

D. The North American Free Trade Agreement (NAFTA) 4

E. Canada's Domestic Measures 4

IV. Findings and Recommendations Requested by the Parties 9

A. Japan's Request for Findings and Recommendations 9

B. The European Communities' Request for Findings and Recommendations 9

C. Canada's Request for Findings and Recommendations 10



V. Request for Preliminary Ruling 11

A. Japan's Argument Giving Rise to Canada's Request for a Preliminary Ruling 11

B. Canada's Request for a Preliminary Ruling 11

C. The Panel's Decision 12



VI. Factual Arguments of the Parties 13

A. The Measures at Issue 13

B. Structure of the Automotive Industry 56

VII. Legal Arguments of the Parties 72

A. Article I of the GATT 72

B. Article III:4 of the GATT 113

C. The TRIMs Agreement 140

D. The SCM Agreement 148

E. Applicability of the GATS to the Measures 183

F. Article II of the GATS 201

G. Article XVII of the GATS 226



VIII. Questions and Replies 252

A. Factual Arguments of the Parties 252

B. Legal Arguments of the Parties 263

IX. third-party arguments 335

A. India's Arguments as a Third Party 335

B. Korea's Arguments as a Third Party 335

C. The United States' Arguments as a Third Party 347



X. interim review 349

XI. Findings 350

A. Introduction 350

B. Claims Under the GATT and the TRIMs Agreement 354

C. Claims Under the SCM Agreement 382

D. Claims Under the GATS 397

XII. Conclusions and Recommendations 414

A. Conclusions 414



B. Recommendations 415


TABLES
Page


Japan's Table 1 58

Japan's Table 2 58

Japan's Table 3 59

Japan's Table 4 61

Japan's Table 5 65

Japan's Table 6 67

Japan's Table 7 71

Japan's Table 8 71

Japan's Table 9 76

Japan's Table 10 77

EC's Table 1 79

EC's Table 2 79

EC's Table 3 153

EC's Table 4 153

EC's Table 5 207

EC's Table 6 208

EC's Table 7 316


FIGURES

Page


Japan's Table 1 58

Japan's Table 2 58

Japan's Table 3 59

Japan's Table 4 61

Japan's Table 5 65

Japan's Table 6 67

Japan's Table 7 71

Japan's Table 8 71

Japan's Table 9 76

Japan's Table 10 77

EC's Table 1 79

EC's Table 2 79

EC's Table 3 153

EC's Table 4 153

EC's Table 5 207

EC's Table 6 208

EC's Table 7 316


  1. Procedural History


            1. This proceeding has been initiated by two complaining parties, Japan and the European Communities.


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