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WT/DS481 - Recourse to Article 22.2 of the DSU in the US — Clove cigarettes dispute

Last update: 23/06/2014

  • Complaint by: EU
  • Complaint against: Indonesia
  • Third parties:
Summary of case:

On 13 June 2014 the EU requested consultations with Indonesia related to its course of action in another WTO dispute opposing Indonesia and the United States (DS 406 – clove cigarettes). The EU considers that Indonesia has acted inconsistently with the WTO dispute settlement procedures in unilaterally requesting “sanctions” against the US (for failing to comply with the recommendations and rulings of the DSB in the dispute) without requesting a “compliance panel” to consider whether the measures taken by the US were in compliance with what was recommended by the DSB. There was disagreement between the United States and Indonesia over compliance, and the matter was referred to arbitration. Indonesia requested “sanctions” against the US for US$ 50.5 million to which the US objected. It was not possible to reach a “sequencing” agreement between both parties and Indonesia claimed it was not necessary to request a “compliance” panel because the US had taken “no action”. The EU also complains that Indonesia rejected the participation of the EU, as a third party, at the sanctions arbitration panel procedures, preventing the interests of the EU from being taken into account. The EU has alleged that these measures are inconsistent with Articles 10, 21.5, 22.2, 23.1 and 23.2(a) of the DSU.

Relevant WTO provision:

Articles 10, 21.5, 22.2, 23.1 and 23.2(a) of the DSU

Consultation:

Date of request: 13/06/2014

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