ec bananas(ab)(21.5 us) (21.5ii ecuador)

8/12/2019 Ec Bananas(Ab)(21.5 Us) (21.5II Ecuador)

http://slidepdf.com/reader/full/ec-bananasab215-us-215ii-ecuador 1/195

WORLD TRADE

ORGANIZATION

WT/DS27/AB/RW2/ECUWT/DS27/AB/RW/USA26 November 2008

(08-5797)

Original: English

EUROPEAN COMMUNITIES – REGIME FOR THE IMPORTATION, SALE ANDDISTRIBUTION OF BANANAS

SECOND RECOURSE TO ARTICLE 21.5 OF THE DSU BY ECUADOR

AB-2!-!


RECOURSE TO ARTICLE 21.5 OF THE DSU BY THE UNITED STATES

AB-2!-"

Reports of the Appellate Body

N#$%&

The Appellae !o"# iss$es he above %o repors in he &orm o& a single "o'$men 'onsi$ing %o separaeAppellae !o"# epors: T*+,27*A!*2*E. an" T*+,27*A!**.,A/ The 'over page preliminar#

pages ,e'ions 1 o 11 an" he anne3es are 'ommon o he %o epors/ The page hea"er hro$gho$ he"o'$men bears %o "o'$men s#mbols T*+,27*A!*2*E. an" T*+,27*A!**.,A %ih hee3'epion o& ,e'ion 111 on pages E.-464 o E.-46 %hi'h bears he "o'$men s#mbol &or an" 'onainshe Appellae !o"#s &in"ings an" 'on'l$sions in he Appellae !o"# epor T*+,27*A!*2*E. an"%ih he e3'epion o& ,e'ion 111 on pages .,A-464 an" .,A-462 %hi'h bears he "o'$men s#mbol &or an"'onains he Appellae !o"#s &in"ings an" 'on'l$sions in he Appellae !o"# epor T*+,27*A!**.,A/



T*+,27*A!*2*E.T*+,27*A!**.,A

age i

11/ 1nro"$'ion 4

111/ Arg$mens o& he ari'ipans an" he Thir" ari'ipans////////////////////////////////////////////////////4

A/ laims o& Error b# he E$ropean omm$niies Appellan ///////////////////////////////////4

!/ Arg$mens o& E'$a"or Appellee an" Thir" ari'ipan/////////////////////////////////////////2

/ Arg$mens o& he .nie" ,aes Appellee an" Thir" ari'ipan //////////////////////////8

+/ laims o& Error b# E'$a"or Oher Appellan////////////////////////////////////////////////////////7

E/ Arg$mens o& he E$ropean omm$niies Appellee /////////////////////////////////////////////50

/ Arg$mens o& he Thir" ari'ipans/////////////////////////////////////////////////////////////////////////52

1;/ 1ss$es aise" in he Appeal o& he E'$a"or anel epor////////////////////////////////////////////////////6

;/ 1ss$es aise" in he Appeal o& he ., anel epor/////////////////////////////////////////////////////////////65

;1/ Ari'le 9/ o& he +,. <armoni=aion o& Timeables (E'$a"or an" .nie" ,aes)/////////66

;11/ >egal E&&e' o& he .n"ersan"ings on !ananas (E'$a"or an" .nie" ,aes)///////////////////70

;111/ ,'ope o& Ari'le 24/5 ro'ee"ings ?eas$re Ta@en o ompl# (.nie" ,aes)//////////////84

1/ epeal o& he hallenge" ?eas$re (.nie" ,aes)//////////////////////////////////////////////////////////////94

/ The E$ropean omm$niies Noi'e o& Appeal (.nie" ,aes)////////////////////////////////////////////96

1/ Ari'le 111 o& he ATT 499 (E'$a"or an" .nie" ,aes)//////////////////////////////////////////////99

A/ The Original ro'ee"ings an" he irs E'$a"or Ari'le 24/5 anel ///////////////////////99

!/ ?eas$re Ta@en o ompl#/////////////////////////////////////////////////////////////////////////////////////404

/ The $rren Ari'le 24/5 ro'ee"ings////////////////////////////////////////////////////////////////////402

+/ laims an" Arg$mens on Appeal//////////////////////////////////////////////////////////////////////////406

E/ Anal#sis o& he Appeale" in"ings o& he anel $n"er Ari'le 111 o& he ATT499///////////////////////////////////////////////////////////////////////////////////////////////////////////////408

11/ Ari'le 11 o& he ATT 499 (E'$a"or)////////////////////////////////////////////////////////////////////////////42

A/ The $rren Ari'le 24/5 ro'ee"ings////////////////////////////////////////////////////////////////////42

!/ laims an" Arg$mens relaing o he E$ropean omm$niies Appeal/////////////////426

/ Anal#sis o& he E$ropean omm$niies Appeal////////////////////////////////////////////////////426

+/ laims an" Arg$mens relaing o E'$a"ors Oher Appeal///////////////////////////////////48

E/ Anal#sis o& E'$a"ors Oher Appeal///////////////////////////////////////////////////////////////////////49

111/ N$lli&i'aion or 1mpairmen (.nie" ,aes)////////////////////////////////////////////////////////////////////45

A/ The Original ro'ee"ings///////////////////////////////////////////////////////////////////////////////////////45

!/ The $rren Ari'le 24/5 ro'ee"ings////////////////////////////////////////////////////////////////////45



T*+,27*A!*2*E.T*+,27*A!**.,Aage ii

/ laims an" Arg$mens on Appeal//////////////////////////////////////////////////////////////////////////455

+/ The anels in"ings $n"er Ari'le /8 o& he +,.////////////////////////////////////////////////456

1;/ in"ings an" on'l$sions in he Appellae !o"# epor T*+,27*A!*2*E.(E'$a"or)////////////////////////////////////////////////////////////////////////////////////////////////////////////////////46

111/ in"ings an" on'l$sions in he Appellae !o"# epor T*+,27*A!*2*E.(E'$a"or)///////////////////////////////////////////////////////////////////////////////////////////////////////////E.-464

111/ in"ings an" on'l$sions in he Appellae !o"# epor T*+,27*A!**.,A(.nie" ,aes)///////////////////////////////////////////////////////////////////////////////////////////////////.,A-464



T*+,27*A!*2*E.T*+,27*A!**.,A

age iii

ANNE 1 Noi&i'aion o& an Appeal b# he E$ropean omm$niies(E'$a"or anel epor) T*+,27*89

ANNE 11 Noi&i'aion o& an Appeal b# he E$ropean omm$niies(., anel epor) T*+,27*90

ANNE 111 Noi&i'aion o& an Oher Appeal b# E'$a"or T*+,27*94

ANNE 1; ro'e"$ral $ling b# he Appellae !o"# o& 48 ,epember 2008o allo% p$bli' observaion o& he oral hearing

ANNE ; +oha Ari'le 1 aiver T*?1N(04)*45B T*>*6

ANNE ;1 E3'erps &rom ,e'ions 1-A an" 1-! o& ar 1 o& he E$ropean omm$niies,'he"$le >

ANNE ;11 rame%or@ Agreemen on !ananas anne3e" o he E$ropean omm$niies,'he"$le >



T*+,27*A!*2*E.T*+,27*A!**.,Aage iv

A,E, 1TE+ 1N T<1, EOT

S'#($ $)$*% F+** % $)$*% 0 )$$)#

Argentina – Hides and Leather anel epor Argentina – Measures Affecting the Export of Bovine Hides and

Import of Finished Leather T*+,455* an" orr/4 a"ope" 46 ebr$ar# 2004+, 2004:; 4779

Argentina – Poultry Anti

!umping !uties

anel epor Argentina – !efinitive Anti!umping !uties on Poultry from

Bra"il T*+,24* a"ope" 49 ?a# 200 +, 200:; 4727

Australia – Automotive

Leather II anel epor Australia – #u$sidies Provided to Producers and Exporters of

Automotive Leather T*+,426* a"ope" 46 C$ne 4999 +, 4999:111 954

Belgium – Family Allo%ances

&allocations familiales'

ATT anel epor Belgian Family Allo%ances( *2 a"ope"7 November 4952 !1,+ 4,*59

)anada – Autos Appellae !o"# epor )anada – )ertain Measures Affecting the Automotive

Industry T*+,49*A!* T*+,42*A!* a"ope" 49 C$ne 2000+, 2000:;1 2985

)hile – Price Band #ystem Appellae !o"# epor )hile – Price Band #ystem and #afeguard Measures

*elating to )ertain Agricultural Products T*+,207*A!* a"ope" 2 O'ober2002 +, 2002:;111 05 an" orr/4

)hile – Price Band #ystem anel epor )hile – Price Band #ystem and #afeguard Measures *elating to

)ertain Agricultural Products T*+,207* a"ope" 2 O'ober 2002 asmo"i&ie" b# Appellae !o"# epor T*+,207A!* +, 2002:;111 427

)hile – Price Band #ystem

&Article +,-. – Argentina'

Appellae !o"# epor )hile – Price Band #ystem and #afeguard Measures

*elating to )ertain Agricultural Products – *ecourse to Article +,-. of the !#/

$y Argentina T*+,207*A!* a"ope" 22 ?a# 2007

!ominican *epu$lic – Importand #ale of )igarettes

Appellae !o"# epor !ominican *epu$lic – Measures Affecting the Importation and Internal #ale of )igarettes T*+,02*A!* a"ope" 49 ?a#2005 +, 2005:; 767

E) – Approval and Mar0eting

of Biotech Products

anel epor European )ommunities – Measures Affecting the Approval and

Mar0eting of Biotech Products T*+,294* T*+,292* T*+,29*orr/4 an" A""/4 o A""/9 a"ope" 24 November 2006 +, 2006:111 87

E) – Bananas III Appellae !o"# epor European )ommunities – *egime for the Importation(

#ale and !istri$ution of Bananas T*+,27*A!* a"ope" 25 ,epember 4997+, 4997:11 594

E) – Bananas III &Ecuador' anel epor European )ommunities – *egime for the Importation( #ale and

!istri$ution of Bananas( )omplaint $y Ecuador T*+,27**E. a"ope"

25 ,epember 4997 as mo"i&ie" b# Appellae !o"# epor T*+,27*A!*+, 4997:111 4085

E) – Bananas III &1uatemala

and Honduras'

anel epor European )ommunities – *egime for the Importation( #ale and

!istri$ution of Bananas( )omplaint $y 1uatemala and HondurasT*+,27**T? T*+,27**<N+ a"ope" 25 ,epember 4997 as mo"i&ie"

b# Appellae !o"# epor T*+,27*A!* +, 4997:11 695

E) – Bananas III &Mexico' anel epor European )ommunities – *egime for the Importation( #ale and

!istri$ution of Bananas( )omplaint $y Mexico T*+,27**?E a"ope"25 ,epember 4997 as mo"i&ie" b# Appellae !o"# epor T*+,27*A!*+, 4997:11 80



T*+,27*A!*2*E.T*+,27*A!**.,A

age v

S'#($ $)$*% F+** % $)$*% 0 )$$)#

E) – Bananas III &/#' anel epor European )ommunities – *egime for the Importation( #ale and

!istri$ution of Bananas( )omplaint $y the /nited #tates T*+,27**.,A

a"ope" 25 ,epember 4997 as mo"i&ie" b# Appellae !o"# eporT*+,27*A!* +, 4997:11 9

E) – Bananas III

&Article +,-2&c''

A%ar" o& he Arbiraor European )ommunities – *egime for the Importation(

#ale and !istri$ution of Bananas – Ar$itration under Article +,-2&c' of the !#/ T*+,27*45 7 Can$ar# 4998 +, 4998:1

E) – Bananas III

&Article +,-. – E)'


!istri$ution of Bananas – *ecourse to Article +,-. of the !#/ $y the European

)ommunities T*+,27**EE 42 April 4999 an" orr/4 $na"ope"+, 4999:11 78

E) – Bananas III

&Article +,-. – Ecuador'


!istri$ution of Bananas – *ecourse to Article +,-. of the !#/ $y Ecuador

T*+,27**E. a"ope" 6 ?a# 4999 +, 4999:11 80

E) – Bananas III

&Article +,-. – Ecuador II'


!istri$ution of Bananas – #econd *ecourse to Article +,-. of the !#/ $y

Ecuador T*+,27*2*E. 'ir'$lae" o TO ?embers 7 April 2008

E) – Bananas III

&Article +,-. – /#'


!istri$ution of Bananas – *ecourse to Article +,-. of the !#/ $y the /nited

#tates T*+,27**.,A an" orr/4 'ir'$lae" o TO ?embers 49 ?a#2008

E) – Bananas III &Ecuador'

&Article ++-3 – E)'

+e'ision b# he Arbiraors European )ommunities – *egime for the

Importation( #ale and !istri$ution of Bananas – *ecourse to Ar$itration $y the

European )ommunities under Article ++-3 of the !#/ T*+,27*A!*E.

2 ?ar'h 2000 +, 2000:; 227 E) – Bananas III &/#'

&Article ++-3 – E)'

+e'ision b# he Arbiraors European )ommunities – *egime for the

Importation( #ale and !istri$ution of Bananas – *ecourse to Ar$itration $y the

European )ommunities under Article ++-3 of the !#/ T*+,27*A! 9 April4999 +, 4999:11 725

E) – )hic0en )uts Appellae !o"# epor European )ommunities – )ustoms )lassification of

Fro"en Boneless )hic0en )uts T*+,269*A!* T*+,286*A!* a"ope"27 ,epember 2005 an" orr/4 +, 2005:1 9457

E) – Export #u$sidies on

#ugar

Appellae !o"# epor European )ommunities – Export #u$sidies on #ugar T*+,265*A!* T*+,266*A!* T*+,28*A!* a"ope" 49 ?a# 2005+, 2005:111 665

E) – Export #u$sidies on#ugar &Australia'

anel epor European )ommunities – Export #u$sidies on #ugar( )omplaint $y Australia T*+,265* a"ope" 49 ?a# 2005 as mo"i&ie" b# Appellae !o"#epor T*+,265*A!* T*+,266*A!* T*+,28*A!* +,2005:111 699


#ugar &Bra"il'

anel epor European )ommunities – Export #u$sidies on #ugar( )omplaint $y

Bra"il T*+,266* a"ope" 49 ?a# 2005 as mo"i&ie" b# Appellae !o"#epor T*+,265*A!* T*+,266*A!* T*+,28*A!* +,2005:1; 679


#ugar &4hailand'

anel epor European )ommunities – Export #u$sidies on #ugar( )omplaint $y

4hailand T*+,28* a"ope" 49 ?a# 2005 as mo"i&ie" b# Appellae !o"#epor T*+,265*A!* T*+,266*A!* T*+,28*A!* +,2005:1; 7074



T*+,27*A!*2*E.T*+,27*A!**.,Aage vi

S'#($ $)$*% F+** % $)$*% 0 )$$)#

E) – Poultry Appellae !o"# epor European )ommunities – Measures Affecting the

Importation of )ertain Poultry Products T*+,69*A!* a"ope" 2 C$l# 4998

+, 4998:; 204

E) – #elected )ustoms

Matters

Appellae !o"# epor European )ommunities – #elected )ustoms MattersT*+,45*A!* a"ope" 44 +e'ember 2006

E) – 4he A)PE)

Partnership Agreement

A%ar" o& he Arbiraor European )ommunities – 4he A)PE) Partnership

Agreement – *ecourse to Ar$itration Pursuant to the !ecision of ,5 6ovem$er

+77, T*>*646 4 A$g$s 2005 +, 2005:111 44669

E) – 4he A)PE)

Partnership Agreement II

A%ar" o& he Arbiraor European )ommunities – 4he A)PE) Partnership

Agreement – #econd *ecourse to Ar$itration Pursuant to the !ecision of

,5 6ovem$er +77, T*>*625 27 O'ober 2005 +, 2005:111 4470

EE) – Bananas II ATT anel epor EE) – Import *egime for Bananas +,8*44 ebr$ar# 499 $na"ope"

EE) – Imports of Beef ATT anel epor European Economic )ommunity – Imports of Beef from

)anada >*5099 a"ope" 40 ?ar'h 4984 !1,+ 28,*92

EE) – Minimum Import

Prices

ATT anel epor EE) – Programme of Minimum Import Prices( Licences

and #urety !eposits for )ertain Processed Fruits and 8egeta$les >*687a"ope" 48 O'ober 4978 !1,+ 25,*68

EE) – 6e%sprint ATT anel epor Panel on 6e%sprint >*5680 a"ope" 20 November 498!1,+ 4,*44

India – Autos anel epor India – Measures Affecting the Automotive #ector T*+,46*T*+,475* an" orr/4 a"ope" 5 April 2002 +, 2002:; 4827

India – 9uantitative

*estrictions

anel epor India – 9uantitative *estrictions on Imports of Agricultural( 4extile

and Industrial Products T*+,90* a"ope" 22 ,epember 4999 $phel" b#Appellae !o"# epor T*+,90*A!* +, 4999:; 4799

Indonesia – Autos anel epor Indonesia – )ertain Measures Affecting the Automo$ile IndustryT*+,5* T*+,55* T*+,59* T*+,6* an" orr/4 an" 2 a"ope"2 C$l# 4998 an" orr/ an" +, 4998:;1 2204

:apan – Alcoholic Beverages

II Appellae !o"# epor :apan – 4axes on Alcoholic Beverages T*+,8*A!*T*+,40*A!* T*+,44*A!* a"ope" 4 November 4996 +, 4996:1 97

:apan – Apples Appellae !o"# epor :apan – Measures Affecting the Importation of ApplesT*+,25*A!* a"ope" 40 +e'ember 200 +, 200:1 94

:apan – #emi)onductors ATT anel epor :apan – 4rade in #emi)onductors >*609 a"ope"

?a# 4988 !1,+ 5,*446

:apan – #PF !imension

Lum$er

ATT anel epor )anada;:apan – 4ariff on Imports of #pruce( Pine( Fir

&#PF' !imension Lum$er >*670 a"ope" 49 C$l# 4989 !1,+ 6,*467

#pain – /nroasted )offee ATT anel epor #pain – 4ariff 4reatment of /nroasted )offee >*545a"ope" 44 C$ne 4984 !1,+ 28,*402

4ur0ey – 4extiles anel epor 4ur0ey – *estrictions on Imports of 4extile and )lothing ProductsT*+,* a"ope" 49 November 4999 as mo"i&ie" b# Appellae !o"# eporT*+,*A!* +, 4999:;1 26

/# – )ertain E) Products Appellae !o"# epor /nited #tates – Import Measures on )ertain Products

from the European )ommunities T*+,465*A!* a"ope" 40 Can$ar# 2004+, 2004:1 7



T*+,27*A!*2*E.T*+,27*A!**.,A

age vii

S'#($ $)$*% F+** % $)$*% 0 )$$)#

/# – )orrosion*esistant

#teel #unset *evie%

Appellae !o"# epor /nited #tates – #unset *evie% of Anti!umping !uties

on )orrosion*esistant )ar$on #teel Flat Products from :apan

T*+,2*A!* a"ope" 9 Can$ar# 200 +, 200:1

/# – )ountervailing Measures

on )ertain E) Products

Appellae !o"# epor /nited #tates – )ountervailing Measures )oncerning

)ertain Products from the European )ommunities T*+,242*A!* a"ope"8 Can$ar# 200 +, 200:1 5

/# – F#)

&Article +,-. – E) II'

Appellae !o"# epor /nited #tates – 4ax 4reatment for <Foreign #ales

)orporations< – #econd *ecourse to Article +,-. of the !#/ $y the European

)ommunities T*+,408*A!*2 a"ope" 4 ?ar'h 2006

/# – 1am$ling Appellae !o"# epor /nited #tates – Measures Affecting the )rossBorder

#upply of 1am$ling and Betting #ervices T*+,285*A!* a"ope" 20 April2005 +, 2005:11 566 an" orr/4

/# – MF6 Foot%ear ATT anel epor /nited #tates – !enial of MostFavoured6ation

4reatment as to 6on*u$$er Foot%ear from Bra"il( +,48* a"ope"49 C$ne 4992 !1,+ 9,*428

/# – =ffset Act

&Byrd Amendment '

Appellae !o"# epor /nited #tates – )ontinued !umping and #u$sidy =ffset

Act of +777 T*+,247*A!* T*+,2*A!* a"ope" 27 Can$ar# 200+, 200:1 75

/# – #oft%ood Lum$er I8

&Article +,-. – )anada'

Appellae !o"# epor /nited #tates – Final )ountervailing !uty !etermination

%ith *espect to )ertain #oft%ood Lum$er from )anada – *ecourse $y )anada to

Article +,-. of the !#/ T*+,257*A!* a"ope" 20 +e'ember 2005 +,2005:111 4457

/# – #ugar ATT anel epor /nited #tates *estrictions on Imports of #ugar >*654a"ope" 22 C$ne 4989 !1,+ 6,*4

/# – #ugar >aiver ATT anel epor /nited #tates – *estrictions on the Importation of #ugar

and #ugar)ontaining Products Applied under the ,?.. >aiver and under the

Headnote to the #chedule of 4ariff )oncessions >*664 a"ope"7 November 4990 !1,+ 7,*228

/# – #uperfund ATT anel epor /nited #tates – 4axes on Petroleum and )ertain Imported

#u$stances >*6475 a"ope" 47 C$ne 4987 !1,+ ,*46

/# – /pland )otton Appellae !o"# epor /nited #tates – #u$sidies on /pland )ottonT*+,267*A!* a"ope" 24 ?ar'h 2005 +, 2005:1

/# – /pland )otton

&Article +,-. – Bra"il'

Appellae !o"# epor /nited #tates – #u$sidies on /pland )otton – *ecourse

to Article +,-. of the !#/ $y Bra"il T*+,267*A!* a"ope" 20 C$ne 2008

/# – >ool #hirts and Blouses anel epor /nited #tates – Measure Affecting Imports of >oven >ool #hirtsand Blouses from India T*+,* a"ope" 2 ?a# 4997 $phel" b# Appellae!o"# epor T*+,*A!* +, 4997:1



T*+,27*A!*2*E.T*+,27*A!**.,Aage viii

E E.>AT1ON, 1TE+ 1N T<1, EOT

S'#($ $)$*% F+** $)$*% # R%+*$)# 0 )$$)#

EE eg$laion 0*9 o$n'il eg$laion (EE) No/ 0*9 o& 4 ebr$ar# 499 on he 'ommonorganisaion o& he mar@e in bananas =fficial :ournal of the European

)ommunities > ,eries No/ 7 (25 ebr$ar# 499) 4

EE eg$laion 42*9 ommission eg$laion (EE) No/ 42*9 o& 40 C$ne 499 la#ing "o%n"eaile" r$les &or he appli'aion o& he arrangemens &or imporing bananasino he omm$ni# =fficial :ournal of the European /nion > ,eries

No/ 42 (42 C$ne 499) 6

E eg$laion 467*98 o$n'il eg$laion (E) No/ 467*98 o& 20 C$l# 4998 amen"ing o$n'ileg$laion (EE) No/ 0*9 on he 'ommon organisaion o& he mar@e in

bananas =fficial :ournal of the European )ommunities > ,eries No/ 240(28 C$l# 4998) 28

E eg$laion 262*98 ommission eg$laion (E) No/ 262*98 o& 28 O'ober 4998 la#ing"o%n "eaile" r$les &or he implemenaion o& o$n'il eg$laion (EE)

No/ 0*9 regar"ing impors o& bananas ino he omm$ni# =fficial

:ournal of the European )ommunities > ,eries No/ 29 (28 O'ober4998) 2

E eg$laion 246*2004 o$n'il eg$laion (E) No/ 246*2004 o& 29 Can$ar# 2004 amen"ingeg$laion (EE) No/ 0*9 on he 'ommon organisaion o& he mar@e in

bananas =fficial :ournal of the European )ommunities > ,eries No/ 4(2 ebr$ar# 2004) 2

E eg$laion 2587*2004 o$n'il eg$laion (E) No/ 2587*2004 o& 49 +e'ember 2004 amen"ingeg$laion (EE) No/ 0*9 on he 'ommon organisaion o& he mar@e in

bananas =fficial :ournal of the European )ommunities > ,eries No/ 5(29 +e'ember 2004) 4

E eg$laion 496*2005 o$n'il eg$laion (E) No/ 496*2005 o& 29 November 2005 on he ari&&raes &or bananas =fficial :ournal of the European /nion > ,eries No/ 46(2 +e'ember 2005) 4

E eg$laion 204*2005 ommission eg$laion (E) No/ 204*2005 o& 9 +e'ember 2005 on li'en'es$n"er he arrangemens &or imporing bananas ino he omm$ni# in respe'o& bananas release" ino &ree 'ir'$laion a he 'ommon '$soms ari&& rae o&"$# =fficial :ournal of the European /nion > ,eries No/ 2(40 +e'ember 2005)

E eg$laion 2045*2005 ommission eg$laion (E) No/ 2045*2005 o& 9 +e'ember 2005 on impors"$ring Can$ar# an" ebr$ar# 2006 o& bananas originaing in A 'o$nries

$n"er he ari&& D$oa opene" b# o$n'il eg$laion (E) No/ 496*2005 onhe ari&& raes &or bananas =fficial :ournal of the European /nion > ,eries

No/ 2 (40 +e'ember 2005) 5

E eg$laion 249*2005 ommission eg$laion (E) No/ 249*2005 o& 2 +e'ember 2005 &i3ing here"$'ion 'oe&&i'iens o be applie" o appli'aions &or impor li'en'es &or

bananas originaing in he A 'o$nries &or he monhs o& Can$ar# an"ebr$ar# 2006 =fficial :ournal of the European /nion > ,eries No/ 2(2 +e'ember 2005) 49

E eg$laion 249*2006 ommission eg$laion (E) No/ 249*2006 o& 8 ebr$ar# 2006 opening an" provi"ing &or he a"minisraion o& he ari&& D$oa &or bananas &alling $n"erN 'o"e 080 00 49 originaing in A 'o$nries &or he perio" 4 ?ar'h o4 +e'ember 2006 =fficial :ournal of the European /nion > ,eries No/ 8(9 ebr$ar# 2006) 22



T*+,27*A!*2*E.T*+,27*A!**.,A

age i3

S'#($ $)$*% F+** $)$*% # R%+*$)# 0 )$$)#

E eg$laion 25*2006 ommission eg$laion (E) No/ 25*2006 o& 2 ebr$ar# 2006 &i3ing here"$'ion 'oe&&i'ien o be applie" o appli'aions &or impor li'en'es &or

bananas originaing in he A 'o$nries &or he perio" 4 ?ar'h o4 +e'ember 2006 =fficial :ournal of the European /nion > ,eries

No/ 5 (2 ebr$ar# 2006) 8

E eg$laion 566*2006 ommission eg$laion (E) No/ 566*2006 o& 6 April 2006 on amen"ingan" "erogaing &rom eg$laion (E) No/ 204*2005 on li'en'es $n"er hearrangemens &or imporing bananas ino he omm$ni# in respe' o&

bananas release" ino &ree 'ir'$laion a he 'ommon '$soms ari&& rae o&"$# an" amen"ing eg$laion (E) No/ 249*2006 opening an" provi"ing&or he a"minisraion o& ari&& D$oa &or bananas &alling $n"er N 'o"e080 00 49 originaing in A 'o$nries &or he perio" 4 ?ar'h o 4+e'ember 2006 =fficial :ournal of the European /nion > ,eries No/ 99(7 April 2006) 6

E eg$laion 966*2006 ommission eg$laion (E) No/ 966*2006 o& 29 C$ne 2006 amen"ingeg$laion (E) No/ 249*2006 opening an" provi"ing &or he a"minisraiono& he ari&& D$oa &or bananas &alling $n"er N 'o"e 080 00 49 originaingin A 'o$nries &or he perio" 4 ?ar'h o 4 +e'ember 2006 =fficial

:ournal of the European /nion > ,eries No/ 476 (0 C$ne 2006) 24

E eg$laion 4264*2006 ommission eg$laion (E) No/ 4264*2006 o& 2 A$g$s 2006 amen"ingeg$laion (E) No/ 249*2006 opening an" provi"ing &or he a"minisraiono& he ari&& D$oa &or bananas &alling $n"er N 'o"e 080 00 49 originaingin A 'o$nries &or he perio" 4 ?ar'h o 4 +e'ember 2006 =fficial

:ournal of the European /nion > ,eries No/ 20 (2 A$g$s 2006)

E eg$laion 459*2006 ommission eg$laion (E) No/ 459*2006 o& 47 O'ober 2006 amen"ing

Anne3 1 o o$n'il eg$laion (EE) No/ 2658*87 on he ari&& an" saisi'alnomen'la$re an" he ommon $soms Tari&& O&&i'ial Co$rnal o& heE$ropean .nion 4*40*2006

E eg$laion 4789*2006 ommission eg$laion (E) No/ 4789*2006 o& 5 +e'ember 2006 openingan" provi"ing &or he a"minisraion o& he ari&& D$oa &or he impor o&

bananas &alling $n"er N 'o"e 080 00 49 originaing in A 'o$nries &orhe perio" 4 Can$ar# o 4 +e'ember 2007 =fficial :ournal of the European

/nion > ,eries No/ 9 (6 +e'ember 2006)

E eg$laion *2007 ommission eg$laion (E) No/ *2007 o& 46 Can$ar# 2007 &i3ing heallo'aion 'oe&&i'ien o be applie" o appli'aions &or impor li'en'es &or

bananas originaing in he A 'o$nries &or he perio" o 4 +e'ember 2007=fficial :ournal of the European /nion > ,eries No/ 40 (47 Can$ar# 2007) 9

E eg$laion 7*2007 ommission eg$laion (E) No/ 7*2007 o& 49 Can$ar# 2007 amen"ingeg$laion (E) No/ *2007 &i3ing he allo'aion 'oe&&i'ien o be applie" oappli'aions &or impor li'en'es &or bananas originaing in he A 'o$nries&or he perio" o 4 +e'ember 2007

E eg$laion 4528*2007 o$n'il eg$laion (E) No/ 4528*2007 o& 20 +e'ember 2007 appl#ing hearrangemens &or pro"$'s originaing in 'erain saes %hi'h are par o& heA&ri'an aribbean an" a'i&i' (A) ro$p o& ,aes provi"e" &or inagreemens esablishing or lea"ing o he esablishmen o& E'onomi'arnership Agreemens =fficial :ournal of the European /nion > ,eries

No/ 8 (4 +e'ember 2007) 4



T*+,27*A!*2*E.T*+,27*A!**.,Aage 3

A!!E;1AT1ON, .,E+ 1N T<1, EOT

A33(%4)$)# D%))$)#

A A&ri'an aribbean a'i&i'

Anti!umping Agreement Agreement on Implementation of Article 8I of the 1eneral Agreement

on 4ariffs and 4rade ,??5

!ananas rame%or@Agreemen

Anne3e" o boh E ,'he"$le > an" E ,'he"$le >originall# negoiae" in 499 b# he E$ropean omm$niies %iholombia osa i'a Ni'arag$a an" ;ene=$ela (repro"$'e" inAnne3 ;11 o his epor)

oono$ Agreemen arnership Agreemen be%een he ?embers o& he A&ri'anaribbean an" a'i&i' ro$p o& ,aes o& he one par an" heE$ropean omm$ni# an" is ?ember ,aes o& he oher par

signe" in oono$ !enin on 2 C$ne 2000

+oha Ari'le 1 aiver o$rh ,ession o& he ?iniserial on&eren'e hel" in +oha E$ropeanomm$niies The A-E arnership Agreemen +e'ision o&4 November 2004 T*?1N(04)*45B T*>*6 (anel E3hibis .,-an" E-2 (E'$a"or)) (Anne3 ; o his epor)

+oha Ari'le 111 aiver o$rh ,ession o& he ?iniserial on&eren'e hel" in +oha E$ropeanomm$niies Transiional egime &or he E A$onomo$s Tari&&ae $oas on 1mpors o& !ananas +e'ision o& 4 November 2004T*?1N(04)*46B T*>*7 (anel E3hibi .,-5)

+,! +isp$e ,elemen !o"#

+,. /nderstanding on *ules and Procedures 1overning the #ettlement of

!isputes

E !ananas 1mpor egime !ananas impor regime he E$ropean omm$niies ha" in pla'e be%een 4 Can$ar# 2006 an" 4 +e'ember 2007

E*EE eg$laion FG #ee list a$ove

E'$a"or anel epor anel epor European )ommunities – *egime for the Importation(

#ale and !istri$ution of Bananas – #econd *ecourse to Article +,-. of

the !#/ $y Ecuador T*+,27*2*E.

E$ropean omm$niies

,'he"$le o& on'essions

,'he"$le > o& he E$ropean omm$niies Final Act Em$odying

the *esults of the /ruguay *ound of Multilateral 4rade 6egotiations"one a ?arra@esh 45 April 499

irs E'$a"or Ari'le 24/5 panel

anel in European )ommunities – *egime for the Importation( #ale

and !istri$ution of Bananas – *ecourse to Article +,-. of the !#/ $y

Ecuador

AT, 1eneral Agreement on 4rade in #ervices

ATT 499 1eneral Agreement on 4ariffs and 4rade ,??5

1> 1nernaional >a% ommission



T*+,27*A!*2*E.T*+,27*A!**.,A

age 3i

A33(%4)$)# D%))$)#

>omH aiver The o$rh A-EE onvenion o& >omH +e'ision o& heONTAT1N AT1E, o& 9 +e'ember 499 >*76049 +e'ember 499B e3en"e" b# E The o$rh A-EEonvenion o& >omH E3ension o& aiver +e'ision o& he TOeneral o$n'il o& 4 O'ober 4996 T*>*486 48 O'ober 4996

?N ?os-&avo$re" naion

?o"aliies aper ?o"aliies &or he Esablishmen o& ,pe'i&i' !in"ing ommimens Noe b# he hairman o& he ?ar@e A''ess ro$p?TN/N*?A**2 20 +e'ember 499

m ?eri' onne

Original panel anel in European )ommunities – *egime for the Importation( #ale

and !istri$ution of Bananas &Ecuador' &1uatemala and Honduras'&Mexico' and &/#'

anel anels in European )ommunities – *egime for the Importation( #ale

and !istri$ution of Bananas – #econd *ecourse to Article +,-. of

the !#/ $y Ecuador an" European )ommunities – *egime for the

Importation( #ale and !istri$ution of Bananas – *ecourse to

Article +,-. of the !#/ $y the /nited #tates

#)M Agreement Agreement on #u$sidies and )ountervailing Measures

4*IP# Agreement Agreement on 4rade*elated Aspects of Intellectual Property *ights

.n"ersan"ings on !ananas .n"ersan"ing on !ananas be%een he E$ropean omm$niies an"

he .nie" ,aes signe" on 44 April 2004 (T*+,27*59 ***270BT*+,27*58 En'los$re 4)B an" .n"ersan"ing on !ananas be%eenhe E$ropean omm$niies an" E'$a"or signe" on 0 April 2004(T*+,27*60 ***27B T*+,27*58 En'los$re 2)

., anel epor anel epor European )ommunities – *egime for the Importation(

#ale and !istri$ution of Bananas – *ecourse to Article +,-. of the

!#/ $y the /nited #tates T*+,27**.,A an" orr/4

8ienna )onvention 8ienna )onvention on the La% of 4reaties "one a ;ienna 2 ?a#4969 4455 .NT, 4B 8 1nernaional >egal ?aerials 679

>or0ing Procedures >or0ing Procedures for Appellate *evie% T*A!**5 Can$ar#

2005TO orl" Tra"e Organi=aion

>4= Agreement Marra0esh Agreement Esta$lishing the >orld 4rade =rgani"ation



T*+,27*A!*2*E.T*+,27*A!**.,A

age 4

O>+ TA+E OAN1IAT1ON

AE>>ATE !O+J

E+(#% C#66+)$)% – R%)6% #( $'%I6#($$)#, S*% 0 D)$()3+$)# # B,e'on" e'o$rse o Ari'le 24/5 o& he +,. b#E'$a"or

E+(#% C#66+)$)% – R%)6% #( $'%I6#($$)#, S*% 0 D)$()3+$)# # Be'o$rse o Ari'le 24/5 o& he +,. b# he.nie" ,aes

E$ropean omm$niies Appellant;Appellee

E'$a"or =ther Appellant;Appellee;4hird Participant .nie" ,aes Appellee;4hird Participant

!eli=e 4hird Participant

!ra=il 4hird Participant

ameroon 4hird Participant

olombia 4hird Participant

Ke "1voire 4hird Participant

+omini'a 4hird Participant

+omini'an ep$bli' 4hird Participant

hana 4hird Participant 4

Camai'a 4hird Participant

Capan 4hird Participant ?e3i'o 4hird Participant 2

Ni'arag$a 4hird Participant

anama 4hird Participant

,ain >$'ia 4hird Participant

,ain ;in'en an" he rena"ines 4hird Participant

,$riname 4hird Participant

A!-2008-8

A!-2008-9

resen:

!apisa resi"ing ?ember Oshima ?ember .nerhaler ?ember

I. I$(#0+$)#

4/ The E$ropean omm$niies an" E'$a"or ea'h appeals 'erain iss$es o& la% an" legalinerpreaions "evelope" in he anel epor European )ommunities – *egime for the Importation(

#ale and !istri$ution of Bananas – #econd *ecourse to Article +,-. of the !#/ $y Ecuador 4

(he LE'$a"or anel eporL)/ The E$ropean omm$niies appeals 'erain iss$es o& la% an" legal

inerpreaions "evelope" in he anel epor European )ommunities – *egime for the Importation(

#ale and !istri$ution of Bananas – *ecourse to Article +,-. of the !#/ $y the /nited #tates 2

(he L., anel eporL)/

41n he E'$a"or 'ase onl#/2

1n he .nie" ,aes 'ase onl#/4T*+,27*2*E. 7 April 2008/2T*+,27**.,A an" orr/4 49 ?a# 2008/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 2

2/ T%o panels %ere esablishe" p$rs$an o Ari'le 24/5 o& he /nderstanding on *ules and

Procedures 1overning the #ettlement of !isputes (he L+,.L) o 'onsi"er 'omplains b# E'$a"or

an" b# he .nie" ,aes

5

'on'erning he 'onsisen'# %ih he 1eneral Agreement on 4ariffs and4rade ,??5 (he LATT 499L) o& 'erain meas$res a@en b# he E$ropean omm$niies inro"$'ing

a ne% regime &or he imporaion o& bananas/6 The E'$a"or anel %as esablishe" on 20 ?ar'h 2007

an" he .nie" ,aes anel %as esablishe" on 42 C$l# 2007/ !oh E'$a"or an" he .nie" ,aes

reD$ese" ha he maer be re&erre" i& possible o he original panel in E) – Bananas III p$rs$an o

Ari'le 24/5 o& he +,./ T%o o& he hree paneliss &rom he original pro'ee"ings %ere available o

serve in he presen pro'ee"ings/ As he &inal 'omposiion o& boh anels %as i"eni'al in his epor

%e re&er o boh anels 'olle'ivel# as he LanelL/

/ Ta@en ogeher he panel reD$ess i"eni&ie" he &ollo%ing meas$res as being in'onsisen

%ih he E$ropean omm$niies obligaions $n"er he ATT 499: o$n'il eg$laion (EE)

No/ 0*9 o& 4 ebr$ar# 4997 (LEE eg$laion 0*9L) as amen"e" b# o$n'il eg$laion

(E) No/ 246*2004 o& 29 Can$ar# 20048 (LE eg$laion 246*2004L)B o$n'il eg$laion (E)

No/ 496*2005 o& 29 November 20059 (LE eg$laion 496*2005L)B an" an# amen"mens

implemening meas$res an" oher relae" meas$res/40 E eg$laion 496*2005 amen"e"

EE eg$laion 0*9 an" inro"$'e" a ne% regime &or he imporaion o& bananas/ The ne% s#sem

enere" ino &or'e on 4 Can$ar# 2006 an" esablishe": (i) a single ari&& rae o& M476 per meri'onne (LmL) &or bananas o& all origins (mos-&avo$re" naion (L?NL) bananas)44B an" (ii) a ari&&

D$oa o& 775000 m s$be' o a =ero-"$# rae &or impors o& bananas originaing in A&ri'an

aribbean an" a'i&i' (LAL) 'o$nries/42

T*+,27*82B T*+,27*8/eD$es &or he Esablishmen o& a anel b# E'$a"or T*+,27*80/5eD$es &or he Esablishmen o& a anel b# he .nie" ,aes T*+,27*8/6E'$a"or anel epor para/ 2/4B ., anel epor para/ 2/4/ The re'ommen"aions an" r$lings

o& he +,! res$le" &rom he a"opion on 25 ,epember 4997 b# he +,! o& he Appellae !o"#

epor T*+,27*A!* an" he anel epors T*+,27**E. T*+,27**T? T*+,27**<N+T*+,27**?E an" T*+,27**.,A in E) – Bananas III / 1n his epor %e re&er o he panel ha'onsi"ere" he original 'omplain as he Loriginal panelLB %e re&er o he panel ha 'onsi"ere" he &irs'omplian'e pro'ee"ings bro$gh b# E'$a"or as he L&irs E'$a"or Ari'le 24/5 panelLB an" %e re&er o he

panels in he %o presen Ari'le 24/5 pro'ee"ings 'olle'ivel# as he LanelL/7o$n'il eg$laion (EE) No/ 0*9 o& 4 ebr$ar# 499 on he 'ommon organisaion o& he mar@e

in bananas =fficial :ournal of the European )ommunities > ,eries No/ 7 (25 ebr$ar# 499) 4/8o$n'il eg$laion (E) No/ 246*2004 o& 29 Can$ar# 2004 amen"ing eg$laion (EE) No/ 0*9

on he 'ommon organisaion o& he mar@e in bananas =fficial :ournal of the European )ommunities > ,eries No/ 4 (2 ebr$ar# 2004) 2/

9o$n'il eg$laion (E) No/ 496*2005 o& 29 November 2005 on he ari&& raes &or bananas =fficial

:ournal of the European /nion > ,eries No/ 46 (2 +e'ember 2005) 4 (anel E3hibis E.-4 an" .,-4)/40eD$es &or he Esablishmen o& a anel b# E'$a"or T*+,27*80 p/ B eD$es &or he

Esablishmen o& a anel b# he .nie" ,aes T*+,27*8 pp/ 2-/44E eg$laion 496*2005 Ari'le 4/4/42E eg$laion 496*2005 Ari'le 4/2/



T*+,27*A!*2*E.T*+,27*A!**.,A

age

/ 1n he original E) – Bananas III pro'ee"ings E'$a"or $aemala <on"$ras ?e3i'o an"

he .nie" ,aes 'hallenge" he E$ropean omm$niies bananas impor regime in &or'e a ha ime/

The original panel an" he Appellae !o"# in he original "isp$e r$le" ha he allo'aion o& ari&&D$oa shares $n"er EE eg$laion 0*9 %as in'onsisen %ih Ari'le 111 o& he ATT 499 an"

%as no $si&ie" b# eiher he L!ananas rame%or@ AgreemenL4 anne3e" o he E$ropean

omm$niies ,'he"$le or he Agreement on Agriculture/ The Appellae !o"# &o$n" ha he

L>omH aiverL4 "i" no appl# o violaions o& Ari'le 111 o& he ATT 499/ The Appellae !o"#

an" he original panel also &o$n" ha li'en'e allo'aion pro'e"$res violae" Ari'les 1:4 an" 111: o&

he ATT 499 an" Ari'les 11 an" ;11 o& he 1eneral Agreement on 4rade in #ervices

(he LAT,L)/45 On 25 ,epember 4997 he +isp$e ,elemen !o"# (he L+,!L) a"ope" he anel

an" Appellae !o"# epors in E) – Bananas III an" re'ommen"e" ha he E$ropean omm$niies

bring is meas$res ino 'on&ormi# %ih he 'overe" agreemens/ On 20 C$l# 4998 he E$ropean

omm$niies a"ope" o$n'il eg$laion (E) No/ 467*9846 (LE eg$laion 467*98L) amen"ing

EE eg$laion 0*9 an" on 28 O'ober 4998 a"ope" ommission eg$laion (E)

No/ 262*9847 (LE eg$laion 262*98L) repealing ommission eg$laion (EE) No/ 42*9 o&

40 C$ne 49948 (LEE eg$laion 42*9L)/

4rame%or@ Agreemen on !ananas anne3e" o boh E ,'he"$le > an" E ,'he"$le >originall# negoiae" in 499 b# he E$ropean omm$niies %ih olombia osa i'a Ni'arag$a an";ene=$ela (repro"$'e" in Anne3 ;11 aa'he" o his epor)/

4

The o$rh A-EE onvenion o& >omH +e'ision o& he ONTAT1N AT1E, o&9 +e'ember 499 >*760 49 +e'ember 499 (he L>omH aiverL)B e3en"e" b# E The o$rh A-EEonvenion o& >omH E3ension o& aiver +e'ision o& he TO eneral o$n'il o& 4 O'ober 4996T*>*486 48 O'ober 4996/

45Appellae !o"# epor E) – Bananas III para/ 225/ The original panel an" he Appellae !o"#&o$n" ha his violaion o& Ari'le 1:4 %as no $si&ie" b# he >omH aiver &rom Ari'le 1 be'a$se i %as noreD$ire" b# he Lom@ )onvention/

46o$n'il eg$laion (E) No/ 467*98 o& 20 C$l# 4998 amen"ing o$n'il eg$laion (EE) No/ 0*9 on he 'ommon organisaion o& he mar@e in bananas =fficial :ournal of the European

)ommunities > ,eries No/ 240 (28 C$l# 4998) 28/47ommission eg$laion (E) No/ 262*98 o& 28 O'ober 4998 la#ing "o%n "eaile" r$les &or he

implemenaion o& o$n'il eg$laion (EE) No/ 0*9 regar"ing impors o& bananas ino he omm$ni#=fficial :ournal of the European )ommunities > ,eries No/ 29 (28 O'ober 4998) 2/

48

ommission eg$laion (EE) No/ 42*9 o& 40 C$ne 499 la#ing "o%n "eaile" r$les &or heappli'aion o& he arrangemens &or imporing bananas ino he omm$ni# =fficial :ournal of the European

/nion > ,eries No/ 42 (42 C$ne 499) 6/



T*+,27*A!*2*E.T*+,27*A!**.,Aage

5/ On 48 +e'ember 4998 E'$a"or reD$ese" pro'ee"ings p$rs$an o Ari'le 24/5 o& he +,.

alleging ha he meas$res a@en b# he E$ropean omm$niies &aile" o implemen he +,!s

re'ommen"aions an" r$lings/ The &irs 'omplian'e panel reD$ese" b# E'$a"or (he L&irs E'$a"orAri'le 24/5 panelL) &o$n" ha he meas$res a@en b# he E$ropean omm$niies o implemen he

+,!s re'ommen"aions an" r$lings %ere in'onsisen %ih Ari'les 1 an" 111 o& he ATT 499 an"

Ari'les 11 an" ;11 o& he AT,/ The &irs E'$a"or Ari'le 24/5 panel repor %as no appeale" an"

%as a"ope" b# he +,! on 6 ?a# 4999/49

6/ $rs$an o Ari'le 49/4 o& he +,. he &irs E'$a"or Ari'le 24/5 panel s$ggese" ha he

E$ropean omm$niies 'o$l" bring is meas$res ino 'on&ormi# b#: (i) appl#ing a ari&&-onl# s#sem

%iho$ a ari&& D$oa ha 'o$l" in'l$"e a pre&eren'e &or A 'o$nries 'overe" b# a %aiver or a &ree

ra"e agreemen 'onsisen %ih Ari'le 1; o& he ATT 499B (ii) appl#ing a ari&&-onl# s#sem

%ih a pre&erenial ari&& D$oa &or A 'o$nries 'overe" b# a s$iable %aiverB or (iii) mainaining is

bo$n" an" a$onomo$s ?N ari&& D$oas eiher %iho$ allo'aing 'o$nr#-spe'i&i' shares or b#

allo'aing s$'h shares b# agreemen %ih all s$bsanive s$ppliers 'onsisenl# %ih Ari'le 111:2 o&

he ATT 499/ The ?N ari&& D$oa 'o$l" be 'ombine" %ih he e3ension o& "$#-&ree reamen

o A 'o$nries 'overe" b# he >omH aiver &rom Ari'le 1 o& he ATT 499 or %ih a pre&erenial

ari&& D$oa &or A 'o$nries provi"e" a %aiver &rom Ari'le 111 o& he ATT 499 %as obaine"/20

7/ 1n an arbiraion p$rs$an o Ari'le 22/6 o& he +,. involving he .nie" ,aes an" he

E$ropean omm$niies he arbiraors "eermine" as a preliminar# maer ha he revise" bananas

impor regime o& he E$ropean omm$niies %as in'onsisen %ih Ari'les 1 an" 111 o& he ATT

499 an" Ari'les 11 an" ;11 o& he AT,/ 24 ollo%ing he e3pir# o& he reasonable perio" o& ime

&or he E$ropean omm$niies o 'ompl# %ih he +,!s re'ommen"aions an" r$lings in

E) – Bananas III he .nie" ,aes reD$ese" an" obaine" a$hori=aion o s$spen" 'on'essions

p$rs$an o Ari'le 22 o& he +,./ $rs$an o arbiraions on he level o& s$spension o& 'on'essions

an" oher obligaions in he #ears 4999 an" 2000 he +,! a$hori=e" he .nie" ,aes o s$spen"

'on'essions or oher obligaions $p o an amo$n o& .,494/ million per #ear an" E'$a"or $p o an

amo$n o& .,204/6 million per #ear/22 The .nie" ,aes s$spen"e" ari&& 'on'essionsB E'$a"or

ho%ever "i" no e3er'ise is righs o s$spen" 'on'essions an" oher obligaions $n"er he

ATT 499 he AT, or he Agreement on 4rade*elated Aspects of Intellectual Property *ights

(he L4*IP# Agreement L)/

49anel epor E) – Bananas III &Article +,-. – Ecuador' para/ 7/4/20anel epor E) – Bananas III &Article +,-. – Ecuador' paras/ 6/456-6/458/24

+e'ision b# he Arbiraors E) – Bananas III &/#' &Article ++-3 – E)' paras/ /8 an" 5/96-5/98/22+e'ision b# he Arbiraors E) – Bananas III &/#' &Article ++-3 – E)' para/ 8/4B +e'ision b# heArbiraors E) – Bananas III &Ecuador' &Article ++-3 – E)' para/ 47(a)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 5

8/ On 44 April an" 0 April 2004 he E$ropean omm$niies signe" %o separae

.n"ersan"ings on !ananas: one %ih he .nie" ,aes an" one %ih E'$a"or/ On 22 C$ne 2004 he

E$ropean omm$niies noi&ie" boh .n"ersan"ings o he +,! as a Lm$$all# agree" sol$ionL%ihin he meaning o& Ari'le /6 o& he +,./ 2 On 2 an" 9 C$l# 2004 he .nie" ,aes an" E'$a"or

iss$e" separae 'omm$ni'aions saing ha %hile he .n"ersan"ings i"eni&ie" he means b# %hi'h

he long-san"ing "isp$e over he E$ropean omm$niies bananas impor regime 'o$l" be solve"

he .n"ersan"ings "i" no in hemselves 'onsi$e a Lm$$all# agree" sol$ionL p$rs$an o

Ari'le /6 o& he +,./2

9/ aragraphs ! an" (E'$a"or an" .nie" ,aes) an" (E'$a"or) o& he .n"ersan"ings on

!ananas provi"e:

!/ 1n a''or"an'e %ih Ari'le 46(4) o& eg$laion No/ (EE)0*9 (as amen"e" b# eg$laion No/ (E) 246*2004) heE$ropean omm$niies (E) %ill inro"$'e a Tari&& Onl#regime &or impors o& bananas no laer han 4 Can$ar# 2006/F///25G

/ 1n he inerim he E %ill implemen an impor regime onhe basis o& hisori'al li'ensing as &ollo%s :

4/ E&&e'ive 4 C$l# 2004 he E %ill implemen an

impor regime on he basis o& hisori'al li'ensing asse o$ in Anne3 4/

2/ E&&e'ive as soon as possible herea&er s$be' oo$n'il an" E$ropean arliamen approval an" oa"opion o& he Ari'le 111 %aiver re&erre" o in

paragraph he E %ill implemen an impor regimeon he basis o& hisori'al li'ensing as se o$ inAnne3 2/ The ommission %ill see@ o obain heimplemenaion o& s$'h an impor regime as soon as

possible/

/ The E an" E'$a"or 'onsi"er ha his .n"ersan"ing'onsi$es a m$$all# agree" sol$ion o he bananas "isp$e/

2 E) – Bananas III Noi&i'aion o& ?$$all# Agree" ,ol$ion T*+,27*58/2 E) – Bananas III omm$ni'aion &rom he .nie" ,aes T*+,27*59 ***270B E) –

Bananas III .n"ersan"ing on !ananas be%een E'$a"or an" he E T*+,27*60 ***27/25

1n he .n"ersan"ing %ih E'$a"or paragraph ! in'l$"e" he &ollo%ing senen'e: LATT Ar ;111negoiaions shall be iniiae" in goo" ime o ha e&&e' re'ogni=ing E'$a"or as he prin'ipal s$pplier in hesenegoiaions/L



T*+,27*A!*2*E.T*+,27*A!**.,Aage 6

40/ On 4 November 2004 he ?iniserial on&eren'e meeing in +oha a"ope" %o %aivers

'on'erning he E$ropean omm$niies bananas impor regime/ The &irs %aiver &rom Ari'le 1:4 o&

he ATT 499 (he L+oha Ari'le 1 aiverL

26

) %as ne'essar# o permi he E$ropean omm$niieso provi"e pre&erenial ari&& reamen &or pro"$'s originaing in A saes as reD$ire" b# he

relevan provisions o& he so-'alle" Loono$ AgreemenL/27 The se'on" %aiver &rom Ari'le 111 o&

he ATT 499 (he L+oha Ari'le 111 aiverL28) 'on'erne" he E$ropean omm$niies separae

ari&& D$oa o& 750000 m &or bananas o& A origin/ The +oha Ari'le 111 aiver %as grane"

$nil 4 +e'ember 2005 h$s 'overing he perio" $nil he enr# ino &or'e o& he E$ropean

omm$niies ari&&-onl# regime on 4 Can$ar# 2006 as &oreseen b# he .n"ersan"ings on !ananas/

44/ The +oha Ari'le 1 aiver 'onaine" a separae LAnne3 on !ananasL %hi'h se o$ a

spe'ial pro'e"$re &or he rebin"ing o& he E$ropean omm$niies ari&& on bananas/ This pro'e"$re

in'l$"e" a spe'ial %o-sage arbiraion o "eermine %heher he E$ropean omm$niies propose"

rebin"ing %o$l" res$l Lin a leas mainaining oal mar@e a''ess &or ?N s$ppliersL/ The Anne3 on

!ananas also provi"e" ha s$be' o he &$l&ilmen o& he reD$iremens o& he spe'ial rebin"ing

pro'e"$re he +oha Ari'le 1 aiver applie" in he 'ase o& bananas $nil 4 +e'ember 2007/

42/ On 24 Can$ar# 2002 he E$ropean omm$niies in&orme" he +,! o& he a"opion o&

o$n'il eg$laion (E) No/ 2587*200429 (LE eg$laion 2587*2004L)/ A he +,! meeing hel"

on 4 ebr$ar# 2002 he E$ropean omm$niies reD$ese" ha he agen"a iem relaing o he

implemenaion o& he +,!s re'ommen"aions an" r$lings 'on'erning he E$ropean omm$niies

26o$rh ,ession o& he ?iniserial on&eren'e hel" in +oha E$ropean omm$niies The A-Earnership Agreemen +e'ision o& 4 November 2004 T*?1N(04)*45B T*>*6 (aa'he" as Anne3 ; ohis eporB his "o'$men %as also s$bmie" as anel E3hibis .,- an" E-2 (E'$a"or))/ The +ohaAri'le 1 aiver e3pire" on 4 +e'ember 2007 in respe' o& A pro"$'s oher han bananas/

27The arnership Agreemen be%een he ?embers o& he A&ri'an aribbean an" a'i&i' ro$p o&

,aes o& he one par an" he E$ropean omm$ni# an" is ?ember ,aes o& he oher par signe" in oono$!enin on 2 C$ne 2000/28o$rh ,ession o& he ?iniserial on&eren'e hel" in +oha E$ropean omm$niies Transiional

egime &or he E A$onomo$s Tari&& ae $oas on 1mpors o& !ananas +e'ision o& 4 November 2004T*?1N(04)*46B T*>*7 (anel E3hibi .,-5)/ The +oha Ari'le 111 aiver e3pire" on 4 +e'ember2005/

29o$n'il eg$laion (E) No/ 2587*2004 o& 49 +e'ember 2004 amen"ing eg$laion (EE) No/ 0*9 on he 'ommon organisaion o& he mar@e in bananas =fficial :ournal of the European

)ommunities > ,eries No/ 5 (29 +e'ember 2004) 4/Ari'les 48/4-48/ o& E eg$laion 2587*2004 'hange" he D$oas in he &ollo%ing %a#s: (i) D$oa A

o& 2/2 million m &or impors &rom hir" 'o$nries %as mainaine"B (ii) D$oa ! %as in'rease" o 5000 m &orimpors &rom hir" 'o$nriesB (iii) %ihin D$oas A an" ! bananas &rom hir" 'o$nries %ere s$be' o a'$soms "$# o& M75*m %hile impors o& pro"$'s originaing in he A 'o$nries %ere s$be' o a =ero "$#B

an" (iv) D$oa open o impors onl# &rom A 'o$nries an" s$be' o a =ero "$# %as "e'rease" o750000 m/ An o$-o&-D$oa ari&& pre&eren'e o& M00*m %as esablishe" &or bananas originaing in A'o$nries/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 7

4/ bananas impor regime be %ih"ra%n &rom he +,! agen"a/ A his +,! meeing E'$a"or

sae" ha he .n"ersan"ing on !ananas L'onsi$e" a so$n" basis &or he E o implemen a

ransiional banana impor regime so ha b# 4 Can$ar# 2006 a he laes a TO-'ompaible ari&&-onl# regime %o$l" be p$ ino pla'e/L0 E'$a"or also noe" ha his regime L'onaine" vario$s

phases sages an" elemens o be implemene"/L4 E'$a"or also sae" ha i reserve" is righs $n"er

Ari'le 24/5 o& he +,./

4/ A he same +,! meeing he .nie" ,aes sae" ha i L%as please" o noe ha he E

ha" in'rease" he D$oa &or >ain Ameri'an banana e3poring 'o$nries b# 400000 onnes e&&e'ive

&rom 4 Can$ar# 2002L an" ha LFGhe .nie" ,aes ha" here&ore erminae" he s$spension o&

'on'essions in e&&e' sin'e 4999/L2 The .nie" ,aes also sai" i L%o$l" 'onin$e o %or@ 'losel#

%ih he E an" oher ?embers o a""ress an# iss$es ha migh arise as he E move" o a

ari&&-base" s#sem &or bananas an" implemene" he erms o& he bilaeral .n"ersan"ing on

!ananas/L

45/ On 4 Can$ar# 2005 he E$ropean omm$niies noi&ie" he orl" Tra"e Organi=aion (he

LTOL) p$rs$an o Ari'le ;111 o& he ATT 499 ha i inen"e" o rebin" is ari&& 'on'ession

&or bananas in'l$"e" in E ,'he"$le > (iem 080 00 49) a he level o& M20*m/ 1n he same

'omm$ni'aion he E$ropean omm$niies also spe'i&ie" ha he noi&i'aion 'onsi$e" he

anno$n'emen o& he rebin"ing o& is bananas ari&& $n"er he erms o& he Anne3 on !ananas/ On 0

?ar'h 2005 !ra=il olombia osa i'a E'$a"or $aemala <on"$ras Ni'arag$a anama an"

;ene=$ela reD$ese" arbiraion p$rs$an o he Anne3 on !ananas in respe' o& he E$ropean

omm$niies propose" rebin"ing o& is ari&& on bananas/

46/ On 4 A$g$s 2005 he arbiraor "eermine" ha he rebin"ing o& he E$ropean

omm$niies ari&& &or bananas a he level o& M20*m %o$l" no res$l in a leas mainaining oal

mar@e a''ess &or ?N banana s$ppliers a@ing ino a''o$n all TO mar@e-a''ess 'ommimens o&

he E$ropean omm$niies relaing o bananas as reD$ire" $n"er he Anne3 on !ananas/ 5 On 27

O'ober 2005 in a se'on" arbiraion p$rs$an o he same r$les $n"er he Anne3 he arbiraor

rea'he" he same 'on'l$sion %ih respe' o he E$ropean omm$niies se'on" propose" rebin"ing

'onsising o& a ?N ari&& rae &or bananas o& M487*m an" a 775000 m "$#-&ree ari&& D$oa &or

impors o& bananas o& A origin/ The arbiraor here&ore &o$n" ha he E$ropean omm$niies

0?in$es o& he +,! meeing hel" on 4 ebr$ar# 2002 T*+,!*?*449 para/ 5/4?in$es o& he +,! meeing hel" on 4 ebr$ar# 2002 T*+,!*?*449 para/ 5/2?in$es o& he +,! meeing hel" on 4 ebr$ar# 2002 T*+,!*?*449 para/ 8/?in$es o& he +,! meeing hel" on 4 ebr$ar# 2002 T*+,!*?*449 para/ 8/

omm$ni'aion &rom he E$ropean omm$niies o& 4 Can$ar# 2005 Ari'le ;111:5 Negoiaions,'he"$le > E$ropean omm$niies A""en"$m *,EET*22*A""/4/

5A%ar" o& he Arbiraor E) – 4he A)P Partnership Agreement T*>*646 4 A$g$s 2005/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 8

ha" &aile" o re'i&# he maer in a''or"an'e %ih he &i&h ire o& he Anne3 on !ananas %hi'h

reD$ire" ha he rebin"ing res$l in a leas mainaining oal mar@e a''ess &or ?N banana

s$ppliers/

6

47/ ollo%ing he se'on" arbiraion p$rs$an o he Anne3 on !ananas he E$ropean

omm$niies mo"i&ie" is regime &or he imporaion o& bananas an" a"ope" inter alia

E eg$laion 496*2005 he meas$re a iss$e in he presen "isp$e (hereina&er he LE !ananas

1mpor egimeL)/ This eg$laion esablishe" an ?N ari&& rae o& M476*m &or bananas/ 1n

a""iion i esablishe" a pre&erenial ari&& D$oa o& 775000 m &or "$#-&ree impors o& bananas

originaing in A 'o$nries/7 On 20 +e'ember 2007 he E$ropean omm$niies a"ope" o$n'il

eg$laion (E) No/ 4528*20078 (LE eg$laion 4528*2007L) %hi'h repeale" EE eg$laion

0*9 an" mo"i&ie" E eg$laion 496*2005 eliminaing he pre&erenial ari&& D$oa o& 775000 m

a =ero "$# &or A 'o$nries/

48/ On 2 ebr$ar# 2007 E'$a"or reD$ese" &or he se'on" ime he esablishmen o& a panel

p$rs$an o Ari'le 24/5 o& he +,. 'on'erning he allege" in'onsisen'# o& he meas$res a"ope" b#

he E$ropean omm$niies in pari'$lar E eg$laion 496*2005 an" relae" meas$res/9 On

29 C$ne 2007 he .nie" ,aes reD$ese" he esablishmen o& an Ari'le 24/5 panel o e3amine he

same meas$res a@en b# he E$ropean omm$niies/

6A%ar" o& he Arbiraor E) – 4he A)P Partnership Agreement II T*>*625 27 O'ober 2005/7,ee supra &oonoe Error: e&eren'e so$r'e no &o$n"/8o$n'il eg$laion (E) No/ 4528*2007 o& 20 +e'ember 2007 appl#ing he arrangemens &or

pro"$'s originaing in 'erain saes %hi'h are par o& he A&ri'an aribbean an" a'i&i' (A) ro$p o& ,aes provi"e" &or in agreemens esablishing or lea"ing o he esablishmen o& E'onomi' arnership Agreemens=fficial :ournal of the European /nion > ,eries No/ 8 (4 +e'ember 2007) 4/

9

E'$a"or anel epor paras/ 2/2-2/B ., anel epor paras/ 2/9 an" 2/0/ The implemeningreg$laions a"ope" b# he E$ropean omm$niies p$rs$an o o$n'il eg$laion (E) No/ 496*2005 o&29 November 2005 on he ari&& raes &or bananas =fficial :ournal of the European /nion > ,eries No/ 46(2 +e'ember 2005) 4 in'l$"e he &ollo%ing:

− ommission eg$laion (E) No/ 204*2005 o& 9 +e'ember 2005B− ommission eg$laion (E) No/ 2045*2005 o& 9 +e'ember 2005B− ommission eg$laion (E) No/ 249*2005 o& 2 +e'ember 2005B− ommission eg$laion (E) No/ 249*2006 o& 8 ebr$ar# 2006B− ommission eg$laion (E) No/ 25*2006 o& 2 ebr$ar# 2006B− ommission eg$laion (E) No/ 566*2006 o& 6 April 2006B− ommission eg$laion (E) No/ 966*2006 o& 29 C$ne 2006B− ommission eg$laion (E) No/ 4264*2006 o& 2 A$g$s 2006B− ommission eg$laion (E) No/ 4789*2006 o& 5 +e'ember 2006B

−ommission eg$laion (E) No/ *2007 o& 46 Can$ar# 2007B

− ommission eg$laion (E) No/ 7*2007 o& 49 Can$ar# 2007B as %ell as− ommission eg$laion (E) No/ 459*2006 o& 47 O'ober 2006/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 9

49/ 1n he 'o$rse o& he pro'ee"ings he E$ropean omm$niies reD$ese" he anel o

harmoni=e he imeable o& he %o 'ases/ The anel "e'i"e" no o mo"i&# he imeable i ha"

a"ope" an" sae" ha harmoni=aion o& he imeables L%o$l" have mos li@el# involve" a "ela# inhe pro'ee"ings reD$ese" b# E'$a"orL0 an" ha harmoni=ing he imeables &or he panel pro'ess

%as pari'$larl# "i&&i'$l be'a$se o& he %o-monh gap be%een he "aes on %hi'h he %o panels

ha" beg$n heir respe'ive %or@/ The anel noe" ha he TO +ire'or-eneral 'ompose" he

panel reD$ese" b# E'$a"or on 48 C$ne 2007 an" he panel reD$ese" b# he .nie" ,aes on

4 A$g$s 2007/ The anel &$rher sae" ha i ha" a@en ino a''o$n in is "e'ision he &a' ha

E'$a"or Las he 'omplaining par# in hose pro'ee"ings srongl# obe'e" o an# 'hanges in he

imeable ha %o$l" res$l in e3en"ing he pro'ee"ings &$rher be#on" he 90-"a# perio" envisage"

in Ari'le 24/5 o& he +,./L4

<o%ever in he E'$a"or anel epor he panel noe" ha Liss$an'e

o& he inerim repor %as "ela#e" b# he anel in or"er o ens$re ha replies o D$esions an"

'ommens on replies in he pro'ee"ings reD$ese" b# he .nie" ,aes ha" been re'eive" b# ha

panel be&ore he inerim repor in he '$rren pro'ee"ings %as iss$e"/L2

20/ The E'$a"or anel epor %as 'ir'$lae" o TO ?embers on 7 April 2008B he ., anel

epor %as 'ir'$lae" o TO ?embers on 49 ?a# 2008/ A he oin reD$ess o& he paries in boh

'ases he +,! agree": a he +,! meeing hel" on 2 C$ne 2008 o e3en" he "ae &or he a"opion

o& he E'$a"or anel epor o 29 A$g$s 2008B an" a he +,! meeing hel" on 2 C$ne 2008 oe3en" he "ae &or a"opion o& he ., anel epor also o 29 A$g$s 2008/

24/ The &ollo%ing &in"ings an" 'on'l$sions o& he E'$a"or anel are relevan &or his appeal:

1n ligh o& he &in"ings above he anel ree's he preliminar# iss$eraise" b# he E$ropean omm$niies ha E'$a"or is prevene" &rom'hallenging he E$ropean omm$niies '$rren impor regime &or

bananas in'l$"ing he pre&eren'e &or A 'o$nries be'a$se o& he.n"ersan"ing on !ananas signe" b# boh ?embers in April 2004/

(') The E$ropean omm$niies '$rren banana impor regimein pari'$lar is pre&erenial ari&& D$oa reserve" &or A 'o$nriesis in'onsisen %ih Ari'le 111:4 %ih he 'hapea$ o& Ari'le 111:2an" %ih Ari'le 111:2(") o& he ATT 499B

0., anel epor para/ 7/7/4., anel epor para/ 7/9/2E'$a"or anel epor &oonoe 298 o para/ 7/40/

T*+,27*87B ?in$es o& he +,! meeing hel" on 2 C$ne 2008 T*+,!*?*254 para/ 5BT*+,27*88B ?in$es o& he +,! meeing hel" on 2 C$ne 2008 T*+,!*?*25 para/ 54/

E'$a"or anel epor para/ 8/4/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 40

(") The ari&& applie" b# he E$ropean omm$niies o ?Nimpors o& bananas se a M476*m %iho$ 'onsi"eraion o& he ari&&D$oa &or 2/2 million m bo$n" a an in-D$oa ari&& rae o& M75*m is

an or"inar# '$soms "$# in e3'ess o& ha se &orh an" provi"e" &orin ar 1 o& he E$ropean omm$niies ,'he"$le/ This ari&& ishere&ore in'onsisen %ih he &irs senen'e o& Ari'le 11:4(b) o& heATT 499B ///5

The anel re'ommen"s ha he +isp$e ,elemen !o"# reD$es heE$ropean omm$niies o bring he in'onsisen meas$res ino'on&ormi# %ih is obligaions $n"er he ATT 499/6

22/ The &ollo%ing &in"ings an" re'ommen"aions in he ., anel epor are relevan &or his

appeal:

(b) The E$ropean omm$niies has no s$''ee"e" in ma@ing a prima &a'ie 'ase ha he .nie" ,aes is prevene" &rom 'hallenginghe E$ropean omm$niies '$rren impor regime &or bananasin'l$"ing he pre&eren'e &or A 'o$nries be'a$se o& he !ananas.n"ersan"ing signe" be%een he .nie" ,aes an" he E$ropeanomm$niies in April 2004B an"

(') The E$ropean omm$niies has &aile" in ma@ing a 'ase hahe .nie" ,aes 'omplain $n"er Ari'le 24/5 o& he +,. sho$l" beree'e" be'a$se he E$ropean omm$niies '$rren impor regime&or bananas in'l$"ing he pre&eren'e &or A 'o$nries is no a

Lmeas$re a@en o 'ompl#L %ih he re'ommen"aions an" r$lings o&he +,! in he original pro'ee"ings/7

(') The E$ropean omm$niies '$rren banana impor regimein pari'$lar is pre&erenial ari&& D$oa reserve" &or A 'o$nriesis also in'onsisen %ih Ari'le 111:4 an" Ari'le 111:2 o& heATT 499/8

FTGhe anel 'on'l$"es ha o he e3en ha he '$rrenE$ropean omm$niies bananas impor regime 'onains meas$resin'onsisen %ih vario$s provisions o& he ATT 499 i hasn$lli&ie" or impaire" bene&is a''r$ing o he .nie" ,aes $n"er ha

Agreemen/9

,in'e he original +,! re'ommen"aions an" r$lings in his "isp$eremain operaive hro$gh he res$ls o& he '$rren 'omplian'e

pro'ee"ings he anel ma@es no ne% re'ommen"aion/50

5E'$a"or anel epor para/ 8/2(') an" (")/6E'$a"or anel epor para/ 8/5/7., anel epor para/ 8/4(b) an" (')/8

., anel epor para/ 8/(')/9., anel epor para/ 8/42/50., anel epor para/ 8/4/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 44

2/ On 28 A$g$s 2008 he E$ropean omm$niies noi&ie" he +,! p$rs$an o Ari'les 46/

an" 47 o& he +,. o& is inenion o appeal 'erain iss$es o& la% an" legal inerpreaions 'overe" in

he E'$a"or an" he ., anel epors an" &ile" %o Noi'es o& Appeal

54

p$rs$an o $le 20 o& he>or0ing Procedures for Appellate *evie%52 (he L>or0ing ProceduresL)/

2/ 1n a leer o he pari'ipans an" hir" pari'ipans "ae" 4 ,epember 2008 he Appellae

!o"# +ivision hearing hese appeals sae" ha in he ineress o& L&airness an" or"erl# pro'e"$reL as

re&erre" o in $le 46(4) o& he >or0ing Procedures an" a&er 'ons$laions %ih he pari'ipans he

appellae pro'ee"ings in respe' o& he E$ropean omm$niies appeals o& he E'$a"or an" ., anel

epors %o$l" be 'onsoli"ae" "$e o he s$bsanial overlap in he 'onen o& he "isp$es/ A single

+ivision %o$l" hear an" "e'i"e he appeals an" a single oral hearing %o$l" be hel" b# he +ivision/

The +ivision invie" all hir" paries in boh 'ases o aen" he single oral hearing in he 'onsoli"ae"

appeals/ <o%ever i emphasi=e" ha in heir %rien s$bmissions an" oral saemens he hir"

pari'ipans %ere o a""ress onl# he iss$es appeale" in he "isp$e(s) o %hi'h he# %ere a hir" par#

in he panel pro'ee"ings/ The .nie" ,aes an" E'$a"or reD$ese" he Appellae !o"# o iss$e

separae repors eiher in he &orm o& %o separae "o'$mens or one "o'$men %ih separae

'on'l$sions pages/

25/ On ,epember 2008 he E$ropean omm$niies &ile" an appellans s$bmission in ea'h o&

he appeals/5 On 9 ,epember 2008 E'$a"or noi&ie" he +,! p$rs$an o Ari'le 46/ o& he +,.

o& is inenion o appeal 'erain iss$es o& la% an" legal inerpreaions 'overe" in he E'$a"or anel

epor an" &ile" a Noi'e o& Oher Appeal5 p$rs$an o $le 2(4) an" (2) o& he >or0ing

Procedures/ On 45 ,epember 2008 E'$a"or &ile" an oher appellans s$bmission/55 On

22 ,epember 2008 E'$a"or he .nie" ,aes an" he E$ropean omm$niies ea'h &ile" an

appellees s$bmission/56

26/ On 22 ,epember 2008 !eli=e ameroon oe "1voire +omini'a he +omini'an

ep$bli' Camai'a ,ain >$'ia ,ain ;in'en an" he rena"ines an" ,$riname &ile" a oin hir"

pari'ipans s$bmission in he .nie" ,aes 'aseB !eli=e +omini'a he +omini'an ep$bli'

Camai'a ,ain >$'ia ,ain ;in'en an" he rena"ines an" ,$riname &ile" a oin hir" pari'ipans

s$bmission in he E'$a"or 'aseB ameroon oe "1voire an" hana &ile" a oin hir" pari'ipans

s$bmission in he E'$a"or 'aseB olombia &ile" a hir" pari'ipans s$bmission in he E'$a"or 'aseB

54T*+,27*89 (aa'he" as Anne3 1 o his epor)B T*+,27*90 (aa'he" as Anne3 11 o his epor)/52T*A!**5 Can$ar# 2005/5$rs$an o $le 24 o& he >or0ing Procedures/5

T*+,27*94 (aa'he" as Anne3 111 o his epor)/55$rs$an o $le 2() o& he >or0ing Procedures/56$rs$an o $les 22 an" 2() o& he >or0ing Procedures/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 42

Capan &ile" a hir" pari'ipans s$bmission in ea'h 'aseB anama an" Ni'arag$a &ile" a oin hir"

pari'ipans s$bmission in ea'h 'aseB E'$a"or &ile" a hir" pari'ipans s$bmission in he .nie"

,aes 'aseB an" he .nie" ,aes &ile" a hir" pari'ipans s$bmission in he E'$a"or 'ase/

57

On hesame "a# !ra=il an" ?e3i'o ea'h noi&ie" he Appellae !o"# ,e'rearia o& is inenion o appear a

he oral hearing as a hir" pari'ipan/58

27/ E'$a"or he E$ropean omm$niies an" he .nie" ,aes reD$ese" on 29 A$g$s 2008

ha he +ivision a$hori=e p$bli' observaion o& he oral hearing/ The# s$bmie" ha p$bli'

observaion o& he oral hearing is no pre'l$"e" b# he +,. he >or0ing Procedures or he *ules of

)onduct for the /nderstanding on *ules and Procedures 1overning the #ettlement of !isputes /59 The

pari'ipans e3presse" a pre&eren'e &or sim$laneo$s 'lose"-'ir'$i elevision broa"'as o a separae

room/

28/ On 4 ,epember 2008 he +ivision invie" he hir" pari'ipans o 'ommen in %riing on

he pari'ipans reD$es o open he hearing o p$bli' observaion/ The +ivision as@e" he hir"

pari'ipans o provi"e heir vie%s on in pari'$lar he permissibili# o& opening he hearing &or

p$bli' observaion $n"er he +,. an" he >or0ing Procedures an" i& he# so %ishe" on he spe'i&i'

logisi'al arrangemens propose" in he reD$ess/ ommens %ere re'eive" on 5 ,epember 2008

&rom olombia on 9 ,epember 2008 &rom anama an" Ni'arag$a an" on 40 ,epember 2008 &rom

!ra=il Camai'a an" Capan/ olombia Camai'a Capan Ni'arag$a an" anama raise" no obe'ion o

he reD$es o& he pari'ipans/ !ra=il 'onve#e" he vie% ha he +,. e3pressl# "isallo%s p$bli'

hearings a he appellae sage: a''or"ing o !ra=il opening he oral hearing in hese pro'ee"ings o

p$bli' observaion %o$l" r$n 'o$ner o he obligaion o& 'on&i"eniali# impose" b# Ari'le 47/40 o&

he +,./

29/ On 48 ,epember 2008 he +ivision iss$e" a ro'e"$ral $ling in %hi'h i a$hori=e" he

p$bli' observaion o& he oral hearing an" a"ope" a""iional pro'e"$res &or ha p$rpose in

a''or"an'e %ih $le 46(4) o& he >or0ing Procedures/60 Noi'e o& he opening o& he hearing o

p$bli' observaion an" regisraion insr$'ions %ere provi"e" on he TO %ebsie/

57$rs$an o $le 2(4) o& he >or0ing Procedures/58$rs$an o $le 2(2) o& he >or0ing Procedures/59

The *ules of )onduct as a"ope" b# he +,! on +e'ember 4996 (see T*+,!**4) arein'orporae" ino he >or0ing Procedures as Anne3 11 hereo (see T*+,!**2 T*A!***2)/

60The ro'e"$ral $ling is aa'he" as Anne3 1; o his epor/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 4

0/ The oral hearing in hese appeals %as hel" on 46-47 O'ober 2008/ The pari'ipans an"

hir" pari'ipans presene" oral arg$mens (%ih he e3'epion o& ?e3i'o) an" respon"e" o D$esions

pose" b# he +ivision hearing he appeals/ $bli' observaion oo@ pla'e via sim$laneo$s 'lose"-'ir'$i elevision broa"'as o a separae room/ $rs$an o he a""iional pro'e"$res a"ope" b# he

+ivision no hir" pari'ipan reD$ese" ha is oral saemens an" responses o D$esions remain

'on&i"enial an" no be s$be' o p$bli' observaion/

II. A(+6%$ # $'% P($))$ 0 $'% T')(0 P($))$

A/ )laims of Error $y the European )ommunities – Appellant

4/ Ari'le 9/ o& he +,.

4/ The E$ropean omm$niies alleges ha he anel a'e" in'onsisenl# in boh 'ases %ih

Ari'le 9/ o& he +,. b# &ailing o harmoni=e he imeables o& he pro'ee"ings in he E'$a"or an"

.nie" ,aes 'ases/ The E$ropean omm$niies reD$ess ha he anels &ail$re o harmoni=e he

imeables as %ell as he anels &ail$re o provi"e reasons &or no harmoni=ing he imeables o& he

%o pro'ee"ings a he ime he "e'ision %as a@en an" 'omm$ni'ae" o he paries Lbe reverse"L/4

2/ The E$ropean omm$niies s$bmis ha he $se o& he %or" LshallL in Ari'le 9/ in"i'aes

an Labsol$e an" $nD$ali&ie"L obligaion &or panels o harmoni=e imeables %hi'h L"oes no allo%

panels an# "is'reionL in "e'i"ing %heher imeables sho$l" be harmoni=e"/ 2 $rher he E$ropean

omm$niies mainains ha he %or"s Lo he greaes e3en possibleL in Ari'le 9/ Lonl# appl# o

he provision ha he same persons shall serve as panelissL an" sho$l" no be rea" o 'over also he

obligaion ha Lhe imeable &or he panel pro'ess shall be harmoni=e"L/ The E$ropean

omm$niies assers ha 'on&li's o& ineress an" personal reasons ma# preven an in"ivi"$al &rom

serving as a panelis an" ha he phrase Lo he greaes e3en possibleL in Ari'le 9/ is a@en ino

a''o$n in his respe'/ <o%ever he E$ropean omm$niies assers ha here are no similar reasons

ha 'o$l" $si&# he appli'aion o& ha phrase o he obligaion o harmoni=e he imeables &or he

panel pro'ess/ Je he E$ropean omm$niies 'onen"s ha i& arguendo he phrase Lo he greaes

e3en possibleL "i" relae also o a panels obligaion o harmoni=e he imeables he panel 'o$l"

re&$se o harmoni=e he imeables onl# %here harmoni=aion %as vir$all# LimpossibleL/ The

E$ropean omm$niies &$rher s$bmis ha he imeables Lm$s absol$el# be harmoni=e" a some

sage o& he pro'ee"ingL an" ha he phrase Lo he greaes e3en possibleL is onl# mean o allo% a

4E$ropean omm$niies appellans s$bmission para/ 5 (.,)/ ,ee also E$ropean omm$niiesappellans s$bmission para/ 6 (E'$a"or)/

2

E$ropean omm$niies appellans s$bmissions para/ 24 (E'$a"or) para/ 20 (.,)/E$ropean omm$niies appellans s$bmissions para/ 22 (E'$a"or) para/ 24 (.,)/E$ropean omm$niies appellans s$bmissions para/ 2 (E'$a"or) para/ 22 (.,)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 4

panel o a@e noe o& 'erain pro'e"$ral a's ha ma# have alrea"# been 'omplee" in one 'ase he

o''$rren'e o& %hi'h ma@es i LimpossibleL o harmoni=e he imeable o& ha 'ase %ih he imeable

o& anoher 'ase/

5

/ 1n a""iion he E$ropean omm$niies assers ha i& a panel "e'i"es no o harmoni=e he

imeables o& %o pro'ee"ings i m$s provi"e an obe'ive $si&i'aion &or is "e'ision/ Je he

E$ropean omm$niies mainains ha he L$si&i'aionsL provi"e" b# he anel in is epors "o no

s$ppor is "e'ision/ The E$ropean omm$niies arg$es ha he anel arib$e" oo m$'h %eigh o

E'$a"ors obe'ion o harmoni=e he imeables hereb# proe'ing he ineress o& E'$a"or more han

he ineress o& he E$ropean omm$niies/ $rher b# obliging he E$ropean omm$niies o

provi"e is %rien s$bmission o he .nie" ,aes in one pro'ee"ing be&ore he .nie" ,aes ha"

s$bmie" is o%n &irs %rien s$bmission in he oher pro'ee"ing he anel allo%e" he .nie" ,aes

an a"vanage a @no%ing %ha "e&en'es an" arg$mens he E$ropean omm$niies %o$l" $se in he

laer pro'ee"ing an" hereb# a'e" 'onrar# o Ari'le 42/6 o& he +,./

2/ >egal E&&e' o& he .n"ersan"ings on !ananas

4/ The E$ropean omm$niies alleges in boh 'ases ha he anel erre" in &in"ing ha

E'$a"or an" he .nie" ,aes %ere no pre'l$"e" &rom iniiaing Ari'le 24/5 pro'ee"ings "espie he

.n"ersan"ings on !ananas he# ea'h ha" agree" o %ih he E$ropean omm$niies in 2004/ The

E$ropean omm$niies re&ers o hree reasons relie" $pon b# he anel in s$ppor o& is &in"ing ha

he .n"ersan"ings on !ananas 'o$l" no legall# bar he 'omplainans &rom bringing hese

'omplian'e pro'ee"ings/

2/ The &irs reason given b# he anel is ha he .n"ersan"ings on !ananas "o no 'onsi$e

in hemselves a sol$ion b$ provi"e onl# &or he means ha is a series o& &$$re seps &or resolving

an" seling he "isp$e/ 1n his respe' he E$ropean omm$niies arg$es ha Ari'le o& he +,.

"oes no provi"e ha onl# agreemens re'or"ing meas$res ha ha" alrea"# been implemene" sho$l"D$ali&# as Lm$$all# agree" sol$ionsL/ The E$ropean omm$niies s$bmis ha raher in vir$all#

ever# insan'e %here he paries o a "isp$e rea'h a selemen meas$res o implemen ha

selemen %ill be a@en a&er he 'on'l$sion o& he selemen/6

5

E$ropean omm$niies appellans s$bmission para/ 2 (.,)/ ,ee also E$ropean omm$niiesappellans s$bmission para/ 2 (E'$a"or)/

6E$ropean omm$niies appellans s$bmissions para/ (E'$a"or) para/ 75 (.,)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 45

/ The se'on" reason relie" $pon b# he anel in s$ppor o& is &in"ing ha he .n"ersan"ings

'o$l" no preven he 'omplainans &rom bringing hese 'omplian'e pro'ee"ings is ha he

.n"ersan"ings %ere agree" o s$bseD$en o he re'ommen"aions r$lings an" s$ggesions ma"e b#he +,! in he original pro'ee"ings an" previo$s 'omplian'e pro'ee"ings/ 1n his respe' he

E$ropean omm$niies arg$es ha $n"er he anels reasoning a selemen %o$l" D$ali&# as a

Lm$$all# agree" sol$ionL onl# i& i %ere 'on'l$"e" be&ore he +,! ma"e re'ommen"aions an"

r$lings/ 1n he E$ropean omm$niies vie% nohing in he +,. s$ppors s$'h a resri'ion on TO

?embers o ener ino m$$all# agree" sol$ions/ On he 'onrar# he E$ropean omm$niies

s$bmis ha Ari'les 22/2 an" 22/8 o& he +,. e3pressl# provi"e &or selemen agreemens ha 'an

be enere" ino &ollo%ing re'ommen"aions an" r$lings b# he +,!/7

/ Thir"l# he anel relie" on he &a' ha he paries ha" ma"e 'on&li'ing 'omm$ni'aions o

he +,! regar"ing he legal na$re o& he .n"ersan"ings on !ananas a&er hese .n"ersan"ings ha"

been signe"/ The E$ropean omm$niies alleges ha b# rel#ing on hese saemens he anel

e&&e'ivel# allo%e" a signaor# o a selemen o n$lli&# he agreemens erms a&er having signe" an"

reape" he bene&is o& i simpl# b# re&$sing o ma@e a oin noi&i'aion o he +,!/ $rhermore he

E$ropean omm$niies arg$es ha here is no reD$iremen in he +,. &or a m$$all# agree" sol$ion

o be noi&ie" o he +,! b# one par# or b# boh paries oinl#/ A''or"ing o he E$ropean

omm$niies Ari'le /6 o& he +,. "oes no aa'h an# legal signi&i'an'e o he 'omplaining par#sa'ion or ina'ion in he +,! %hen he agreemen is noi&ie"/

5/ 1n a""iion he E$ropean omm$niies 'hallenges he anels &in"ing ha he

.n"ersan"ings on !ananas 'o$l" pre'l$"e he 'omplainans L&rom bringing FheseG 'omplian'e

'hallengeFsG onl# i& he .n"ersan"ingFsG 'onsi$eF"G a posiive sol$ion an" e&&e'ive selemen o

he "isp$e in D$esionL an" he anels 'on'l$sion ha his %as no he 'ase/ The E$ropean

omm$niies arg$es ha he anel inro"$'e" an erroneo$s limiaion on he #pes o& oher legall#

bin"ing arrangemens ha 'an be en&or'eable in he TO legal or"er/8 A''or"ing o he E$ropean

omm$niies here are agreemens be%een TO ?embers ha "o no 'onsi$e a posiive sol$ion

an" e&&e'ive selemen o a "isp$e #e he# are given &$ll legal e&&e' b# he TO "isp$e

selemen s#sem/ As e3amples o& s$'h agreemens he E$ropean omm$niies menions inter alia

agreemens o "ispense %ih he +,. reD$iremen o hol" 'ons$laions be&ore ma@ing a reD$es &or

he esablishmen o& a panel agreemens o e3en" he "ea"lines &or he a"opion o& panel repors b#

he +,! an" LseD$en'ing agreemensL/9 The E$ropean omm$niies s$bmis ha he anels

7

E$ropean omm$niies appellans s$bmissions para/ 8 (E'$a"or) para/ 79 (.,)/8E$ropean omm$niies appellans s$bmissions para/ 55 (E'$a"or) para/ 87 (.,)/9E$ropean omm$niies appellans s$bmissions para/ 56 (E'$a"or) para/ 88 (.,)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 46

approa'h inro"$'es $n'erain# as o he legal e&&e's o& agreemens rea'he" be%een TO

?embers an" sho$l" here&ore be reverse"/

6/ The E$ropean omm$niies &$rher arg$es ha he anel erre" in is inerpreaion an"

appli'aion o& he prin'iple o& goo" &aih enshrine" in Ari'le /40 o& he +,./ A''or"ing o he

E$ropean omm$niies he anel oo@ he erroneo$s vie% ha an obe'ion base" on he prin'iple o&

goo" &aih 'o$l" be s$''ess&$l onl# i& he E$ropean omm$niies ha" ma"e o$ a prima facie 'ase &or

he allege" violaion o& Ari'le /40 an" also &or Lsomehing more han mere violaionL o& ha

provision/40 The E$ropean omm$niies arg$es ha he anel "i" no provi"e an# $si&i'aion &or is

'on'l$sion ha he E$ropean omm$niies ha" no esablishe" a prima facie 'ase o& a violaion o&

Ari'le /40/ The E$ropean omm$niies s$bmis ha i ha" presene" a n$mber o& arg$mens o he

anel #e he anel "i" no provi"e an# reasons &or %h# i ree'e" hose arg$mens/ The E$ropean

omm$niies s$bmis ha he anel hereb# a'e" in'onsisenl# %ih is obligaions $n"er he +,.

in'l$"ing Ari'le 44 o& he +,./ $rhermore he E$ropean omm$niies 'rii'i=es he anel &or

a@ing he vie% ha he prin'iple o& goo" &aih 'o$l" onl# be invo@e" as an La""-onL 44 o he violaion

o& anoher TO r$le an" 'o$l" no b# isel& be he so$r'e o& righs an" obligaions o& TO

?embers/ The E$ropean omm$niies assers ha '$somar# inernaional la% re'ogni=es ha he

prin'iple o& goo" &aih 'an isel& be he so$r'e o& righs an" obligaions/42 The E$ropean omm$niies

&$rher s$bmis ha given ha he 'omplainans have signe" he .n"ersan"ings on !ananas in he presen 'ase he appli'aion o& he prin'iple o& goo" &aih pre'l$"e" hem &rom 'hallenging he

E !ananas 1mpor egime a iss$e in his "isp$e/

7/ inall# he E$ropean omm$niies s$bmis ha he anel %as in'oheren in is reasoning

be'a$se having &o$n" a L'lear reD$iremen &or Fhe 'hallenge" meas$reG o be 'onsisen %ih he

'overe" agreemensL4 i sho$l" hen have gone on o anal#=e he 'onsisen'# %ih he 'overe"

agreemens o& he erms o& he .n"ersan"ings on !ananas an" he 'onsisen'# o& he E$ropean

omm$niies meas$res %ih he erms o& he .n"ersan"ings/ <o%ever a''or"ing o he E$ropean

omm$niies he anel "i" neiher/

/ ?eas$re Ta@en o ompl#

4/ 1n he .nie" ,aes 'ase he E$ropean omm$niies appeals he anels &in"ing ha he

E !ananas 1mpor egime %as a Lmeas$re a@en o 'ompl#L %ih he re'ommen"aions an" r$lings

40E$ropean omm$niies appellans s$bmissions para/ 60 (E'$a"or) (re&erring o E'$a"or anelepor para/ 7/44) para/ 92 (.,) (re&erring o ., anel epor para/ 7/462)/

44E$ropean omm$niies appellans s$bmissions para/ 67 (E'$a"or) para/ 98 (.,)/42

E$ropean omm$niies appellans s$bmissions para/ 68 (E'$a"or) para/ 99 (.,) (re&erring o1nernaional o$r o& C$si'e Australia v/ France &6uclear 4ests )ase' 1C epors (497) 25 a 268)/

4E'$a"or anel epor para/ 7/77B ., anel epor para/7/408/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 47

o& he +,! in he original E) – Bananas III "isp$e an" ha here&ore he .nie" ,aes ha"

properl# bro$gh his "isp$e $n"er Ari'le 24/5 o& he +,./ The E$ropean omm$niies arg$es ha

he .nie" ,aes a''epan'e o have is realiaion righs erminae" $pon implemenaion o& he ari&&D$oa-base" impor regime "es'ribe" in s$bparagraph /2 o& he .n"ersan"ing on !ananas

'on&irme" ha he .nie" ,aes an" he E$ropean omm$niies agree" ha his 'onsi$e"

LimplemenaionL o& he original +,! re'ommen"aions an" r$lings/ The E$ropean omm$niies

s$bmis ha Lhe .nie" ,aes reenion o& he righ o re-impose realiaor# meas$res onl# i& he

Fari&& D$oa-base"G regime F"i"G no ener ino &or'e b# 4 Can$ar# 2002L4 "emonsrae" he

imporan'e pla'e" b# he .nie" ,aes isel& on he ari&& D$oa impor regime an" &$rher s$ppore"

he 'on'l$sion ha he .nie" ,aes an" he E$ropean omm$niies ha" agree" ha %ih he

inro"$'ion o& he ari&& D$oa-base" regime as he Lmeas$re a@en o 'ompl#L he "isp$e %o$l" be

sele"/

2/ The E$ropean omm$niies presens a n$mber o& &$rher arg$mens in s$ppor o& is

posiion/ irs he E$ropean omm$niies alleges ha he anel &aile" o a@e ino a''o$n ha here

%as Lno lin@L be%een he original +,! re'ommen"aions an" r$lings an" he polii'al "e'ision o& he

E$ropean omm$niies o inro"$'e a ari&&-onl# impor regime b# 4 Can$ar# 2006/ The E$ropean

omm$niies a@es iss$e %ih he anels &in"ing ha Lhe &a' ha he original re'ommen"aions an"

r$lings "i" no explicitly reD$ire he E$ropean omm$niies o bring isel& ino 'omplian'espe'i&i'all# hro$gh he inro"$'ion o& a ari&&-onl# impor regime is irrelevan &or esablishing

%heher he '$rren FE !ananas 1mpor egime %asG a meas$re a@en o 'ompl#L/ 45 The E$ropean

omm$niies arg$es ha a Llin@L e3iss be%een a meas$re an" he +,! re'ommen"aions r$lings in

he original pro'ee"ings %hen he inro"$'ion o& he 'onese" meas$re is ne'essar# o a""ress a

spe'i&i' &in"ing o& in'onsisen'# %ih he 'overe" agreemens/ Je he E$ropean omm$niies

arg$es ha here %as no &in"ing in he original E) – Bananas III "isp$e ha 'o$l" be a""resse" or

implemene" onl# hro$gh a ari&&-onl# regime/ There&ore he E$ropean omm$niies s$bmis ha

he reD$ire" Llin@L o he +,! re'ommen"aions an" r$lings in E) – Bananas III %as missing in he presen "isp$e an" ha he E !ananas 1mpor egime %as here&ore no a Lmeas$re a@en o

'ompl#L/

/ ,e'on"l# he E$ropean omm$niies a@es iss$e %ih he anels &in"ing ha La @e#

elemen o& he meas$re being revie%e" an" &o$n" in'onsisen in he original pro'ee"ings %as he

pre&erenial reamen b# he E$ropean omm$niies o& banana impors &rom A 'o$nriesL an" ha

4

E$ropean omm$niies appellans s$bmission para/ 4 (.,)/45E$ropean omm$niies appellans s$bmission para/ 5 (.,) (D$oing ., anel epor para/ 7/70)/ (emphasis a""e" b# he E$ropean omm$niies)



T*+,27*A!*2*E.T*+,27*A!**.,Aage 48

he E !ananas 1mpor egime a iss$e also LmainainFe"G a pre&eren'e &or A banana impors/L 46

The E$ropean omm$niies 'oness he anels 'on'l$sion ha he E !ananas 1mpor egime %as

L'losel# relae"L o he meas$re revie%e" an" &o$n" in'onsisen in he original pro'ee"ings an" hai %as 'losel# relae" o he original +,! re'ommen"aions an" r$lings a"ope" in 4997/

/ Thir"l# he E$ropean omm$niies assers ha he anel %as %rong in rel#ing on oher

panel repors 'on'erning "i&&eren paries in %hi'h he same D$esions o& TO la% ha" arisen an" on

repors iss$e" in oher pro'ee"ings be%een he same paries on "i&&eren maers be'a$se hese

repors %ere no bin"ing on he pari'ipans in his "isp$e/ The E$ropean omm$niies s$bmis ha

he anel a'e" in'onsisenl# %ih Ari'le 44 o& he +,. %hen i oo@ ino 'onsi"eraion he &in"ings

o& he panel in E) – Bananas III &Article +,-. – Ecuador ) in'l$"ing he inro"$'or# lang$age47 o& he

s$ggesions ma"e b# ha panel %hile no a@ing ino a''o$n he s$ggesions hemselves/ ?oreover

he E$ropean omm$niies alleges ha he anel %as %rong in rel#ing on saemens b# he panel in

E) – Bananas III &Article +,-. – E)' be'a$se ha panel "i" no ma@e an# s$bsanive &in"ings an"

be'a$se he repor o& ha panel %as never a"ope" b# he +,!/ 1n a""iion he E$ropean omm$niies

'laims ha he anel %as %rong in rel#ing on he "e'ision b# he arbiraors in E) – Bananas III &/#'

&Article ++-3 – E)' be'a$se he man"ae o& arbiraors $n"er Ari'le 22/6 o& he +,. is "i&&eren &rom

he man"ae o& a 'omplian'e panel $n"er Ari'le 24/5 o& he +,./

5/ inall# he E$ropean omm$niies 'onen"s ha he anel erroneo$sl# inerpree" he

+oha Ari'le 1 aiver as s$pporing he 'on'l$sion ha he 'onese" meas$re %as a Lmeas$re a@en

o 'ompl#L/ The E$ropean omm$niies s$bmis ha he &a' ha a pari'$lar meas$re ma# nee" o

be 'overe" b# a TO %aiver is irrelevan &or he "eerminaion o& %heher ha meas$re is a Lmeas$re

a@en o 'ompl#L %ih prior +,! re'ommen"aions an" r$lings/

46

E$ropean omm$niies appellans s$bmission para/ 7 (.,) (D$oing ., anel epor para/ 7/2)/47The anel noe" ha he &irs E'$a"or Ari'le 24/5 panel provi"e" he &ollo%ing inro"$'ion o is

s$ggesion:Lhile Mem$ers remain free to choose ho% they implement !#B

recommendations and rulings i seems appropriae a&er oneimplemenaion aemp has proven o be a leas parl# $ns$''ess&$l haan Ari'le 24/5 panel ma@e s$ggesions %ih a vie% o%ar" prompl#

bringing he "isp$e o an en"/1n ligh o& o$r &in"ings an" 'on'l$sions %ih respe' o Ari'les 1 an" 111 o&ATT he reD$iremens o& he >omH onvenion an" he 'overage o& he>omH %aiver above in o$r vie% the European )ommunities has at least

the follo%ing options for $ringing its $anana import regime into conformity

%ith >4= rules/L(., anel epor para/ 7/66 (D$oing anel epor E) – Bananas III &Article +,-. – Ecuador' paras/ 6/45an" 6/455) (emphasis a""e" b# he '$rren anel))



T*+,27*A!*2*E.T*+,27*A!**.,A

age 49

/ epeal o& he hallenge" ?eas$re

4/ 1n he .nie" ,aes 'ase he E$ropean omm$niies 'laims ha b# &ailing o a@e ino

'onsi"eraion he repeal o& he meas$re 'hallenge" in his "isp$e he anel &aile" o anal#=e properl#

he &a's o& he 'ase an" hereb# violae" Ari'les / /7 an" 44 o& he +,./ ?oreover he

E$ropean omm$niies s$bmis ha he anel erre" in ma@ing a re'ommen"aion o he +,! in

relaion o a meas$re ha no longer e3ise"/

2/ irs he E$ropean omm$niies arg$es ha he anel &aile" o ma@e an obe'ive

assessmen o& he maer be&ore i as reD$ire" b# Ari'le 44 o& he +,. b# &ailing o a@e ino

a''o$n ha he ari&& D$oa o& 775000 m &or impors o& A bananas 'ease" o e3is prior o he

iss$an'e o& he ., anel epor/48

/ ,e'on"l# he E$ropean omm$niies 'onen"s ha he anels &ail$re o a@e ino

'onsi"eraion he repeal o& he 'hallenge" meas$re is in'onsisen %ih Ari'les / an" /7 o& he

+,. be'a$se i &ails o La'hieve a sais&a'or# selemen o& he maerL as reD$ire" b# Ari'le /

an" also be'a$se i &ails o Lse'$re a posiive sol$ion o he "isp$eL p$rs$an o Ari'le /7/ The

E$ropean omm$niies &$rher s$bmis ha he anel erre" in "e'laring ina"missible he evi"en'e

s$bmie" b# he E$ropean omm$niies regar"ing he a"opion o& E eg$laion 4528*2007 b#

means o& %hi'h he meas$re 'hallenge" in his "isp$e %as repeale"/ The E$ropean omm$niies

assers ha he anel "i" no properl# "ising$ish be%een &a'$al evi"en'e s$pporing a 'laim an"

evi"en'e relaing o he e3isen'e o& he 'onese" meas$re isel&/

/ Thir"l# he E$ropean omm$niies 'laims ha he anel erre" in ma@ing a

re'ommen"aion %ih respe' o a meas$re ha ha" 'ease" o e3is b# he ime he anel iss$e" is

epor/ The E$ropean omm$niies alleges ha he anel provi"e" a L'on'eale"L re'ommen"aion

b# saing ha he original +,! re'ommen"aions an" r$lings Lremaine" operaiveL/49 The E$ropean

omm$niies s$bmis ha sin'e he ari&& rae D$oa reserve" &or A impors %as repeale" b#E eg$laion 4528*2007 prior o he iss$an'e o& he anel epor here %as no re'ommen"aion

ha 'o$l" be ma"e or ha 'o$l" Lremain operaiveL/

5/ Ari'le 11 o& he ATT 499

4/ 1n he E'$a"or 'ase he E$ropean omm$niies reD$ess he Appellae !o"# o reverse he

anels &in"ings ha he +oha Ari'le 1 aiver Lmo"i&ie" he ,'he"$le o& he E$ropean omm$niies

48E$ropean omm$niies appellans s$bmission para/ 480 (.,)/49E$ropean omm$niies appellans s$bmission paras/ 490 an" 494 (.,)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 20

an" e3en"e" he "$raion o& he 'on'ession &or he ari&& D$oa be#on" +e'ember 4 2002L 20 an" he

anels 'onseD$enial &in"ing ha Lhe E$ropean omm$niies has brea'he" Ari'le 11 o& he

ATTL/

24

2/ The E$ropean omm$niies agrees %ih he anel ha he ari&& D$oa o& 2/2 million m in

he E$ropean omm$niies ,'he"$le o& on'essions 'o$l" no be rea" in isolaion &rom he Anne3 o

he ,'he"$le (he !ananas rame%or@ Agreemen) an" ha i %as s$be' o he erms 'on"iions

an" D$ali&i'aions se o$ in he Anne3/ The E$ropean omm$niies here&ore agrees %ih he

anels 'on'l$sion ha he ari&& D$oa 'on'ession %as L$neD$ivo'all# inen"e" o e3pire on 4

+e'ember 2002L22 in a''or"an'e %ih he erms o& he !ananas rame%or@ Agreemen in'orporae"

ino he ,'he"$le/

/ The E$ropean omm$niies ho%ever 'laims ha he anel erre" in &in"ing ha he +oha

Ari'le 1 aiver %as a Ls$bseD$en agreemenL o he E$ropean omm$niies ,'he"$le %hi'h "eal

%ih he provisions o& he ,'he"$le an" ha he aiver 'o$l" be inerpree" as an agreemen b#

TO ?embers Lo e3en" he "$raion o& he E$ropean omm$niies ari&& D$oa 'on'ession &or

bananas be#on" 4 +e'ember 2002L/2 The E$ropean omm$niies also 'laims ha he anel ma"e

&$rher errors o& legal inerpreaion in rel#ing on he .r$g$a# o$n" L?o"aliies aperL 2 an" he

E$ropean omm$niies iniiaion o& negoiaions p$rs$an o Ari'le ;111 o& he ATT 499 as

s$pplemenar# means o& inerpreaion/

/ The E$ropean omm$niies arg$es ha he +oha Ari'le 1 aiver is no an inernaional

agreemen b$ a "e'ision o& he TO/ The E$ropean omm$niies s$bmis ha he anel 'on&$se" a

"e'ision a@en b# he ?iniserial on&eren'e p$rs$an o Ari'le 1 o& he Marra0esh Agreement

Esta$lishing the >orld 4rade =rgani"ation (he L>4= Agreement L) %ih an Linernaional

agreemenL/25 A''or"ing o he E$ropean omm$niies he +oha Ari'le 1 aiver %hi'h %as

a"ope" b# L'onsens$sL %ih no ?ember presen a he meeing &ormall# obe'ing o he propose"

"e'ision "oes no sais&# he 'on"iions reD$ire" b# Ari'les 6 ff o& he 8ienna )onvention on the La%

of 4reaties 26 (he L8ienna )onventionL) &or an inernaional agreemen o 'ome ino e3isen'e/ As

s$'h he +oha Ari'le 1 aiver 'anno be assimilae" o an inernaional agreemen %hi'h L%o$l"

reD$ire ha all paries 'on'l$"e he agreemen a''or"ing o heir 'onsi$ional reD$iremens an"

20E$ropean omm$niies appellans s$bmission para/ 46 (E'$a"or)/24E$ropean omm$niies appellans s$bmission para/ 48 (E'$a"or)/22E$ropean omm$niies appellans s$bmission para/ 47 (E'$a"or) (D$oing E'$a"or anel epor

para/ 7/6)/2E$ropean omm$niies appellans s$bmission para/ 48 (E'$a"or)/2?o"aliies &or he Esablishmen o& ,pe'i&i' !in"ing ommimens Noe b# he hairman o& he

?ar@e A''ess ro$p ?TN/N*?A**2 20 +e'ember 499/25E$ropean omm$niies appellans s$bmission para/ 454 (E'$a"or)/26+one a ;ienna 2 ?a# 4969 4455 .NT, 4B 8 1nernaional >egal ?aerials 679/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 24

posiivel# e3press 'onsen o be bo$n" b# he agreemenL/27 ?oreover he E$ropean omm$niies

'onen"s ha he 'on'essions on ra"e in goo"s in'l$"e" in TO ?embers ATT ,'he"$les 'an

onl# be mo"i&ie" hro$gh agreemens 'on'l$"e" &ollo%ing he pro'e"$res o& Ari'le ;111 an" hahe +oha Ari'le 1 aiver is no an agreemen ha %as rea'he" &ollo%ing hese pro'e"$res/

5/ The E$ropean omm$niies 'laims ha he +oha Ari'le 1 aiver 'anno be 'onsi"ere" a

Lpl$rilaeral agreemenL be'a$se he legal basis o& he ?iniserial +e'ision re&ers e3'l$sivel# o

Ari'le 1 o& he >4= Agreement an" he oher TO provisions relaing o he graning o& %aivers/

?oreover he aiver L"oes no have an# o& he 'hara'erisi's ha pl$rilaeral agreemens

'onsisenl# haveL/28 The E$ropean omm$niies noes ha he +oha Ari'le 1 aiver "oes no

e3pli'il# sae ha i %as inen"e" o mo"i&# he bananas 'on'ession in he E$ropean omm$niies

,'he"$le/ The E$ropean omm$niies poins o$ ha here has never been an e3ample o& an

Limplie"L agreemen o mo"i&# he 'on'essions in he ,'he"$les o& TO ?embers pari'ipaing in a

Lpl$rilaeralL agreemen/ ?oreover he E$ropean omm$niies highlighs ha none o& he paries o

his "isp$e ever arg$e" or even menione" a an# sage o& he pro'ee"ings an#hing similar o he

anels erroneo$s &in"ing ha he +oha Ari'le 1 aiver e3en"e" he ari&& D$oa 'on'ession in he

E$ropean omm$niies ,'he"$le/

6/ The E$ropean omm$niies s$bmis ha he anel 'on&$se" Ari'le 1 %ih Ari'le o& he

>4= Agreement an" ha he +oha Ari'le 1 aiver is no a "e'ision amen"ing he TO agreemens

a@en p$rs$an o Ari'le o& he >4= Agreement b$ raher a "e'ision a@en on he basis o&

Ari'le 1 o& he >4= Agreement %hi'h 'anno be $se" o amen" he oher TO agreemens

in'l$"ing he ,'he"$les o& on'essions/ ?oreover he E$ropean omm$niies 'onen"s ha in he

'ase o& he +oha Ari'le 1 aiver he pro'e"$res pres'ribe" b# Ari'le &or he amen"men o& he

TO agreemens s$'h as "eposiing an insr$men o& a''epan'e %ere no &ollo%e"/ A''or"ing o

he E$ropean omm$niies his 'on&irme" ha no TO ?ember ever 'onsi"ere" he +oha Ari'le 1

aiver o be a "e'ision amen"ing he E$ropean omm$niies ,'he"$le o& on'essions an" hereb#

e3en"ing he "$raion o& he ari&& D$oa 'on'ession/

7/ The E$ropean omm$niies &$rher arg$es ha he anel erre" in rea"ing ino he +oha

Ari'le 1 aiver an agreemen o e3en" he ari&& D$oa 'on'ession ha is no hereB here is no

re&eren'e in he aiver o s$'h an agreemen an" he aiver L"oes no even menion he E$ropean

omm$niies ,'he"$leL/29 The E$ropean omm$niies 'onen"s ha he re&eren'e in he preamble

o& he +oha Ari'le 1 aiver o he ari&& D$oa appl#ing L$nil he enr# ino &or'e o& he E ari&&-

27

E$ropean omm$niies appellans s$bmission para/ 452 (E'$a"or)/28E$ropean omm$niies appellans s$bmission para/ 455 (E'$a"or)/29E$ropean omm$niies appellans s$bmission para/ 466 (E'$a"or)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 22

onl# regimeL "oes no s$ppor he anels inerpreaion be'a$se he preamble $ses he %or" Lnoting L

%hi'h is no he same as L"e'i"ingL an" be'a$se his iss$e is no a""resse" in he main bo"# o& he

aiver/ The E$ropean omm$niies &$rher 'onen"s ha even i& i %ere ass$me" ha hro$gh he+oha Ari'le 1 aiver i ha" a''epe" o appl# he ari&& rae o& M75 o 2/2 million m o& bananas &rom

?N 'o$nries nohing in he e3 o& he aiver esablishe" ha ?embers inen"e" o $rn his

applie" ari&& rae ino a bo$n" 'on'ession in he E$ropean omm$niies ,'he"$le/ 1n his respe'

he E$ropean omm$niies noes ha %hile is L$ound 'on'ession in he ,'he"$le %as &or a D$ani#

o& 2/2 million ons o& bananasL i Lapplied he ari&& o& M75 per on o he ari&& D$oas A an" ! %hi'h

ha" a oal vol$me o& more han 2/55 million ons in 2004L 0 %hen he +oha Ari'le 1 aiver %as

a"ope"/

8/ $rhermore a''or"ing o he E$ropean omm$niies he anel &aile" o re'on'ile is

&in"ing ha he +oha Ari'le 1 aiver e3pire" an" L'anno e3en" o he FE !ananas 1mpor

egimeG inro"$'e" &rom 4 Can$ar# 2006L4 %ih he &in"ing ha hro$gh he +oha Ari'le 1 aiver

TO ?embers agree" o e3en" he "$raion o& he E$ropean omm$niies ari&& D$oa 'on'essions

$nil he 'ompleion o& he Ari'le ;111 negoiaions/2

9/ The E$ropean omm$niies s$bmis ha even i& he +oha Ari'le 1 aiver 'o$l" be

inerpree" as an agreemen be%een TO ?embers e3en"ing he "$raion o& he ari&& D$oa

'on'ession &or ?N s$ppliers in he E$ropean omm$niies ,'he"$le o& on'essions he pro'e"$ral

seps reD$ire" o in'orporae s$'h mo"i&i'aion ino ha ,'he"$le %ere no 'omplee"/ 1n pari'$lar

he E$ropean omm$niies poins o$ ha he anel isel& 'on&irme" ha Lno %ih"ra%al or

mo"i&i'aion o& he original E$ropean omm$niies s'he"$le has so &ar been 'eri&ie"L an" ha an#

0E$ropean omm$niies appellans s$bmission para/ 474 (E'$a"or)/ (original emphasis)4E'$a"or anel epor para/ 7/200/2E$ropean omm$niies appellans s$bmission para/ 472 (E'$a"or)/ The E$ropean omm$niies

also s$bmis ha he anel &aile" o re'on'ile is &in"ing ha he erm Lhe ne% E Tari&& regimeL $se" in he&i&h ire o& he Anne3 on !ananas o he +oha Ari'le 1 aiver applies o he bananas impor regime insi$e"hro$gh E eg$laion 496*2005 on 4 Can$ar# 2006 %ih is &in"ing ha he E$ropean omm$niies ari&&D$oa 'on'ession o& 2/2 million m a he in-D$oa ari&& rae o& M75*m %o$l" e3en" be#on" 4 Can$ar# 2006

be'a$se as noe" in he preamble o& he +oha Ari'le 1 aiver i %o$l" appl# L$nil he enr# ino &or'e o& hene% E ari&& regimeL/ (E$ropean omm$niies appellans s$bmission para/ 47 (E'$a"or))

E$ropean omm$niies appellans s$bmission para/ 479 (E'$a"or)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 2

40/ allege" mo"i&i'aions agree" hro$gh he +oha Ari'le 1 aiver Lhave no #e a@en formal

effect an" are no #e provided in he ,'he"$le ha Ari'le 11 o& he ATT obliges he E$ropean

omm$niies o respe'/L

The E$ropean omm$niies 'on'l$"es here&ore ha is allege" &ail$reo gran he erms o& he ari&& D$oa o he ?N s$ppliers 'anno 'onsi$e a violaion o& Ari'le 11 o&

he ATT/

44/ The E$ropean omm$niies s$bmis ha he anel erre" in D$ali&#ing he +oha Ari'le 1

aiver as a Ls$bseD$en agreemenL %ihin he meaning o& Ari'le 4()(a) o& he 8ienna )onvention

%hi'h applies o s$bseD$en agreemens Lregarding the interpretation of the treatyL/5 The E$ropean

omm$niies noes ha LFaGn agreemen modifying he erms o& he original rea# "oes no D$ali&# as

a s$bseD$en agreemen &or p$rposes o& Ari'le 4()(a) be'a$se s$'h an agreemen "oes no regar"

he inerpreaion o& he erms o& he original rea#B i simpl# 'hanges hose erms &or he &$$re/L6

42/ The E$ropean omm$niies also 'hallenges he anels relian'e on (i) he .r$g$a# o$n"

?o"aliies aper &or agri'$l$ral mar@e a''ess negoiaions an" (ii) he iniiaion o& negoiaions

$n"er Ari'le ;111 o& he ATT 499 b# he E$ropean omm$niies o mo"i&# is bananas ari&&

'on'essions as s$pplemenar# means o& inerpreaion/ The E$ropean omm$niies arg$es ha he

anel erre" in rel#ing on he ?o"aliies aper be'a$se ha "o'$men e3pressl# provi"es ha i 'anno

be invo@e" in "isp$e selemen %hi'h %as also 'on&irme" b# he Appellae !o"# in E) – Export

#u$sidies on #ugar /7 The E$ropean omm$niies &$rher s$bmis ha he ?o"aliies aper relae" o

he agreemens 'on'l$"e" a he en" o& he .r$g$a# o$n" an" even ass$ming ha i 'o$l" be $se"

as s$pplemenar# means o& inerpreaion i 'o$l" onl# be $se" o inerpre he E$ropean

omm$niies .r$g$a# o$n" ,'he"$le an" no he +oha Ari'le 1 aiver %hi'h %as a"ope" b#

TO ?embers in 2004/

4/ inall# he E$ropean omm$niies arg$es ha he &a' ha i ha" iniiae" negoiaions

$n"er Ari'le ;111 "oes no esablish ha i %as he 'ommon inenion o& all TO ?embers o

e3en" he ari&& D$oa 'on'ession &or ?N s$ppliers/ The E$ropean omm$niies noes ha

negoiaions $n"er Ari'le ;111 are LreD$ire"L8 even %here he propose" 'hanges "o no a&&e' he

ATT righs o& oher 'o$nries or are p$rel# &ormal/ There&ore he propose" re"$'ion b# he

E$ropean omm$niies appellans s$bmission para/ 480 (E'$a"or)/ (original emphasis)5E$ropean omm$niies appellans s$bmission para/ 486 (E'$a"or)/ (original emphasis)6E$ropean omm$niies appellans s$bmission para/ 487 (E'$a"or)/ (original emphasis) (D$oing

Ari'le 4()(a) o& he 8ienna )onvention)/7E$ropean omm$niies appellans s$bmission para/ 49 (E'$a"or) (re&erring o Appellae !o"#

epor E) – Export #u$sidies on #ugar para/ 499)/8E$ropean omm$niies appellans s$bmission para/ 499 (E'$a"or) (re&erring o ATT anelepor EE) – 6e%sprint para/ 50)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 25

4/ 'onsi"ering ha i %as no o& a p$rel# legal &orm an" ha" he poenial o& a&&e'ing he

si$aion o& oher TO ?embers s$'h as he A 'o$nries/ ?oreover he E$ropean omm$niies

arg$es ha %hen i agree" %ih E'$a"or in he .n"ersan"ing on !ananas on negoiaions p$rs$an oAri'le ;111 he o$'ome o& hose negoiaions %as no 'lear ha is o sa# Lno one 'o$l" ell

%heher he ne% ari&& rae %as going o be above M 680 e$ros or belo%L/9

45/ or all he above reasons he E$ropean omm$niies reD$ess he Appellae !o"# o

reverse he anels &in"ing an" o &in" insea" ha he ari&& D$oa 'on'ession e3pire" a''or"ing o

he erms o& he !ananas rame%or@ Agreemen in 2004 an" has no been e3en"e" hro$gh he +oha

Ari'le 1 aiver/


(a) ,$ggesions p$rs$an o Ari'le 49/4 o& he +,.

4/ The E$ropean omm$niies reD$ess he Appellae !o"# o reverse he anels &in"ings in

he E'$a"or anel epor ha Lhe &a' ha a ?ember a"ops a meas$re o implemen a s$ggesion

p$rs$an o Ari'le 49/4 "oes no preven anoher ?ember &rom 'hallenging p$rs$an o Ari'le 24/5

he 'omplian'e o& s$'h meas$re %ih he 'overe" agreemensL an" ha LFeGven i& here %as a

pres$mpion o& he legali# o& meas$res a@en o implemen a s$ggesion p$rs$an o Ari'le 49/4

here is nohing in he +,. s$ggesing ha he allege" FilGlegali# o& s$'h meas$res 'o$l" no be

revie%e" b# a 'omplian'e panelL/0

2/ The E$ropean omm$niies "oes no arg$e on appeal ha he E !ananas 1mpor egime

in pla'e be%een 4 Can$ar# 2006 an" 4 +e'ember 2007 'omplie" &$ll# %ih he se'on" s$ggesion o&

he &irs Ari'le 24/5 panel reD$ese" b# E'$a"or/ <o%ever he E$ropean omm$niies 'onen"s ha

he anel "evelope" 'erain legal inerpreaions ha are %rong an" 'reae s#semi' problems &or he

proper inerpreaion an" appli'aion o& he +,./

/ The E$ropean omm$niies arg$es ha %hile a panels s$ggesions as o ho% he

respon"en ma# p$ isel& in 'omplian'e %ih he TO r$les "o no have bin"ing &or'e &or he

respon"en his "oes no mean ha s$ggesions are Lenirel# "evoi" o& legal signi&i'an'eL/ 4

A''or"ing o he E$ropean omm$niies he 'onsisen'# o& a panels s$ggesions %ih he 'overe"

agreemens ma# be 'hallenge" b# he paries be&ore he Appellae !o"# b$ LFoGn'e he legali# o&

he s$ggesions has been esablishe" &ollo%ing heir a"opion b# he +,!L he# 'anno be &$rher

9E$ropean omm$niies appellans s$bmission para/ 204 (E'$a"or)/0

E$ropean omm$niies appellans s$bmission para/ 80 (E'$a"or) (D$oing E'$a"or anel epor para/ 7/254)/

4E$ropean omm$niies appellans s$bmission para/ 85 (E'$a"or)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 26

'hallenge" or revisie" be&ore an Ari'le 24/5 panel be'a$se o& he paries obligaion o

L$n'on"iionall# a''epL he +,!s re'ommen"aions an" r$lings Lin'l$"ing he s$ggesions

'onaine" in hem as provi"e" in Ari'le 47/4 in 'ombinaion %ih Ari'le 46/ o& he +,.L/

2

TheE$ropean omm$niies arg$es ha here is nohing in he +,. ha %o$l" allo% a 'omplainan o

have an a""iional oppor$ni# o 'hallenge be&ore a 'omplian'e panel he legali# o& he

implemening meas$res s$ggese" b# he original panel/

/ The E$ropean omm$niies 'onen"s ha i& a respon"en 'laims ha is meas$res

'hallenge" be&ore an Ari'le 24/5 panel L%ere s$ggese" b# a previo$s panel as a means o a'hieve

'omplian'e %ih is TO obligaionsL he Ari'le 24/5 panel m$s Le3amine %heher he 'hallenge"

meas$res are in"ee" he meas$res s$ggese" b# he original panelL an" i& i rea'hes his 'on'l$sion

Li sho$l" &in" ha he# are 'onsisen %ih he 'overe" agreemens %iho$ an# &$rher anal#sisL/

A''or"ing o he E$ropean omm$niies in he presen 'ase he anel sho$l" have &irs 'on&irme"

he 'hara'erisi's ha an impor regime sho$l" have in or"er o sais&# he s$ggesions ma"e b# he

&irs E'$a"or Ari'le 24/5 panel in 4999 an" hen e3amine" %heher he E !ananas 1mpor egime

ha" he s$ggese" 'hara'erisi's/ 1& he anel &o$n" ha he E !ananas 1mpor egime

implemene" he s$ggesions ma"e in 4999 Lhen he anel sho$l" have ree'e" E'$a"ors 'laims

$n"er Ari'le 111 %iho$ an# &$rher anal#sisL/ The E$ropean omm$niies 'onen"s &$rher ha

he anel 'o$l" have e3amine" he 'onsisen'# o& he E !ananas 1mpor egime %ih Ari'le 111 o&he ATT 499 onl# i& i ha" 'on'l$"e" ha ha regime "i" no implemen he s$ggesions ma"e in

4999/ The E$ropean omm$niies arg$es ha he anel erre" be'a$se i "e'line" Lo assess %heher

he E$ropean omm$niies Fha"G e&&e'ivel# implemene" an# o& he s$ggesions o& he &irs

'omplian'e panel reD$ese" b# E'$a"orL5 in 4999 an" 'onsi"ere" ha E'$a"ors "isagreemen %as

s$&&i'ien o ree' he E$ropean omm$niies arg$men ha he E !ananas 1mpor egime ha" he

'hara'erisi's s$ggese" in 4999/

(b) 1nerpreaion o& Ari'le 111 o& he ATT 499

4/ The E$ropean omm$niies reD$ess he Appellae !o"# o reverse in boh 'ases he

anels inerpreaion o& Ari'le 111 o& he ATT 499 an" he anels 'onseD$enial &in"ings in he

anel epors ha he E !ananas 1mpor egime %as in'onsisen %ih Ari'le 111:4 an" 2 o& he

ATT 499/

2E$ropean omm$niies appellans s$bmission para/ 88 (E'$a"or)/

E$ropean omm$niies appellans s$bmission para/ 90 (E'$a"or)/E$ropean omm$niies appellans s$bmission para/ 92 (E'$a"or)/5E$ropean omm$niies appellans s$bmission para/ 9 (E'$a"or)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 27

2/ The E$ropean omm$niies arg$es ha he anels error lea"s o $nreasonable res$ls/

A''or"ing o he anel i& he E$ropean omm$niies ha" o&&ere" o he A 'o$nries an $nlimie"

ra"e pre&eren'e is meas$re %o$l" have been 'onsisen %ih Ari'le 111B ho%ever i& i proe'e"he ineress o& ?N s$ppliers b# limiing he D$ani# o& A banana impors ha 'an bene&i &rom

ha ra"e pre&eren'e i %o$l" a$omai'all# brea'h Ari'le 111/ A''or"ing o he E$ropean

omm$niies his erroneo$s legal inerpreaion b# he anel %o$l" ren"er limiaions on ra"e

pre&eren'es o&&ere" b# "evelope" 'o$nries o "eveloping 'o$nries $n"er he LEnabling la$seL 6

in'onsisen %ih Ari'le 111 hereb# raising "o$bs as o he legali# o& TO ?embers ,'he"$les

an" 'reaing legal 'on&$sion an" $n'erain#/ The E$ropean omm$niies arg$es ha his

inerpreaion 'o$l" lea" o signi&i'an 'onsrains in he appli'aion o& he Enabling la$se/

+evelope" 'o$nries migh 'hoose no o gran ra"e pre&eren'es i& he onl# opion he# have is o

gran pre&eren'es &or $nresri'e" D$aniies/

/ The E$ropean omm$niies 'laims ha he anel "evelope" a heor# p$rs$an o %hi'h a

lo%er ari&& o&&ere" o one ?ember be'omes a$omai'all# a LD$aniaive resri'ionL on all oher

?embers %hen i is o&&ere" in respe' o& onl# some an" no all D$aniies e3pore" b# he

bene&i'iar#/ The E$ropean omm$niies 'onen"s ha an a"vanage grane" o one ?ember is no

he same as a meas$re imposing a Lprohibiion or resri'ionL on anoher ?ember an" ha he noion

o& Lless &avo$rable reamenL $n"er Ari'le 1:4 o& he ATT 499 is no he same as he noion o&Lprohibiion or resri'ionL $n"er Ari'le 111/ The E$ropean omm$niies also arg$es ha i& he

anels inerpreaion %as 'orre' hen an# ari&& pre&eren'e %o$l" D$ali&# as a resri'ion $n"er

Ari'le 111 be'a$se LFaGn# s$'h pre&eren'e %o$l" gran a bene&i o he bene&i'iar# an" here&ore

%o$l" operae as a "isa"vanage &or all oher 'o$nries negaivel# a&&e'ing he D$ani# o& pro"$'s

he# 'an e3por/L7 A''or"ing o he E$ropean omm$niies his inerpreaion %o$l" "eprive

Ari'le 1:4 o& an# val$e/

/ The E$ropean omm$niies highlighs Limporan in'onsisen'iesL8 in he reasoning o& he

anel $n"er Ari'le 111/ The E$ropean omm$niies arg$es ha he anels reasoning ha he A

pre&eren'e %o$l" be a LD$aniaive resri'ionL &or p$rposes o& Ari'le 111 even i& i %as $nlimie" in

D$ani#9 'anno be re'on'ile" %ih he anels reasoning ha a meas$re 'an D$ali&# as a D$aniaive

resri'ion $n"er Ari'le 111 onl# %hen i has a D$aniaive limi/50 The E$ropean omm$niies

6ATT 4979 +e'ision on +i&&erenial an" ?ore avo$rable Treamen e'ipro'i# an" $llerari'ipaion o& +eveloping o$nries >*90 28 November 4979 !1,+ 26,*20/

7E$ropean omm$niies appellans s$bmissions para/ 444 (E'$a"or) para/ 428 (.,)/8E$ropean omm$niies appellans s$bmissions para/ 442 (E'$a"or) para/ 429 (.,)/9E$ropean omm$niies appellans s$bmissions para/ 442 (E'$a"or) (re&erring o E'$a"or anel

epor paras/ 7/2 an" 7/) para/ 429 (.,) (re&erring o ., anel epor paras/ 7/679 an" 7/684)/50E$ropean omm$niies appellans s$bmissions para/ 442 (E'$a"or) (re&erring o E'$a"or anelepor para/ 7/6) para/ 429 (.,) (re&erring o ., anel epor para/ 7/68)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 28

'onen"s ha LFeGiher %a# he anel has misinerpree" he noion o& D$aniaive resri'ion &or

p$rposes o& Ari'le 111 o& he ATT/L54

5/ The E$ropean omm$niies 'laims ha he anel erre" in inerpreing Ari'le 111 as

'overing an impor regime %here impors &rom all ?N s$ppliers are s$be' o a simple ari&& an" no

D$aniaive resri'ions an" %here here is a pre&erenial ari&& o&&ere" o some ?embers %hi'h is

applie" onl# o par o& he bene&i'iaries impors/ A''or"ing o he E$ropean omm$niies as here

%as no resri'ion on he D$aniies ha E'$a"or an" he oher ?N s$ppliers 'o$l" e3por o he

E$ropean omm$niies Ari'le 111 %as no appli'able be'a$se no D$aniaive resri'ions %ere

impose" on he impors &rom he allege"l# aggrieve" ?ember/ As a 'onseD$en'e he E$ropean

omm$niies 'onen"s ha here %as Lno basis ha %o$l" allo% an e3aminaion o& %heher similar

D$aniaive resri'ions are also impose" on all oher 'o$nries/L52

6/ The E$ropean omm$niies &$rher arg$es ha Ari'le 111 "oes no inro"$'e an L?N

r$leL an" a''or"ingl# "oes no reD$ire he E$ropean omm$niies o e3en" he ari&& pre&eren'e i

grans o A 'o$nries o all oher TO ?embers %heher or no his pre&eren'e is s$be' o

limiaions/ The E$ropean omm$niies s$bmis ha he anel misinerpree" an" misapplie" he

&in"ings o& he Appellae !o"# in he original E) – Bananas III pro'ee"ings/ The impor regime

e3amine" in he original pro'ee"ings %as ver# "i&&eren &rom he E !ananas 1mpor egime a iss$e

in he presen pro'ee"ings: all impors %ere s$be' o ari&& D$oasB ea'h gro$p o& s$ppliers %as

allo'ae" a ari&& D$oa %ih "i&&eren ermsB an" some 'o$nries %ere allo'ae" 'o$nr#-spe'i&i'

allo'aions %hile some ?N 'o$nries ha" a''ess onl# o a general allo'aion/ The repor o& he

Appellae !o"# in he original pro'ee"ings "oes no s$ppor e3en"ing he appli'aion o&

Ari'le 111:4 o 'over si$aions o& simple ari&& "is'riminaion %here pre&erenial reamen is

o&&ere" onl# o par o& he bene&i'iaries e3pors/

7/ The E$ropean omm$niies 'onen"s ha he anel &aile" o &ollo% 'onsisen ATT an"

TO pra'i'e ha Lhe ani-"is'riminaion r$les o& Ari'le 111 are aime" a D$aniaive

"is'riminaion %hile ari&& "is'riminaion is he e3'l$sive preserve o& Ari'le 1/L 5 A''or"ing o he

E$ropean omm$niies his pra'i'e is L'on'or"an 'ommon an" 'onsisenL an" i here&ore &alls

%ihin he noion o& Lsae pra'i'eL re&erre" o in Ari'le 4()(b) o& he 8ienna )onvention/5 The

E$ropean omm$niies re&ers o several e3amples o& %aivers &rom Ari'le 1:4 ha 'overe" ari&&

pre&eren'es grane" b# means o& ari&& D$oas %hereb# he pre&erenial reamen %as s$be' o

54E$ropean omm$niies appellans s$bmissions para/ 442 (E'$a"or) para/ 429 (.,)/52




T*+,27*A!*2*E.T*+,27*A!**.,A

age 29

D$aniaive limiaions/55 The E$ropean omm$niies 'laims ha his 'onsisen pra'i'e esablishes

he 'ommon $n"ersan"ing on he par o& he ATT onra'ing aries an" TO ?embers ha

e3'l$sion &rom a pre&erenial ari&& D$oa "oes no 'onsi$e an in&ringemen o& Ari'le 111/

8/ egar"ing Ari'le 111:2 o& he ATT 499 he E$ropean omm$niies arg$es ha his

provision "oes no appl# o he E$ropean omm$niies r$les governing impors &rom E'$a"or an" he

.nie" ,aes be'a$se hese impors are s$be' o a simple ari&& an" no o an# D$aniaive

resri'ion or ari&& D$oa/ A''or"ing o he E$ropean omm$niies he anel &aile" o inerpre an"

appl# properl# Ari'le 111:2 %hi'h is 'on'erne" solel# %ih D$aniaive resri'ions impose" on he

aggrieve" ?ember an" no %ih oher meas$res impose" on ha ?ember s$'h as simple ari&&s/ The

E$ropean omm$niies &in"s s$ppor &or is arg$men in he ile o& Ari'le 111 an" in he &a' ha

Lhe &o$r s$b-paragraphs o& Ari'le 111:2 are enirel# &o'$se" on he s'ope an" inernal "isrib$ion

o& he D$aniaive resri'ionL an" L"o no "eal %ih an# meas$res ha &all o$si"e he D$oa or ari&&

D$oaL/56

9/ inall# he E$ropean omm$niies noes ha he .nie" ,aes has never been a banana

s$pplier o he E$ropean omm$niies an" is no li@el# o be'ome a banana s$pplier in he &$$re/

There&ore he A pre&eren'e 'o$l" no be 'onsi"ere" in'onsisen %ih he 'hapea$ o& Ari'le 111:2

be'a$se even in he absen'e o& s$'h pre&eren'e he .nie" ,aes share in he E$ropean

omm$niies bananas mar@e %o$l" approa'h as 'losel# as possible he .nie" ,aes e3ising share

%hi'h is =ero/

(') N$lli&i'aion or 1mpairmen %ih respe' o E'$a"or

4/ The E$ropean omm$niies arg$es ha he anel ree'e" %iho$ an# anal#sis is

arg$mens ha he limi on he D$aniies o& A banana impors ha 'o$l" bene&i &rom pre&erenial

reamen "i" no 'a$se an# n$lli&i'aion or impairmen o& bene&is a''r$ing o E'$a"or $n"er he

'overe" agreemens/

2/ The E$ropean omm$niies s$bmis ha he anel &o$n" ha Lhe 'ompeiive

oppor$niies o& some ?embers 'an be negaivel# a&&e'e" onl# %here here is a $enefit grane" o

some oher ?embersL57 an" &or he anels reasoning o san" Lhe D$ani# limi impose" on he

A pre&eren'e m$s be boh /// he elemen ha riggere" he violaion o& Ari'le 111 o& he ATT

an" /// he bene&i ha 'o$l" negaivel# a&&e' he 'ompeiive oppor$niies o& he ?N banana

55E$ropean omm$niies appellans s$bmissions paras/ 424-428 (E'$a"or) paras/ 48-45 (.,)/56

E$ropean omm$niies appellans s$bmissions para/ 4 (E'$a"or) para/ 450 (.,)/57E$ropean omm$niies appellans s$bmission para/ 44 (E'$a"or) (original emphasis) (re&erring oE'$a"or anel epor para/ 7/2)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 0

s$ppliers/L58 The E$ropean omm$niies arg$es ha he D$ani# limiaion impose" on he A

pre&eren'e %as no a Lbene&iL grane" o he A 'o$nries b$ raher i %as La bene&i grane" o

he ?N 'o$nriesL/

59

/ The E$ropean omm$niies 'onen"s ha his &a' is no a&&e'e" b# he anels &in"ing ha

he +oha Ari'le 1 aiver ha" e3pire" a he en" o& 2005 an" 'onseD$enl# ha he A pre&eren'e

grane" be%een 4 Can$ar# 2006 an" 4 +e'ember 2007 %as no longer 'onsisen %ih Ari'le 1 o& he

ATT 499/ The E$ropean omm$niies arg$es ha he anel &aile" o e3plain ho% he limiaion o&

he D$aniies bene&iing &rom he A pre&eren'e L'a$se" an# ne% or additional n$lli&i'aion or

impairmen o E'$a"or $n"er Ari'le 111 o& he ATTL60 be#on" he n$lli&i'aion or impairmen

$n"er Ari'le 1/ The E$ropean omm$niies s$bmis ha he anel also &aile" o a@e ino

'onsi"eraion ha he D$ani# limiaion ha" he e&&e' o& limiting he negaive e&&e's o& he A

pre&eren'e on E'$a"ors L'ompeiive oppor$niiesL $n"er Ari'le 1/ A''or"ing o he E$ropean

omm$niies he anel ma"e a L"o$ble 'o$ningL o& n$lli&i'aion or impairmen b# 'o$ning as

n$lli&i'aion or impairmen no onl# he negaive e&&e's 'a$se" b# he A pre&eren'e b$ also Lhe

limiaion o& hese negaive e&&e's hro$gh he D$ani# limiL/64

/ The E$ropean omm$niies here&ore reD$ess he Appellae !o"# o reverse he anels

legal inerpreaions an" he 'onseD$enial ree'ion o& he E$ropean omm$niies arg$men ha he

limi on he D$aniies o& A bananas ha 'o$l" bene&i &rom pre&erenial reamen "i" no 'a$se

an# n$lli&i'aion or impairmen o& bene&is a''r$ing o E'$a"or $n"er he 'overe" agreemens/

7/ N$lli&i'aion or 1mpairmen %ih respe' o he .nie" ,aes

4/ The E$ropean omm$niies appeals he anels &in"ing ha Lo he e3en ha he FE

!ananas 1mpor egimeG 'onains meas$res in'onsisen %ih vario$s provisions o& he ATT 499

i has n$lli&ie" or impaire" bene&is a''r$ing o he .nie" ,aes $n"er ha Agreemen/L 62 The

E$ropean omm$niies arg$es ha he anel erre" in &in"ing ha he .nie" ,aes ha" s$&&ere"n$lli&i'aion or impairmen as a res$l o& he E !ananas 1mpor egime/

2/ The E$ropean omm$niies arg$es ha he anel 'on&$se" he noion o& Ln$lli&i'aion or

impairmenL in Ari'le /8 o& he +,. %ih he LineresL ha a 'omplaining par# m$s have in or"er

o have Lsan"ingL o 'ommen'e "isp$e selemen pro'ee"ings/6 A''or"ing o he E$ropean

58E$ropean omm$niies appellans s$bmission para/ 42 (E'$a"or)/59E$ropean omm$niies appellans s$bmission para/ 4 (E'$a"or)/60E$ropean omm$niies appellans s$bmission para/ 4 (E'$a"or)/ (original emphasis)64

E$ropean omm$niies appellans s$bmission para/ 45 (E'$a"or)/62., anel epor para/ 8/42/6E$ropean omm$niies appellans s$bmission para/ 456 (.,)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 4

omm$niies he noion o& Ln$lli&i'aion or impairmenL $n"er Ari'le /8 is he same as he noion

o& Ln$lli&i'aion or impairmenL $n"er Ari'le 22 b$ i is "i&&eren &rom he #pe o& LineresL ha a

'omplaining par# m$s have in or"er o have Lsan"ingL o 'ommen'e "isp$e selemen pro'ee"ings/ 1n his respe' he E$ropean omm$niies arg$es ha i %as no eno$gh &or he anel o

rel# on he poenial e3por ineres o& he .nie" ,aes an" he poenial e&&e's o& he 'onese"

meas$res on %orl" s$pplies an" pri'es o& bananas o &in" ha he .nie" ,aes ha" s$&&ere"

n$lli&i'aion or impairmen %ihin he meaning o& Ari'le /8/

/ The E$ropean omm$niies 'laims ha 'onsi"ering ha he .nie" ,aes %as a ne

imporer o& bananas an" %as no a'ivel# involve" in he b$siness o& e3poring bananas o an#

'o$nr# le alone he E$ropean omm$niies he ra"e pre&eren'e &or bananas originaing in A

'o$nries 'o$l" no an" "i" no "eprive he .nie" ,aes &rom an# L'ompeiive oppor$ni#L o

e3por bananas o he E$ropean omm$niiesB nor "i" i 'hange he .nie" ,aes L'ompeiive

relaionshipL %ih an# banana e3poring 'o$nr# in he %orl" be'a$se he .nie" ,aes has never ha"

a L'ompeiive relaionshipL/ The E$ropean omm$niies 'onen"s ha he &a' ha he 'onese"

meas$res migh a&&e' he val$e o& he .nie" ,aes e3pors in goo"s or servi'es o%ar"s hir"

'o$nries "i" no 'onsi$e Ln$lli&i'aion or impairmenL $n"er he ATT 499/

/ The E$ropean omm$niies also 'rii'i=es he anel &or rel#ing on he &in"ings o& he

Appellae !o"# in he original E) – Bananas III pro'ee"ings in 4997 be'a$se he &a's o& he

presen 'ase are "i&&eren &rom he &a's as he# e3ise" in 4997/ A''or"ing o he E$ropean

omm$niies he Appellae !o"# repor in he original pro'ee"ings L'on&irmFe"G ha he &in"ing o& a

n$lli&i'aion or impairmen o& a bene&i a''r$ing o he .nie" ,aes %as base" on he E$ropean

omm$niies violaion o& he AT,/L6 The E$ropean omm$niies &$rher re'alls ha he

arbiraors a'ing p$rs$an o Ari'le 22/6 o& he +,. in 4999 &o$n" ha he so$r'es o& Ln$lli&i'aion

or impairmenL %ih respe' o he .nie" ,aes %ere: L(a) he ., share o& %holesale ra"e servi'es

in bananas sol" in he E$ropean omm$niies an" (b) he ., share o& allo'ae" banana impor

li'en'es &rom %hi'h D$oa rens a''r$e/L65 The E$ropean omm$niies poins o$ ha he '$rren

pro'ee"ings "o no involve an# 'laim $n"er he AT, an" here is no longer an Line3ri'abl#

iner%ovenL66 relaion be%een he ATT 499 an" he AT, so ha none o& he 'onsi"eraions on

%hi'h he &in"ing o& Ln$lli&i'aion or impairmenL o& he .nie" ,aes %as base" in 4997 e3ise" a

he ime his anel %as esablishe"/

6

E$ropean omm$niies appellans s$bmission para/ 467 (.,)/65+e'ision o& he Arbiraors E) – Bananas III &/#' &Article ++-3 – E)' para/ 7/8/66E$ropean omm$niies appellans s$bmission para/ 469 (.,)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 2

8/ Noi'e o& Appeal

4/ egar"ing he .nie" ,aes allegaion ha he E$ropean omm$niies Noi'e o& Appeal

"i" no sais&# he reD$iremens o& $le 20(2)(") o& he >or0ing Procedures he E$ropean

omm$niies "oes no "isp$e ha is Noi'e o& Appeal "i" no i"eni&# he spe'i&i' paragraphs o& he

., anel epor 'onaining he allege" errors/ The E$ropean omm$niies arg$es ho%ever ha

none o& he pari'ipans ha" "i&&i'$l# in i"eni&#ing he s'ope an" 'onen o& he E$ropean

omm$niies Noi'e o& Appeal/ ?oreover %ih respe' o he allege" &ail$re o lis in is Noi'e o&

Appeal a 'laim $n"er Ari'le 44 o& he +,. he E$ropean omm$niies arg$es ha a violaion o&

Ari'le 44 is al%a#s a means b# %hi'h a panel ma@es an error o& la% or legal inerpreaion/

onseD$enl# he E$ropean omm$niies 'onen"s ha here %as no nee" o 'ie Ari'le 44 in

'on$n'ion %ih ever# error o& la% appeale" in is Noi'e o& Appeal/67

!/ Arguments of Ecuador – Appellee and 4hird Participant

4/ Ari'le 9/ o& he +,.

4/ E'$a"or s$bmis ha he anel a'e" 'onsisenl# %ih Ari'le 9/ o& he +,. %hen i

"e'i"e" o mainain "i&&eren imeables &or he .nie" ,aes 'ase an" he E'$a"or 'ase/ E'$a"or

emphasi=es ha i srongl# obe'e" %hen he anel as@e" %heher o "ela# he E'$a"or pro'ee"ings

in or"er o harmoni=e i %ih he 'ase iniiae" b# he .nie" ,aes/ E'$a"or "isagrees %ih he

E$ropean omm$niies 'onenion ha Ari'le 9/ imposes an Labsol$e obligaion o harmoni=e

imeablesL/68 E'$a"or arg$es ha he phrase Lo he greaes e3en possibleL in Ari'le 9/ relaes o

he obligaion o 'ompose he %o separae panels o& he same persons as %ell as o he panels

obligaion o harmoni=e he imeables/

2/ E'$a"or assers ha harmoni=aion o& he imeables %o$l" have le" o a %o-monh "ela#

o& he pro'ee"ings in he E'$a"or 'ase in violaion o& he 90-"a# ime perio" se o$ in Ari'le 24/5 o&

he +,./ E'$a"or &$rher s$bmis ha he E$ropean omm$niies inerpreaion %o$l" reD$ire

harmoni=aion regar"less o& ho% %i"e he ime-gap be%een %o 'ases ma# be an" ha his 'o$l"

enail signi&i'an "ela#s in TO "isp$e selemen/

2/ >egal E&&e' o& he .n"ersan"ing on !ananas

4/ E'$a"or arg$es ha he E$ropean omm$niies mis'hara'eri=e" he anels &in"ings %hen

i s$bmie" ha he anel ha" se o$ hree L'on"iionsL ha ha" o be sais&ie" in or"er &or he

67E$ropean omm$niies response o D$esioning a he oral hearing/68E'$a"ors appellees s$bmission para/ 8/



T*+,27*A!*2*E.T*+,27*A!**.,A

age

.n"ersan"ing on !ananas o D$ali&# as a m$$all# agree" sol$ion %ihin he meaning o& Ari'le /7

o& he +,./69 E'$a"or mainains ha raher han 'reaing an obe'ionable legal es &or %ha

'onsi$es a m$$all# agree" sol$ion he anel ha" eval$ae" %heher he erms o& he.n"ersan"ing rea" in heir 'one3 %ere o& a na$re ha 'o$l" bar E'$a"or &rom iniiaing

'omplian'e pro'ee"ings/ E'$a"or ho%ever 'onen"s ha he .n"ersan"ing 'o$l" no imm$ni=e

an# seps he E$ropean omm$niies migh have a@en %ih respe' o he re&orm o& he E !ananas

1mpor egime &rom 'hallenges be&ore he TO "isp$e selemen s#sem/

2/ E'$a"or "isagrees %ih he E$ropean omm$niies ha a 'omplaining par# ha eners ino

a bilaeral selemen 'anno 'hallenge he 'on&ormi# o& meas$res a@en b# he implemening par# i&

ha par# 'laims ha he meas$res are La''epe"L $n"er he bilaeral agreemen/ 70 E'$a"or mainains

ha he E$ropean omm$niies 'onsr$'ion has no basis in he e3 o& he +,. an" %o$l" r$n

'o$ner o Ari'le 24/5 o& he +,. in ha i %o$l" "en# he righ o iniiae 'omplian'e pro'ee"ings

%hi'h are e3pressl# provi"e" &or in Ari'le 24/5/ ?oreover E'$a"or 'onen"s ha as all m$$all#

agree" sol$ions m$s be 'onsisen %ih he 'overe" agreemens pre'l$"ing a par# o a selemen

agreemen &rom 'hallenging he agreemen %o$l" n$lli&# he reD$iremen o& 'on&ormi# o& he

bilaeral agreemen %ih TO la% an" ren"er he agreemen $nen&or'eable $n"er he +,./

/ E'$a"or &$rher s$bmis ha he anel %as 'orre' in ree'ing he E$ropean omm$niies

'onenion ha he prin'iple o& goo" &aih pre'l$"e" E'$a"or &rom 'hallenging he E !ananas

1mpor egime/ E'$a"or s$ppors he anels saemen ha E'$a"or has LFnGo%here in he

.n"ersan"ing /// a''epe" ha i %o$l" &orego is righ o 'hallenge he 'on&ormi# %ih he 'overe"

agreemens o& an# meas$re ha he E$ropean omm$niies migh a@e o implemen a sep se o$ in

he !ananas .n"ersan"ingL/74 $rhermore E'$a"or 'onen"s ha Ari'le /40 o& he +,. "oes no

pre'l$"e iniiaion o& "isp$e selemen pro'ee"ings/

69E'$a"ors appellees s$bmission para/ 4 (re&erring o E$ropean omm$niies appellans

s$bmission para/ 4 (E'$a"or) in $rn re&erring o E'$a"or anel epor para/ 7/76)/70E'$a"ors appellees s$bmission para/ 48/74E'$a"ors appellees s$bmission para/ 2 (D$oing E'$a"or anel epor para/ 7/428)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage

/ Ari'le 11 o& he ATT 499

4/ E'$a"or s$ppors he anel &in"ings ha he imposiion o& a ari&& o& M476*m b# he

E$ropean omm$niies violae" Ari'le 11 o& he ATT 499 be'a$se ha ari&& is in e3'ess o& he

ari&& D$oa 'on'ession bo$n" in he E$ropean omm$niies ,'he"$le o& on'essions/ E'$a"or

'onen"s ha he E$ropean omm$niies 'on'ession &or bananas 'onin$e" o remain in &or'e &or %o

reasons: &irs he !ananas rame%or@ Agreemen %as no inen"e" o (nor "i" i) erminae he ari&&

D$oa 'on'ession as o& 4 +e'ember 2002B an" se'on"l# as he anel &o$n" he ari&& D$oa

'on'ession remaine" in e&&e' be'a$se o& is e3ension hro$gh he agreemen mani&ese" in he +oha

Ari'le 1 aiver/

2/ E'$a"or agrees %ih he anel ha Lhe +oha aiver %as an agreemen regar"ing he

application o& he 'on'ession %hi'h is %ihin he s'ope o& Ari'le 4() Fo& he 8ienna

)onventionG/L72 ?oreover a''or"ing o E'$a"or Lhe +oha aiver /// srongl# s$pporFsG E'$a"ors

posiion ha he on'ession %as never inen"e" o e3pire on a''o$n o& paragraph 9 o& he F!ananas

rame%or@ AgreemenG/L7

/ E'$a"or agrees %ih he anel ha Lhe +oha aiver 'onsi$e" an inernaional agreemen

relaing o he appli'aion o& he on'ession/L7 E'$a"or also arg$es ha Ari'le 4() o& he 8ienna

)onvention "oes no pres'ribe &ormal reD$iremens as o %ha ma# 'onsi$e a s$bseD$en agreemen

an" ha a %aiver o& obligaions is an agreemen ha is bin"ing on all ?embers an" ha alers &or he

"$raion o& he %aiver righs an" obligaions &or all ?embers/ E'$a"or also noes ha i is irrelevan

ha %aivers are no a"ope" b# 'onsens$s be'a$se Leven a ?ember %ho "i" no s$ppor a %aiver

%ill no be able o en&or'e 'omplian'e %ih a %aive" r$le b# he ?ember %ho re'eive" he %aiver/L75

/ E'$a"or 'onen"s ha a %aiver ma# be regar"e" as an agreemen e3en"ing he 'on'ession

even i& i "oes no mee TO reD$iremens an" pro'e"$res &or mo"i&#ing a ATT ari&& 'on'ession/

E'$a"or arg$es ha Lhe mo"i&i'aion o& he "$raion o& he on'ession b# he +oha aiver is i&an#hing a more ransparen sep han mos mo"i&i'aions %hi'h ma# help e3plain %h# "isp$e

selemen panels an" he Appellae !o"# have &o$n" ha 'on'essions 'anno a$hori=e "eviaions

&rom oher TO r$les/L76 E'$a"or also agrees %ih he anels &in"ing ha inso&ar as i mo"i&ies he

E$ropean omm$niies ari&& 'on'ession Lhe +oha aiver %as an agreemen regar"ing he

72E'$a"ors appellees s$bmission para/ 58/ (original emphasis)7E'$a"ors appellees s$bmission para/ 66/7

E'$a"ors appellees s$bmission para/ 5/75E'$a"ors appellees s$bmission para/ 55/76E'$a"ors appellees s$bmission para/ 57/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 5

application o& he 'on'ession %hi'h is %ihin he s'ope o& Ari'le 4() Fo& he 8ienna

)onventionGL/77

5/ E'$a"or believes ha alho$gh he +oha Ari'le 1 aiver has e3pire" %ih respe' o

bananas i 'an neverheless e3en" he ari&& D$oa 'on'ession be'a$se o& he overall selemen

mani&ese" in he aiver %hi'h also relaes o he .n"ersan"ing on !ananas/ A''or"ing o

E'$a"or he E$ropean omm$niies 'o$l" no sa# Lha i go is par o& he bargainL an" mainain is

TO in'onsisen regime $nil 2008 b$ a he same ime Lignore he 'ommimens %ih permanen

e&&e' on %hi'h he +oha aiver %as 'on"iione"L/78 ar o& he E$ropean omm$niies

'ommimens %as o Linro"$'e an" rebin" a ari&& onl# regime ha %o$l" permanenl# an" %iho$

he nee" &or a %aiver a leas mainain oal mar@e a''ess &or ?N s$ppliers a@ing ino a''o$n all

E mar@e a''ess 'ommimensL/79

6/ E'$a"or arg$es ha i ha" inro"$'e" evi"en'e be&ore he anel "emonsraing ha all TO

?embers in'l$"ing he E$ropean omm$niies ha" $ni&orml# a'e" on he basis ha he ari&& D$oa

'on'ession %as permanen/ A''or"ing o E'$a"or he &irs ime ha he E$ropean omm$niies ever

arg$e" or a'e" as i& he 'on'ession ha" e3pire" on 4 +e'ember 2002 %as in he E$ropean

omm$niies reb$al s$bmission in hese anel pro'ee"ings/

7/ E'$a"or &$rher 'onen"s ha he anel re&erre" o he ?o"aliies aper as a g$i"e o he

'ommon inenions o& negoiaors no as en&or'eable r$les/ or E'$a"or Lhe mo"aliies paper

'onin$es o operae as a g$i"e s$'h as in a''ession negoiaionsL 80 an" here&ore i %as appropriae

&or he anel o rel# on i as s$pplemenar# means o& inerpreaion/ E'$a"or also 'laims ha he

anel %as righ o in&er &rom he noi&i'aions an" iniiaion o& Ari'le ;111 negoiaions b# he

E$ropean omm$niies in 200 an" in 2007 ha Lhe E %o$l" no have nee"e" o invo@e s$'h

negoiaions i& is bo$n" "$ies %ere 680 e$ros*m sin'e members "o no nee" o negoiae $n"er

Ari'le ;111 o lo%er heir bin"ings/L84

8/ inall# E'$a"or 'onen"s ha he +oha Ari'le 1 aiver sho$l" be seen as an agreemen

ha s$ppors E'$a"ors oher appeal an" 'on&irms E'$a"ors inerpreaion ha he ari&& D$oa

'on'ession %as never inen"e" o e3pire b# vir$e o& paragraph 9 o& he !ananas rame%or@

Agreemen/ 1n E'$a"ors vie% paragraph 9 a mos %as inen"e" o erminae hose 'on"iions o&

he !ananas rame%or@ Agreemen (s$'h as he allo'aion o& he ari&& D$oa among s$ppliers) ha

77E'$a"ors appellees s$bmission para/ 58/ (original emphasis)78E'$a"ors appellees s$bmission para/ 60/79




T*+,27*A!*2*E.T*+,27*A!**.,Aage 6

are no in'l$"e" in he &irs si3 'ol$mns $n"er he E$ropean omm$niies ari&& hea"ing on bananas

in is ,'he"$le o& on'essions/

/ Ari'le 111 o& he ATT 499

(a) ,$ggesions p$rs$an o Ari'le 49/4 +,.

4/ E'$a"or respon"s ha he anel properl# "ismisse" he arg$men b# he E$ropean

omm$niies ha he anel 'o$l" no revie% in hese Ari'le 24/5 pro'ee"ings he 'on&ormi# o& he

meas$res a@en o 'ompl# %hi'h he E$ropean omm$niies 'laims o have a@en o implemen he

s$ggesions ma"e b# he &irs E'$a"or Ari'le 24/5 panel p$rs$an o Ari'le 49/4 o& +,./ or

E'$a"or he &a' ha he s$ggesions ha" no been appeale" "oes no imm$ni=e meas$res a@en oimplemen ha s$ggesion &rom revie% $n"er Ari'le 24/5 o& he +,./

2/ A''or"ing o E'$a"or he E$ropean omm$niies posiion regar"ing s$ggesions %o$l"

have he ne e&&e' o& "is'o$raging reD$ess &or a panel o ma@e s$ggesions an" %o$l" impl# ha a

par# ha ges a Ls$ggesionL obains imm$ni# &rom a 'hallenge $n"er TO r$les &or meas$res i

$n"era@es 'onsisenl# %ih ha s$ggesion/ E'$a"or &$rher 'onen"s ha anoher $na''epable

'onseD$en'e %o$l" be ha i& a panel ma"e a Lbroa"L s$ggesion Lhe "e&en"ing par# %o$l" be &ree

o a"op he mos proe'ionis an" TO-in'onsisen se o& meas$res i 'o$l" 'onrive ha %o$l" sill

arg$abl# &i %ihin he parameers o& he panel s$ggesionL an" L%o$l" be imm$ne &rom s'r$in# &or

'omplian'e %ih TO r$les so long as Fhose meas$resG 'on&orme" %ih he 'ono$rs o& FheG

s$ggesion/L82

(b) 1nerpreaion o& Ari'le 111 o& he ATT 499

4/ E'$a"or reD$ess he Appellae !o"# o ree' he E$ropean omm$niies appeal o& he

anels inerpreaion o& Ari'le 111 o& he ATT 499 an" he anels 'onseD$enial &in"ings ha he

E !ananas 1mpor egime %as in'onsisen %ih Ari'le 111:4 an" 2 o& he ATT 499/

2/ E'$a"or s$bmis ha in he presen "isp$e he prior +,! re'ommen"aions an" r$lings on

Ari'le 111 'onin$e o appl# be'a$se he E !ananas 1mpor egime in'l$"e" a ari&& D$oa/ 1n

E'$a"ors vie% he Appellae !o"# 'learl# sae" in E) – Bananas III ha Ari'le 111 applies

Lregar"less %heher here are one %o or man# Fari&& D$oasGL/8 E'$a"or emphasi=es ha he

E$ropean omm$niies pre&erenial ari&& D$oa &or A bananas 'onsi$es a resri'ion on impors

o& ?N bananas %hi'h are "enie" a''ess o he "$#-&ree D$oa/

82

E'$a"ors appellees s$bmission para/ 8/8E'$a"ors appellees s$bmission para/ 2 (re&erring o Appellae !o"# epor E) – Bananas III para/ 490)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 7

/ egar"ing Ari'le 111:4 E'$a"or ree's he E$ropean omm$niies arg$men ha Lhe

ari&& D$oa "oes no resri' b$ raher helps E'$a"or an" he oher ?N s$ppliers o he E/L 8

E'$a"or arg$es ha he anel 'orre'l# &o$n" ha bananas o& ?N origin are reae" less &avo$rabl# be'a$se he# have no a''ess o he =ero-"$# ari&& D$oa grane" &or A bananas an" ha he

pre&erenial ari&& D$oa grane" b# he E$ropean omm$niies o he A 'o$nries is in'onsisen

%ih Ari'le 111:4 o& he ATT 499/

/ A''or"ing o E'$a"or 'erain previo$s %aivers &rom Ari'le 1 re&erre" o b# he E$ropean

omm$niies "o no "emonsrae ha here %as La 'ommon $n"ersan"ing ha e3'l$sion &rom a

pre&erenial ari&& D$oa is no in'onsisen %ih Ari'le 111L/85 1n E'$a"ors vie% he e3isen'e o&

hese %aivers 'anno 'onsi$e a legal basis &or he Appellae !o"# o reverse is prior inerpreaion

o& Ari'le 111 be'a$se all hese %aivers L%ere all in e3isen'e %hen he Es pre&erenial ari&&

D$oas %ere a""resse" b# he anel an" he Appellae !o"# in F E) – G Bananas III #e %ere no

"eeme" o a&&e' he proper inerpreaion o& Ari'le 111 in a''or"an'e %ih he inerpreive

prin'iples o& he F8ienna )onventionGL/86 E'$a"or &$rher 'onen"s ha he E$ropean omm$niies

isel& re'eive" a %aiver &rom Ari'le 111 in or"er o mainain is "is'riminaor# ari&& D$oa reserve"

&or A bananas sho%ing ha he mos re'en TO pra'i'e reveale" ha i %as ne'essar# o obain

a separae %aiver &or "is'riminaor# ari&& D$oas/

5/ egar"ing Ari'le 111:2 E'$a"or "isagrees %ih he E$ropean omm$niies inerpreaion

ha he 'hapea$ o& Ari'le 111:2 gives righs o onl# ?embers ha are s$be' o a pari'$lar ari&&

D$oa/ E'$a"or emphasi=es ha he e3 o& his provision "oes no re&er o resri'ions on 'o$nries

b$ raher re&ers o pro"$'s/ 1n an# even E'$a"or %as Lplainl# s$be' o he resri'ions be'a$se

he D$oas e3'l$"eF"G E'$a"orian bananas alogeher &rom he =ero "$# D$oaL/87 E'$a"or s$bmis

ha he anels ree'ion o& he E$ropean omm$niies inerpreaion o& Ari'le 111 %as 'onsisen

%ih previo$s "e'isions o& he Appellae !o"# in E) – Bananas III an" /# – Line Pipe/88

(') N$lli&i'aion or 1mpairmen %ih respe' o E'$a"or

4/ E'$a"or a@es iss$e %ih he E$ropean omm$niies 'laim ha here %as no n$lli&i'aion

an" impairmen o& bene&is s$&&ere" b# E'$a"or be'a$se he ari&& D$oa impose" b# he E$ropean

omm$niies limie" he "$#-&ree 'ompeiion &rom he A 'o$nries/ 1n E'$a"ors vie% LFGhis

8E'$a"ors appellees s$bmission para/ /85E'$a"ors appellees s$bmission para/ (re&erring o E$ropean omm$niies appellans

s$bmission para/429 (E'$a"or))/86

E'$a"ors appellees s$bmission para/ /87E'$a"ors appellees s$bmission para/ 7/88E'$a"ors appellees s$bmission para/ 7 (re&erring o E'$a"or anel epor paras/ 7/67-7/70)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 9

/ on replies in he .nie" ,aes 'ase %ere re'eive" be&ore he iss$an'e o& he inerim repor in

he E'$a"or 'ase/ The .nie" ,aes s$bmis ha his prevene" he arg$mens o& he paries &rom

being in&l$en'e" b# a"van'e @no%le"ge o& he &in"ings o& he anel in he E'$a"or 'ase/

9

The.nie" ,aes also assers ha an appellan reD$esing reversal o& a panels r$ling on maers o&

pro'e"$re m$s "emonsrae he pre$"i'e generae" b# ha legal r$ling an" ha he E$ropean

omm$niies has &aile" o "o so/95 ?oreover he .nie" ,aes 'onen"s ha Ari'le 9/ "oes no

reD$ire a panel o provi"e an obe'ive $si&i'aion &or is "e'ision on a reD$es &or harmoni=aionB

noneheless he anel "i" in &a' provi"e an Le3planaion as o %h# i %as $nable o harmoni=e he

imeablesL/96 inall# he .nie" ,aes 'onen"s ha even i& he Appellae !o"# reverses he anels

&in"ing relaing o Ari'le 9/ o& he +,. ha reversal sho$l" have no e&&e' on he meris o& he

"isp$e or he s$bsanive &in"ings o& he anel/

2/ >egal E&&e' o& he .n"ersan"ing on !ananas

4/ The .nie" ,aes arg$es ha he anel "i" no se o$ hree L'on"iionsL ha ever#

m$$all# agree" sol$ion m$s mee/ aher he .nie" ,aes 'onen"s he anel e3plaine" on he

basis o& he Lhree reasons ta0en together L %h# he .n"ersan"ing "i" no have he e&&e' o& barring

he .nie" ,aes &rom iniiaing 'omplian'e pro'ee"ings/97

2/ ih respe' o he anels &irs reasonPha he .n"ersan"ing provi"es onl# &or he

means ha is a series o& &$$re seps &or resolving an" seling he "isp$ePhe .nie" ,aes

mainains ha he anel merel# se o$ he &a's base" on a 'orre' rea"ing o& he erms o& he

.n"ersan"ing/ The .nie" ,aes s$bmis ha he anel "i" no as he E$ropean omm$niies

assers se a L'on"iionL ha onl# agreemens re'or"ing meas$res ha have alrea"# been

implemene" 'an D$ali&# as m$$all# agree" sol$ions/98 ih respe' o he anels se'on" reasonP

ha he .n"ersan"ing %as 'on'l$"e" s$bseD$en o re'ommen"aions r$lings an" s$ggesions b#

he +,!Phe .nie" ,aes arg$es ha he anel "i" no se his as a L'on"iionL b$ raher $se" i

as relevan hisori'al 'one3 &or assessing he E$ropean omm$niies preliminar# obe'ion/99

inall# %ih regar" o he anels hir" reasonPha he paries have ma"e 'on&li'ing

'omm$ni'aions o he +,! 'on'erning he .n"ersan"ing on !ananasPhe .nie" ,aes again

'onen"s ha he anel ha" no i"eni&ie" ha &a' as a L'on"iionL/ 1n he .nie" ,aes vie% he

9.nie" ,aes appellees s$bmission para/ 424 (re&erring o ., anel epor para/ 7/44)/95.nie" ,aes appellees s$bmission para/ 425/96.nie" ,aes appellees s$bmission para/ 426/97.nie" ,aes appellees s$bmission para/ 57 (original emphasis) (re&erring o ., anel epor para/

7/407)/ 98.nie" ,aes appellees s$bmission para/ 64/99.nie" ,aes appellees s$bmission para/ 62/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 0

anel ha" 'orre'l# a@en ino a''o$n ha he .nie" ,aes "isagrees %ih he E$ropean

omm$niies 'hara'eri=aion o& he .n"ersan"ing as a Lm$$all# agree" sol$ionL/400

/ The .nie" ,aes a@es iss$e %ih he E$ropean omm$niies allegaion ha Lhe anel has

inro"$'eF"G an erroneo$s limiaion on he #pes o& oher Llegall# bin"ing agreemensL ha 'an be

en&or'eable an" pro"$'e &$ll legal e&&e's in he TO legal or"er/ L404 The .nie" ,aes s$bmis ha

he anel "i" no inro"$'e s$'h a limiaionB raher he anel merel# &o$n" ha in he 'one3 o& he

presen 'ase he .nie" ,aes %as no pre'l$"e" &rom having re'o$rse o Ari'le 24/5 o& he +,.

be'a$se he .n"ersan"ing be%een he .nie" ,aes an" he E$ropean omm$niies "i" no provi"e

&or s$'h a pre'l$sion/

/ A''or"ing o he .nie" ,aes he E$ropean omm$niies posiion %o$l" have he

'onseD$en'e ha a respon"ing par# ha &aile" o 'ompl# %ih he erms o& a m$$all# agree"

sol$ion 'o$l" 'laim imm$ni# &rom &$rher pro'ee"ings b# vir$e o& he legal e&&e' o& m$$all#

agree" sol$ions as %ell as &rom a 'laim $n"er he m$$all# agree" sol$ion isel& be'a$se m$$all#

agree" sol$ions are no L'overe" agreemensL/ The .nie" ,aes emphasi=es ho%ever ha he +,.

"oes no &oresee s$'h a limiaion o& he 'omplainans righs/

5/ The .nie" ,aes also s$bmis ha he anel "i" no err in is inerpreaion an" appli'aion

o& he prin'iple o& goo" &aih provi"e" &or in Ari'le /40 o& he +,./ The .nie" ,aes 'onen"s

ha he anel %as 'orre' in rel#ing on pas panel an" Appellae !o"# repors %hen &in"ing ha here

m$s be somehing Lmore han mere violaionL o& a s$bsanive provision o& he 'overe" agreemens

be&ore a ?ember ma# be &o$n" o have &aile" o a' in goo" &aih/402

6/ inall# %ih respe' o he E$ropean omm$niies 'laim p$rs$an o Ari'le 44 o& he +,.

ha he anel &aile" o provi"e an# $si&i'aion &or ree'ing is 'laim base" on he prin'iple o& goo"

&aih he .nie" ,aes s$bmis ha sin'e he E$ropean omm$niies Noi'e o& Appeal "oes no

'onain a re&eren'e o Ari'le 44 o& he +,. ha 'laim is o$si"e he s'ope o& his appeal/

40

400.nie" ,aes appellees s$bmission para/ 6/404.nie" ,aes appellees s$bmission para/ 65 (D$oing E$ropean omm$niies appellans

s$bmission para/ 87 (.,))/402

.nie" ,aes appellees s$bmission para/ 76 (re&erring o Appellae !o"# epor /# – =ffset Act&Byrd Amendment' para/ 297B an" anel epor Argentina – Poultry Anti!umping !uties para/ 7/5)/

40.nie" ,aes appellees s$bmission para/ 70/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 4

/ ?eas$re Ta@en o ompl#

4/ The .nie" ,aes s$bmis ha he anel "i" no err in &in"ing ha he E !ananas 1mpor

egime %as a Lmeas$re a@en o 'ompl#L %ih he +,! re'ommen"aions an" r$lings in E) –

Bananas III / The .nie" ,aes mainains ha he Lsr$'$re an" lang$ageL o& he .n"ersan"ing on

!ananas in"i'ae ha is p$rpose %as o 'ommi he E$ropean omm$niies o bring isel& ino TO

'omplian'e on 4 Can$ar# 2006/ The .nie" ,aes arg$es ha he re&eren'e o he +oha Ari'le 111

aiver in paragraph E o& he .n"ersan"ing "emonsraes an agreemen be%een he paries o he

.n"ersan"ing ha &$rher meas$res be#on" he inerim ari&& D$oa-base" regime %o$l" be ne'essar#

&or he E$ropean omm$niies o a'hieve 'omplian'e %ih he re'ommen"aions an" r$lings o& he

+,! in he original pro'ee"ings/

2/ The .nie" ,aes 'onen"s ha is 'ommimen o erminae realiaion $pon he

inro"$'ion o& a ari&& D$oa-base" impor regime $n"er s$bparagraph /2 o& he .n"ersan"ing "i"

no in"i'ae an agreemen b# he .nie" ,aes o regar" he E$ropean omm$niies inerim regime

as he &inal implemenaion o& he original +,! re'ommen"aions an" r$lings/ The .nie" ,aes

assers ha i erminae" onl# he imposiion o& realiaor# "$ies b$ ha he m$lilaeral a$hori=aion

o s$spen" 'on'essions ha" no been revo@e"/ The .nie" ,aes mainains ha a 'omplainan ma#

'hoose %heher an" o %ha e3en o ma@e $se o& he TO a$hori=aion o s$spen" 'on'essions an"

ha here&ore he 'omplainans "e'ision no o e3er'ise ha righ "oes no impl# he 'omplainans

a''epan'e ha he respon"ens meas$res have be'ome 'onsisen %ih is TO obligaions/

/ The .nie" ,aes "isagrees %ih he E$ropean omm$niies ha here %as no lin@ be%een

he 'onese" meas$re an" he +,! re'ommen"aions an" r$lings in E) – Bananas III / The .nie"

,aes s$bmis ha he E$ropean omm$niies agree" hro$gh he erms o& he .n"ersan"ing on

!ananas o a@e 'erain inerim seps '$lminaing in a ari&&-onl# regime b# 4 Can$ar# 2006/ 1n he

.nie" ,aes vie% his "emonsrae" ha a L'lear lin@L 40 e3ise" be%een he re'ommen"aions an"

r$lings o& he +,! in E) – Bananas III an" he E !ananas 1mpor egime a iss$e in he presen

"isp$e/

/ A''or"ing o he .nie" ,aes he anel "i" no err in a@ing ino a''o$n he &in"ings o&

he panels in E) – Bananas III &Article +,-. – Ecuador' an" E) – Bananas III &Article +,-. – E)'

an" he "e'ision b# he arbiraors in E) – Bananas III &/#' &Article ++-3 – E)' %hen assessing

%heher he E !ananas 1mpor egime a iss$e in he '$rren "isp$e 'onsi$e" a Lmeas$re a@en o

'ompl#L %ih he +,! re'ommen"aions an" r$lings in E) – Bananas III /405 The .nie" ,aes poins

40

.nie" ,aes appellees s$bmission para/ 88/405.nie" ,aes appellees s$bmission para/ 90 (re&erring o E$ropean omm$niies appellanss$bmission paras/ 5-60 (.,))/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 2

o he Appellae !o"#s saemen in :apan – Alcoholic Beverages II ha La"ope" panel repors 'reae

legiimae e3pe'aions an" sho$l" be a@en ino a''o$n %hen relevanL/406 1n a""iion he .nie"

,aes 'onen"s ha he anel merel# $se" hese repors as evi"en'e o& he lin@ be%een he +,!sre'ommen"aions an" r$lings in he original pro'ee"ings an" he E !ananas 1mpor egime a iss$e

in he presen "isp$e/

5/ ih respe' o he E$ropean omm$niies 'laim ha he anel a'e" in'onsisenl# %ih

Ari'le 44 o& he +,. %hen i relie" on s$ggesions ma"e b# he panel in E) – Bananas III

&Article +,-. – Ecuador' he .nie" ,aes arg$es ha his 'laim is no properl# be&ore he Appellae

!o"# be'a$se i %as no in'l$"e" in he E$ropean omm$niies Noi'e o& Appeal/

/ epeal o& he hallenge" ?eas$re

4/ The .nie" ,aes 'onen"s ha he anel "i" no err in ma@ing &in"ings %ih respe' o

E eg$laion 496*2005 even ho$gh ha eg$laion %as repeale" "$ring he 'o$rse o& he anel

pro'ee"ings/ The .nie" ,aes s$bmis ha a 'omplian'e panel is as@e" %ih "eermining %heher

meas$res a@en o 'ompl# e3is an" %hen s$'h meas$res e3is %heher he# 'ompl# %ih he

re'ommen"aions an" r$lings o& he +,!/407 The .nie" ,aes mainains ha he anel properl#

'on'l$"e" ha he 'hallenge" meas$re &aile" o implemen he re'ommen"aions an" r$lings o& he

+,! in he original pro'ee"ings/ 1n he .nie" ,aes vie% hese &in"ings %ere s$&&i'ien an" he

anel "i" no nee" o ma@e a re'ommen"aion/ The .nie" ,aes here&ore reD$ese" a he inerim

revie% sage ha he anels re'ommen"aion be "elee" &rom is epor/

2/ ih respe' o he E$ropean omm$niies 'laim $n"er Ari'le 44 o& he +,. ha he

anel &aile" o assess 'orre'l# he &a's o& he 'ase b# no a@ing ino a''o$n he repeal o& E

eg$laion 496*2005 he .nie" ,aes alleges ha he E$ropean omm$niies improperl# raises

his 'laim be'a$se i %as no in'l$"e" in is Noi'e o& Appeal/ 1n a""iion he .nie" ,aes

mainains ha he E$ropean omm$niies inro"$'e" evi"en'e regar"ing he repeal o& E eg$laion496*2005 onl# a he inerim revie% sage o& he anel pro'ee"ings/ 1n he .nie" ,aes vie% he

E$ropean omm$niies hereb# a'e" in'onsisenl# %ih he limiaions regar"ing he inro"$'ion o&

ne% evi"en'e a he inerim revie% sage as sip$lae" in paragraph 44 o& he anels or@ing

ro'e"$res an" in Ari'le 45/2 o& he +,. an" a&&irme" b# he Appellae !o"# in E) – #elected

)ustoms Matters/408

406.nie" ,aes appellees s$bmission para/ 90 (re&erring o Appellae !o"# epor :apan –

Alcoholic Beverages II p/ 4 +, 4996:1 97 a 408)/407.nie" ,aes appellees s$bmission para/ 44 (re&erring o Appellae !o"# epor /# – F#)

&Article +,-. – E) II' para/ 400(b))/408.nie" ,aes appellees s$bmission paras/ 44-446 (re&erring o Appellae !o"# epor E) –

#elected )ustoms Matters para/ 259)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage


4/ The .nie" ,aes s$bmis ha he anel "i" no err in is inerpreaion an" appli'aion o&

Ari'le 111 o& he ATT 499/ 1n he .nie" ,aes vie% he E$ropean omm$niies arg$men ha

a 'ap on a ari&& pre&eren'e "oes no ma@e i a ari&& D$oa an" ha he %o regimes (he A ari&&

D$oa an" he ?N ari&&) m$s be e3amine" separael# sho$l" be ree'e" in hese pro'ee"ings as

he# have been Lsome &o$r imes be&oreL/442 The .nie" ,aes agrees %ih he anel ha LF%Ghile he

E meas$re s$be' o his pro'ee"ing ma# be simpler han he Es prior bananas impor regimesL 44

nohing in he e3 o& Ari'le 111:5 s$ggess ha he E !ananas 1mpor egime %as no s$be' o

he "is'iplines o& Ari'le 111:4 an" 2/ Emphasi=ing he $se o& he erm Lan#L in &ron o& he erm

Lari&& D$oaL an" he &a' ha Ari'le 111:5 re&ers o Lari&& D$oaL in he sing$lar he .nie" ,aes

s$bmis ha Ari'le 111:5 "oes no 'on"iion he appli'abili# o& Ari'le 111 onl# o insan'es in

%hi'h Lall imporsL o& he pro"$' s$be' o he ari&& D$oa are Le&&e'e" hro$gh he allo'aion o&

ari&& D$oasL/44 The .nie" ,aes also arg$es ha he anel properl# $n"ersoo" an" applie" he

&in"ings o& he Appellae !o"# in he original pro'ee"ings: %hils he original 'ase "eal %ih a

regime %here all impors %ere Le&&e'e" hro$gh he allo'aion o& ari&& D$oasL 445 he Appellae

!o"# reasoning in he original pro'ee"ings 'onin$es o be relevan/

2/ The .nie" ,aes &$rher s$ppors he anels &in"ing ha he E !ananas 1mpor egime

violae" Ari'le 111:4/ The .nie" ,aes reieraes ha he E$ropean omm$niies posiion 'anno

be re'on'ile" %ih he Appellae !o"#s reasoning in respe' o& he Lseparae regimesL arg$men in

E) – Bananas III /446 The .nie" ,aes emphasi=es he panel an" Appellae !o"# &in"ings in he

original pro'ee"ings ha he E$ropean omm$niies meas$re %as a ari&& D$oa s$be' o

Ari'le 111 an" ha LAri'le 111:4 isel& 'onains a non-"is'riminaion reD$iremen %hen a ari&&

D$oa is $se"L/447 There&ore a''or"ing o he .nie" ,aes he E$ropean omm$niies 'anno avoi"

he obligaions o& Ari'le 111 b# 'arving o$ a porion o& is mar@e &or pre&erenial a''ess %iho$

an# m$lilaeral 'onrols over ho% he 'arve-o$ a&&e's a''ess ino he same mar@e &or Lli@eL

pro"$'s &rom oher s$ppliers/ The .nie" ,aes agrees %ih he anel ha Ari'le 111:5 ma@es 'lear

ha he obligaion o& Ari'le 111:4 applies o he A ari&& D$oas even i& ?N s$ppliers %ere

s$be' o a ari&&-onl# regime/ The .nie" ,aes arg$es ha he Lresri'ionL in he presen 'ase is

he D$aniaive limi on a bene&i (ha is =ero-"$# a''ess) available onl# o he A 'o$nriesB

442.nie" ,aes appellees s$bmission para/ 42/44.nie" ,aes appellees s$bmission para/ 47/44.nie" ,aes appellees s$bmission para/ 47 (D$oing E$ropean omm$niies appellans

s$bmission para/ 45 (.,))/445

.nie" ,aes appellees s$bmission para/ 48/446.nie" ,aes appellees s$bmission para/ 49/447.nie" ,aes appellees s$bmission paras/ 22-25/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 5

given ha he ?N 'o$nries Lare 'ompleel# "enie" a''ess o his bene&iL he# are here&ore

Lresri'e"L in heir a''ess o he E$ropean omm$niies mar@e &or bananas an" 'learl# no Lreae"

eD$all#L as he A 'o$nries/

448

The .nie" ,aes also poins o$ ha he Appellae !o"# &o$n" inhe original pro'ee"ings ha a %aiver &rom Ari'le 1 o& he ATT 499 'overing a pre&erenial ari&&

D$oa 'anno be rea" o Le3'$seL ha ari&& D$oa &rom he obligaions o& Ari'le 111/ There&ore an#

%aiver 'overing pre&erenial ari&& D$oas 'anno esablish Lhe 'ommon $n"ersan"ing on he par o&

he ATT 'onra'ing paries an" TO ?embers ha e3'l$sion &rom a pre&erenial ari&& D$oa "oes

no 'onsi$e an in&ringemen o& Ari'le 111L/449

/ inall# he .nie" ,aes ree's he E$ropean omm$niies arg$men ha Ari'le 111:2 is

solel# 'on'erne" %ih D$aniaive resri'ions/ The .nie" ,aes re&ers o he Appellae !o"#s

e3planaion in he original pro'ee"ings ha Ari'le 111:2 Lis logi'all# 'on'erne" %ih he mar@e &or

he pro"$' an" %ha resri'ions ma# be applie" o ha mar@eL/ 420 The .nie" ,aes 'on'l$"es ha

he E !ananas 1mpor egime s$be' o his pro'ee"ing 'onaine" an impor resri'ion in he &orm

o& he pre&erenial ari&& D$oa &or A bananas/ There&ore he E$ropean omm$niies %as reD$ire"

o &ollo% he allo'aion r$les se &orh in Ari'le 111:2/ A''or"ing o he .nie" ,aes he E$ropean

omm$niies arg$men ha he pre&eren'e 'anno be 'onsi"ere" in'onsisen %ih he 'hapea$ o&

Ari'le 111:2 be'a$se he .nie" ,aes share o& ra"e in bananas %ih he E$ropean omm$niies

%ih or %iho$ he pre&eren'e is =ero is simpl# a L"i&&eren version o& he Es pro'e"$ral arg$menha he .nie" ,aes s$&&ers no n$lli&i'aion or impairmenL/424

448.nie" ,aes appellees s$bmission para/ 5/449.nie" ,aes appellees s$bmission para/ 9 (re&erring o E$ropean omm$niies appellans

s$bmission para/ 46 (.,))/420.nie" ,aes appellees s$bmission para/ 6/424.nie" ,aes appellees s$bmission para/ /



T*+,27*A!*2*E.T*+,27*A!**.,Aage 6

7/ N$lli&i'aion or 1mpairmen %ih respe' o he .nie" ,aes

4/ The .nie" ,aes ree's he E$ropean omm$niies 'laim ha he anel erre" in

'on'l$"ing ha he .nie" ,aes ha" s$&&ere" n$lli&i'aion or impairmen/ A''or"ing o he .nie"

,aes i %as no he anel %ho 'on&$se" Lsan"ingL %ih Ln$lli&i'aion or impairmenL b$ he

E$ropean omm$niies isel& %ho L'on&$se"L he iss$es b# arg$ing ha as a hreshol" maer he

anel nee"e" o "eermine %heher he .nie" ,aes ha" Lsan"ingL o bring his pro'ee"ing an" i& so

an" i& i &o$n" a violaion L%heher here is n$lli&i'aion or impairmen o& a bene&i a''r$ing o he

.nie" ,aes &or %hi'h he E$ropean omm$niies 'an &a'e s$spension o& 'on'essionsL/422

2/ The .nie" ,aes re'alls ha he Appellae !o"# alrea"# ree'e" similar arg$mens ma"e

b# he E$ropean omm$niies in he original pro'ee"ings/ The .nie" ,aes arg$es ha 'onsi"ering

ha hese are 'omplian'e pro'ee"ings $n"er Ari'le 24/5 o& he +,. he &in"ings o& he Appellae

!o"# in he original pro'ee"ings &orm he basis &or he r$lings an" re'ommen"aions a""resse" o he

E$ropean omm$niies in his "isp$e/

/ iing he Appellae !o"#s a&&irmaion o& he ATT panels reasoning in /# – #uperfund

he .nie" ,aes s$bmis ha a sho%ing o& a"verse ra"e e&&e's is $nne'essar# &or he p$rposes o&

"emonsraing ha a brea'h o& a ATT provision res$ls in he n$lli&i'aion or impairmen o&

bene&is/42

The .nie" ,aes arg$es ha he 'lear brea'hes o& Ari'les 1 an" 111 o& he ATT 499

obviae he nee" &or he .nie" ,aes o "emonsrae a&&irmaivel# he ra"e e&&e's 'a$se" b# he

E$ropean omm$niies banana meas$res/ or he .nie" ,aes o ma@e a &in"ing o& n$lli&i'aion or

impairmen i is s$&&i'ien ha he .nie" ,aes is a pro"$'er o& bananas has a poenial e3por

ineres an" is inernal mar@e &or bananas 'o$l" also be a&&e'e" b# he e&&e's o& he E$ropean

omm$niies meas$res on %orl" s$pplies an" %orl" pri'es o& bananas/ The .nie" ,aes &$rher

s$bmis ha Lhese realiies have no 'hange"L42 an" he anel "i" no err in rel#ing on he &in"ings

o& he panel an" he Appellae !o"# in he original pro'ee"ings/

/ The .nie" ,aes "isagrees %ih he E$ropean omm$niies ha n$lli&i'aion or

impairmen %as &o$n" o e3is in he original pro'ee"ings onl# be'a$se o& he violaions o& he AT,/

The .nie" ,aes 'onen"s ha in he original pro'ee"ings he Appellae !o"# 'learl# &o$n" ha he

.nie" ,aes %as $si&ie" o ma@e 'laims $n"er he ATT 499/ inall# he .nie" ,aes s$bmis

ha he E$ropean omm$niies 'on&$se" he iss$e o& he e3isen'e o& n$lli&i'aion or impairmen as a

422.nie" ,aes appellees s$bmission para/ 95 (D$oing E$ropean omm$niies &irs %riens$bmission o he anel)/

42

.nie" ,aes appellees s$bmission paras/ 96-98 (re&erring o ATT anel epor /# – #uperfund para/ 5/49)/




T*+,27*A!*2*E.T*+,27*A!**.,A

age 7

res$l o& a violaion $n"er Ari'le /8 o& he +,. %ih he iss$e o& %ha he a'$al level o&

n$lli&i'aion or impairmen is $n"er Ari'le 22/6 o& he +,./425

8/ Noi'e o& Appeal

4/ The .nie" ,aes 'onen"s ha he E$ropean omm$niies Noi'e o& Appeal "oes no

sais&# he reD$iremens o& $le 20(2)(")(iii) o& he >or0ing Procedures be'a$se i "oes no 'onain

an in"i'aive lis o& he paragraphs o& he anel epor 'onaining he allege" errors as reD$ire" $n"er

ha $le/426 The .nie" ,aes &$rher s$bmis ha 'omplian'e o& he Noi'e o& Appeal %ih

$le 20(2)(")(i) is "o$b&$l be'a$se several paragraphs o& he Noi'e o& Appeal spea@ o& Lerroneo$s

&in"ingsL o& he anel %iho$ i"eni&#ing %hi'h &in"ings are allege" o be erroneo$s/ 427 The .nie"

,aes reD$ess he Appellae !o"# o "ismiss he appeal on his basis/

2/ $rher he .nie" ,aes mainains ha he Noi'e o& Appeal ma@es no menion o&

Ari'le 44 o& he +,./ 1n he even ha he Appellae !o"# "oes no "ismiss he appeal in is

enire# he .nie" ,aes soli'is he Appellae !o"# o 'onsi"er he E$ropean omm$niies 'laims

$n"er Ari'le 44 as no properl# be&ore i in @eeping %ih he Appellae !o"#s reamen o& his iss$e

in a previo$s appeal/428

+/ )laims of Error $y Ecuador – =ther Appellant


4/ E'$a"ors oher appeal is 'on"iional $pon he Appellae !o"# reversing he anels

'on'l$sions $n"er Ari'le 11 o& he ATT 499 on he basis o& he iss$es appeale" b# he E$ropean

omm$niies/ 1n ha even E'$a"or reD$ess he Appellae !o"# o reverse he anels &in"ing ha

he ari&& D$oa 'on'ession o& he E$ropean omm$niies on bananas %as inen"e" o e3pire on

4 +e'ember 2002 b# vir$e o& paragraph 9 o& he !ananas rame%or@ Agreemen an" o &in"

insea" ha he 'on'ession remains in e&&e' an" 'onseD$enl# o $phol" he anels 'on'l$sion ha

he E$ropean omm$niies is appl#ing is "$# a a level in'onsisen %ih Ari'le 11:4(b)/

425.nie" ,aes appellees s$bmission para/ 402-40 (re&erring o .nie" ,aes response o anel$esion 2)/

426.nie" ,aes appellees s$bmission para/ 428/427

1n pari'$lar he .nie" ,aes a@es iss$e %ih paragraph 2(a) (') an" (") o& he Noi'e o& Appeal/428.nie" ,aes appellees s$bmission para/ 4 (re&erring o Appellae !o"# epor /# –

)ountervailing Measures on )ertain E) Products para/ 75)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 8

2/ E'$a"or s$bmis ha here is 'onsisen an" over%helming inerpreaive evi"en'e ha no

TO ?ember (in'l$"ing he E$ropean omm$niies) has ever arg$e" ha or a'e" as i& he

E$ropean omm$niies 'on'ession &or bananas e3pire" on 4 +e'ember 2002 $nil he E$ropeanomm$niies isel& ma"e his arg$men in is reb$al s$bmission o his anel/ 1n E'$a"ors vie% he

a'ion an" ina'ion o& TO ?embers in"ivi"$all# (in'l$"ing he E$ropean omm$niies) an"

'olle'ivel# 'o$l" onl# be 'onsi"ere" abs$r" i& he# %ere "one %ih he $n"ersan"ing ha he

'on'ession %o$l" e3pire on 4 +e'ember 2002 or ha" e3pire" as o& ha "ae/429

/ E'$a"or arg$es ha he anels inerpreaion "oes no give e&&e' o all he erms o& he

'on'ession an" ignores 'rii'al 'one3/ E'$a"or "isagrees %ih he anels 'hara'eri=aion o& he

'on'ession as he LD$oa o& 2/2 million m a a bo$n" rae o& M75*mL an" ha he Lerms 'on"iions

an" D$ali&i'aionsL ha he 'on'ession is s$be' o is Lhe !ananas rame%or@ AgreemenL/ 40

A''or"ing o E'$a"or he M75*m "$# is s$be' o vario$s 'on"iions as se o$ in he E$ropean

omm$niies ,'he"$le in'l$"ing b$ no limie" o hose spe'i&ie" in 'ol$mn 7 %hi'h "oes no

rea" Lerms an" 'on"iionsL b$ LOher Terms an" on"iionsL h$s in"i'aing ha hose erms an"

'on"iions Lin"i'ae"L in he Anne3 are Lin additionL o he erms se o$ in he &irs si3 'ol$mns/44

/ E'$a"or "isagrees %ih he anels &in"ing ha all he elemens o& he E$ropean

omm$niies 'on'ession are resae" in he !ananas rame%or@ Agreemen poining o$ ha

elemens s$'h as he &inal ari&& rae an" D$oa D$ani# %ere no/ E'$a"or 'laims ha he anel &aile"

o a@e ino a''o$n ha he Appellae !o"# ha" &o$n" in he original pro'ee"ings ha mos o& he

erms an" 'on"iions se o$ in he !ananas rame%or@ Agreemen %ere in'onsisen %ih he ATT

499/ E'$a"or D$esions he anels &ail$re o arib$e an# signi&i'an'e o L he n$lli&i'aion o& he

erms &or %hi'h he F!ananas rame%or@ AgreemenG provi"es b# &ar he mos "eailL/ 42 E'$a"or

agrees %ih he anel ha he 'on'ession 'anno be rea" in isolaion &rom he !ananas rame%or@

Agreemen as 'onaine" in he Anne3 re&erre" o in 'ol$mn 7/ <o%ever in E'$a"ors vie% he

E$ropean omm$niies ari&& D$oa 'on'ession is no provi"e" in 'ol$mn 7 alone an" ma# no be

rea" as simpl# 'omprising he !ananas rame%or@ Agreemen %iho$ regar" o oher elemens o& he

'on'ession/

429E'$a"ors oher appellans s$bmission para/ 5/40

E'$a"ors oher appellans s$bmission para/ 48 (re&erring o E'$a"or anel epor para/ 7/2)/44E'$a"ors oher appellans s$bmission para/ 20/ (original emphasis)42E'$a"ors oher appellans s$bmission para/ 2/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 9

5/ E'$a"or 'laims ha he anel erre" in &in"ing ha he e3piraion o& he !ananas rame%or@

Agreemen L%o$l" a$omai'all# impl# FheG e3piraion o& he E$ropean omm$niies ari&& D$oa

'on'ession $n"er he erms o& is ,'he"$le/L

4

A''or"ing o E'$a"or Li is legall# possible /// o se aime limi as a 'on"iion o& a 'on'essionL4 %hen his is "one 'learl# %hi'h %as no he 'ase %ih

paragraph 9 o& he !ananas rame%or@ Agreemen/

6/ E'$a"or arg$es ha i is possible o give legal e&&e' o paragraph 9 o& he !ananas

rame%or@ Agreemen %iho$ invali"aing he enire E$ropean omm$niies ari&& D$oa

'on'ession/ A''or"ing o E'$a"or a pla$sible inerpreaion o& paragraph 9 %o$l" be ha he oher

erms an" 'on"iions se o$ in he !ananas rame%or@ Agreemen s$'h as he D$oa allo'aion

provisions %o$l" e3pire on 4 +e'ember 2002 leaving onl# he M75*m "$# 'on'ession &or

2/2 million m/ 1n s$ppor o& his arg$men E'$a"or arg$es ha given he obligaions o& Ari'le 111

?embers 'anno e3pe' o reain D$oa allo'aion righs in"e&iniel#/

7/ E'$a"or s$bmis ha is inerpreaion o& he !ananas rame%or@ Agreemen as 'onaining

a D$oa allo'aion %ih a ime-limi %o$l" no re"$'e paragraph 9 o& he !ananas rame%or@

Agreemen o in$ili#B raher i %o$l" Lgive e&&e' o all he %or"s o& he 'on'ession in'l$"ing b$

no limie" o he F!ananas rame%or@ AgreemenG as i %as in'orporae"L ino he E$ropean

omm$niies ,'he"$le/ E'$a"or arg$es ha is inerpreaion %o$l" also avoi" he L'ompleel#

impla$sibleL45 inerpreaion o& he 'ommon inenion o& he TO ?embers %ih regar" o he

'on'ession o& 499 $nil he ?embers e3en"e" he 'on'ession in 2002/

8/ E'$a"or &$rher re&ers o evi"en'e s$pporing he proposiion ha he 'on'ession %as never

inen"e" o e3pire on a''o$n o& paragraph 9 o& he !ananas rame%or@ Agreemen/ 1n pari'$lar

E'$a"or arg$es ha: (i) a ime-limie" minim$m a''ess 'ommimen %o$l" have been "ire'l#

'onrar# o he ?o"aliies aper ha g$i"e" he .r$g$a# o$n" negoiaionsB (ii) he +oha Ari'le 1

aiver %as base" on he premise ha an" reD$ire" ha he 'on'ession remain bo$n" $nless an"

$nil rebo$n"B (iii) n$mero$s saemens ma"e b# he E$ropean omm$niies an" b# arbiraors in

2005 a'@no%le"ge" or %ere base" on he 'onin$e" bin"ing 'hara'er o& he 'on'ession $n"er

Ari'le 11B an" (iv) he E$ropean omm$niies &ile" Ari'le ;111:5 noi&i'aions in C$l# 200 an"

in Can$ar# 2005 on he ass$mpion ha he ari&& D$oa 'on'ession %as sill in &or'e/46 1n his

respe' E'$a"or noes ha in hese noi&i'aions he E$ropean omm$niies anno$n'e" is inenion

4E'$a"ors oher appellans s$bmission para/ 26/4

E'$a"ors oher appellans s$bmission para/ 27/45E'$a"ors oher appellans s$bmission para/ 2/46,ee Noi&i'aions supra &oonoe Error: e&eren'e so$r'e no &o$n"/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 50

o %ih"ra% 'on'essions (in he pl$ral)/ E'$a"or &$rher 'onen"s ha no ?ember %o$l" invo@e

Ari'le ;111:5 pro'e"$res o lo%er is bo$n" rae/47

9/ E'$a"or arg$es ha he anels vie% o& he obe' an" p$rpose o& he 'overe" agreemens

"oes no a"" an# %eigh o he anels erroneo$s inerpreaion o& he &irs senen'e o& paragraph 9 o&

he !ananas rame%or@ Agreemen/ A''or"ing o E'$a"or he anel rea" he obe' an" p$rpose o&

he !ananas rame%or@ Agreemen broa"l# an" emphasi=e" he obe'ive herein o& Lpromoing

se'$ri# an" pre"i'abili# o& inernaional ra"eL in or"er o $si&# is 'on'l$sions regar"ing

paragraph 9/ E'$a"or 'onen"s ho%ever ha he obe'ives o& Le3pan"ing ra"e in goo"s an"

servi'es an" re"$'ing barriers o ra"e hro$gh he negoiaion o& re'ipro'al an" m$$all#

a"vanageo$s arrangemensL48 %o$l" be harme" b# impl#ing he erminaion o& he 'on'ession/

?oreover E'$a"or arg$es ha in is anal#sis o& he obe' an" p$rpose o& he TO agreemens in

relaion o he E$ropean omm$niies ari&& D$oa 'on'ession he anel &aile" o 'onsi"er he sae"

p$rposes o& he Agreement on Agriculture %hi'h in is preamble saes he inen o& 'reaing a

Lre&orm pro'essL ha %o$l" enable Ls$bsanial progressive re"$'ionsL in proe'ion over ime/49

E/ Arguments of the European )ommunities – Appellee


4/ The E$ropean omm$niies 'onen"s ha E'$a"ors oher appeal is L'on"iionalL an"

here&ore he Appellae !o"# %ill have o e3amine i onl# i& he Appellae !o"# a''eps he E$ropean

omm$niies appeal o& he anels &in"ings on he p$rpore" e&&e's o& he +oha Ari'le 1 aiver on

he ari&& D$oa 'on'ession in he E$ropean omm$niies ,'he"$le o& on'essions/40

2/ The E$ropean omm$niies agrees %ih he anels 'on'l$sion ha he ari&& bin"ing on

bananas in he E$ropean omm$niies ,'he"$le o& on'essions L%as $neD$ivo'all# inen"e" o

e3pire on 4 +e'ember 2002L/44 1n he E$ropean omm$niies vie% Ari'le 11:4(b) o& he ATT

499 e3pressl# provi"es ha TO ?embers ma# legall# gran 'on'essions s$be' o Lerms

'on"iions an" D$ali&i'aionsL/ ?oreover i is %ell sele" ha a ime limiaion in he "$raion o& a

'on'ession D$ali&ies as a Lerm 'on"iion or D$ali&i'aionL/42 or hese reasons he E$ropean

47E'$a"ors oher appellans s$bmission para/ /48E'$a"ors oher appellans s$bmission para/ 29/49E'$a"ors oher appellans s$bmission para/ 0/ (emphasis omie")40E$ropean omm$niies appellees s$bmission para/ 4 (E'$a"or) (re&erring o E'$a"ors oher

appellans s$bmission para/ 8)/44E$ropean omm$niies appellees s$bmission para/ 5 (E'$a"or) (re&erring o E'$a"or anel epor

para/ 7/6)/42E$ropean omm$niies appellees s$bmission para/ 8 (E'$a"or) (re&erring o ATT anel epor/# – #ugar >aiver para/5/8)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 54

omm$niies "isagrees %ih E'$a"or ha LgranFingG a ime-limie" a''ess 'ommimen &or an

agri'$l$ral pro"$' %o$l" D$ali&# as a 'one3$al sho'@ an" %o$l" be a 'ompleel# impla$sible

even abs$r" inerpreaion o& he 'ommon inenion o& he TO members/L

4

/ The E$ropean omm$niies arg$es ha i is 'ommon pra'i'e &or TO ?embers o in'l$"e

Lerms 'on"iions an" D$ali&i'aionsL o& heir 'on'essions eiher in he se'ion o& Lhea"noesL ($s$all#

%hen he# appl# o all 'on'essions in he spe'i&i' par or se'ion o& he ,'he"$le) or in Lanne3esL

($s$all# %hen he# appl# o a spe'i&i' 'on'ession or gro$p o& 'on'essions)/ The E$ropean

omm$niies &$rher 'onen"s ha re&eren'e o he 'orrespon"ing Lanne3L is $s$all# &o$n" in he

'ol$mn enile" L'ommensL or Loher erms an" 'on"iionsL/ A''or"ing o he E$ropean

omm$niies all erms o& a ,'he"$le have he same legal val$e irrespe'ive o& %heher he# are

pla'e" $n"er he 'ol$mns o& a spe'i&i' se'ion in he Lhea"noesL o he se'ion or in he Lanne3esL o

he se'ion/ There&ore he anel %as 'orre' in 'on'l$"ing ha he E$ropean omm$niies ari&&

D$oa 'on'ession &or bananas provi"e" in 'ol$mn 7 o& ar 1 ,e'ion 1-! o& he E$ropean

omm$niies ,'he"$le4 'anno be rea" in isolaion &rom he erms in he !ananas rame%or@

Agreemen anne3e" o E$ropean omm$niies ,'he"$le/45 The E$ropean omm$niies &$rher

'laims ha he e3 o& he Anne3 'learl# provi"e" &or a ime limiaion o& he 'on'ession (ha is 4

+e'ember 2002) an" ha he 'one3 o& he Anne3 also &$ll# 'on&irme" his inerpreaion o& he e3/

/ onrar# o E'$a"ors 'laim he E$ropean omm$niies 'onen"s ha he sr$'$re o& TO

?embers ATT ,'he"$les o& on'essions ma@es 'lear ha ol$mn 7 is he mos appropriae pla'e

o in'l$"e he re&eren'e o Lerm 'on"iion an" D$ali&i'aionL/ The E$ropean omm$niies "isagrees

%ih E'$a"ors arg$men ha he ime limiaion sho$l" no appl# o he E$ropean omm$niies

,'he"$le be'a$se i is pla'e" in he Anne3 an" no on he same page o& he ,'he"$le %ih he

'ol$mns/ 1n he E$ropean omm$niies vie% his arg$men sho$l" be ree'e" be'a$se i %o$l"

'reae 'on&$sion as o he legal e&&e's o& Lerms 'on"iions or D$ali&i'aionsL %hi'h are no pla'e" in

he L'ol$mnsL o& TO ?embers ,'he"$les "$e o spa'e 'onsrains/

5/ ?oreover he E$ropean omm$niies s$bmis ha he ari&& on bananas &rom E'$a"or an"

oher ?N s$pplier 'o$nries applie" in he perio" be%een he en" o& 2002 an" he en" o& 2005 %as

no inen"e" o be bo$n" in he ,'he"$le o& on'essions/ The E$ropean omm$niies arg$es ha he

more &avo$rable ari&& reamen %as applie" onl# as a 'onseD$en'e o& he .n"ersan"ing on !ananas

4E$ropean omm$niies appellees s$bmission para/ 24 (E'$a"or)/4The relevan e3'erps &rom ar 1 ,e'ion 1-! o& he E$ropean omm$niies ,'he"$le > are

repro"$'e" in Anne3 ;1 aa'he" o his epor/45E$ropean omm$niies appellees s$bmission para/ 42 (E'$a"or) (re&erring o E'$a"or anelepor para/ 7/26)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 52

6/ agree" o in 2004 an" ha E'$a"or 'anno $se he E$ropean omm$niies goo" &aih

implemenaion o& he erms o& he .n"ersan"ing agains he E$ropean omm$niies an" see@ o

rans&orm ha applie" &avo$rable rae ino a bo$n" rae/

7/ The E$ropean omm$niies &$rher 'onen"s ha he e3 an" 'one3 o& he ,'he"$le 'o$l"

no be mo"i&ie" or inerpree" b# he "es'ripion o& he E$ropean omm$niies bananas impor

regime in he 2005 arbiraion pro'ee"ings $n"er he Anne3 on !ananas o he +oha Ari'le 1 aiver

be'a$se s$'h pro'ee"ings oo@ pla'e o$si"e he r$les o& he +,. an" he obe' %as no o "eermine

he banana 'on'ession bo$n" in he E$ropean omm$niies ,'he"$le/ The E$ropean omm$niies

s$bmis ha he &a' i engage" in negoiaions p$rs$an o Ari'le ;111 o& he ATT 499 "oes

no aler he &a' ha he 'on'ession e3pire" in +e'ember 2002/ The E$ropean omm$niies arg$es

ha ?embers 'an iniiae Ari'le ;111 negoiaions also %ih he inenion o& lo%ering heir ari&&/

The E$ropean omm$niies ha" sare" Ari'le ;111 negoiaions in or"er o implemen is

'ommimens $n"er he erms o& he .n"ersan"ings on !ananas agree" o %ih E'$a"or an" he

.nie" ,aes in 2004/ inall# he E$ropean omm$niies arg$es ha he anel 'o$l" no have relie"

on he ?o"aliies aper o inerpre he E$ropean omm$niies ,'he"$le be'a$se he ?o"aliies

aper isel& provi"es ha i shall Lno be $se" as a basis &or "isp$e selemen pro'ee"ingsL/46

8/ The E$ropean omm$niies here&ore as@s he Appellae !o"# o ree' E'$a"ors oher

appeal an" o $phol" he anels &in"ing ha he ari&& D$oa 'on'ession in he E$ropean omm$niies

,'he"$le o& on'essions e3pire" a he en" o& 2002/

/ Arguments of the 4hird Participants

4/ A o$nries

4/ erain A 'o$nries (he LA o$nriesL47) asser ha he .n"ersan"ings on !ananas

have p$ an en" o he "isp$es on bananas an" here&ore preven he paries o he .n"ersan"ings

&rom s$bseD$enl# iniiaing 'omplian'e pro'ee"ings $n"er Ari'le 24/5 o& he +,./ The A

o$nries &$rher 'onen" ha hese .n"ersan"ings are bin"ing on he paries an" h$s preven hem

&rom p$ing he erms o& he .n"ersan"ings ino D$esion/ The A o$nries allege ha in boh

he E'$a"or an" ., anel epors he anel erre" in is legal inerpreaion an" &in"ings 'on'erning

46E$ropean omm$niies appellees s$bmission para/ 0 (E'$a"or) (D$oing ?o"aliies aper p/ 4)/471n his epor LA o$nriesL re&ers o he &ollo%ing seven 'o$nries ha s$bmie" a oin hir"

pari'ipans s$bmission in he appeal o& he E'$a"or anel epor: !eli=e +omini'a he +omini'an ep$bli'Camai'a ,ain >$'ia ,ain ;in'en an" he rena"ines an" ,$rinameB an" o hese same seven 'o$nries along

%ih ameroon an" Ke "1voire ha s$bmie" a oin hir" pari'ipans s$bmission in he appeal o& he., anel epor/ ameroon oe "1voire an" hana s$bmie" a separae oin hir" pari'ipans s$bmissionin he appeal o& he E'$a"or anel epor/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 5

he .n"ersan"ings on !ananas/ The A o$nries s$bmi ha he meho"olog# applie" b# he

anel %as no 'orre': in or"er o "eermine %heher he .nie" ,aes %as prevene" &rom bringing

his 'omplian'e 'hallenge he anel sho$l" have e3amine" %heher he .n"ersan"ings 'onsi$e"m$$all# agree" sol$ions an" i& no %heher he# 'onsi$e" legall# bin"ing agreemens an" sho$l"

have anal#=e" he legal e&&e's aa'he" o he .n"ersan"ing in eiher 'ase/ The A o$nries

'onen" ha he anel erre" %hen i "i" no 'onsi"er i ne'essar# o anal#=e he Llegal sa$sL o& he

.n"ersan"ings on !ananas an" in pari'$lar %heher he# 'onsi$e" m$$all# agree" sol$ions

%ihin he meaning o& Ari'le /7 o& he +,. or oher%ise legall# bin"ing agreemens/ 1n he .nie"

,aes 'ase he A o$nries ma@e re&eren'e o leers e3'hange" be%een he E$ropean

omm$niies an" he .nie" ,aes on 29 an" 0 ?a# 2004/ 1n he vie% o& he A o$nries he

paries 'on&irme" in hese leers he L'ommon $n"ersan"ingL o& heir agreemen an" he .nie"

,aes a'@no%le"ge" having rea'he" a m$$all# agree" sol$ion %ih he E$ropean omm$niies/48

2/ The A o$nries arg$e &$rher ha i %as in'orre' &or he anel o rel# on he anel

epor in India – Autos be'a$se he m$$all# agree" sol$ion in ha 'ase "i" no relae o he same

maer as he "isp$e be&ore he panel in India – Autos/ <o%ever he A o$nries s$bmi ha in

he presen 'ase he original "isp$e ha" been sele" b# means o& a m$$all# agree" sol$ion he

'onen o& %hi'h 'anno be 'alle" ino D$esion in Ari'le 24/5 pro'ee"ings/ 1n a""iion he A

o$nries obe' o he anels &in"ing ha he .n"ersan"ings 'o$l" pre'l$"e he 'omplainans &rominiiaing Ari'le 24/5 pro'ee"ings onl# i& he .n"ersan"ings 'onsi$e" a Lposiive sol$ion an"

e&&e'ive selemenL o he "isp$e/ The A o$nries s$bmi ha s$'h a san"ar" 'o$l" no be

"erive" &rom he +,./ or he same reason he A o$nries "isagree %ih he hree reasons relie"

$pon b# he anel in is &in"ing ha he .n"ersan"ings "i" no 'onsi$e an impe"imen &or he

'omplainans o iniiae Ari'le 24/5 pro'ee"ings/

/ ih respe' o he &irs reason relie" $pon b# he anel namel# ha he .n"ersan"ings on

!ananas provi"e onl# &or he means or a series o& &$$re seps &or resolving an" seling he "isp$e

he A o$nries asser ha m$$all# agree" sol$ions noi&ie" o he +,! 'an eiher re&er o

meas$res ha have alrea"# been a@en or provi"e &or seps sill o be $n"era@en/ 1n his respe' he

A o$nries ma@e re&eren'e o he m$$all# agree" sol$ion in Australia – Automotive Leather II

an" asser ha his m$$all# agree" sol$ion ses o$ a series o& elemens o be $n"era@en in he

&$$re/

48Thir" pari'ipans s$bmission o& he A o$nries paras/ 6 an" 7 (.,)B anel E3hibi E-/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 55

7/ The A o$nries &$rher mainain ha he anel &aile" o a@e ino a''o$n he 'onsisen

pra'i'e o& TO ?embers o impose 'eilings on pre&erenial impors an" o 'onsi"er hem 'overe" b#

he Enabling la$se or Ari'le 1; o& he ATT 499/ The A o$nries 'onen" ha i& pre&erenial a''ess 'onsisen %ih Ari'le 1 b# vir$e o& a %aiver or Ari'le 1; &ell a&o$l o&

Ari'le 111 o& he ATT 499 an" i& his pre&erenial a''ess %ere 'appe" hen vir$all# all

pre&erenial ari&& D$oas $se" in he 'one3 o& &ree ra"e agreemens %o$l" pres$mabl# be TO-

in'onsisen/ 1n a""iion he A o$nries 'laim ha he anel &aile" o a''ep ha Ari'le 111:2 is

no appli'able be'a$se he E !ananas 1mpor egime "i" no appl# an# D$aniaive resri'ions/ 1n

respe' o& he ., anel epor he A o$nries s$bmi in he alernaive ha even i& he anels

inerpreaion o& Ari'le 111:2 %as 'orre' i %o$l" no be appli'able o he .nie" ,aes as i

LF'annoG 'laim o have e3pe'e" an# mar@e share ha goes above =ero in he E$ropean mar@eL/45

8/ 1n he E'$a"or 'ase he A o$nries allege ha he anel erre" in &in"ing ha he

E$ropean omm$niies is bo$n" b# he ari&& D$oa 'on'ession o& 2/2 million m a M75*m/ The A

o$nries re&er o he anels &in"ing ha he ari&& D$oa &or bananas %as s$be' o he erms an"

'on"iions se &orh in he !ananas rame%or@ Agreemen %hi'h provi"e" ha he agreemen %o$l"

e3pire on 4 +e'ember 2002/ The A o$nries arg$e ha here&ore he E$ropean omm$niies

ari&& D$oa 'on'ession &or bananas ha" e3pire" a he en" o& 2002 an" ha 'onseD$enl# he anel

sho$l" have "ismisse" E'$a"ors 'laim $n"er Ari'le 11 o& he ATT 499/

9/ The A o$nries also 'ones he anels inerpreaion o& he +oha Ari'le 1 aiver as a

Ls$bseD$en agreemenL mo"i&#ing he E$ropean omm$niies ,'he"$le o& on'essions/ 1n heir

vie% Lmo"i&i'aionL is a 'on'ep ha 'o$l" no reasonabl# be regar"e" as 'overe" b# or in'l$"e" in

he erms LinerpreaionL an" Lappli'aionL as se &orh in Ari'le 4()(a) o& he 8ienna )onvention/

The A o$nries obe' o he anels &in"ing ha he preamble o& he +oha Ari'le 1 aiver

e3presse" he TO ?embers L'ommon inenionL ha he in-D$oa ari&& applie" o bananas shall no

e3'ee" 75MQm an" ha an# rebin"ing $n"er Ari'le ;111 o& he ATT 499 sho$l" res$l in a

leas mainaining oal mar@e a''ess &or ?N banana s$ppliers/ The A o$nries s$bmi ha his

inerpreaion %o$l" a"" obligaions be#on" hose negoiae" an" a''epe" b# he TO ?embers/

40/ 1n he .nie" ,aes 'ase he A o$nries &$rher s$bmi ha here is no n$lli&i'aion or

impairmen o& bene&is a''r$ing o he .nie" ,aes as i "oes no e3por bananas o he E$ropean

omm$niies/ The A o$nries 'onen" ha in he original "isp$e impairmen %as &o$n" in

relaion o he E$ropean omm$niies violaion o& is AT, 'ommimens/ <o%ever in he presen

'ase AT, 'ommimens are no a iss$e/ The A o$nries arg$e ha &or he .nie" ,aes o

45Thir" pari'ipans s$bmission o& he A o$nries para/ 72 (.,)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 56

have s$&&ere" n$lli&i'aion or impairmen as a res$l o& a violaion o& he ATT 499 he .nie"

,aes %o$l" have o have an e3por ra"e in bananas o he E$ropean omm$niies %hi'h i "oes no

have/ There&ore he A o$nries s$bmi ha he .nie" ,aes "i" no s$&&er n$lli&i'aion orimpairmen &rom he E !ananas 1mpor egime/ The A o$nries &$rher arg$e ha he .nie"

,aes in is arg$mens 'on&$se" he iss$e o& n$lli&i'aion or impairmen %ih he D$esion o& %heher

he .nie" ,aes ha" san"ing/

44/ A he oral hearing ,$riname arg$e" ha he ?o"aliies aper 'o$l" no be $se" as a means

o s$ppor he anal#sis o& he or"inar# meaning o& he ari&& D$oa 'on'ession &or bananas be'a$se i is

no par o& he E$ropean omm$niies ,'he"$le o& on'essions an" a''or"ing o an e3press

provision in he ?o"aliies aper i 'anno serve as a s$pplemenar# means o& inerpreaion in he

'one3 o& "isp$e selemen/ +omini'a 'onen"e" ha i& he anels reasoning %ere &ollo%e" an#

'ap on pre&erenial a''ess &or he A o$nries %o$l" also r$n a&o$l o& Ari'le 1;:5(b) o& he

ATT 499 %hi'h pre'l$"es Lmore resri'iveL reg$laions o& 'ommer'e on ?N ra"e in he

'one3 o& he 'reaion o& a &ree ra"e agreemen/

2/ !ra=il

4/ $rs$an o $le 2(2) o& he >or0ing Procedures !ra=il 'hose no o s$bmi a hir"

pari'ipans s$bmission/ !ra=ils saemen a he oral hearing &o'$se" on he legal e&&e's o& he

.n"ersan"ings on !ananas an" he anels &in"ings %ih respe' o Ari'le 11 o& he ATT 499/

/ ameroon oe "1voire an" hana

4/ ameroon oe "1voire an" hana allege ha in he E'$a"or 'ase he anel &aile" o

properl# a@e ino a''o$n he ?iniserial +e'laraion o& 4 November 2004/ The# s$bmi ha he

anel erre" in &in"ing ha he 'on"iions &or he %aiver &rom Ari'le 1 o& he ATT 499 grane" b#

he ?iniserial +e'ision on 4 November 2004 ha" no been me/ ameroon oe "1voire an"

hana asser ha he E$ropean omm$niies ha" 'omplie" %ih he seps se o$ in he Anne3 on

!ananas o he +oha Ari'le 1 aiver/

2/ ameroon oe "1voire an" hana &$rher 'onen" ha he E$ropean omm$niies ha"

alere" he level o& he envisage" rebin"ing o& he '$soms "$# on bananas in a''or"an'e %ih he

"e'ision in he arbiraion pro'ee"ing p$rs$an o he Anne3 on !ananas/ The# &$rher allege ha he

anel &aile" o a@e ino a''o$n a "e'ision a@en a he ime o& he <ong Rong ?iniserial

on&eren'e a''or"ing o %hi'h a reg$lar e3aminaion o& ra"e in bananas %o$l" be 'arrie" o$ $n"er

he aegis o& he ?iniser o& Tra"e o& Nor%a#/ 45 ameroon oe "1voire an" hana 'onen" ha he

45Thir" pari'ipans s$bmission o& ameroon oe "1voire an" hana para/ 40 (E'$a"or)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 57

res$ls o& his monioring pro'ess "emonsrae" ha mar@e a''ess &or ?N s$ppliers ha" in'rease"

'onsi"erabl#/ The# allege ha he anel &aile" o ma@e an obe'ive assessmen o& he maer b# no

a@ing his ino a''o$n/

/ A''or"ing o ameroon oe "1voire an" hana he anel %rongl# 'on'l$"e" ha i "i"

no have he a$hori# o "eermine %heher he E !ananas 1mpor egime res$le" in La leas

mainaining oal mar@e a''ess &or ?N banana s$ppliersL/ 455 The# s$bmi ha insea" he anel

sho$l" have e3amine" he Lren" o& banana impors 'oming &rom ?N 'o$nries o''$rring in 2006

an" 2007 $n"er he ne% regime in 'omparison %ih hose ha ha" a@en pla'e %ihin he remi o& he

&ormer regimeL456 an" assesse" his in he ligh o& he a''ess 'ommimens 'onaine" in he Anne3 o

he +oha Ari'le 1 aiver/ 1n his respe' ameroon oe "1voire an" hana s$bmi ha banana

impors &rom ?N 'o$nries o he E$ropean omm$niies in'rease" b# 60000 m in 2006

'ompare" o 2005 an" b# 680000 m in 2007 'ompare" o 2005/ 457 The# &$rher mainain ha he

n$mber o& e3porers &rom ?N 'o$nries has in'rease" &ollo%ing he eliminaion o& he impor D$oa

li'enses/

/ olombia

4/ olombia arg$es ha he E$ropean omm$niies ari&& D$oa 'on'ession &or bananas "i"

no e3pire on 4 +e'ember 2002 an" ha here&ore he E !ananas 1mpor egime %as in'onsisen

%ih he E$ropean omm$niies obligaions $n"er Ari'le 11:4(b) o& he ATT 499/ olombia

'onen"s ha he E$ropean omm$niies ,'he"$le provi"es &or an in"e&inie 2/2 million m ari&&

D$oa 'on'ession &or bananas ha is no "epen"en on he !ananas rame%or@ Agreemen/ <o%ever

olombia mainains ha %hile he 'ommimens se o$ in he !ananas rame%or@ Agreemen

e3pire" on 4 +e'ember 2002 p$rs$an o paragraph 9 o& ha agreemen he 'ommimens separael#

ins'ribe" in 'ol$mns an" o& he E$ropean omm$niies ,'he"$le "i" no e3pire on ha "ae/

olombia alleges ha he anel ass$me" ha he erms o& he !ananas rame%or@ Agreemen

D$ali&ie" he "$raion o& he 'ommimens separael# ins'ribe" in 'ol$mns an" /458 A''or"ing o

olombia i& he "ra&ers ha" inen"e" o limi he "$raion o& he ari&& D$oa 'on'ession &or bananas

he# %o$l" have ma"e spe'i&i' re&eren'e o L'on'essions ins'ribe" in 'ol$mns an" o& he Es

,'he"$leL in paragraph 9 o& he anne3e" !ananas rame%or@ Agreemen or oher%ise e3pli'il#

lin@e" he "$raion o& he 'on'essions o he "$raion o& he !ananas rame%or@ Agreemen/459

455 Thir" pari'ipans s$bmission o& ameroon oe "1voire an" hana para/ 45 (E'$a"or)/456Thir" pari'ipans s$bmission o& ameroon oe "1voire an" hana para/ (E'$a"or)/457Thir" pari'ipans s$bmission o& ameroon oe "1voire an" hana para/ 6 (E'$a"or)/458

olombias hir" pari'ipans s$bmission para/ 7 (E'$a"or) (re&erring o E'$a"or anel epor paras/ 7/28-7/29)/

459olombias hir" pari'ipans s$bmission para/ 8 (E'$a"or)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 59

/ sol$ion $nilaerall# an" noi&# a selemen agreemen o preven anoher par# &rom

bringing a 'omplian'e "isp$e/ Capan 'onen"s ha $nless he paries o a m$$all# agree" sol$ion

e3pli'il# relinD$ish heir righs $n"er he +,. in he m$$all# agree" sol$ion ha sol$ion sho$l"no be inerpree" as barring he 'omplaining par# &rom p$rs$ing 'hallenges in TO "isp$e

selemen/ Capan mainains ha in he 'one3 o& he presen 'ase he .n"ersan"ings on !ananas "o

no have s$'h e&&e'/

/ Capan &$rher agrees %ih he anel in he "isp$e iniiae" b# he .nie" ,aes ha he

E !ananas 1mpor egime %as a Lmeas$re a@en o 'ompl#L %ih he re'ommen"aions an" r$lings

o& he +,! in he original pro'ee"ings an" h$s &ell %ihin he p$rvie% o& 'omplian'e pro'ee"ings

p$rs$an o Ari'le 24/5 o& he +,./ Capan 'onen"s ha he iming na$re an" e&&e' o& he

E !ananas 1mpor egime as %ell as he &a' ha paragraph A o& he .n"ersan"ings on !ananas

i"eni&ies he E !ananas 1mpor egime as a meas$re Lb# %hi'h he long san"ing "isp$e over he

Es banana impor regime 'an be resolve"L are evi"en'e o& a Lpari'$larl# 'lose relaionshipL o& he

E !ananas 1mpor regime %ih he r$ling an" re'ommen"aions o& he +,!/462

5/ inall# in he .nie" ,aes 'ase Capan &$rher s$ppors he anels ree'ion o& he

E$ropean omm$niies preliminar# obe'ion as o he san"ing o& he .nie" ,aes o iniiae a

"isp$e an" he allege" la'@ o& n$lli&i'aion or impairmen o& bene&is s$&&ere" b# he .nie" ,aes/

1n his respe' Capan mainains ha he anel 'orre'l# 'on'l$"e" ha he E$ropean omm$niies ha"

no reb$e" he pres$mpion in Ari'le /8 o& he +,. p$rs$an o %hi'h he E !ananas 1mpor

egime n$lli&ie" or impaire" bene&is a''r$ing o he .nie" ,aes/

6/ ?e3i'o

4/ $rs$an o $le 2(2) o& he >or0ing Procedures ?e3i'o 'hose no o s$bmi a hir"

pari'ipans s$bmission/ A he oral hearing ?e3i'os 'ommens &o'$se" on he legal e&&e's o&

m$$all# agree" sol$ions an" he legal sa$s o& Ls$ggesionsL ma"e b# a panel p$rs$an oAri'le 49/4 o& he +,./

7/ anama an" Ni'arag$a

4/ anama an" Ni'arag$a s$bmi ha he anel 'orre'l# &o$n" ha he A pre&erenial ari&&

D$oa violaes Ari'le 111:4 an" 2 o& he ATT 499/ A''or"ing o anama an" Ni'arag$a i&

"is'riminaor# pre&erenial ari&& D$oas %ere permie" o es'ape Ari'le 111 "is'iplines on he

462Capans hir" pari'ipans s$bmission para/ 2 (.,) (re&erring o .n"ersan"ing on !ananas (.,)T*+,27*59 ***270 para/ A)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 60

2/ gro$n"s ha oher e3'l$"e" non-pre&erre" s$ppliers %ere s$be' o a L"i&&eren ari&& raeL

here %o$l" be no limi o he ra"e resri'ions 'a$se" b# he D$aniaive elemen o& pre&erre" ari&&

D$oas/

46

/ 1n relaion o he E'$a"or anel epor anama an" Ni'arag$a reD$es he Appellae !o"#

o ree' he E$ropean omm$niies preliminar# allegaion ha he Lse'on" s$ggesionL o& he &irs

E'$a"or Ari'le 24/5 panel barre" he anel in hese pro'ee"ings &rom assessing he ne% E$ropean

omm$niies ari&& D$oa $n"er Ari'le 24/5 o& he +,./

/ egar"ing Ari'le 111 o& he ATT 499 anama an" Ni'arag$a "isagree %ih he

E$ropean omm$niies arg$men ha he anel misinerpree" he noion o& Lresri'ionL in

Ari'le 111:4/ anama an" Ni'arag$a arg$e ha he anel 'orre'l# "eermine" ha an e3'l$sive

pre&erenial ari&& D$oa reserve" &or A s$ppliers ha "enies all a''ess &or ?N 'o$nries

represens a Lresri'ionL on hose ?N s$ppliers %ihin he meaning o& Ari'le 111:4/ anama an"

Ni'arag$a s$bmi ha he anel 'orre'l# &o$n" on he basis o& Ari'le 111:5 ha Ari'le 111

applies o Lan# ari&& D$oaL irrespe'ive o& %heher a similar D$aniaive resri'ion is also applie" o

oher ?embers/ 1n heir vie% his inerpreaion o& Ari'le 111 is 'onsisen %ih he &in"ings o& he

Appellae !o"# in he original E) – Bananas III pro'ee"ings/46

5/ anama an" Ni'arag$a arg$e ha Ari'le 111 provi"es &or sri' non-"is'riminaion

reD$iremens so ha %hen he E$ropean omm$niies applie" a D$aniaive limi o is A ari&&

pre&eren'e i %as Lver# m$'h oblige" o sais&# he Ari'le 111 non-"is'riminaion (i/e/ ?N)

r$le/L465 anama an" Ni'arag$a also 'onen" ha here is no TO %aiver pra'i'e revealing a

L'ommon $n"ersan"ingL among TO ?embers ha pre&erenial ari&& D$oas are e3emp &rom

Ari'le 111/ On he 'onrar# he# s$bmi ha re'en %aiver pra'i'e a&er he E) – Bananas III 'ase

'learl# "emonsraes ha pre&erenial ari&& D$oas reD$ire a %aiver &rom Ari'le 111 in'l$"ing he

%aiver reD$ese" b# he E$ropean omm$niies &or he pre&erenial A ari&& D$oa p$rs$an o he

.n"ersan"ings on !ananas/

6/ anama an" Ni'arag$a arg$e ha he 'hapea$ o& Ari'le 111:2 applies regar"less o&

%heher here are several ari&& D$oas or a single ari&& D$oa o %hi'h ?N s$ppliers are "enie"

a''ess/ anama an" Ni'arag$a also s$bmi ha he E$ropean omm$niies pre&erenial A ari&&

D$oa violae" he obligaion in he 'hapea$ o& Ari'le 111:2 Lo aim a a "isrib$ion o& ra"e in

bananas

46Thir" pari'ipans s$bmissions o& anama an" Ni'arag$a para/ 40 (E'$a"or) para/ 40 (.,)/46

Thir" pari'ipans s$bmissions o& anama an" Ni'arag$a para/ 5 (E'$a"or) para/ 22 (.,) (D$oingAppellae !o"# epor E) – Bananas III para/ 490)/

465Thir" pari'ipans s$bmissions o& anama an" Ni'arag$a para/ 0 (E'$a"or) para/ 27 (.,)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 64

7/ resembling he shares ha %o$l" have o''$rre" in he absen'e o& ha resri'ionL be'a$se

i grane" a mar@e share o A non-s$bsanial s$ppliers ha %as no a''or"e" o oher s$ppliers/ 466

egar"ing Ari'le 111:2(") anama an" Ni'arag$a 'onen" ha he E$ropean omm$niies 'o$l"no have ma"e an allo'aion o an# s$bsanial ?N s$pplier base" on a Lrepresenaive perio"L

be'a$se he E$ropean omm$niies mar@e ha" been s$be' o 'onin$o$s "is'riminaion %hi'h

ma"e i impossible o "e&ine a Lprevio$s represenaive perio"L/467

8/ 1n relaion o he ., anel epor anama an" Ni'arag$a 'onen" ha he anel 'orre'l#

applie" he previo$s &in"ings in E) – Bananas III regar"ing he iss$es o& Ln$lli&i'aion or

impairmenL an" Lsan"ingL/468 ?oreover anama an" Ni'arag$a 'onsi"er ha he anel "i" no have

o e3plain ho% he .nie" ,aes poenial e3por ineres an" inernal mar@e %o$l" be a&&e'e"

be'a$se Lhe &in"ings o& /# – #uperfund /// esablishe" ha a 'laim o& no or insigni&i'an ra"e e&&e's

is irrelevan o n$lli&i'aion or impairmen/L469

9/ anama an" Ni'arag$a also reD$es he Appellae !o"# o ree' he E$ropean

omm$niies 'laim ha he pres$mpion o& n$lli&i'aion or impairmen 'a$se" b# he "is'riminaor#

D$aniaive limi 'an be 'onsi"ere" one an" he same %ih he n$lli&i'aion an" impairmen $n"er

Ari'le 1/ 1n anamas an" Ni'arag$as vie% he E$ropean omm$niies 'on'ern o& La""iional or

"o$ble 'o$ne" n$lli&i'aion or impairmenL is mispla'e" be'a$se i L'on&$ses Fhe maer o&G he

n$lli&i'aion or impairmen esablishe" b# an in&ringemen $n"er he 'over agreemens %ih he level

o& n$lli&i'aion or impairmen separael# a""resse" $n"er Ari'le 22 o& he +,.L %hi'h is no a iss$e

in he presen 'ase/470

40/ anama an" Ni'arag$a s$ppor he anels 'on'l$sion ha he E$ropean omm$niies

,'he"$le o& on'ession "i" no e3pire on 4 +e'ember 2002 (he erminaion "ae o& he !ananas

rame%or@ Agreemen) b$ %as e3en"e" $nil Ari'le ;111 rebin"ing pro'e"$res %ere

'on'l$"e"/ anama an" Ni'arag$a s$bmi ha he E$ropean omm$niies has Lnever once in he

4-#ear hisor# o& he E) – Bananas IIIC "isp$eL474 'laime" ha is M75*m .r$g$a# o$n"

'on'essions e3pire" as o& 4 +e'ember 2002/ anama an" Ni'arag$a s$bmi ha o a''ep he

E$ropean omm$niies arg$mens %o$l" mean he appli'aion o& a bo$n" rae o& M680*mPa

'on'ession eD$ivalen o La ban on all ?N a''ess ino he %orl"s larges banana mar@eL/472

466Thir" pari'ipans s$bmissions o& anama an" Ni'arag$a para/ 50 (E'$a"or) para/ 7 (.,)/467Thir" pari'ipans s$bmissions o& anama an" Ni'arag$a para/ 52 (E'$a"or) para/ 9 (.,)/468Thir" pari'ipans s$bmission o& anama an" Ni'arag$a para/ (.,) (re&erring o Appellae !o"#

epor E) – Bananas III para/ 254)/469Thir" pari'ipans s$bmission o& anama an" Ni'arag$a para/ 6 (.,)/470Thir" pari'ipans s$bmissions o& anama an" Ni'arag$a para/ 58 (E'$a"or) para/ 8 (.,)/

(original emphasis)474Thir" pari'ipans s$bmission o& anama an" Ni'arag$a para/ 6 (E'$a"or)/ (original emphasis)472Thir" pari'ipans s$bmission o& anama an" Ni'arag$a para/ 6 (E'$a"or)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 62

44/ anama an" Ni'arag$a 'onen" ha he anel 'orre'l# rea" in paragraph 9 o& he !ananas

rame%or@ Agreemen ha he E$ropean omm$niies in-D$oa bananas 'on'ession %as D$ali&ie"

no onl# b# he erminaion "ae o& 4 +e'ember 2002 b$ also b# he reD$iremen ha LF&G$ll'ons$laions %ih he >ain Ameri'an s$ppliers ha are ATT ?embers sho$l" sar no laer han in

#ear 2004L/47 1n anamas an" Ni'arag$as vie% he anel 'orre'l# inerpree" he +oha Ari'le 1

aiver as a s$bseD$en agreemen regar"ing he appli'aion o& he E$ropean omm$niies ,'he"$le

o& on'essions in a''or"an'e %ih Ari'le 4()(a) o& he 8ienna )onvention/ anama an" Ni'arag$a

arg$e ha he 8ienna )onvention "oes no reD$ire an# &ormal "e'ision o& he paries or a Lposiivel#

e3press 'onsen o be bo$n"L47 o an inernaional agreemen/ ?oreover anama an" Ni'arag$a

'onen" ha as he +oha Ari'le 1 aiver %as a"ope" b# he ?iniserial on&eren'e Lhe op-mos

"e'ision-ma@ing bo"# o& he TOL i ha" all he a$hori# Lo a@e a "e'ision b# 'onsens$s regar"ing

he appli'aion o& he 'ons$laion prerogaives o& paragraph 9 o& he F!ananas rame%or@

AgreemenG so as o e3en" he Es 'on'essions $nil rebo$n" prior o Tari&& Onl#/L475

42/ anama an" Ni'arag$a s$ppor he anels 'on'l$sion ha Lb# "ela#ing Ari'le ;111

rebin"ing pro'e"$res /// ?embers %ere ne'essaril# re&le'ing heir inenion o 'onin$e he Es

e3ising 'on'ession $nil Ari'le ;111 rebin"ing pro'e"$res %ere 'omplee"/L476 ?oreover

anama an" Ni'arag$a arg$e ha LFiG& he onl# 'on'ession o be proe'e" b# an# rebin"ing %as he

prohibiive 680M*m ari&& i %o$l" have been illogi'al &or he ?embers o sae ha all E TOmar@e-a''ess 'ommimens m$s a leas mainaiFnG oal mar@e a''essL 477 be'a$se a M680*m ari&&

%o$l" eliminae mar@e a''ess raher han mainain i/ 1n anamas an" Ni'arag$as opinions he e3

o& he +oha Ari'le 1 aiver is 'lear in a&&irming ha he E$ropean omm$niies 'on'ession is

e3en"e" $nil Ari'le ;111 pro'e"$res are 'on'l$"e" an" given ha he E$ropean omm$niies

has no 'on'l$"e" hese pro'e"$res Lhe anel %as 'orre' in &in"ing ha he Es .r$g$a# o$n"

'on'essions 'onin$e o appl#/L478

47Thir" pari'ipans s$bmission o& anama an" Ni'arag$a para/ 69 (E'$a"or) (D$oing E'$a"or anelepor para/ 7/9)/

47Thir" pari'ipans s$bmission o& anama an" Ni'arag$a para/ 77 (E'$a"or)/475Thir" pari'ipans s$bmission o& anama an" Ni'arag$a para/ 78 (E'$a"or)/ (&oonoe omie")476

Thir" pari'ipans s$bmission o& anama an" Ni'arag$a para/ 8 (E'$a"or)/477Thir" pari'ipans s$bmission o& anama an" Ni'arag$a para/ 8 (E'$a"or)/478Thir" pari'ipans s$bmission o& anama an" Ni'arag$a para/ 9 (E'$a"or)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 6

4/ anama an" Ni'arag$a also agree %ih E'$a"ors oher appeal ha i& he Appellae !o"#

%ere o 'onsi"er ha he +oha Ari'le 1 aiver "i" no e3en" he E$ropean omm$niies ari&&

D$oa 'on'ession i sho$l" rea" he E$ropean omm$niies ,'he"$le o& on'essions as remaining in&or'e be#on" he e3piraion o& he !ananas rame%or@ Agreemen/ 1n heir vie% Lol$mn 7 o&

,e'ion 4/! o& he E$ropean omm$niies on'ession (=ther Terms an" on"iions)L is inen"e" o

mean Le3ising besi"e &$rher a""iionalL/479 There&ore he !ananas rame%or@ Agreemen 'an

onl# s$pplemen he '$rren a''ess 'on"iions an" 'anno "iminish he L&inalL s'he"$le" in-D$oa

'ommimens o& M75*m ari&& &or 2/2 million m i"eni&ie" in 'ol$mns an" / 480 anama an"

Ni'arag$a 'onen" ha he !ananas rame%or@ Agreemen %as a L plurilateral settlement L484 'learl#

"isin' &rom he ,'he"$le an" ha he erms o& he !ananas rame%or@ Agreemen 'o$l" no

erminae he 'on'ession &or all TO ?embers/

4/ egar"ing he Lobe' an" p$rposeL o& he E$ropean omm$niies 'on'ession anama an"

Ni'arag$a 'onen" ha he TOs aim o& Lprovi"ing se'$ri# an" pre"i'abili#L o arrangemens ha

s$bsaniall# re"$'e ari&&s is L"esro#e"L482 i& he &irs senen'e o& paragraph 9 o& he !ananas

rame%or@ Agreemen is rea" o repeal '$rren a''ess %ih a 680 M*m a''ess ban/ anama an"

Ni'arag$a s$bmi ha his arg$men is s$ppore" b# he preamble o& he Agreement on Agriculture

%hi'h aims La a''omplishing a spe'ial re&orm pro'ess ha %o$l" enable s$bsanial progressive

reductions in proe'ion over ime/L

48

45/ inall# anama an" Ni'arag$a ree' he E$ropean omm$niies 'laim ha he anel 'o$l"

no have ma"e a re'ommen"aion regar"ing is ari&& D$oa be'a$se he meas$re has 'ease" o e3is

an" sho$l" be 'onsi"ere" Lsele" la%L/ anama an" Ni'arag$a 'onen" ha i is %ell sele" in TO

la% ha panels 'an ma@e re'ommen"aions on meas$res a iss$e or elemens o& hose meas$res ha

have e3pire" an" ha in he 'ases 'ie" b# he E$ropean omm$niies he e3pire" meas$res %ere

s$bmie" %ihin he proper revie% perio"/

479Thir" pari'ipans s$bmission o& anama an" Ni'arag$a para/ 40 (E'$a"or)/480Thir" pari'ipans s$bmission o& anama an" Ni'arag$a para/ 40 (E'$a"or)/484Thir" pari'ipans s$bmission o& anama an" Ni'arag$a para/ 4 (E'$a"or)/482

Thir" pari'ipans s$bmission o& anama an" Ni'arag$a para/ 42 (E'$a"or)/48Thir" pari'ipans s$bmission o& anama an" Ni'arag$a para/ 4 (E'$a"or) (D$oing preambles 2an" o& he Agreement on Agriculture)/ (emphasis a""e" b# anama an" Ni'arag$a)



T*+,27*A!*2*E.T*+,27*A!**.,Aage 6

III. I+% R)%0 ) $'% A%* # $'% E+0#( P%* R%#($

4/ The &ollo%ing iss$es are raise" in he appeal o& he anel epor European )ommunities –

*egime for the Importation( #ale and !istri$ution of Bananas – #econd *ecourse to Article +,-. of

the !#/ $y Ecuador (T*+,27*2*E.):

(a) %ih respe' o pro'e"$ral iss$es:

(i) %heher he anel a'e" in'onsisenl# %ih Ari'le 9/ o& he +,. b#

mainaining "i&&eren imeables &or he Ari'le 24/5 pro'ee"ings be%een he

E$ropean omm$niies an" E'$a"or an" be%een he E$ropean

omm$niies an" he .nie" ,aesB an"

(ii) %heher he anel erre" in &in"ing ha E'$a"or %as no barre" b# he

.n"ersan"ing on !ananas &rom iniiaing his 'omplian'e pro'ee"ingB

(b) %ih respe' o Ari'le 111 o& he ATT 499:

(i) %heher he anel erre" in &in"ing ha o he e3en ha he E$ropean

omm$niies arg$es ha i has implemene" a s$ggesion p$rs$an o

Ari'le 49/4 o& he +,. he anel %as no prevene" &rom 'on"$'ing $n"erAri'le 24/5 o& he +,. he assessmen reD$ese" b# E'$a"orB an" ha

here&ore he anel "i" no nee" o assess %heher he E$ropean

omm$niies has e&&e'ivel# implemene" an# o& he s$ggesions o& he &irs

'omplian'e panel reD$ese" b# E'$a"orB an"

(ii) %heher he anel erre" in &in"ing ha he "$#-&ree ari&& D$oa reserve" &or

bananas o& A 'o$nr# origin %as in'onsisen %ih Ari'le 111:4 an" 2 o&

he ATT 499B

(') %ih respe' o Ari'le 11 o& he ATT 499:

(i) %heher he anel erre" in &in"ing ha he +oha Ari'le 1 aiver 'onsi$e"

a s$bseD$en agreemen be%een he paries e3en"ing he ari&& D$oa

'on'ession &or bananas lise" in he E$ropean omm$niies ,'he"$le o&

on'essions be#on" 4 +e'ember 2002 $nil he rebin"ing o& he E$ropean

omm$niies ari&& on bananasB



T*+,27*A!*2*E.T*+,27*A!**.,A

age 65

(ii) i& he Appellae !o"# reverses he anels &in"ing ha he s$bseD$en

agreemen be%een he paries res$le" in an e3ension o& he ari&& D$oa

'on'ession &or bananas be#on" 4 +e'ember 2002 $nil he rebin"ing o& heE$ropean omm$niies ari&& on bananas %heher he anel erre" in &in"ing

ha he E$ropean omm$niies ari&& D$oa 'on'ession &or bananas %as

inen"e" o e3pire on 4 +e'ember 2002 on a''o$n o& paragraph 9 o& he

!ananas rame%or@ AgreemenB an"

(iii) %heher he anel erre" in &in"ing ha he ari&& applie" b# he E$ropean

omm$niies o ?N impors o& bananas se a M476*m %iho$

'onsi"eraion o& he ari&& D$oa o& 2/2 million m bo$n" a an in-D$oa ari&&

rae o& 75M*m is an or"inar# '$soms "$# in e3'ess o& ha provi"e" &or in

he E$ropean omm$niies ,'he"$le o& on'essions an" h$s in'onsisen

%ih Ari'le 11:4(b) o& he ATT 499B an"

(") %heher he anel erre" in &in"ing ha he E$ropean omm$niies b# having

mainaine" meas$res in'onsisen %ih "i&&eren provisions o& he ATT 499

'onin$es o n$lli&# or impair bene&is a''r$ing o E'$a"or $n"er ha Agreemen/

2/ e pro'ee" o anal#=e hese iss$es in he or"er se o$ above/

I. I+% R)%0 ) $'% A%* # $'% US P%* R%#($

4/ The &ollo%ing iss$es are raise" in he appeal o& he anel epor European )ommunities –

*egime for the Importation( #ale and !istri$ution of Bananas – *ecourse to Article +,-. of the !#/

$y the /nited #tates (T*+,27**.,A):


(i) %heher he anel a'e" in'onsisenl# %ih Ari'le 9/ o& he +,. b#

mainaining "i&&eren imeables &or he Ari'le 24/5 pro'ee"ings be%een he


omm$niies an" he .nie" ,aesB

(ii) %heher he anel erre" in &in"ing ha he .nie" ,aes %as no barre" b#

he .n"ersan"ing on !ananas &rom iniiaing his 'omplian'e pro'ee"ingB



T*+,27*A!*2*E.T*+,27*A!**.,Aage 66

(iii) %heher he anel erre" in &in"ing ha he E !ananas 1mpor egime

'onsi$e" a Lmeas$re a@en o 'ompl#L %ihin he meaning o& Ari'le 24/5

o& he +,. an" %as here&ore properl# be&ore he anelB

(iv) %heher he anel erre" in ma@ing &in"ings %ih respe' o a meas$re ha ha"

'ease" o e3is s$bseD$en o he esablishmen o& he anel b$ be&ore he

anel iss$e" is eporB an"

(v) %heher he E$ropean omm$niies Noi'e o& Appeal sais&ies he

reD$iremens o& $le 20(2)(") o& he >or0ing Procedures for Appellate

*evie%B


%heher he anel erre" in &in"ing ha he "$#-&ree ari&& D$oa reserve" &or

bananas o& A 'o$nr# origin %as in'onsisen %ih Ari'le 111:4 an" 2 o&

he ATT 499B an"

(') %heher he anel erre" in &in"ing ha he E$ropean omm$niies b# having

mainaine" meas$res in'onsisen %ih "i&&eren provisions o& he ATT 499

'onin$es o n$lli&# or impair bene&is a''r$ing o he .nie" ,aes $n"er ha

Agreemen/

2/ e pro'ee" o anal#=e hese iss$es in he or"er se o$ above/

. A($)*% ".8 # $'% DSU – H(6#)9$)# # T)6%$3*% :E+0#( 0 U)$%0 S$$%;

4/ e begin b# a""ressing he D$esion %heher b# mainaining "i&&eren imeables &or he

Ari'le 24/5 pro'ee"ings be%een he E$ropean omm$niies an" E'$a"or an" be%een he E$ropean

omm$niies an" he .nie" ,aes he anel a'e" in'onsisenl# %ih Ari'le 9/ o& he +,./

2/ Ari'le 9/ o& he +,. rea"s:

1& more han one panel is esablishe" o e3amine he 'omplainsrelae" o he same maer o he greaes e3en possible he same

persons shall serve as paneliss on ea'h o& he separae panels an" heimeable &or he panel pro'ess in s$'h "isp$es shall be harmoni=e"/

/ ,everal imes "$ring he 'o$rse o& he anel pro'ee"ings he E$ropean omm$niies

reD$ese" he anel o harmoni=e he imeables o& he %o pro'ee"ings/ The anel 'onsi"ere" ha

mo"i&#ing he imeables L%o$l" have mos li@el# involve" a "ela# in he pro'ee"ings reD$ese" b#



T*+,27*A!*2*E.T*+,27*A!**.,A

age 67

E'$a"orL/4 E'$a"or obe'e" o an# "ela# in he pro'ee"ing i ha" iniiae" emphasi=ing ha an

a''elerae" ime&rame applie" o Ari'le 24/5 pro'ee"ings/ The anel sae" ha harmoni=ing he

imeables &or he anel pro'esses in hese 'ases %as pari'$larl# "i&&i'$l be'a$se o& he %o-monh perio" ha ha" elapse" be%een he "aes on %hi'h he paneliss began heir %or@ in ea'h o& he

'ases/ The anel noe" ha he TO +ire'or-eneral 'ompose" he panel reD$ese" b# E'$a"or on

48 C$ne 2007 an" 'ompose" he panel reD$ese" b# he .nie" ,aes on 4 A$g$s 2007/ The anel

'onsi"ere" ha his %o-monh "i&&eren'e be%een he "isp$es %as signi&i'an sin'e 'omplian'e

pro'ee"ings b# heir ver# na$re are inen"e" o be brie&/ The anel 'on'l$"e":

/// no%ihsan"ing he anels iniial inenion o harmoni=e heimeable o& boh he pro'ee"ings reD$ese" b# E'$a"or an" hose

reD$ese" b# he .nie" ,aes he anel %as $nable o &in" a beeralernaive &or he imeable ha %as /// a"ope" in hese pro'ee"ings/This "espie he &a' ha he anel %as a%are ha he approve"imeable implie" a 'onsi"erable b$r"en o& %or@ pea@ing a

pari'$lar momens &or he paries as %ell as &or he anel an" he,e'rearia/FSG 2

FSGAs noe" above ho%ever iss$an'e o& he inerim repor %as "ela#e" b#he anel in or"er o ens$re ha replies o D$esions an" 'ommens onreplies in he pro'ee"ings reD$ese" b# he .nie" ,aes ha" been re'eive"

b# ha panel be&ore he inerim repor in he '$rren pro'ee"ings %asiss$e"/

/ On appeal he E$ropean omm$niies alleges ha he anel a'e" in'onsisenl# %ih

Ari'le 9/ o& he +,. b# &ailing o harmoni=e he imeables o& he %o anel pro'ee"ings an"

reD$ess he Appellae !o"# o reverse he anels inerpreaion an" appli'aion o& Ari'le 9// 1n

s$ppor o& is 'laim he E$ropean omm$niies s$bmis ha he $se o& he %or" LshallL in Ari'le 9/

in"i'aes an Labsol$e an" $nD$ali&ie"L obligaion &or panels o harmoni=e imeables %hi'h L"oes no

allo% panels an# "is'reionL in "e'i"ing %heher imeables sho$l" be harmoni=e"/ The E$ropean

omm$niies s$bmis ha he imeables Lm$s absol$el# be harmoni=e" a some sage o& he

pro'ee"ingL/ 1n he E$ropean omm$niies vie% he phrase Lo he greaes e3en possibleL is no

in"i'aion ha panels have "is'reion b$ is onl# mean o allo% a panel o a@e noe o& 'erain

pro'e"$ral a's ha ma# have alrea"# been 'omplee" in one 'ase he o''$rren'e o& %hi'h ma@es i

LimpossibleL o harmoni=e he imeable o& ha 'ase %ih he imeable o& anoher 'ase/ The

E$ropean omm$niies 'onen"s ha i ha" o provi"e is %rien s$bmission o he .nie" ,aes in

one pro'ee"ing be&ore he .nie" ,aes ha" s$bmie" is o%n &irs %rien s$bmission in he oher

4., anel epor para/ 7/7/2

E'$a"or anel epor para/ 7/40 an" &oonoe 298 hereoB ., anel epor para/ 7/40/E$ropean omm$niies appellans s$bmissions para/ 24 (E'$a"or) para/ 20 (.,)/E$ropean omm$niies appellans s$bmissions para/ 2 (E'$a"or) para/ 2 (.,)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 68

pro'ee"ing an" ha he .nie" ,aes h$s ha" he a"vanage o& @no%ing %ha "e&en'es an"

arg$mens he E$ropean omm$niies %o$l" $se in he laer pro'ee"ing/

5/ The .nie" ,aes an" E'$a"or "isagree %ih he E$ropean omm$niies 'onenion ha

Ari'le 9/ provi"es an Labsol$e an" $nD$ali&ie"L obligaion/5 1nsea" he# 'onen" ha he anels

obligaion is D$ali&ie" b# he phrase Lo he greaes e3en possibleL in Ari'le 9// The# &$rher

s$ppor he anels "e'ision o a@e ino a''o$n ha he presen pro'ee"ings are 'omplian'e

pro'ee"ings %hi'h p$rs$an o Ari'le 24/5 sho$l" be 'omplee" %ihin 90 "a#s/

6/ Ari'le 9/ ma# appear o be 'as in he %a# o& an obligaion b$ he %or" Lharmon#L is

"e&ine" as he 'ombinaion or a"apaion o& pars so as o &orm a L'onsisen an" or"erl# %holeL/ 6

$ie "isin' &rom Ls#n'hron#L Lharmon#L "oes no reD$ire ha elemens 'oin'i"e e3a'l# in ime/

There&ore %e 'onsi"er ha he $se o& he %or" Lharmoni=e"L raher han Ls#n'hroni=e"L in

Ari'le 9/ 'on&ers o panels a $"gemen o& "egree an" pra'i'ali#/ 1 ress %ih panels o organi=e

he seps o& he pro'ee"ings in a %a# ha %ill ens$re ha he# &orm a 'onsisen an" or"erl# %hole/

hereas he $se o& he %or" LshallL or"inaril# 'onnoes an obligaion here %hile he panel m$s see@

o harmoni=e he e3en o %hi'h ha is possible lies %ihin is po%er/ e "o no 'onsi"er ha

Lharmoni=aionL reD$ires a"opion o& i"eni'al imeables in m$liple pro'ee"ings/ As %e see i his

provision a""resses a pra'i'al 'on'ern ha ea'h imeable m$s be &rame" in he ligh o& he oher/

7/ The phrase Lo he greaes e3en possibleL in Ari'le 9/ len"s &$rher s$ppor o o$r

inerpreaion/ This phrase inro"$'es he main 'la$se o& he senen'e/ The phrase Lo he greaes

e3en possibleL D$ali&ies boh elemens o& he main 'la$sePhe sele'ion o& he same persons as

paneliss an" he harmoni=aion o& he panel pro'essesPan" h$s D$ali&ies %ha he panel m$s "o o

harmoni=e he imeables/ e here&ore "isagree %ih he E$ropean omm$niies rea"ing ha

Ari'le 9/ L"oes no allo% panels an# "is'reion in "e'i"ing %heher he imeables sho$l" be

harmoni=e"L/7

8/ $rhermore %e noe ha Ari'les 42/4 an" 42/2 o& he +,. 'on&er a margin o& "is'reion

on panels o "ra% $p heir %or@ing pro'e"$res/ Ari'le 42/4 a$hori=es panels o esablish heir o%n

%or@ing pro'e"$res in he even ha he panel "e'i"es a&er 'ons$ling he paries no o &ollo% he

or@ing ro'e"$res &or panels se o$ in Appen"i3 o he +,./ $rs$an o Ari'le 42/2 panel

pro'e"$res sho$l" provi"e Ls$&&i'ien &le3ibili# so as o ens$re high-D$ali# panel repors %hile no

5.nie" ,aes appellees s$bmission paras/ 422 an" 42 (re&erring o E$ropean omm$niiesappellans s$bmission para/ 2 (.,))B E'$a"ors appellees s$bmission para/ 8/

6

#horter =xford English !ictionary 5h e"n // Tr$mble A/ ,evenson (e"s) (O3&or" .niversi#ress 2002) ;ol/ 4 p/ 4200/

7E$ropean omm$niies appellans s$bmissions para/ 24 (E'$a"or) para/ 20 (.,)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 70

he anels "e'ision o mainain separae imeables/ 1n o$r vie% ho%ever he mere possibili# ha

he "$e pro'ess righs o& he E$ropean omm$niies 'o$l" have been a"versel# a&&e'e" b# he

anels "e'ision o mainain separae imeables in hese pro'ee"ings is no s$&&i'ien o esablish hahe "$e pro'ess righs o& he E$ropean omm$niies have in"ee" been 'ompromise"/ 1n he presen

'ases he anel 'ons$le" %ih he paries an" ma"e e&&ors o a"op a single %or@ing s'he"$le &or

boh pro'ee"ings/ $rhermore he anel "i" a@e seps o harmoni=e he pro'ee"ings %hen i

"ela#e" he iss$an'e o& he inerim repor in he E'$a"or 'ase o ens$re ha he replies o D$esions

an" 'ommens on he replies in he .nie" ,aes 'ase ha" been re'eive" b# he anel be&ore he

inerim repor in he E'$a"or 'ase %as iss$e"/40

42/ There is no basis &or iner&ering %ih he anels e3er'ise o& is po%er o harmoni=e be'a$se

he a'ions o& he anel have no in&ringe" he E$ropean omm$niies "$e pro'ess righs/ e

here&ore find ha he anel "i" no a' in'onsisenl# %ih Ari'le 9/ o& he +,. b# mainaining

"i&&eren imeables in he %o Ari'le 24/5 pro'ee"ings iniiae" b# E'$a"or an" he .nie" ,aes/

I. L%* E%$ # $'% U0%($0) # B :E+0#( 0 U)$%0 S$$%;

4/ e $rn no% o a""ress he D$esion %heher he .n"ersan"ings on !ananas4 %hi'h he

E$ropean omm$niies 'on'l$"e" %ih he .nie" ,aes an" %ih E'$a"or prevene" he

'omplainans &rom iniiaing 'omplian'e pro'ee"ings p$rs$an o Ari'le 24/5 o& he +,. %ih

respe' o he E$ropean omm$niies regime &or he imporaion o& bananas inro"$'e" b# o$n'il

eg$laion (E) No/ 496*2005 o& 29 November 20052 (LE eg$laion 496*2005L) (he

LE !ananas 1mpor egimeL)/

2/ !ase" on Ari'les / / an" /7 o& he +,. he anel &o$n" ha he .n"ersan"ings on

!ananas 'o$l" preven he 'omplainans &rom iniiaing 'omplian'e pro'ee"ings p$rs$an o

Ari'le 24/5 onl# i& hese .n"ersan"ings 'onsi$e" a Lposiive sol$ion an" e&&e'ive selemen o

he "isp$e in D$esionL/

The anel &o$n" ha his 'on"iion %as no &$l&ille" &or he &ollo%ing hreereasons a@en ogeher:

40E'$a"or anel epor &oonoe 298 o para/ 7/40/4.n"ersan"ing on !ananas be%een he E$ropean omm$niies an" he .nie" ,aes signe" on

44 April 2004 (T*+,27*59 ***270B T*+,27*58 En'los$re 4) an" .n"ersan"ing on !ananas be%eenhe E$ropean omm$niies an" E'$a"or signe" on 0 April 2004 (T*+,27*60 ***27B T*+,27*58En'los$re 2)/

2

o$n'il eg$laion (E) No/ 496*2005 o& 29 November 2005 on he ari&& raes &or bananas =fficial :ournal of the European /nion > ,eries No/ 46 (2 +e'ember 2005) 4 (anel E3hibis E.-4 an" .,-4)/

E'$a"or anel epor para/ 7/75/ ,ee also ., anel epor para/ 7/405/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 7

9/ E'$a"or 'onen"s ha he E$ropean omm$niies mis'hara'eri=e" he anels &in"ings as

seing o$ hree L'on"iionsL ha ha" o be sais&ie" in or"er &or he .n"ersan"ing on !ananas

be%een he E$ropean omm$niies an" E'$a"or o D$ali&# as a m$$all# agree" sol$ion %ihin hemeaning o& Ari'le /7 o& he +,./44 E'$a"or mainains ha he E$ropean omm$niies 'onsr$'ion

o& he .n"ersan"ing has no basis in he e3 o& he +,. an" %o$l" r$n 'o$ner o Ari'le 24/5 as i

%o$l" "en# he paries o he .n"ersan"ing he righ o iniiae 'omplian'e pro'ee"ings/

40/ The .nie" ,aes arg$es ha he anel "i" no se o$ hree L'on"iionsL ha ever#

m$$all# agree" sol$ion m$s mee/ aher he anel e3plaine" on he basis o& Lhree reasons ta0en

together L %h# he .n"ersan"ing on !ananas be%een he E$ropean omm$niies an" he .nie"

,aes "i" no have he e&&e' o& barring he laer &rom iniiaing his 'omplian'e pro'ee"ing/ 42 ih

respe' o he anels &irs reason namel# ha he .n"ersan"ing provi"es onl# &or he means &or

resolving an" seling he "isp$e he .nie" ,aes mainains ha he anel merel# se o$ he &a's

a''or"ing o he erms o& he .n"ersan"ing an" "i" no as he E$ropean omm$niies assers se a

L'on"iionL ha onl# agreemens re'or"ing meas$res ha have alrea"# been implemene" 'an D$ali&#

as m$$all# agree" sol$ions/4 ih respe' o he anels se'on" reason namel# ha he

.n"ersan"ing pos"aes he +,! re'ommen"aions an" r$lings he .nie" ,aes arg$es ha he

anel "i" no se his as a L'on"iionL b$ raher $se" i as relevan hisori'al 'one3 &or assessing

he E$ropean omm$niies preliminar# obe'ion/

4

ih regar" o he anels hir" reason namel#ha he paries ha" ma"e 'on&li'ing saemens a he +,! meeing regar"ing he legal na$re o& he

.n"ersan"ing a&er i ha" been signe" he .nie" ,aes mainains ha he anel 'orre'l# oo@ ino

a''o$n he .nie" ,aes "isagreemen %ih he E$ropean omm$niies 'hara'eri=aion o& he

.n"ersan"ing a he +,! as a Lm$$all# agree" sol$ionL/45

44/ e &irs a""ress he E$ropean omm$niies 'hallenge o he 'rierion o& a Lposiive

sol$ion an" e&&e'ive selemenL o he "isp$e/ e hen a""ress he Lhree reasonsL &or %hi'h he

anel 'onsi"ere" ha he .n"ersan"ings on !ananas "i" no 'onsi$e a posiive sol$ion an"

e&&e'ive selemen o he "isp$e in D$esion/ inall# %e $rn o he E$ropean omm$niies

arg$mens relaing o he prin'iple o& Lgoo" &aihL/

44E'$a"ors appellees s$bmission para/ 4 (re&erring o E$ropean omm$niies appellanss$bmission para/ 4 (E'$a"or) in $rn re&erring o E'$a"or anel epor para/ 7/76)/

42.nie" ,aes appellees s$bmission para/ 57 (original emphasis) (re&erring o ., anel epor para/ 7/407)/

4

.nie" ,aes appellees s$bmission para/ 64/4.nie" ,aes appellees s$bmission para/ 62/45.nie" ,aes appellees s$bmission para/ 6/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 7

42/ A he o$se %e re&er o he e3 o& Ari'les /5 /6 an" /7 o& he +,. %hi'h provi"e in

relevan par:

(5) All sol$ions o maers &ormall# raise" $n"er he'ons$laion an" "isp$e selemen provisions o& he 'overe"agreemens in'l$"ing arbiraion a%ar"s shall be 'onsisen %ihhose agreemens an" shall no n$lli&# or impair bene&is a''r$ing oan# ?ember $n"er hose agreemens nor impe"e he aainmen o&an# obe'ive o& hose agreemens/

(6) ?$$all# agree" sol$ions o maers &ormall# raise" $n"erhe 'ons$laion an" "isp$e selemen provisions o& he 'overe"agreemens shall be noi&ie" o he +,! an" he relevan o$n'ilsan" ommiees %here an# ?ember ma# raise an# poin relaing

hereo/

(7) !e&ore bringing a 'ase a ?ember shall e3er'ise is $"gemen as o %heher a'ion $n"er hese pro'e"$res %o$l" be&r$i&$l/ The aim o& he "isp$e selemen me'hanism is o se'$re a

posiive sol$ion o a "isp$e/ A sol$ion m$$all# a''epable o he paries o a "isp$e an" 'onsisen %ih he 'overe" agreemens is'learl# o be pre&erre"/ 1n he absen'e o& a m$$all# agree" sol$ionhe &irs obe'ive o& he "isp$e selemen me'hanism is $s$all#o se'$re he %ih"ra%al o& he meas$res 'on'erne" i& hese are &o$n"o be in'onsisen %ih he provisions o& an# o& he 'overe"agreemens /// /

4/ 1n respe' o& he 'rierion o& a Lposiive sol$ion an" e&&e'ive selemenL he anel relie"

on Ari'le /7 o& he +,./ Ari'le /7 saes he LaimL o& he "isp$e selemen s#sem/ 1 ari'$laes

a pre&eren'e &or sol$ions ha are m$$all# a''epable o he paries o a "isp$e an" 'onsisen %ih

he 'overe" agreemens/ <o%ever nohing in Ari'le /7 esablishes a 'on"iion $n"er %hi'h a par#

%o$l" be prevene" &rom iniiaing 'omplian'e pro'ee"ings or in"ee" "i'aes ha he onl# @in" o&

selemen envisage" in ha provision is one ha bars re'o$rse o 'omplian'e pro'ee"ings $n"er

Ari'le 24/5/ Ari'le /7 is no pres'ripive as o he 'onen o& a m$$all# agree" sol$ion save ha i

m$s be 'onsisen %ih he 'overe" agreemens/ The onl# e3press limiaion re&erre" o in Ari'le /7is ha La ?ember shall e3er'ise is $"gemen as o %heher a'ion $n"er hese pro'e"$res %o$l" be

&r$i&$lL/ The Appellae !o"# has inerpree" his phrase o in"i'ae ha a ?ember is Le3pe'e" o be

largel# sel&-reg$laing in "e'i"ing %heher an# s$'h a'ion %o$l" be &r$i&$lL/ 46 This is also borne

o$ b# Ari'le / %hi'h provi"es ha he promp selemen o& si$aions in %hi'h a ?ember in is

o%n $"gemen 'onsi"ers ha a bene&i a''r$ing o i $n"er he 'overe" agreemens is being impaire"

b# a meas$re a@en b# anoher ?ember is essenial o he e&&e'ive &$n'ioning o& he TO/

46Appellae !o"# epor E) – Bananas III para/ 45/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 75

4/ The erm Lsol$ionL emplo#e" in Ari'le /7 re&ers o he La' o& solving a problemL/47

There are $s$all# "i&&eren %a#s o& solving an# given problem/ $rs$an o Ari'le 49/4 o& he +,.

%hen a panel or he Appellae !o"# 'on'l$"es ha a meas$re is in'onsisen %ih a 'overe"agreemen i shall re'ommen" ha he ?ember 'on'erne" bring he meas$re ino 'on&ormi# %ih

ha agreemen/ A''or"ingl# i is in prin'iple %ihin he ?embers "is'reion o 'hoose he means

o& implemenaion an" o "e'i"e in %hi'h %a# i %ill see@ o a'hieve 'omplian'e/ The +,. h$s

re'ogni=es ha a sol$ion lea"ing o 'omplian'e 'an be implemene" in vario$s %a#s/ ,imilarl# a

m$$all# agree" sol$ion p$rs$an o Ari'le /7 ma# en'ompass an agreemen o &orego he righ o

iniiae 'omplian'e pro'ee"ings/ Or i ma# provi"e &or he s$spension o& he righ o& re'o$rse o

Ari'le 24/5 $nil he seps agree" $pon in a m$$all# agree" sol$ion have been implemene"/ Je

his nee" no al%a#s be so/ e here&ore "o no 'onsi"er ha he mere agreemen o a Lsol$ionL

ne'essaril# implies ha paries %aive heir righ o have re'o$rse o he "isp$e selemen s#sem in

he even o& a "isagreemen as o he e3isen'e or 'onsisen'# %ih he 'overe" agreemens o& a

meas$re a@en o 'ompl#/ 1nsea" %e 'onsi"er ha here m$s be a 'lear in"i'aion in he agreemen

be%een he paries o& a relinD$ishmen o& he righ o have re'o$rse o Ari'le 24/5/ 1n o$r vie% he

anels reD$iremen ha he .n"ersan"ings m$s 'onsi$e a Lposiive sol$ion an" e&&e'ive

selemenL o he "isp$e in D$esion o pre'l$"e re'o$rse o Ari'le 24/5 pro'ee"ings %as no a

'orre' inerpreaion o& %ha he +,. reD$ires/

45/ !e&ore %e assess he D$esion %heher in he presen 'ases he pari'ipans "i" in &a' agree

o relinD$ish heir righ o have re'o$rse o Ari'le 24/5 pro'ee"ings %e a""ress he Lhree reasonsL

relie" $pon b# he anel as o %h# he .n"ersan"ings on !ananas "i" no 'onsi$e a Lposiive

sol$ion an" e&&e'ive selemenL o he "isp$e/ A he o$se %e noe he E$ropean omm$niies

allegaion ha he anel esablishe" hree L'on"iionsL ha an agreemen be%een he paries ha" o

mee in or"er o D$ali&# as a Lm$$all# agree" sol$ionL/ 48 e "isagree/ The anel $se" he %or"

LreasonsL an" no he %or" L'on"iionsL an" also 'learl# sae" ha i %as loo@ing a he pari'$lar

L"isp$e in D$esionL/49

1n o$r vie% i is 'lear &rom he lang$age $se" b# he anel ha i ari'$lae"reasons as o %h# he .n"ersan"ings on !ananas given heir pari'$lar erms "i" no preven he

'omplainans &rom iniiaing Ari'le 24/5 pro'ee"ings raher han esablishing L'on"iionsL an

agreemen %o$l" have o &$l&il in or"er o 'onsi$e a Lm$$all# agree" sol$ionL/

47#horter =xford English !ictionary 5h e"n // Tr$mble A/ ,evenson (e"s) (O3&or" .niversi#

ress 2002) ;ol/ 2 p/ 2947/48E$ropean omm$niies appellans s$bmission para/ 7 (.,)/49., anel epor para/ 7/407/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 77

relinD$ishmen o& righs grane" b# he +,. 'anno be lighl# ass$me"/ aher he lang$age in he

.n"ersan"ings m$s reveal 'learl# ha he paries inen"e" o relinD$ish heir righs/ 24

20/ The .n"ersan"ings sae in paragraph A ha he paries:

/// have i"eni&ie" he means b# %hi'h he long-san"ing "isp$e overhe E banana impor regime 'an be resolve"/

24/ The i"eni&i'aion o& he means &or he resol$ion o& a "isp$e is an inerme"iae sep

o%ar"s a &inal sol$ion o a "isp$e/ The mere i"eni&i'aion o& he means %ill no resolve he

"isp$e/ $rhermore %e noe he $se o& he erm L'an be resolve"L in he same 'la$se/ The %or"

L'anL e3presses a possibili# b$ no he &inali# o& a resol$ion o& he "isp$e/ 1n o$r vie% ha" he

paries o he .n"ersan"ings inen"e" o sip$lae ha he# 'onsi"ere" ha he .n"ersan"ings

hemselves 'onsi$e" he sol$ion o his "isp$e he# %o$l" have sae" ha he "isp$e LisL

resolve" raher han ha he "isp$e L'anL be resolve"/

22/ e &in" &$rher s$ppor &or o$r inerpreaion in he &a' ha all he seps i"eni&ie" in he

.n"ersan"ings re&er o a seD$en'e o& a'ions o be a@en over a &$$re perio"/ The .n"ersan"ings

sae ha he E$ropean omm$niies L%ill implemenL22 an" he E$ropean omm$niies L%ill

inro"$'eL/2 onseD$enl# E'$a"or an" he .nie" ,aes agree" ha he# L%ill li& FheirG reserveL2

'on'erning he %aiver &rom Ari'le 1:4 o& he ATT 499 (he L+oha Ari'le 1 aiverL25

)P%hi'h

%as s$bseD$enl# a"ope" b# he ?iniserial on&eren'e meeing in +oha on 4 November 2004/

The $se o& he &$$re ense 'on&irms o$r rea"ing o& he .n"ersan"ings as a %a# &or%ar" o resolving

he "isp$e raher han as being in isel& he sol$ion o he "isp$e/ e %ish o 'lari&# ha an

agreemen ha reD$ires &$$re per&orman'e "oes no &or ha reason alone in"i'ae ha he paries

have no relinD$ishe" heir righ o have re'o$rse o Ari'le 24/5 pro'ee"ings/ <o%ever his

pari'$lar agreemen "oes/

241n his respe' %e noe he 1nernaional o$r o& C$si'e reliminar# Obe'ions )ase concerning

the 4emple of Preah 8ihear &)am$odia v- 4hailand' C$"gmen o& 26 ?a# 4964 1C epors (4964) 2a""ressing he inerpreaion o& "e'laraions o& a''epan'e o& he 'omp$lsor# $ris"i'ion o& he o$r/ 1n or"ero "eermine %heher Thailan" ha" re'ogni=e" as 'omp$lsor# he $ris"i'ion o& he o$r he o$r 'onsi"ere"ha he Lsole relevan D$esionL %as %heher Thailan"s "e'laraion 'learl# reveale" s$'h inenion/

22.n"ersan"ings on !ananas para/ /2.n"ersan"ings on !ananas para/ !/2.n"ersan"ings on !ananas para/ /25o$rh ,ession o& he ?iniserial on&eren'e hel" in +oha E$ropean omm$niies The A-E

arnership Agreemen +e'ision o& 4 November 2004 T*?1N(04)*45B T*>*6 (aa'he" as Anne3 ; ohis eporB his "o'$men %as also s$bmie" as anel E3hibis .,- an" E-2 (E'$a"or))/ The +ohaAri'le 1 aiver e3pire" on 4 +e'ember 2007 in respe' o& A pro"$'s oher han bananas/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 78

2/ e "isagree %ih he E$ropean omm$niies asserion ha paragraph o& he

.n"ersan"ing involving E'$a"or 'onains a mani&esaion o& he inenion o& he paries o &orego

heir righ o iniiae Ari'le 24/5 pro'ee"ings be'a$se i saes ha LFGhe E an" E'$a"or 'onsi"erha his .n"ersan"ing 'onsi$es a m$$all# agree" sol$ion o he banana "isp$eL/ The e3 o& ha

'la$se is ne$ral %ih respe' o he D$esion o& %heher he sol$ion enaile" a relinD$ishmen o& he

righ o& re'o$rse o 'omplian'e pro'ee"ings/ 1 here&ore leaves he res$l o& he above anal#sis

$no$'he" an" "oes nohing o aler he 'on'l$sion ha he .n"ersan"ings on !ananas "i" no

'onain a relinD$ishmen o& he righ o iniiae 'omplian'e pro'ee"ings/

2/ 1n he ligh o& hese 'onsi"eraions %e 'on'l$"e ha he anel erre" in pla'ing he relevan'e

i "i" on he 'on&li'ing saemens o& he paries a he meeing o& he +,! be'a$se %ha he anel

%as reD$ire" o "o %as o provi"e an inerpreaion o& he e3 o& he .n"ersan"ings/ Onl# on'e i

ha" "one so 'o$l" i hen 'onsi"er 'on&li'ing saemens o he +,! &or he limie" p$rpose o& eiher

see@ing 'on&irmaion o& he anels inerpreaion or "eermining he meaning be'a$se he e3$al

inerpreaion le& he meaning ambig$o$s or le" o mani&esl# abs$r" res$ls/ <aving &o$n" base" on

he inerpreaion o& he e3 o& he .n"ersan"ings ha hese .n"ersan"ings "i" no 'onain a

relinD$ishmen o& he righ o iniiae 'omplian'e pro'ee"ings %e arrive a he same 'on'l$sion as he

anel in paragraph 7/46 o& he E'$a"or anel epor an" in paragraph 7/465 o& he ., anel

epor namel# ha he 'omplainans %ere no pre'l$"e" &rom iniiaing hese pro'ee"ings "$e o he.n"ersan"ings on !ananas/

25/ 1n a""iion he E$ropean omm$niies s$bmis ha he anel erre" in is inerpreaion an"

appli'aion o& he prin'iple o& goo" &aih re&erre" o in Ari'le /40 o& he +,./ A''or"ing o he

E$ropean omm$niies he anel oo@ he erroneo$s vie% ha an obe'ion base" on he prin'iple o&

goo" &aih 'o$l" be s$''ess&$l onl# i& he E$ropean omm$niies ha" ma"e o$ a prima facie 'ase

&or he allege" violaion o& Ari'le /40 an" also &or Lsomehing more han mere violaionL/26 The

E$ropean omm$niies alleges ha he anel erre" in &in"ing ha he prin'iple o& goo" &aih 'o$l"

onl# be invo@e" as an La""-onL27 o he violaion o& anoher TO r$le an" 'o$l" no b# isel& be he

so$r'e o& righs an" obligaions o& TO ?embers/

26/ E'$a"or s$bmis ha he anel %as 'orre' in ree'ing he E$ropean omm$niies

'onenion ha he prin'iple o& goo" &aih pre'l$"e" E'$a"or &rom 'hallenging he E !ananas

1mpor egime/ E'$a"or s$ppors he anels saemen ha E'$a"or has LFnGo%here in he

26

E$ropean omm$niies appellans s$bmissions para/ 60 (E'$a"or) (re&erring o E'$a"or anelepor para/ 7/44) para/ 92 (.,) (re&erring o ., anel epor para/ 7/462)/

27E$ropean omm$niies appellans s$bmissions para/ 67 (E'$a"or) para/ 98 (.,)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 79

27/ .n"ersan"ing /// a''epe" ha i %o$l" &orego is righ o 'hallenge he 'on&ormi# %ih he

'overe" agreemens o& an# meas$re ha he E$ropean omm$niies migh a@e o implemen a sep

se o$ in he !ananas .n"ersan"ingL/

28

$rhermore E'$a"or 'onen"s ha Ari'le /40 "oes no pre'l$"e iniiaion o& "isp$e selemen pro'ee"ings/

28/ The .nie" ,aes s$bmis ha he anel "i" no err in is inerpreaion an" appli'aion o&

he prin'iple o& goo" &aih enshrine" in Ari'le /40/ The .nie" ,aes 'onen"s ha he anel %as

'orre' in rel#ing on pas panel an" Appellae !o"# repors %hen &in"ing ha here m$s be

somehing Lmore han mere violaionL o& a s$bsanive provision o& he 'overe" agreemens be&ore a

?ember 'an be &o$n" o have &aile" o a' in goo" &aih/29

29/ The anel relie" on he Appellae !o"# epor in /# – =ffset Act &Byrd Amendment' in

s$ppor o& is &in"ing ha here m$s be somehing Lmore han mere violaionL o& a s$bsanive

provision o& he 'overe" agreemens be&ore a ?ember ma# be &o$n" o have &aile" o a' in goo"

&aih/0 1n o$r vie% he anel "i" no 'onsi"er he D$oaion &rom /# – =ffset Act &Byrd Amendment'

in is proper 'one3/ 1n ha repor he Appellae !o"# reverse" he panels &in"ings ha he meas$re

a iss$e %as in'onsisen %ih Ari'le 5/ o& he Agreement on Implementation of Article 8I of the

1eneral Agreement on 4ariffs and 4rade ,??5 (he L Anti!umping Agreement L) an" Ari'le 44/ o&

he Agreement on #u$sidies and )ountervailing Measures (he L#)M Agreement L)/ Tha panel

&$rher &o$n" ha he .nie" ,aes ha" no a'e" in goo" &aih %ih respe' o is obligaions $n"er

hose provisions/ <aving reverse" he panels &in"ing 'on'erning Ari'le 5/ o& he Anti!umping

Agreement an" Ari'le 44/ o& he #)M Agreement he Appellae !o"# %as le& %ih an a''essor#

&in"ing o& violaion o& he goo" &aih prin'iple/ The Appellae !o"# reverse" ha &in"ing an" sae"

as D$oe" in he anel epors in he presen 'ase:

Nohing /// in he 'overe" agreemens s$ppors he 'on'l$sion hasimpl# be'a$se a TO ?ember is &o$n" o have violae" as$bsanive rea# provision i has here&ore no a'e" in goo" &aih/

1n o$r vie% i %o$l" be ne'essar# o prove more han mere violaiono s$ppor s$'h a 'on'l$sion/4

0/ This &in"ing ho%ever is no perinen in he 'one3 o& he presen appeals be'a$se he

legal D$esion be&ore he anel in he presen 'ases is "i&&eren &rom he legal D$esion be&ore he

Appellae !o"# in /# – =ffset Act &Byrd Amendment'/ hile in ha 'ase he Appellae !o"#

28E'$a"ors appellees s$bmission para/ 2 (D$oing E'$a"or anel epor para/ 7/428)/29.nie" ,aes appellees s$bmission para/ 76/0E'$a"or anel epor para/ 7/429 ., anel epor para/ 7/460 (D$oing Appellae !o"# epor /#

– =ffset Act &Byrd Amendment' para/ 298)/4E'$a"or anel epor para/ 7/429 ., anel epor para/ 7/460 (re&erring o Appellae !o"# epor/# – =ffset Act &Byrd Amendment' para/ 298)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 80

'onsi"ere" he prin'iple o& goo" &aih as i relaes o a s$bsanive provision o& he TO agreemens

he anel in he presen 'ases %as &a'e" %ih he allegaion o& a la'@ o& goo" &aih as a pro'e"$ral

impe"imen &or a TO ?ember o iniiae Ari'le 24/5 pro'ee"ings/ Alho$gh no $sing he erm heE$ropean omm$niies in he presen 'ases in &a' a"van'es an esoppel arg$men/ The Appellae

!o"# a""resse" his "imension o& he prin'iple o& goo" &aih in E) – Export #u$sidies on #ugar :

e see lile in he +,. ha e3pli'il# limis he righs o& TO?embers o bring an a'ionB TO ?embers m$s e3er'ise heirL$"gemen as o %heher a'ion $n"er hese pro'e"$res %o$l" be&r$i&$lL b# vir$e o& Ari'le /7 o& he +,. an" he# m$s engagein "isp$e selemen pro'e"$res in goo" &aih b# vir$e o&Ari'le /40 o& he +,./ This laer obligaion 'overs in o$r vie%he enire spe'r$m o& "isp$e selemen &rom he poin o& iniiaion

o& a 'ase hro$gh implemenaion/ Th$s even ass$ming arguendo

ha he prin'iple o& esoppel 'o$l" appl# in he TO is appli'aion%o$l" &all %ihin hese narro% parameers se o$ in he +,./ 2

4/ e 'onsi"er his o be he appli'able san"ar" an" here&ore agree %ih he E$ropean

omm$niies ha he anel erre" %hen i ree'e" he E$ropean omm$niies 'laim on he basis ha

he E$ropean omm$niies ha" no ma"e o$ a prima facie 'ase &or somehing Lmore han mere

violaionL/ The above D$oe" saemen o& he Appellae !o"# relaes o an allegaion ha he

'omplainans %ere esoppe" &rom 'hallenging 'erain elemens o& he E$ropean omm$niies s$gar

regime in he original pro'ee"ings/ The presen 'ases ho%ever involve 'omplian'e pro'ee"ings

p$rs$an o Ari'le 24/5 o& he +,./ Je %e 'onsi"er ha irrespe'ive o& he #pe o& pro'ee"ing i& a

TO ?ember has no 'learl# sae" ha i %o$l" no a@e legal a'ion %ih respe' o a 'erain

meas$re i 'anno be regar"e" as &ailing o a' in goo" &aih i& i 'hallenges ha meas$re/ 1n ha vein

he Appellae !o"# &o$n" in E) – Export #u$sidies on #ugar ha i %as no possible o i"eni&# an#

&a's or saemens ma"e b# he 'omplainans a"miing ha he E$ropean omm$niies meas$re %as

TO-'onsisen or promising ha he# %o$l" no a@e legal a'ion agains he E$ropean

omm$niies/ 1n he presen 'ases i& he 'omplainans %ere o be regar"e" as being esoppe" &rom

iniiaing hese Ari'le 24/5 pro'ee"ings s$'h esoppel %o$l" have o aa'h o a represenaion

o$si"e o& he .n"ersan"ings on !ananas/ This ho%ever is no he 'ase/ There&ore %e 'onsi"er

ha he .nie" ,aes an" E'$a"or have no &aile" o a' in goo" &aih in reD$esing 'omplian'e

pro'ee"ings p$rs$an o Ari'le 24/5/

2Appellae !o"# epor E) – Export #u$sidies on #ugar para/ 42/Appellae !o"# epor E) – Export #u$sidies on #ugar para/ 45/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 84

2/ ?a@ing re&eren'e o Ari'le 44 o& he +,. he E$ropean omm$niies &$rher alleges ha

he anel &aile" o provi"e an# $si&i'aion &or ree'ing is 'laim base" on he prin'iple o& goo" &aih/

The .nie" ,aes respon"s ha his 'laim is o$si"e he s'ope o& his appeal be'a$se he E$ropeanomm$niies Noi'e o& Appeal "oes no 'onain a re&eren'e o Ari'le 44 o& he +,./ e noe ha

he E$ropean omm$niies 'lari&ie" a he oral hearing ha i %as no a"van'ing a 'laim $n"er

Ari'le 44 o& he +,./ There&ore %e ma@e no &in"ing in respe' o ha provision/

II. S#% # A($)*% 21.5 P(#%%0) – M%+(% T<% $# C#6*= :U)$%0 S$$%;

4/ e no% $rn o a""ress he E$ropean omm$niies appeal o& he anels &in"ing ha he

E !ananas 1mpor egime 'onsi$e" a Lmeas$re a@en o 'ompl#L %ihin he meaning o&

Ari'le 24/5 o& he +,. an" %as here&ore properl# be&ore he anel/ The E$ropean omm$niies

appeals his &in"ing onl# in he pro'ee"ing iniiae" b# he .nie" ,aes/

2/ The anel &irs assesse" %heher he E !ananas 1mpor egime %as a meas$re a@en o

'ompl# be'a$se o& La pari'$larl# 'lose relaionshipL o he "e'lare" meas$re a@en o 'ompl# ha is

he 2002-2005 bananas impor regime o& he E$ropean omm$niies an" o he original

re'ommen"aions an" r$lings o& he +,!/4 Therea&er he anel assesse" %heher base" on he

'rieria i"eni&ie" b# he Appellae !o"# in /# – #oft%ood Lum$er I8 &Article +,-. – )anada' he

E !ananas 1mpor egime %as in isel& a meas$re a@en o 'ompl#/

/ ih respe' o he laer D$esion %heher he E !ananas 1mpor egime %as in isel& a

meas$re a@en o 'ompl# he anel 'onsi"ere" he E$ropean omm$niies LaempL o 'ompl# %ih

he original +,! re'ommen"aions an" r$lings b# a"oping on 4 Can$ar# 4999 o$n'il eg$laion

(E) No/ 467*982 (LE eg$laion 467*98L) an" ommission eg$laion (E) No/ 262*98

(LE eg$laion 262*98L)/ The anel also re&erre" o he +e'ision b# he Arbiraors in E) –

Bananas III &/#' &Article ++-3 – E)' he anel epor in E) – Bananas III &Article +,-. – Ecuador'

an" he anel epor in E) – Bananas III &Article +,-. – E)' an" 'on'l$"e" ha i ha" beenesablishe" in hose pro'ee"ings ha he E$ropean omm$niies ha" &aile" o bring isel& ino

'omplian'e %ih he original re'ommen"aions an" r$lings a"ope" b# he +,! in he E) –

Bananas III "isp$e in 4997/

4., anel epor para/ 7/4 (D$oing Appellae !o"# epor /# – #oft%ood Lum$er I8

&Article +,-. – )anada' para/ 77)/2o$n'il eg$laion (E) No/ 467*98 o& 20 C$l# 4998 amen"ing o$n'il eg$laion (EE)

No/ 0*9 on he 'ommon organisaion o& he mar@e in bananas =fficial :ournal of the European

)ommunities > ,eries No/ 240 (28 C$l# 4998) 28/ommission eg$laion (E) No/ 262*98 o& 28 O'ober 4998 la#ing "o%n r$les &or he

implemenaion o& o$n'il eg$laion (EE) No/ 0*9 regar"ing impors o& bananas ino he omm$ni#=fficial :ournal of the European )ommunities > ,eries No/ 29 (28 O'ober 4998) 2/

., anel epor para/ 7/52/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 82

/ 1n is anal#sis he anel also oo@ ino a''o$n he .n"ersan"ing on !ananas 'on'l$"e"

be%een he E$ropean omm$niies an" he .nie" ,aes/5 The relevan se'ions o& his

.n"ersan"ing provi"e as &ollo%s:

!/ 1n a''or"an'e %ih Ari'le 46(4) o& eg$laion No/ (EE)0*9 (as amen"e" b# eg$laion No/ (E) 246*2004) heE$ropean omm$niies (E) %ill inro"$'e a Tari&& Onl#regime &or impors o& bananas no laer han 4 Can$ar# 2006/

/ 1n he inerim he E %ill implemen an impor regime on he basis o& hisori'al li'ensing as &ollo%s:

4/ E&&e'ive 4 C$l# 2004 he E %ill implemen an imporregime on he basis o& hisori'al li'ensing as se o$ in

Anne3 4/

2/ E&&e'ive as soon as possible herea&er s$be' oo$n'il an" E$ropean arliamen approval an" oa"opion o& he Ari'le 111 %aiver re&erre" o in

paragraph E he E %ill implemen an impor regime onhe basis o& hisori'al li'ensing as se o$ in Anne3 2/The ommission %ill see@ o obain he implemenaiono& s$'h an impor regime as soon as possible/

5/ The anel 'onsi"ere" he lang$age o& he .n"ersan"ing an" &o$n" %ih respe' o

E eg$laion 496*2005 %hi'h inro"$'e" he E !ananas 1mpor egime a iss$e in he presen

"isp$e ha:

/// he E$ropean omm$niies "oes no 'ones ha E eg$laion496*2005 'orrespon"s o paragraph ! o& he !ananas.n"ersan"ing %hi'h provi"es ha L1n a''or"an'e %ihAri'le 46(4) o& eg$laion No/ (E) 0*9 (as amen"e" b#eg$laion No/ (E) 246*2004) he E$ropean omm$niies(E) %ill inro"$'e a Tari&& Onl# regime &or impors o& bananas nolaer han 4 Can$ar# 2006/L6

6/ $rhermore he anel relie" on saemens b# he E$ropean omm$niies a he +,!

meeing hel" on 49 November 4999 as %ell as he sa$s repor o he +,! on 44 ebr$ar# 2000 in

%hi'h he E$ropean omm$niies propose" a %o-sage pro'ess &or he re&orm o& is banana regime

as a'@no%le"gemens b# he E$ropean omm$niies ha a ha ime i ha" no #e a'hieve"

'omplian'e/7

5., anel epor para/ 7/57 (re&erring o T*+,27*58B T*+,27*59B an" T*+,27*60)/6., anel epor para/ 7/84/7

., anel epor para/ 7/5 (re&erring o ?in$es o& he +,! meeing hel" on 49 November 4999T*+,!*?*74) an" para/ 7/56 (re&erring o E) – Bananas III ,a$s epor b# he E$ropean omm$niiesT*+,27*54*A""/5)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 8

7/ 1n a""iion he anel assesse" %heher he E !ananas 1mpor egime a iss$e in his

"isp$e %as a meas$re a@en o 'ompl# be'a$se o& La pari'$larl# 'lose relaionshipL o he "e'lare"

meas$re a@en o 'ompl# ha is he 2002-2005 bananas impor regime o& heE$ropean omm$niies an" o he original re'ommen"aions an" r$lings o& he +,!/ 8 1n his respe'

he anel observe" ha boh he original bananas impor regime an" he E !ananas 1mpor egime

a iss$e in he presen 'ase Lmainain in he &orm o& one or more ari&& rae D$oas a a =ero in-D$oa

"$# a pre&erenial reamen &or A 'o$nries in 'omparison %ih he reamen a''or"e" o oher

TO ?embers/L9 or he anel hese %ere Limporan similariies in he na$re an" e&&e's o& he

impor regime revie%e" in he original panel an" appellae pro'ee"ings an" he FE !ananas 1mpor

egime a iss$e in his "isp$eGL/40

8/ The anel 'on'l$"e" ha:

/// in isel& he FE !ananas 1mpor egime a iss$e in he '$rren"isp$eG is a meas$re a@en o 'ompl# %ih he originalre'ommen"aions an" r$lings o& he +,! in he E) – Bananas III

"isp$e/ $rher he FE !ananas 1mpor egime a iss$e in he'$rren "isp$eG is a meas$re a@en o 'ompl# %ih he originalre'ommen"aions an" r$lings o& he +,! in he E) – Bananas III

"isp$e also on he basis o& is pari'$larl# 'lose relaionship o heallege" &inal meas$re a@en o 'ompl# b# he E$ropeanomm$niies i/e/ he 2002-2005 E bananas impor regime/

A''or"ingl# he anel ree's he hir" preliminar# obe'ion o& heE$ropean omm$niies an" &in"s ha he .nie" ,aes has properl#

bro$gh his "isp$e $n"er Ari'le 24/5 o& he +,./44

9/ On appeal he E$ropean omm$niies arg$es ha he .nie" ,aes "e'ision o erminae

he s$spension o& 'on'essions $pon implemenaion o& he ari&& D$oa-base" impor regime "es'ribe"

in s$bparagraph /2 o& he .n"ersan"ing on !ananas 'on&irme" ha he .nie" ,aes an" he

E$ropean omm$niies ha" agree" ha he E$ropean omm$niies ha" 'omplie" %ih he

re'ommen"aions an" r$lings o& he +,! in he original "isp$e/ The E$ropean omm$niies s$bmis

8., anel epor para/ 7/4 (D$oing Appellae !o"# epor /# – #oft%ood Lum$er I8

&Article +,-. – )anada' para/ 7)/ (e3 in sD$are bra'@es a""e" b# he anel)9

., anel epor para/ 7/26/40., anel epor para/ 7/26/44., anel epor paras/ 7/54 an" 7/52/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 8

40/ ha Lhe .nie" ,aes reenion o& he righ o re-impose realiaor# meas$res onl# i& he

Fari&& D$oa-base"G regime F"i"G no ener ino &or'e b# 4 Can$ar# 2002L42 "emonsrae" he

imporan'e pla'e" b# he .nie" ,aes isel& on he ari&& D$oa impor regime an" &$rher s$ppore"he 'on'l$sion ha he .nie" ,aes an" he E$ropean omm$niies ha" agree" ha %ih he

inro"$'ion o& he ari&& D$oa-base" regime as he Lmeas$re a@en o 'ompl#L he "isp$e %o$l" be

sele"/

44/ 1n a""iion he E$ropean omm$niies s$bmis ha here %as Lno lin@L be%een he

original +,! re'ommen"aions an" r$lings an" he polii'al "e'ision o& he E$ropean omm$niies o

inro"$'e a ari&&-onl# impor regime b# 4 Can$ar# 2006/ The E$ropean omm$niies arg$es ha a

Llin@L e3iss be%een a meas$re an" he +,! re'ommen"aions an" r$lings in he original

pro'ee"ings %hen he inro"$'ion o& he 'onese" meas$re is ne'essar# o a""ress a spe'i&i' &in"ing

o& in'onsisen'# %ih he 'overe" agreemens/ Je he E$ropean omm$niies arg$es ha here %as

no &in"ing in he original E) – Bananas III pro'ee"ings ha 'o$l" be implemene" onl# hro$gh a

ari&&-onl# regime/ There&ore he E$ropean omm$niies s$bmis ha a lin@ o he +,!

re'ommen"aions an" r$lings in he original pro'ee"ings %as missing in he presen pro'ee"ings an"

ha he E !ananas 1mpor egime %as here&ore no a Lmeas$re a@en o 'ompl#L/ Th$s i& he

.nie" ,aes inen"e" o 'hallenge he 'onsisen'# %ih TO la% o& E eg$laion 496*2005 i

ha" o "o so in a reg$lar panel pro'ee"ing no $n"er Ari'le 24/5 o& he +,./

42/ The .nie" ,aes 'onen"s ha is 'ommimen o erminae realiaion $pon he

inro"$'ion o& a ari&& D$oa-base" impor regime $n"er s$bparagraph /2 o& he .n"ersan"ing on

!ananas "i" no in"i'ae an agreemen b# he .nie" ,aes o regar" he E$ropean omm$niies

inerim regime as he &inal implemenaion o& he original +,! re'ommen"aions an" r$lings/ The

.nie" ,aes assers ha i erminae" onl# he imposiion o& realiaor# "$ies b$ ha he

m$lilaeral a$hori=aion o s$spen" 'on'essions ha" no been revo@e"/ The .nie" ,aes mainains

ha a 'omplainan ma# 'hoose %heher an" o %ha e3en o ma@e $se o& he TO a$hori=aion o

s$spen" 'on'essions an" ha here&ore he 'omplainans "e'ision no o e3er'ise ha righ "oes no

impl# he 'omplainans a''epan'e ha he respon"ens meas$res have be'ome 'onsisen %ih is

TO obligaions/ 1n a""iion he .nie" ,aes "isagrees %ih he E$ropean omm$niies ha here

%as no lin@ be%een he 'onese" meas$re an" he +,! re'ommen"aions an" r$lings in E) –

Bananas III / The .nie" ,aes s$bmis ha insea" he E$ropean omm$niies agree" hro$gh he

erms o& he .n"ersan"ing on !ananas o a@e 'erain inerim seps '$lminaing in a ari&&-onl#

regime b# 4 Can$ar# 2006 an" ha his 'onsi$e" a L'lear lin@L 4 be%een he re'ommen"aions an"

42

E$ropean omm$niies appellans s$bmission para/ 4 (.,) (D$oing s$bparagraph +/ o& he.n"ersan"ing on !ananas)/




T*+,27*A!*2*E.T*+,27*A!**.,A

age 85

r$lings o& he +,! in E) – Bananas III an" he E !ananas 1mpor egime a iss$e in he presen

"isp$e/

4/ e begin o$r anal#sis b# re'alling he e3 o& Ari'le 24/5 o& he +,. %hi'h provi"es in

relevan par:

here here is "isagreemen as o he e3isen'e or 'onsisen'# %ih a'overe" agreemen o& meas$res a@en o 'ompl# %ih here'ommen"aions an" r$lings s$'h "isp$e shall be "e'i"e" hro$ghre'o$rse o hese "isp$e selemen pro'e"$res in'l$"ing %herever

possible resor o he original panel/

4/ e a""ress &irs he legal san"ar" ari'$lae" b# he anel &or "eermining %heher he

E !ananas 1mpor egime %as a meas$re a@en o 'ompl# an" %heher i %as properl# be&ore his

anel/ Therea&er %e e3amine %heher he anel 'orre'l# applie" Ari'le 24/5 o he &a's o& his

'ase %hen i "eermine" ha he E !ananas 1mpor egime 'onsi$e" a Lmeas$re a@en o 'ompl#L

ha 'o$l" properl# be 'hallenge" in an Ari'le 24/5 pro'ee"ing/

45/ ih respe' o he legal san"ar" a"ope" b# he anel %e noe ha he anel relie" $pon

he Appellae !o"#s &in"ing in /# – #oft%ood Lum$er I8 &Article +,-. – )anada' ha LFsGome

meas$res %ih a pari'$larl# 'lose relaionship o he "e'lare" meas$re a@en o 'ompl# an" o he

re'ommen"aions an" r$lings o& he +,! ma# also be s$s'epible o revie% b# a panel a'ing $n"er

Ari'le 24/5/L4 1n is 'on'l$sion he anel &o$n" ha he E !ananas 1mpor egime %as a meas$re

a@en o 'ompl# Lin isel&L an" also Lon he basis o& is pari'$larl# 'lose relaionship o he allege"

&inal meas$re a@en o 'ompl#L/45

46/ The 'on'l$sions o& he anel "erive" &rom is appli'aion o& he reasoning in /# – #oft%ood

Lum$er I8 &Article +,-. – )anada'/ The anel ho%ever &aile" o re&le' in is reasoning ha /# –

#oft%ood Lum$er I8 &Article +,-. – )anada' %as no 'on'erne" %ih %heher a meas$re is in isel& a

meas$re a@en o 'ompl#/ Tha "isp$e 'on'erne" he si$aion %here b# reason o& he 'loserelaionship be%een he meas$re a iss$e an" he "e'lare" meas$re a@en o 'ompl# he meas$re a

iss$e &ell %ihin he s'ope o& Ari'le 24/5/ 1 %ill or"inaril# be ne'essar# o 'onsi"er &irs %heher he

meas$re a iss$e is in isel& a meas$re a@en o 'ompl#/ Onl# i& ha anal#sis 'anno provi"e a 'lear

ans%er is he anal#sis o& /# – #oft%ood Lum$er I8 &Article +,-. – )anada' o& appli'aion/

4

., anel epor para/ 7/40 (D$oing Appellae !o"# epor /# – #oft%ood Lum$er I8&Article +,-. – )anada' para/ 77)/

45., anel epor paras/ 7/54/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 88

an" implemene" he erms o& he bilaeral .n"ersan"ing on!ananas/48 (&oonoe omie")

2/ 1 is 'lear &rom his saemen ha he .nie" ,aes "i" no a''ep ha b# inro"$'ing heransiional ari&& D$oa regime he E$ropean omm$niies ha" bro$gh is bananas impor regime

&$ll# ino 'omplian'e %ih he re'ommen"aions an" r$lings o& he +,! in he original E) –

Bananas III "isp$e/ 1& as he E$ropean omm$niies s$ggess he .nie" ,aes ha" 'onsi"ere"

ha he E$ropean omm$niies ha" a'hieve" &$ll 'omplian'e b# inro"$'ing he ari&& D$oa p$rs$an

o paragraph o& he .n"ersan"ing here %o$l" have been no reason &or he .nie" ,aes o

'onin$e o %or@ 'losel# %ih he E$ropean omm$niies an" oher ?embers o a""ress an# iss$es

ha migh arise as he E move" o a ari&&-base" s#sem &or bananas/ 1n &a' in his saemen he

.nie" ,aes lin@e" is inenion o L%or@ 'losel# %ih he EL o is e3pe'aion ha he E$ropeanomm$niies %o$l" LimplemenFG he erms o& he bilaeral .n"ersan"ing on !ananasL/ This

in"i'aes ha he .nie" ,aes "i" no 'onsi"er ha he E$ropean omm$niies ha" &$ll# 'omplie"

%ih is obligaions a he ime he .nie" ,aes "e'i"e" o erminae he s$spension o& is

'on'essions/ e here&ore ree' he E$ropean omm$niies arg$men ha he .nie" ,aes an"

he E$ropean omm$niies ha" agree" o 'onsi"er he inro"$'ion o& he ari&& D$oa as he &inal

Lmeas$re a@en o 'ompl#L ha %o$l" resolve his "isp$e/

2/ e &in" ha he E !ananas 1mpor egime is in isel& a Lmeas$re a@en o 'ompl#L %ihin

he sense o& Ari'le 24/5 o& he +,./ There&ore sri'l# spea@ing %e %o$l" no be reD$ire" o assess

%heher he E !ananas 1mpor egime &ell %ihin he s'ope o& Ari'le 24/5 be'a$se o& a

Lpari'$larl# 'lose relaionshipL o he "e'lare" meas$re a@en o 'ompl#Pha is he 2002-2005

bananas impor regime o& he E$ropean omm$niiesPan" o he original re'ommen"aions an"

r$lings o& he +,!/ Noneheless as he anel ma"e &in"ings in his respe' an" given ha he paries

a"van'e several arg$mens relaing hereo %e brie&l# a""ress hese a""iional &in"ings/

25/ irs he E$ropean omm$niies alleges ha here %as Lno lin@L an" here&ore no

Lpari'$larl# 'lose relaionshipL be%een he re'ommen"aions an" r$lings o& he +,! in

E) – Bananas III an" he polii'al "e'ision o& he E$ropean omm$niies o inro"$'e a ari&&-onl#

impor regime b# 4 Can$ar# 2006/ The E$ropean omm$niies arg$es ha a lin@ e3iss %hen he

inro"$'ion o& he 'hallenge" meas$re is Lne'essar#L49 o a""ress a spe'i&i' &in"ing o& in'onsisen'#

%ih he 'overe" agreemens/ Je in he E$ropean omm$niies s$bmission here is no &in"ing in

he 4997 E) – Bananas III "isp$e ha 'o$l" be 'omplie" %ih onl# hro$gh he inro"$'ion o& a

ari&&-onl# regime/

48

., anel epor para/ 7/94 (D$oing ?in$es o& he +,! meeing hel" on 4 ebr$ar# 2002T*+,!*?*449 para/ 8)/

49E$ropean omm$niies appellans s$bmission para/ 6 (.,)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 89

26/ >i@e he anel %e "o no see %h# i sho$l" be relevan ha he original re'ommen"aions

an" r$lings o& he +,! "i" no e3pressl# s$gges ha he E$ropean omm$niies bring isel& ino

'omplian'e spe'i&i'all# hro$gh he inro"$'ion o& a ari&&-onl# regime/ e see no basis in he +,.&or reD$iring ha a meas$re m$s be Lne'essar#L o a""ress a spe'i&i' &in"ing o& in'onsisen'# in

or"er &or ha meas$re o be inro"$'e"B nor "oes he E$ropean omm$niies i"eni&# an# e3$al

basis &or his in he +,./ TO ?embers eno# some "is'reion in 'hoosing ho% o implemen +,!

re'ommen"aions an" r$lings/ 1n ha vein he 'hapea$ o& Ari'le 24/ o& he +,. provi"es ha Lhe

?ember 'on'erne" shall in&orm he +,! o& is inenions in respe' o& implemenaion o& he

re'ommen"aions an" r$lings o& he +,!/L 1n /# – /pland )otton &Article +,-. – Bra"il' he

Appellae !o"# sae":

here alernaive means o& implemenaion are available a TO?ember eno#s some "is'reion in "e'i"ing %ha meas$res o a@e o'ompl# %ih he +,!s re'ommen"aions an" r$lings/20

27/ The Appellae !o"# a""resse" he lin@ be%een he Lmeas$re a@en o 'ompl#L an" he

original re'ommen"aions an" r$lings o& he +,! in /# – #oft%ood Lum$er I8 &Article +,-. –

)anada' /# – F#) &Article +,-. – E) II' an" )hile – Price Band #ystem &Article +,-. –

Argentina'/24 The Appellae !o"# "i" no &in" ha a lin@ be%een a meas$re a@en o 'ompl# an" he

original +,! re'ommen"aions an" r$lings e3iss onl# %hen he meas$re is Lne'essar#L o a""ress a

spe'i&i' &in"ing o& in'onsisen'#/ e here&ore ree' his arg$men o& he E$ropean omm$niies/

28/ The E$ropean omm$niies alleges &$rher ha in 'on'l$"ing ha he E !ananas 1mpor

egime a iss$e in he presen 'ase %as 'losel# relae" o he re'ommen"aions an" r$lings in E) –

Bananas III he anel overseppe" he limiaions impose" b# is erms o& re&eren'e %hi'h 'on&ine"

he s'ope o& he anels revie% o he Lspe'i&i' meas$re a iss$eL/ 22 The E$ropean omm$niies

'laims ha he anel hereb# a'e" in'onsisenl# %ih Ari'les 6/2 an" 7 o& he +,./ e see no

error in he anels re&eren'e o &in"ings o& he original panel in E) – Bananas III / The anel "i" no

reassess he meas$re a iss$e in E) – Bananas III / 1nsea" he anel ha" regar" o ha meas$re in an

evi"eniar# sense &or he p$rpose o& assessing %heher here %as a lin@ be%een he bananas impor

regime revie%e" in he E) – Bananas III "isp$e an" ha a iss$e in he presen pro'ee"ings/ 1n

"oing so he anel "i" no e3'ee" is man"ae/

20Appellae !o"# epor /# – /pland )otton &Article +,-. – Bra"il' para/ 202/24Appellae !o"# epor /# – #oft%ood Lum$er I8 &Article +,-. – )anada' para/ 68B Appellae !o"#

epor /# – F#) &Article +,-. – E) II' para/ 64B Appellae !o"# epor )hile – Price Band #ystem&Article +,-. – Argentina' para/ 46/

22E$ropean omm$niies appellans s$bmission para/ 8 (.,)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 90

29/ The E$ropean omm$niies also assers ha he anel %as %rong in rel#ing on he &in"ings

o& he panels in E) – Bananas III &Article +,-. – Ecuador' an" E) – Bananas III &Article +,-. – E)'

an" on he "e'ision b# he arbiraors in E) – Bananas III &/#' &Article ++-3 – E)' %hen assessing%heher he E !ananas 1mpor egime a iss$e in he '$rren pro'ee"ings 'onsi$e" a Lmeas$re a@en

o 'ompl#L/2 The E$ropean omm$niies 'onen"s ha hose pro'ee"ings relae" o a "i&&eren maer

an" involve" "i&&eren TO ?embers o hose in he presen pro'ee"ings/ There&ore he E$ropean

omm$niies 'onen"s ha Lhe res$ling reporFsG FareG no bin"ing pre'e"en &or oher "isp$es

be%een he same paries on oher maers or be%een "i&&eren paries on he same maer even %here

he same D$esion o& TO la% migh arise/L2

0/ e noe ha he anel sae" ha i rea" he Labove hree pro'e"$resL as an Lin"i'aionL ha

he E$ropean omm$niies aemp o bring isel& ino 'omplian'e b# 4 Can$ar# 4999 %as

$ns$''ess&$l/25 1n so saing he anel 'onsi"ere" he res$l o& hese hree repors as evi"en'e in he

'one3 o& is assessmen o& %heher he E !ananas 1mpor egime 'onsi$e" a meas$re a@en

Lin the direction of or havingC the o$Dective of achieving 'omplian'eL/26 e see no error in he

anels relian'e on he o$'ome o& hese pro'ee"ings &or assessing %heher he E$ropean

omm$niies ha" bro$gh isel& ino 'omplian'e/ There is no D$esion ha hese previo$s repors an"

"e'isions &orm par o& a 'onin$$m o& evens ha provi"e an in"i'aion ha he E$ropean

omm$niies ha" no #e &$ll# implemene" he +,!s re'ommen"aions an" r$lings in he original pro'ee"ings/

4/ ih respe' o he E$ropean omm$niies menion o& Ari'le 44 o& he +,. %e noe ha

he E$ropean omm$niies 'lari&ie" a he oral hearing ha i %as no invo@ing Ari'le 44 as he

basis o& a separae 'laim/ The E$ropean omm$niies e3plaine" ha raher i ma"e re&eren'e o

Ari'le 44 o& he +,. as a s$pporing arg$men in he 'one3 o& allegaions o& violaion o& oher

provisions o& he ATT 499 or he +,./ e also noe ha Ari'le 44 has no been lise" b# he

E$ropean omm$niies in is Noi'e o& Appeal/ 1n hese 'ir'$msan'es %e ma@e no &in"ing %ih

respe' o Ari'le 44 o& he +,./

2/ or all hese reasons %e find ha he E !ananas 1mpor egime 'onsi$e" in isel& a

Lmeas$re a@en o 'ompl#L/ e here&ore uphold albei &or "i&&eren reasons he anels &in"ing in

paragraph 7/54 o& he ., anel epor ha he E !ananas 1mpor egime se o$ in

2E$ropean omm$niies appellans s$bmission para/ 5 (.,) (re&erring o ., anel epor para/ 7/52)/

2E$ropean omm$niies appellans s$bmission para/ 56 (.,)/25

., anel epor para/ 7/52/26., anel epor para/ 7/06 (D$oing Appellae !o"# epor /# – #oft%ood Lum$er I8

&Article +,-. – )anada' para/ 67 (original emphasis))/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 94

E eg$laion 496*2005 an" implemening reg$laions 'onsi$e" a meas$re a@en o 'ompl# an"

%as here&ore properl# be&ore he anel in hese Ari'le 24/5 pro'ee"ings/

III. R%%* # $'% C'**%%0 M%+(% :U)$%0 S$$%;

4/ e no% a""ress he D$esion %heher he anel erre" in he 'ase iniiae" b# he .nie"

,aes in &ailing o a@e ino 'onsi"eraion he repeal o& he 'hallenge" meas$re/

2/ A""ressing a reD$es b# he E$ropean omm$niies a he inerim revie% sage o ma@e

several mo"i&i'aions o re&le' he a"opion o& E eg$laion 4528*2007 %hi'h repeale" inter alia

he ari&& D$oa o& 775000 meri' onnes (LmL) esablishe" hro$gh Ari'le 4(2) o& E eg$laion

496*2005 he anel &o$n":

FEGvi"en'e s$bmie" a his lae sage b# he E$ropean omm$niiesregar"ing he a"opion o& amen"mens o he E bananas imporregime is ina"missible/ $rhermore he anel "oes no 'onsi"erha he lang$age 'onaine" in paragraph 8/(') o& he inerim repor'reaes an# impression ha he anel is ma@ing &in"ings regar"ingaspe's o& he E bananas impor regime oher han he pre&erenialari&& D$oa reserve" &or A bananas/4

/ Noneheless he anel mo"i&ie" paragraph 8/5 o& he 1nerim epor %hi'h rea" LFGhe

anel re'ommen"s ha he +isp$e ,elemen !o"# reD$es he E$ropean omm$niies o bring hein'onsisen meas$res ino 'on&ormi# %ih is obligaions $n"er he ATT 499L o rea" as &ollo%s

in he inal epor:

,in'e he original +,! re'ommen"aions an" r$lings in his "isp$eremain operaive hro$gh he res$ls o& he '$rren 'omplian'e

pro'ee"ings he anel ma@es no ne% re'ommen"aion/2

/ On appeal he E$ropean omm$niies 'onen"s ha he anel &aile" o a@e ino

'onsi"eraion he repeal o& he 'onese" meas$re an" hereb# a'e" in'onsisenl# %ih is obligaion

$n"er Ari'le / o& he +,. o La'hieveFG a sais&a'or# selemen o& he maerL an" is obligaion

$n"er Ari'le /7 o& he +,. o Lse'$re a posiive sol$ion o he "isp$eL/ 1n his 'one3 he

E$ropean omm$niies also ma@es re&eren'e o Ari'le 44 o& he +,./ The E$ropean omm$niies

4., anel epor para/ 6/2/2., anel epor para/ 8/4/ 1n 'onras he E'$a"or anel epor saes in paragraph 8/5:

The anel re'ommen"s ha he +isp$e ,elemen !o"# reD$es heE$ropean omm$niies o bring he in'onsisen meas$res ino 'on&ormi#%ih is obligaions $n"er he ATT 499/

e noe ha paragraph 8/4 o& he ., 1nerim epor %as i"eni'al o paragraph 8/5 o& he inal epor in

he E'$a"or 'ase/ <o%ever he anel mo"i&ie" his re'ommen"aion in he inal ., anel epor/ (,eeE$ropean omm$niies appellans s$bmission paras/ 477 an" 478 (.,))

E$ropean omm$niies appellans s$bmission para/ 480 (.,)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 92

s$bmis ha he anel "i" no "ising$ish properl# be%een &a'$al evi"en'e s$pporing a 'laim an"

evi"en'e relaing o he e3isen'e o& he 'onese" meas$re isel& %hen i "ismisse" evi"en'e

s$bmie" b# he E$ropean omm$niies regar"ing he a"opion o& E eg$laion 4528*2007/

5/ The E$ropean omm$niies also 'laims ha he anel erre" in ma@ing a re'ommen"aion

%ih respe' o a meas$re ha ha" 'ease" o e3is s$bseD$en o he esablishmen o& he anel an"

alleges ha he anel provi"e" a L'on'eale"L re'ommen"aion b# saing ha he original +,!

re'ommen"aions an" r$lings remaine" operaive/5 The E$ropean omm$niies re&ers o he

Appellae !o"# epor in /# – )ertain E) Products in s$ppor o& is proposiion ha panels 'anno

ma@e re'ommen"aions %ih respe' o meas$res ha have 'ease" o e3is/ The E$ropean

omm$niies s$bmis ha sin'e he 775000 m "$#-&ree ari&& D$oa reserve" &or A impors %as

repeale" b# E eg$laion 4528*2007 prior o he iss$an'e o& he ., anel epor here %as no

re'ommen"aion ha 'o$l" be ma"e or ha 'o$l" Lremain operaiveL/6

6/ The .nie" ,aes 'onen"s ha he anel "i" no err in ma@ing &in"ings %ih respe' o

E eg$laion 496*2005 even ho$gh ha eg$laion %as repeale" "$ring he 'o$rse o& he anel

pro'ee"ings/ The .nie" ,aes assers ha vario$s panels an" he Appellae !o"# have ma"e

re'ommen"aions %ih respe' o e3pire" meas$res/7 ih respe' o he E$ropean omm$niies

relian'e on he Appellae !o"# epor in /# – )ertain E) Products he .nie" ,aes 'onen"s ha

he meas$re a iss$e in ha "isp$e ha" 'ease" o e3is prior o he esablishmen o& he panels erms

o& re&eren'e %hile in he presen "isp$e he E$ropean omm$niies repeale" E eg$laion

496*2005 onl# o%ar"s he 'on'l$sion o& he anel pro'ee"ings/8

E$ropean omm$niies appellans s$bmission para/ 487 (.,)/5E$ropean omm$niies appellans s$bmission paras/ 490 an" 494 (.,)/6E$ropean omm$niies appellans s$bmission para/ 494 (.,)/7.nie" ,aes appellees s$bmission para/ 408 (re&erring o anel epor E) – Approval and

Mar0eting of Biotech Product paras/ 8/46 an" 8/6B Appellae !o"# epor E) – #elected )ustoms Matters para/ 40B an" Appellae !o"# epor !ominican *epu$lic – Import and #ale of )igarettes para/ 429)/




T*+,27*A!*2*E.T*+,27*A!**.,A

age 9

7/ T$rning o o$r anal#sis %e &irs e3amine he E$ropean omm$niies allegaion ha he

anel &aile" o a@e ino 'onsi"eraion he repeal o& he 'onese" meas$re an" erre" in ma@ing

&in"ings %ih respe' o E eg$laion 496*2005/ The Appellae !o"# previo$sl# a""resse" heD$esions %heher e3pire" meas$res 'an be s$be' o 'ons$laions an" %heher he Lmeas$re a

iss$eL %ihin he meaning o& Ari'le 6/2 o& he +,. 'an be an e3pire" meas$re/ The Appellae !o"#

ans%ere" boh D$esions in he a&&irmaive/ 1n pari'$lar %ih respe' o he D$esion o& %hi'h

meas$res ma# be s$be' o 'ons$laions he Appellae !o"# re&erre" o he phrase Lmeas$res

a&&e'ing he operaion o& an# 'overe" agreemenL in Ari'le /2 o& he +,./ 1n his respe' he

Appellae !o"# &o$n" in /# – /pland )otton ha %heher or no a meas$re is sill in &or'e is no

"isposiive o& %heher ha meas$re is '$rrenl# a&&e'ing he operaion o& an# 'overe" agreemen an"

'an here&ore be s$be' o 'ons$laions/9

8/ The Appellae !o"# also ree'e" he noion ha an e3pire" meas$re 'o$l" no be a meas$re

ha is La iss$eL in erms o& Ari'le 6/2 o& he +,./ The Appellae !o"# e3plaine" ha Ari'le 6/2

reD$ires ha meas$res m$s be La iss$eL ha is Lin "isp$eL a he ime he panel reD$es is ma"e/

Je he Appellae !o"# &o$n" ha sin'e he erm La iss$eL "oes no she" ligh on %heher meas$res

a iss$e m$s '$rrenl# be in &or'e or %heher he# 'an have e3pire" he &a' ha a meas$re has

e3pire" is no "isposiive o& he D$esion %heher he panel 'an a""ress 'laims in respe' o& ha

meas$re/

40

The Appellae !o"# &o$n" 'one3$al s$ppor &or ree'ing he noion ha an e3pire"meas$re 'o$l" no be a meas$re La iss$eL in Ari'le / o& he +,. %hi'h re&ers o he Lpromp

selemenL o& 'erain si$aions ha in he absen'e o& selemen 'o$l" $n"ermine he e&&e'ive

&$n'ioning o& he TO an" he mainenan'e o& a proper balan'e be%een he righs an" obligaions

o& ?embers/ The Appellae !o"# observe" ha Ari'le / &o'$ses no $pon Le3isingL meas$res or

meas$res ha are L'$rrenl# in &or'eL b$ raher $pon Lmeas$res a@enL b# a ?ember %hi'h

in'l$"es meas$res a@en in he pas/44

9/ The si$aion in he presen 'ase is "i&&eren &rom ha in /# – /pland )otton in ha he

meas$re in he presen appeal %as sill in &or'e %hen he anel %as esablishe" an" e3pire" onl#

o%ar"s he en" o& he anel pro'ee"ings/ 1n /# – /pland )otton 'erain meas$res %ere no longer in

&or'e a he ime o& he esablishmen o& he panel b$ he 'onin$e" e&&e' o& pas s$bsi"ies %as

'laime" o sill 'a$se serio$s pre$"i'e o he 'omplainans ineress/ <o%ever %e 'onsi"er ha i&

he +,. "oes no e3'l$"e &rom he s'ope o& 'ons$laions or &rom he s'ope o& panel pro'ee"ings a

meas$re ha %as no longer in &or'e %hen he "isp$e %as iniiae" hen a fortiori a panel is no

9

Appellae !o"# epor /# – /pland )otton para/ 262/40Appellae !o"# epor /# – /pland )otton paras/ 269-272/44Appellae !o"# epor /# – /pland )otton para/ 26/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 9

pre'l$"e" &rom ma@ing &in"ings %ih respe' o meas$res ha e3pire "$ring he 'o$rse o& he

pro'ee"ings/

40/ e &in" &$rher s$ppor &or his inerpreaion in Ari'le 7 o& he +,. %hi'h ses o$ he

san"ar" erms o& re&eren'e &or panels/ The erms o& re&eren'e &or a panel p$rs$an o Ari'le 7 "e&ine

he s'ope o& he "isp$e an" he man"ae o& he panel/ 1n he presen 'ase he panel reD$es i"eni&ie"

inter alia E eg$laion 496*2005 an" he +,! esablishe" he anel on ha basis %ih san"ar"

erms o& re&eren'e/42 The E$ropean omm$niies an" he .nie" ,aes boh agree" a he o$se o&

he pro'ee"ings ha his eg$laion %as he meas$re a iss$e in'l$"e" in he anels erms o&

re&eren'e/ The paries agree" ha his meas$re %as %ihin he $ris"i'ion o& he anel/ The +,.

no%here provi"es ha he $ris"i'ion o& a panel erminaes or is limie" b# he e3pir# o& he meas$re

a iss$e/ On he 'onrar# %hen he +,. provi"es &or limiaions on he a$hori# o& he panel in oher

insan'es i "oes so in e3press erms/ Ari'le 42/42 o& he +,. &or e3ample provi"es ha a panels

a$hori# lapses i& he %or@ o& he panel has been s$spen"e" &or more han 42 monhs/ The absen'e o&

a similar limiaion %ih respe' o 'hanges o he s'ope o& he panels $ris"i'ion a&er he panel has

been esablishe" an" he erms o& re&eren'e have been "eermine" b# he +,! len"s &$rher s$ppor

o o$r inerpreaion ha on'e a panel has been esablishe" an" he erms o& re&eren'e &or he panel

have been se he panel has he 'ompeen'e o ma@e &in"ings %ih respe' o he meas$res 'overe" b#

is erms o& re&eren'e/ e h$s 'onsi"er i o be %ihin he "is'reion o& he panel o "e'i"e ho% ia@es ino a''o$n s$bseD$en mo"i&i'aions or a repeal o& he meas$re a iss$e/ A''or"ingl# panels

have ma"e &in"ings on e3pire" meas$res in some 'ases an" "e'line" o "o so in ohers "epen"ing on

he pari'$lariies o& he "isp$es be&ore hem/4 1n he presen 'ase he E$ropean omm$niies has

a"van'e" no reason nor "o %e see a reason &or iner&ering %ih he anels e3er'ise o& ha "is'reion/

44/ e $rn ne3 o he E$ropean omm$niies allegaion ha he anel erre" in ma@ing a

re'ommen"aion %ih respe' o an e3pire" meas$re/ e re'all ha he Appellae !o"# has

"ising$ishe" he D$esion %heher a panel 'an ma@e a finding 'on'erning an e3pire" meas$re &rom

he D$esion %heher a panel 'an ma@e a recommendation relaing o an e3pire" meas$re/ 1n /# –

)ertain E) Products he Appellae !o"# reverse" he panels "e'ision o ma@e a re'ommen"aion

p$rs$an o Ari'le 49/4 o& he +,. on he gro$n"s ha he panel ha" alrea"# &o$n" ha he meas$re

a iss$e in ha "isp$e ha" e3pire"/4 The Appellae !o"# 'on&irme" in /# – /pland )otton ha he

42., anel epor para/ 4//4,ee &or insan'e anel epor >ool #hirts and Blouses para/ 6/2B anel epor Indonesia – Autos

para/ 4/9B anel epor )hile – Price Band #ystem para/ 7/426B anel epor !ominican *epu$lic – Import

and #ale of )igarettes para/ 7/B an" anel epor E) – Approval and Mar0eting of Biotech Product para/ 7/442/

4Appellae !o"# epor /# – )ertain E) Products para/ 84/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 95

&a' ha a meas$re has e3pire" ma# a&&e' %ha re'ommen"aion a panel ma# ma@e b$ i is no

"isposiive o& he D$esion %heher a panel 'an ma@e &in"ings relaing o an e3pire" meas$re/ 45

42/ 1n @eeping %ih his "isin'ion %e assess %heher he anel ma"e a re'ommen"aion o he

+,! in he presen 'aseB an" i& so %ha @in" o& re'ommen"aion i ma"e/ e noe ha he anel

sae" in paragraph 8/4 o& he ., anel epor ha i Lma@es no ne% re'ommen"aionL/ 1 is no

'lear %ha is mean b# he %or" Lne%L in his 'one3: i seems o relae o he &a' ha he original

+,! re'ommen"aions an" r$lings in E) – Bananas III remain operaive $nil he E$ropean

omm$niies has a'hieve" s$bsanive 'omplian'e %ih hese re'ommen"aions an" r$lings/ hile

ma@ing he allegaion ha he anel ma"e a L'on'eale"L re'ommen"aion he E$ropean omm$niies

"oes no spe'i&# he 'onen o& his allege" L'on'eale"L re'ommen"aion/ 1n his si$aion %e are

$nable o "is'ern %ha %o$l" be he 'onen o& his allege" L'on'eale"L re'ommen"aion/ e "o no

believe ha he anel ma"e a spe'i&i' re'ommen"aion %ih respe' o a meas$re ha %as no longer

in &or'e a he ime he ., anel epor %as 'ir'$lae"/

4/ $rhermore %e 'onsi"er ha he anels saemen ha he Loriginal +,!

re'ommen"aions an" r$lings in his "isp$e remain operaiveL %as no in'orre'/ The +,!

re'ommen"aions an" r$lings &rom he original pro'ee"ings remain in e&&e' $nil he E$ropean

omm$niies brings isel& ino s$bsanive 'omplian'e/ The saemen b# he anel "oes no in an#

%a# a&&e' he legal sa$s o& he +,! re'ommen"aions an" r$lings in he original "isp$e/ e see

no error in he anels saemen in paragraph 8/4 o& he ., anel epor/ e here&ore find ha

he anel "i" no err in ma@ing &in"ings %ih respe' o a meas$re ha ha" 'ease" o e3is s$bseD$en

o he esablishmen o& he anel b$ be&ore he anel iss$e" is epor/

4/ ih respe' o he E$ropean omm$niies re&eren'e o Ari'le 44 o& he +,. %e noe ha

he E$ropean omm$niies 'lari&ie" a he oral hearing ha i %as no invo@ing Ari'le 44 as he

basis o& a separae 'laim/ The E$ropean omm$niies e3plaine" ha raher i ma"e re&eren'e o

Ari'le 44 o& he +,. as a s$pporing arg$men in he 'one3 o& allegaions o& violaion o& oher

provisions o& he ATT 499 or he +,./ e also re'all ha he E$ropean omm$niies Noi'e o&

Appeal ma@es no menion o& Ari'le 44 o& he +,./ 1n hese 'ir'$msan'es %e ma@e no &in"ing %ih

respe' o ha provision/

45Appellae !o"# epor /# – /pland )otton para/ 272/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 96

I>. T'% E+(#% C#66+)$)%? N#$)% # A%* :U)$%0 S$$%;

4/ 1n is appellees s$bmission he .nie" ,aes 'onen"s ha he E$ropean omm$niies

Noi'e o& Appeal "oes no sais&# he reD$iremens o& $le 20(2)(")(iii) o& he >or0ing Procedures

for Appellate *evie% be'a$se i "oes no 'onain an in"i'aive lis o& he paragraphs o& he ., anel

epor 'onaining he allege" errors/4 The .nie" ,aes &$rher s$bmis ha he Noi'e o& Appeal

&ails o 'ompl# %ih $le 20(2)(")(i) be'a$se several paragraphs o& he Noi'e o& Appeal spea@ o&

Lerroneo$s &in"ingsL o& he anel %iho$ i"eni&#ing %hi'h &in"ings are allege" o be erroneo$s/ 1n

pari'$lar he .nie" ,aes a@es iss$e %ih paragraph 2(a) (') an" (") o& he Noi'e o& Appeal/ The

.nie" ,aes reD$ess ha %e "ismiss he appeal &or hese reasons/

2/ 1n a""iion he .nie" ,aes assers ha he Noi'e o& Appeal ma@es no menion o& a 'laim

$n"er Ari'le 44 o& he +,./ Je he .nie" ,aes noes ha he E$ropean omm$niies appellans

s$bmission 'onains several allegaions o& violaion o& Ari'le 44 o& he +,./ The .nie" ,aes

reD$ess ha in an# even he Appellae !o"# sho$l" 'onsi"er he E$ropean omm$niies Ari'le 44

'laims as no properl# be&ore i/2

/ 1n repl# he E$ropean omm$niies "oes no "isp$e ha is Noi'e o& Appeal "i" no

i"eni&# he spe'i&i' paragraphs o& he ., anel epor 'onaining he allege" errors/ The E$ropean

omm$niies arg$es ho%ever ha none o& he pari'ipans or hir" pari'ipans ha" "i&&i'$l# in

i"eni&#ing he s'ope an" 'onen o& he Noi'e o& Appeal/ ?oreover %ih respe' o he allege"

&ail$re o lis in is Noi'e o& Appeal a 'laim $n"er Ari'le 44 o& he +,. he E$ropean omm$niies

a''eps ha Ari'le 44 o& he +,. is in"ee" no i"eni&ie" in he Noi'e o& Appeal/ <o%ever he

E$ropean omm$niies 'lari&ie" a he oral hearing ha i "i" no invo@e Ari'le 44 as he basis o& a

'laim b$ raher as a s$pporing arg$men/

/ $le 20(2)(") o& he >or0ing Procedures provi"es ha a Noi'e o& Appeal shall in'l$"e he

&ollo%ing in&ormaion:

FAG brie& saemen o& he na$re o& he appeal in'l$"ing:

(i) i"eni&i'aion o& he allege" errors in he iss$es o& la% 'overe"in he panel repor an" legal inerpreaions "evelope" b# he

panelB

(ii) a lis o& he legal provision(s) o& he 'overe" agreemens hahe panel is allege" o have erre" in inerpreing or appl#ingBan"

4

.nie" ,aes appellees s$bmission para/ 428/2.nie" ,aes appellees s$bmission para/ 4/E$ropean omm$niies response o D$esioning a he oral hearing/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 97

(iii) %iho$ pre$"i'e o he abili# o& he appellan o re&er ooher paragraphs o& he panel repor in he 'one3 o& isappeal an in"i'aive lis o& he paragraphs o& he panel repor

'onaining he allege" errors/

5/ 1n is Noi'e o& Appeal he E$ropean omm$niies Lsee@s revie%L o& seven Liss$es o& la%

an" legal inerpreaionsL 'onaine" in he ., anel epor/ The Noi'e o& Appeal ho%ever "oes no

provi"e a lis o& he legal provisions o& he 'overe" agreemens ha he anel is allege" o have erre"

in inerpreing or appl#ing as reD$ire" b# $le 20(2)(")(ii) o& he >or0ing Procedures/ $rhermore

he Noi'e o& Appeal "oes no 'onain an Lin"i'aive lis o& he paragraphs o& he panel repor

'onaining he allege" errorsL as reD$ire" $n"er $le 20(2)(")(iii)/

6/ $le 20(2)(") "oes no sip$lae %ha 'onseD$en'es &lo% &rom a &ail$re o mee isreD$iremens/ 1n assessing he poenial 'onseD$en'es %e are min"&$l o& he "$e pro'ess &$n'ion

ha his $le &$l&ils/ The Appellae !o"# re'ogni=e" in /# – )ountervailing Measures on )ertain

E) Products:

he imporan balan'e ha m$s be mainaine" be%een he righo& ?embers o e3er'ise he righ o& appeal meaning&$ll# an"e&&e'ivel# an" he righ o& appellees o re'eive noi'e hro$gh he

Noi'e o& Appeal o& he &in"ings $n"er appeal so ha he# ma#e3er'ise heir righ o& "e&en'e e&&e'ivel#/

7/ The Appellae !o"# sae" in ha 'ase ha he reD$iremens o& $le 20(2) Lserve o ens$re

ha he appellee also re'eives noi'e albei brie& o& he na$re o& he appeal an" he allegaions o&

errors b# he panel/L5 The Appellae !o"# hel" in :apan – Apples ha Lan eval$aion o& he

s$&&i'ien'# o& a Noi'e o& Appeal m$s e3amine %heher he appellee re'eive" noi'e herein o& he

iss$es o be arg$e" on appealL/6

8/ 1n @eeping %ih his approa'h %e assess in he presen 'ase %heher he .nie" ,aes %as

p$ on noi'e o& he allege" errors o& la% an" legal inerpreaions in he ., anel epor b# he

E$ropean omm$niies Noi'e o& Appeal/ e &irs a""ress he E$ropean omm$niies omission o

re&er o spe'i&i' paragraphs o& he ., anel epor in is Noi'e o& Appeal/ Therea&er %e a""ress

he .nie" ,aes allegaion ha vario$s 'laims b# he E$ropean omm$niies $n"er Ari'le 44 o& he

+,. are no properl# be&ore he Appellae !o"# be'a$se he# %ere no in'l$"e" in he Noi'e o&

Appeal/

Appellae !o"# epor /# – )ountervailing Measures on )ertain E) Products para/ 62/5Appellae !o"# epor /# – )ountervailing Measures on )ertain E) Products para/ 62/6Appellae !o"# epor :apan – Apples para/ 424/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 98

9/ The E$ropean omm$niies Noi'e o& Appeal i"eni&ies seven "isin' legal iss$es/

<o%ever i ma@es no menion o& an# paragraph n$mber o& he ., anel epor o %hi'h he iss$es

appeale" relae/ Noneheless %e 'onsi"er ha he .nie" ,aes %as in a posiion o "is'ern heiss$es raise" in he E$ropean omm$niies Noi'e o& Appeal/ The E$ropean omm$niies has

provi"e" a brie& "es'ripion o& ea'h legal iss$e i raises on appeal/ The &a' ha he .nie" ,aes has

provi"e" a 'omprehensive appellees s$bmission respon"ing o all he iss$es o& %hi'h he E$ropean

omm$niies see@s revie% s$ggess o $s ha he .nie" ,aes %as in &a' in a posiion o i"eni&#

he anel &in"ings he E$ropean omm$niies is appealing an" "i" no s$&&er pre$"i'e &rom he

&ail$re o& he E$ropean omm$niies o provi"e a lis o& relevan paragraphs o& he ., anel epor

in is Noi'e o& Appeal/ $rhermore %e noe ha in response o D$esioning a he oral hearing he

.nie" ,aes 'on&irme" ha i %as no alleging ha i ha" been pre$"i'e" b# he absen'e o&

paragraph n$mbers o& he ., anel epor in he E$ropean omm$niies Noi'e o& Appeal/ e

here&ore 'onsi"er ha %ih respe' o iems (a)(g) se o$ in paragraph 2 o& he Noi'e o& Appeal

he .nie" ,aes %as in he posiion o L@no% he 'ase Fi ha"G o meeL 7 an" %as h$s pla'e" on

noi'e o& he iss$es raise" in he E$ropean omm$niies Noi'e o& Appeal/ The &ormal "e&e's in he

Noi'e o& Appeal h$s "o no give rise o pro'e"$ral "erimen o& he @in" ha %o$l" %arran he

"ismissal o& he E$ropean omm$niies appeal/ e here&ore find ha he "e&i'ien'ies in he

E$ropean omm$niies Noi'e o& Appeal "o no lea" o "ismissal o& he E$ropean omm$niies

appeal/

40/ e $rn no% o he .nie" ,aes reD$es ha %e "ismiss he E$ropean omm$niies

'laims $n"er Ari'le 44 o& he +,. as no properl# be&ore he Appellae !o"# be'a$se s$'h 'laims

%ere no in'l$"e" in he Noi'e o& Appeal/8 The .nie" ,aes s$bmis ha %hile he E$ropean

omm$niies Noi'e o& Appeal no%here 'onains a 'laim $n"er Ari'le 44 o& he +,. he E$ropean

omm$niies appellans s$bmission assers in several pla'es ha he anel a'e" in'onsisenl# %ih

Ari'le 44/ There&ore he .nie" ,aes reD$ess he Appellae !o"# o 'onsi"er he E$ropean

omm$niies 'laims $n"er Ari'le 44 as no properl# be&ore i 'onsisen %ih he Appellae !o"#sreamen o& his iss$e in previo$s 'ases/

7Appellae !o"# epor /# – )ountervailing Measures on )ertain E) Products para/ 7/8.nie" ,aes appellees s$bmission para/ 4/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 99

44/ The E$ropean omm$niies 'lari&ie" a he oral hearing ha i %as no invo@ing Ari'le 44

as he basis o& a separae 'laim/ The E$ropean omm$niies e3plaine" ha raher i ma"e re&eren'e

o Ari'le 44 o& he +,. as a s$pporing arg$men in he 'one3 o& is 'laims $n"er oher provisionso& he ATT 499 or he +,./ 1n o$r vie% a par# is no prevene" &rom ma@ing re&eren'e o

Ari'le 44 in s$ppor o& an arg$men an" %e "o no &in" &a$l %ih he E$ropean omm$niies &or

ma@ing vario$s re&eren'es o Ari'le 44 in is appellans s$bmission/ <o%ever as no separae 'laim

$n"er Ari'le 44 o& he +,. has been raise" in he Noi'e o& Appeal an" as %e have no been as@e"

o ma@e &in"ings %ih respe' o Ari'le 44 %e ma@e no s$'h &in"ings/

42/ or all hese reasons %e reDect he .nie" ,aes reD$es o "ismiss he E$ropean

omm$niies appeal on a''o$n o& he E$ropean omm$niies &ail$re o 'ompl# %ih he

reD$iremen se o$ in $le 20(2)(") o& he >or0ing Procedures/ ?oreover as he E$ropean

omm$niies has no in'l$"e" 'laims base" on Ari'le 44 o& he +,. in is Noi'e o& Appeal an" has

'lari&ie" ha i has ma"e no separae 'laim base" on Ari'le 44 %e ma@e no &in"ings in his respe'/

>. A($)*% >III # $'% GATT 1""@ :E+0#( 0 U)$%0 S$$%;

4/ e $rn ne3 o he E$ropean omm$niies appeal o& he anels &in"ing ha he "$#-&ree

ari&& D$oa reserve" &or bananas o& A origin &alls %ihin he s'ope o& Ari'le 111 o& he

ATT 499 an" %as here&ore in'onsisen %ih Ari'le 111:4 he 'hapea$ o& Ari'le 111:2 an"

Ari'le 111:2(") o& he ATT 499/4 As a preliminar# iss$e %e a""ress he E$ropean omm$niies

appeal in he E'$a"or 'ase o& he anels &in"ing ha Lhe &a' ha a ?ember a"ops a meas$re o

implemen a s$ggesion p$rs$an o Ari'le 49/4 %o$l" FnoG preven anoher ?ember &rom

'hallenging p$rs$an o Ari'le 24/5 he 'omplian'e o& s$'h meas$re %ih he 'overe" agreemens/L2

2/ ,e'ion A s$mmari=es he &in"ings ma"e in he original pro'ee"ings an" b# he &irs

Ari'le 24/5 panel reD$ese" b# E'$a"or/ ,e'ion ! "es'ribes he meas$res a@en b# he E$ropean

omm$niies o 'ompl# %ih he +,!s re'ommen"aions an" r$lings/ The '$rren Ari'le 24/5 pro'ee"ings are s$mmari=e" in se'ion / ,e'ion + provi"es an overvie% o& he arg$mens raise" on

appeal b# he pari'ipans an" he hir" pari'ipans/ inall# in se'ion E %e "is'$ss he iss$es

appeale"/

A/ 4he =riginal Proceedings and the First Ecuador Article +,-. Panel

4/ 1n he original E) – Bananas III pro'ee"ings he allo'aion o& ari&& D$oa shares $n"er he

E$ropean omm$niies bananas impor regime in &or'e a ha ime %as &o$n" o be in'onsisen %ih

4E'$a"or anel epor para/7/82B ., anel epor para/ 7/720/2E'$a"or anel epor para/ 7/254/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 400

Ari'le 111 o& he ATT 499/ This in'onsisen'# %as &o$n" no o be $si&ie" b# eiher he

L!ananas rame%or@ AgreemenL anne3e" o he E$ropean omm$niies ATT ,'he"$le o&

on'essions or he Agreement on Agriculture/ The Appellae !o"# also &o$n" ha heL>omH aiverL &rom Ari'le 1 "i" no $si&# in'onsisen'ies %ih Ari'le 111 o& he ATT 499/5

On 25 ,epember 4997 he +,! a"ope" he original panel an" Appellae !o"# epors in E) –

Bananas III an" re'ommen"e" ha he E$ropean omm$niies bring is meas$res ino 'on&ormi#

%ih he 'overe" agreemens/6

2/ The impor regime inro"$'e" p$rs$an o E eg$laion 467*98 mainaine" a ari&& D$oa

o& 857000 m reserve" &or "$#-&ree impors o& bananas &rom ra"iional A s$ppliers an" ari&&

D$oas oalling 255000 m &or impors &rom hir" 'o$nries an" non-ra"iional A s$ppliers/ 7

.n"er hese ari&& D$oas impors &rom hir" 'o$nries %ere s$be' o an in-D$oa "$# o& E.75*m

%hile impors &rom A s$ppliers %ere "$# &ree/ O$-o&-D$oa impors &rom A s$ppliers

bene&ie" &rom an E.200 pre&eren'e over he o$-o&-D$oa "$# appli'able o impors &rom non-A

s$ppliers/

/ On 48 +e'ember 4998 E'$a"or iniiae" pro'ee"ings p$rs$an o Ari'le 24/5 o& he +,.

alleging ha he meas$res a@en b# he E$ropean omm$niies &aile" o implemen he +,!s

re'ommen"aions an" r$lings/ The &irs Ari'le 24/5 panel reD$ese" b# E'$a"or &o$n" ha he

meas$res a@en o 'ompl# b# he E$ropean omm$niies %ere in'onsisen %ih Ari'les 1 an" 111 o&

he ATT 499/8 The &irs E'$a"or Ari'le 24/5 panel repor %as no appeale" an" %as a"ope" b#

he +,! on 6 ?a# 4999/9

rame%or@ Agreemen on !ananas anne3e" o boh E ,'he"$le > an" E ,'he"$le >originall# negoiae" in 499 b# he E$ropean omm$niies %ih olombia osa i'a Ni'arag$a an";ene=$ela (repro"$'e" in Anne3 ;11 aa'he" o his epor)/

The o$rh A-EE onvenion o& >omH +e'ision o& he ONTAT1N AT1E, o&9 +e'ember 499 >*760 49 +e'ember 499 e3en"e" b# E The o$rh A-EE onvenion o& >omH

E3ension o& aiver +e'ision o& he TO eneral o$n'il o& 4 O'ober 4996 T*>*486 48 O'ober 4996(he L>omH aiverL)/5The Appellae !o"# an" he original panel also &o$n" ha li'en'e allo'aion pro'e"$res violae"

Ari'les 1:4 an" 111: o& he ATT 499 an" Ari'les 11 an" ;11 o& he AT,/ (Appellae !o"# epor E) –

Bananas III para/ 225) The original panel an" he Appellae !o"# &o$n" ha his violaion o& Ari'le 1:4 %asno $si&ie" b# he >omH aiver &rom Ari'le 1 be'a$se i %as no reD$ire" b# he Lom@ )onvention/

6On 20 C$l# 4998 he E$ropean omm$niies a"ope" E eg$laion 467*98 amen"ing EEeg$laion 0*9 an" on 28 O'ober 4998 a"ope" E eg$laion 262*98 repealing EE eg$laion42*9/

7O& hese 225000 m a ari&& D$oa o& 2/2 million m %as bo$n" in he E$ropean omm$niies,'he"$le an" he E$ropean omm$niies opene" an a$onomo$s ari&& D$oa o& 5000 m "$e o heenlargemen o& he E$ropean omm$niies in 4995/

8The &irs E'$a"or Ari'le 24/5 panel also &o$n" ha he revise" li'en'e allo'aion pro'e"$res %ere also

in'onsisen %ih Ari'les 11 an" ;11 o& he AT,/ (anel epor E) – Bananas III &Article +,-. – Ecuador' paras/ 6/4 an" 7/4)

9T*+,!*?*64/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 402

2/ E eg$laion 246*2004 reorgani=e" he E !ananas 1mpor egime ino ari&& D$oas A

an" ! oalling 255000 m an" ari&& D$oa a he level o& 850000 m/ These hree ari&& D$oas

%ere open &or impors o& bananas &rom hir" 'o$nries/ <o%ever in-D$oa impors o& A bananasenere" "$# &ree an" o$-o&-D$oa impors enere" %ih a ari&& pre&eren'e o& M00*m over he ?N

"$# spe'i&ie" in he E$ropean omm$niies 'ommon '$soms ari&&/42 1mpors &rom non-A

s$ppliers $n"er ari&& D$oas A an" ! %ere s$be' o an in-D$oa "$# o& M75*m an" impors $n"er

ari&& D$oa %ere s$be' o a "$# o& M00*m/ E eg$laion 246*2004 esablishe" ha he

ommission on he basis o& an agreemen %ih he TO ?embers %ih a s$bsanial ineres in he

s$ppl# o& bananas %o$l" allo'ae ari&& D$oas A an" ! among s$pplier 'o$nries/4

/ E eg$laion 2587*2004 &$rher amen"e" he E$ropean omm$niies 'ommon mar@e

organi=aion in or"er o implemen hase 11 o& he .n"ersan"ings on !ananas &or he perio" &rom

4 Can$ar# 2002 o 4 +e'ember 2005/ E eg$laion 2587*2004 mo"i&ie" he ari&& D$oas in he

&ollo%ing %a#s: (i) ari&& D$oa A o& 2/2 million m %as mainaine" %hile ari&& D$oa ! %as

in'rease" o 5000 mB (ii) %ihin ari&& D$oas A an" ! impors &rom hir" 'o$nries %ere s$be'

o a "$# o& M75*m %hile impors &rom A 'o$nries enere" "$# &reeB an" (iii) ari&& D$oa

reserve" &or impors &rom A 'o$nries an" s$be' o a =ero "$# %as "e'rease" o 750000 m/4

O$-o&-D$oa impors &rom A 'o$nries eno#e" a ari&& pre&eren'e o& M00*m over impors &rom

non-A s$pplier 'o$nries/

45

/ inall# on 29 November 2005 he E$ropean omm$niies a"ope" E eg$laion

496*2005 %hi'h inro"$'e" he E !ananas 1mpor egime a iss$e in hese Ari'le 24/5

pro'ee"ings/ The ne% impor regime enere" ino &or'e on 4 Can$ar# 2006 an" esablishe" a ari&&-

onl# regime &or impors &rom non-A s$ppliers %ih an ?N ari&& rae o& M476*m &or bananas/ 1n

a""iion i esablishe" a =ero "$# pre&eren'e &or 775000 m o& impors &rom A 'o$nries/46 On

20 +e'ember 2007 he E$ropean omm$niies a"ope" E eg$laion 4528*2007 %hi'h repeale"

EE eg$laion 0*9 an" mo"i&ie" E eg$laion 496*2005 eliminaing he 775000 m ari&&

D$oa &or "$#-&ree impors &rom A 'o$nries/

/ 4he )urrent Article +,-. Proceedings

4/ !e&ore he anel E'$a"or an" he .nie" ,aes (he 'omplainans) 'laime" ha he

E !ananas 1mpor egime %as in'onsisen %ih Ari'le 111:4 an" 2 o& he ATT 499/ 47

42E eg$laion 246*2004 Ari'le 48/ as amen"e"/4E eg$laion 246*2004 Ari'le 49/4 as amen"e"/4E eg$laion 2587*2004 Ari'les 48/4 48/2 an" 48/ as amen"e"/45

E eg$laion 2587*2004 Ari'le 48/ as amen"e"/46,ee supra &oonoe Error: e&eren'e so$r'e no &o$n"/47E'$a"or anel epor para/ 7/202B ., anel epor para/ 7/608/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 40

2/ The 'omplainans arg$e" ha no%ihsan"ing he e3piraion o& he +oha Ari'le 111

aiver 48 on 4 +e'ember 2005 he E$ropean omm$niies 'onin$e" o appl# a ari&& D$oa a he

level o& 775000 m reserve" &or "$#-&ree impors &rom A 'o$nries/ 1mpors &rom all ohers$pplier 'o$nries "i" no have a''ess o he A "$#-&ree ari&& D$oa an" %ere s$be' o he ?N

ari&& a he level o& M476*m/49 The 'omplainans 'laime" ha he E$ropean omm$niies meas$re

%as in'onsisen %ih Ari'le 111:4 o& he ATT 499 in ha banana impors o& non-A origin

%ere no Lsimilarl# resri'e"L as %ere impors o& A bananas be'a$se non-A s$ppliers %ere

e3'l$"e" &rom ha "$#-&ree ari&& D$oa/20 The 'omplainans also arg$e" ha he meas$re %as

in'onsisen %ih he 'hapea$ o& Ari'le 111:2 be'a$se i "is'riminae" be%een A bananas an"

li@e non-A bananas in he appli'aion o& he ari&& D$oaB neiher "i" i aim a a "isrib$ion o& ra"e

approa'hing as 'losel# as possible he ari&& D$oa shares %hi'h he vario$s ?embers migh be

e3pe'e" o obain in he absen'e o& s$'h resri'ions/ 24 inall# he 'omplainans 'laime" ha he

meas$re %as in'onsisen %ih Ari'le 111:2(") be'a$se he allo'aion o& he "$#-&ree ari&& D$oa

e3en"e" e3'l$sivel# o A s$ppliers bears no relaion o ra"ing paerns in he %orl" mar@e or he

E$ropean omm$niies mar@e/22

/ The E$ropean omm$niies raise" a preliminar# obe'ion in he E'$a"or 'ase/ 1 arg$e"

ha E'$a"ors 'laim $n"er Ari'le 111 sho$l" be ree'e" be'a$se in ena'ing he 'hallenge"

meas$re he E$ropean omm$niies ha" &ollo%e" a s$ggesion &or implemenaion ma"e b# he &irsE'$a"or Ari'le 24/5 panel namel# Lappl#ing a ari&&-onl# s#sem %ih a "$#-&ree ari&& D$oa &or

A 'o$nries 'overe" b# a s$iable %aiverL/2 On he s$bsan'e o& he Ari'le 111 'laims he

E$ropean omm$niies 'onen"e" ha Ari'le 111 %as no appli'able o he 'hallenge" meas$re

be'a$se he L'apL on he ari&& pre&eren'e &or A s$ppliers &ell %ihin he s'ope o& Ari'le 1:4 o& he

ATT 499/2 The E$ropean omm$niies also arg$e" ha he 'ap on "$#-&ree impors &rom A

s$ppliers %as no a Lresri'ionL %ihin he meaning o& Ari'le 111 be'a$se he 'ap on he ari&&

pre&eren'e %as impose" on A 'o$nries an" no on he non-A s$pplier 'o$nries/25 A''or"ing o

he E$ropean omm$niies Ari'le 111 "i" no reD$ire he e3ension o all ?embers o& he ari&& pre&eren'e grane" o A 'o$nries/26 1n he E'$a"or 'ase he E$ropean omm$niies &$rher

48o$rh ,ession o& he ?iniserial on&eren'e hel" in +oha E$ropean omm$niies Transiionalegime &or he E A$onomo$s Tari&& ae $oas on 1mpors o& !ananas +e'ision o& 4 November 2004T*?1N(04)*46B T*>*7 (anel E3hibi .,-5)/ The +oha Ari'le 111 aiver e3pire" on 4 +e'ember2005/

49E'$a"or anel epor para/7/205B ., anel epor paras/ 7/64 an" 7/64/20E'$a"or anel epor para/7/205B ., anel epor para/ 7/64/24E'$a"or anel epor para/7/206B ., anel epor para/ 7/64/22E'$a"or anel epor para/ 7/208B ., anel epor para/ 7/64/2E'$a"or anel epor para/ 7/209/2

E'$a"or anel epor para/ 7/240B ., anel epor para/ 7/647/25E'$a"or anel epor para/ 7/244B ., anel epor para/ 7/646/26E'$a"or anel epor para/ 7/242B ., anel epor para/ 7/647/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 405

%o$l" no n$lli&# he e&&e' o& Ari'le 1L/ The anel also relie" on he &in"ings o& he &irs E'$a"or

Ari'le 24/5 panel ha Ari'le 111 "i" no onl# appl# o D$aniaive prohibiions an" resri'ions b$

ha Ari'le 111:5 s$be'e" ari&& D$oas o he reD$iremens o& Ari'le 111/

7/ 1n respe' o& he 'laim $n"er Ari'le 111:4 he anel &o$n" ha he "$#-&ree ari&& D$oa

&or A bananas a a level o& 775000 m represene" a D$aniaive resri'ion %ihin he meaning o&

Ari'le 111:4 on banana impors &rom non-A s$ppliers ha L'anno have a''ess o ha

D$aniaivel# limie" bene&i/L5 The anel &o$n" ha impors &rom A 'o$nries %ere no similarl#

resri'e" as %ere li@e impors &rom non-A s$ppliers/ There&ore he "$#-&ree ari&& D$oa reserve"

&or A 'o$nries %as in'onsisen %ih Ari'le 111:4/6

8/ <aving &o$n" ha banana impors &rom E'$a"or %ere Lresri'e"L %ihin he meaning o&

Ari'le 111:4 he anel also ree'e" in he E'$a"or 'ase he E$ropean omm$niies arg$men ha

even ass$ming arguendo ha here %as a D$aniaive resri'ion impose" on A 'o$nries E'$a"or

'o$l" no s$''ess&$ll# 'hallenge i be'a$se his D$aniaive resri'ion impose" on A 'o$nries

%o$l" no res$l in an# n$lli&i'aion or impairmen o& an# bene&i a''r$ing o E'$a"or/7

9/ 1n respe' o& Ari'le 111:2 o& he ATT 499 he anel &o$n" ha:

/// given ha ?N 'o$nries are e3'l$"e" &rom heE$ropean omm$niies pre&erenial A ari&& D$oa b# "e&iniionhe A pre&eren'e 'anno an" "oes no Laim a a "isrib$ion o&ra"e in FbananasG approa'hing as 'losel# as possible he shares%hi'h he vario$s F?embers in'l$"ing boh A an" ?N'o$nriesG migh be e3pe'e" o obain in he absen'e o& s$'hresri'ionsL/8

The anel h$s &o$n" ha on is &a'e he E !ananas 1mpor egime in'l$"ing is A "$#-&ree

ari&& D$oa %as in'onsisen %ih he 'hapea$ o& Ari'le 111:2/9

40/ inall# he anel 'on'l$"e" ha he A "$#-&ree ari&& D$oa %hi'h is grane"e3'l$sivel# o some TO ?embers an" no o ohers in'l$"ing s$bsanial s$ppliers "oes no

'ompl# %ih he reD$iremens o& Ari'le 111:2(") be'a$se in he absen'e o& an agreemen on he

allo'aion o& ari&& D$oa shares i "oes no res$l in an allo'aion o& D$oa shares o ?embers having

E'$a"or anel epor para/ 7/299B ., anel epor para/ 7/65/E'$a"or anel epor para/ 7/0B ., anel epor para/ 7/659/5E'$a"or anel epor para/ 7/2B ., anel epor para/ 7/679/6E'$a"or anel epor para/ 7/9 an" 7/50B ., anel epor paras/ 7/697 an" 7/698/7

E'$a"or anel epor para/ 7/7/8E'$a"or anel epor para/ 7/66B ., anel epor para/ 7/708/9E'$a"or anel epor para/ 7/66B ., anel epor para/ 7/708/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 406

a s$bsanial ineres in s$ppl#ing he pro"$' shares base" $pon he proporions s$pplie" b# s$'h

?embers "$ring a previo$s represenaive perio"/0

+/ )laims and Arguments on Appeal

4/ 1n he E'$a"or 'ase he E$ropean omm$niies reD$ess he Appellae !o"# o reverse he

anels &in"ing ha he a"opion b# a ?ember o& a meas$re ha implemens a s$ggesion ma"e b# a

panel p$rs$an o Ari'le 49/4 o& he +,. "oes no preven anoher ?ember &rom 'hallenging in

Ari'le 24/5 pro'ee"ings he 'onsisen'# o& ha meas$re %ih he 'overe" agreemens/ The E$ropean

omm$niies also 'hallenges he anels &in"ing ha LFeGven i& here %as a pres$mpion o& he

legali# o& meas$res a@en o implemen a s$ggesion p$rs$an o Ari'le 49/4 here is nohing in he

+,. s$ggesing ha he allege" legali# o& s$'h meas$res 'o$l" no be revie%e" b# a 'omplian'e

panel/L4

2/ 1n boh he E'$a"or an" .nie" ,aes 'ases he E$ropean omm$niies reD$ess he

Appellae !o"# o reverse he anels inerpreaion o& Ari'le 111 o& he ATT 499 an" he anels

'onseD$enial &in"ings ha he E !ananas 1mpor egime %as in'onsisen %ih Ari'le 111:4 he

'hapea$ o& Ari'le 111:2 an" Ari'le 111:2(")/2 1n pari'$lar he E$ropean omm$niies arg$es

ha he limi on he ari&& pre&eren'e &or A bananas &alls %ihin he s'ope o& Ari'le 1:4 an" "oes

no 'onsi$e a LD$aniaive resri'ionL %ihin he meaning o& Ari'le 111/

?oreover he

E$ropean omm$niies 'onen"s ha he D$aniaive limiaion applies o he pre&eren'e grane" o

A 'o$nries an" is no impose" on he allege"l# aggrieve" ?embersPha is he non-A

s$ppliersPas %o$l" be reD$ire" in or"er &or Ari'le 111 o appl#/

/ 1n he .nie" ,aes 'ase onl# he E$ropean omm$niies emphasi=es ha Lhe .nie"

,aes has never been a banana s$pplier o he E$ropean omm$niies an" is no li@el# o be'ome

s$'h a banana s$pplier in he &$$re/L5 or ha reason he A ari&& pre&eren'e 'o$l" no be

in'onsisen %ih he reD$iremen o& he 'hapea$ o& Ari'le 111:2 ha impor resri'ions aim a a"isrib$ion o& ra"e approa'hing as 'losel# as possible he shares in he absen'e o& he resri'ion/

This is so be'a$se even in he absen'e o& he A ari&& pre&eren'e he .nie" ,aes share o& ra"e

in bananas in he E$ropean omm$niies %o$l" be =ero/6

0E'$a"or anel epor para/ 7/77B ., anel epor para/ 7/745/4E$ropean omm$niies appellans s$bmission para/ 80 (E'$a"or) (D$oing E'$a"or anel epor

para/ 7/254)/2E$ropean omm$niies appellans s$bmissions paras/ 44 40 an" 4 (E'$a"or) paras/ 40 47

an" 454 (.,)/E$ropean omm$niies appellans s$bmissions para/ 409 (E'$a"or) para/ 426 (.,)/

E$ropean omm$niies appellans s$bmissions para/ 4 (E'$a"or) para/ 450 (.,)/5E$ropean omm$niies appellans s$bmission para/ 45 (.,)/6E$ropean omm$niies appellans s$bmission para/ 45 (.,)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 407

/ 1n he E'$a"or 'ase he E$ropean omm$niies reD$ess he Appellae !o"# o reverse he

anels &in"ing ha he limi on he ari&& pre&eren'e &or impors o& A bananas 'a$se" n$lli&i'aion

or impairmen o E'$a"ors ineress $n"er he 'overe" agreemensB raher i %as a bene&i &orE'$a"or ha he A ari&& pre&eren'e %as limie"/7

5/ E'$a"or reD$ess he Appellae !o"# o $phol" he anels &in"ing ha i 'o$l" revie%

$n"er Ari'le 24/5 he 'on&ormi# o& he meas$res a@en o 'ompl# b# he E$ropean omm$niies

even ho$gh he E$ropean omm$niies ha" a@en he meas$res o implemen a s$ggesion ma"e b#

he &irs E'$a"or Ari'le 24/5 panel p$rs$an o Ari'le 49/4 o& he +,./ E'$a"or arg$es ha

Lnohing in he +,. s$ggess ha he absen'e o& an appeal /// o& a panelFsG s$ggesion imm$ni=es

meas$res a@en o implemen ha s$ggesion &rom an Ari'le 24/5 revie%/L8

6/ As o he s$bsan'e o& heir Ari'le 111 'laims E'$a"or an" he .nie" ,aes 'onen" ha

he anel %as 'orre' o &in" 'onsisen %ih he repors o& earlier panels arbiraors an" he

Appellae !o"# in his 'onin$ing "isp$e ha he "$#-&ree ari&& D$oa &or A bananas 'onsi$e"

a resri'ion %ihin he meaning o& Ari'le 111 an" violae" Ari'le 111:4 he 'hapea$ o&

Ari'le 111:2 an" Ari'le 111:2(")/9 E'$a"or an" he .nie" ,aes emphasi=e ha Ari'le 111:5

ma@es he reD$iremens o& Ari'le 111 appli'able o an# ari&& D$oa an" ha he E$ropean

omm$niies "$#-&ree ari&& D$oa &or A s$ppliers 'onsi$e" a resri'ion on non-A s$ppliers

ha %ere "enie" a''ess o he "$#-&ree D$oa/50

7/ E'$a"or &$rher agrees %ih he anels ree'ion o& he E$ropean omm$niies arg$men

ha Lhere %as no n$lli&i'aion or impairmen o& bene&is esseniall# be'a$se /// he ari&& D$oa

helpe" E'$a"or b# limiing "$#-&ree 'ompeiion &rom A 'o$nries relaive o he 'ompeiion ha

%o$l" have e3ise" i& here ha" been no D$aniaive limiaions/L 54 E'$a"or 'laims ha Lpres$mpion

o& n$lli&i'aion or impairmen /// is no a D$esion o& ra"e &lo%s b$ raher o& Fra"eG oppor$niies/L 52

8/ The A o$nries

5

s$ppor he arg$mens ma"e b# he E$ropean omm$niies in relaiono Ari'le 111 %hile anama an" Ni'arag$a s$ppor he posiion o& E'$a"or an" he .nie" ,aes in

his regar"/5

7E$ropean omm$niies appellans s$bmission para/ 46 (E'$a"or)/8E'$a"ors appellees s$bmission para/ 5/9E'$a"ors appellees s$bmission paras/ 4 an" 2B .nie" ,aes appellees s$bmission para/ 40/50

E'$a"ors appellees s$bmission para/ 7B .nie" ,aes appellees s$bmission para/ 5/54E'$a"ors appellees s$bmission para/ 8/52E'$a"ors appellees s$bmission para/ 9/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 408

E/ Analysis of the Appealed Findings of the Panel under Article III of the 1A44 ,??5

4/ e begin o$r anal#sis b# a""ressing he E$ropean omm$niies appeal o& he anels

&in"ing regar"ing he E$ropean omm$niies preliminar# obe'ion o E'$a"ors 'laim $n"er

Ari'le 111 o& he ATT 499 an" he iss$e o& he legal e&&e' o& s$ggesions ma"e p$rs$an o

Ari'le 49/4 o& he +,./ e hen $rn o he s$bsanive iss$es appeale" in relaion o Ari'le 111:4

an" 2 o& he ATT 499/

4/ >egal E&&e' o& ,$ggesions ?a"e p$rs$an o Ari'le 49/4 o& he +,.(E'$a"or)

4/ The E$ropean omm$niies s$bmis ha E'$a"ors 'laim $n"er Ari'le 111 sho$l" be

"ismisse" be'a$se LE'$a"ors 'laims are in reali# a 'hallenge on he meas$res suggested b# he

F&irs E'$a"or Ari'le 24/5G anel raher han on he meas$res actually ta0en b# he E$ropean

omm$niies/L55 The E$ropean omm$niies arg$es ha on'e a panel or an Appellae !o"# repor

'onaining s$ggesions ma"e p$rs$an o he se'on" senen'e o& Ari'le 49/4 o& he +,. has been

a"ope" Lhe 'onsisen'# o& he measures suggested b# he original panel %ih he 'overe"

agreemen 'anno be 'hallenge" b# he 'omplaining par# be&ore an Ari'le 24/5 panelL/ 56 This is so

be'a$se o& ha par#s obligaion o L$n'on"iionall# a''epL p$rs$an o Ari'le 47/4 rea" in

'ombinaion %ih Ari'le 46/ o& he +,. he +,!s re'ommen"aions an" r$lings %hi'h also

'overs an# s$ggesions 'onaine" herein/

2/ The E$ropean omm$niies also arg$es ha i& meas$res s$ggese" b# a panel or he

Appellae !o"# in previo$s pro'ee"ings are 'hallenge" be&ore an Ari'le 24/5 panel an" he

5The A o$nries (see supra &oonoe Error: e&eren'e so$r'e no &o$n") 'onen" ha he anelin'orre'l# inerpree" an" applie" Ari'le 111:4 be'a$se he Lappli'able non-"is'riminaion r$le is 'onaine" inAri'le 1 /// no in Ari'le 111L/ The A o$nries s$bmi ha a Lresri'ionL reD$ires a LlimiaionL be applie"on he impore" pro"$' %hi'h $n"er Ari'le 111:4 Lne'essaril# implies a uantitative elemenL/ <o%everhe A o$nries mainain ha he anel &aile" o 'onsi"er he 'onsisen pra'i'e o& TO ?embers o impose

'eilings on pre&erenial impors as $si&ie" b# he Enabling la$se or Ari'le 1; o& he ATT 499/A''or"ing ohe A o$nries i& limiaions on pre&erenial a''ess &ell a&o$l o& Ari'le 111 an" i& pre&erenial a''ess%ere 'appe" hen vir$all# all "$#-&ree ari&& D$oas $se" in he 'one3 o& &ree ra"e agreemens %o$l"

pres$mabl# be TO-in'onsisen/ (Thir" pari'ipans s$bmissions o& he A o$nries paras/ 57-62(E'$a"or) paras/ 5-59 (.,))

5anama an" Ni'arag$a agree %ih he anel ha he A "$#-&ree ari&& D$oa violaes Ari'le 111:4an" 2/ anama an" Ni'arag$a arg$e ha he anel 'orre'l# "eermine" ha an e3'l$sive "$#-&ree ari&& D$oaha is reserve" &or A s$ppliers an" "enies all a''ess &or ?N s$ppliers represens a Lresri'ionL on hose?N s$ppliers %ihin he meaning o& Ari'le 111:4/ anama an" Ni'arag$a also s$bmi ha he E$ropeanomm$niies A "$#-&ree ari&& D$oa violaes he reD$iremens o& he 'hapea$ an" paragraph (") o&Ari'le 111:2 be'a$se he E$ropean omm$niies mar@e has been s$be' o 'onin$o$s "is'riminaion %hi'hma@es i impossible o "e&ine a Lprevio$s represenaive perio"L/ (Thir" pari'ipans s$bmissions o& anama an"

Ni'arag$a paras/ 50-52 (E'$a"or) paras/ 7-9 (.,))55E$ropean omm$niies &irs %rien s$bmission o he anel para/ 88 (E'$a"or)/ (original emphasis)56E$ropean omm$niies appellans s$bmission para/ 88 (E'$a"or)/ (emphasis a""e")



T*+,27*A!*2*E.T*+,27*A!**.,A

age 409

Ari'le 24/5 panel is Lsais&ie" ha he 'hallenge" meas$res are in"ee" he meas$res s$ggese" b# he

original panelL hen he Ari'le 24/5 panel Lsho$l" &in" ha he# are 'onsisen %ih he 'overe"

agreemens %iho$ an# &$rher anal#sis/L

57

The E$ropean omm$niies 'onen"s ha in he presen pro'ee"ings he anel &aile" Lo assess %heher he E$ropean omm$niies has e&&e'ivel#

implemene" an# o& he s$ggesions o& he &irs 'omplian'e panel reD$ese" b# E'$a"orL 58 an"

erroneo$sl# 'on'l$"e" ha E'$a"ors "isagreemen as o %heher he E$ropean omm$niies bananas

impor regime 'omplie" %ih he s$ggesions ma"e in 4999 %as s$&&i'ien o ree' he E$ropean

omm$niies arg$men o he 'onrar#/59

/ The anel noe" ha E'$a"or %as as@ing i o assess he 'onsisen'# %ih he 'overe"

agreemens o& he measures he E$ropean omm$niies 'laims o have a@en o 'ompl# %ih a

s$ggesion &or implemenaion ma"e b# he &irs E'$a"or Ari'le 24/5 panel no o assess he

'on&ormi# %ih TO la% o& he s$ggesion isel&/60 The anel "i" no &o'$s as he E$ropean

omm$niies arg$es on %heher he meas$res a@en o 'ompl# 'on&orme" o an# o& he s$ggesions

ma"e b# he &irs E'$a"or Ari'le 24/5 panelB raher he anel e3amine" "ire'l# %heher he

E !ananas 1mpor egime %as 'onsisen %ih he 'overe" agreemens/ The anel "ising$ishe"

be%een s$ggesions ma"e $n"er Ari'le 49/4 b# a panel or he Appellae !o"# on he one han" an"

he meas$res a'$all# a@en b# ?embers o implemen s$'h s$ggesions so as o 'ompl# %ih he

+,! re'ommen"aions an" r$lings on he oher han"/ The anel noe" ha Ari'le 24/5 'reaes an$n'on"iional righ ha an# "isp$e res$ling &rom L"isagreemen as o he e3isen'e or 'onsisen'#

%ih a 'overe" agreemen o& meas$res a@en o 'ompl# %ih he re'ommen"aions an" r$lingsL 'an be

"e'i"e" hro$gh re'o$rse o 'omplian'e pro'ee"ings/

/ Ari'le 49/4 o& he +,. enile" Lanel an" Appellae !o"# e'ommen"aionsL rea"s:

here a panel or he Appellae !o"# 'on'l$"es ha a meas$re isin'onsisen %ih a 'overe" agreemen i shall re'ommen" ha he?ember 'on'erne" bring he meas$re ino 'on&ormi# %ih ha

agreemen/ 1n a""iion o is re'ommen"aions he panel orAppellae !o"# ma# s$gges %a#s in %hi'h he ?ember 'on'erne"'o$l" implemen he re'ommen"aions/ (&oonoes omie")

5/ ,$ggesions ma"e b# panels or he Appellae !o"# p$rs$an o Ari'le 49/4 o& he +,.

regar"ing %a#s o& implemenaion &orm par o& panel or Appellae !o"# repors a"ope" b# he +,!

in previo$s pro'ee"ings/ The +,. "oes no e3pressl# a""ress he D$esion o& he legal sa$s o&

s$ggesions ha &orm par o& a repor a"ope" b# he +,! nor "oes i spe'i&# he legal 'onseD$en'es

57E$ropean omm$niies appellans s$bmission para/ 90 (E'$a"or)/58

E$ropean omm$niies appellans s$bmission para/ 9 (E'$a"or)/59E$ropean omm$niies appellans s$bmission para/ 9 (E'$a"or)/60E'$a"or anel epor para/ 7/228/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 440

%hen a ?ember 'hooses o implemen +,! re'ommen"aions an" r$lings b# &ollo%ing a s$ggesion

&or implemenaion/ A ?ember ma# 'hoose %heher or no o &ollo% a s$ggesion/ The $se o& he

erm L'o$l"L in Ari'le 49/4 'lari&ies ha ?embers are no oblige" o &ollo% s$ggesions &orimplemenaion/

6/ ,$ggesions ma"e p$rs$an o Ari'le 49/4 are no in hemselves he s$be' o& revie% b# a

'omplian'e panel/ Ari'le 24/5 o& he +,. onl# re&ers o Lmeas$res a@en o 'ompl# %ih he

re'ommen"aions an" r$lingsL an" no o meas$res a@en o 'ompl# %ih s$ggesions iss$e" p$rs$an

o he se'on" senen'e o& Ari'le 49/4/ This 'on&irms ha an Ari'le 24/5 panels po%er o& revie% is

limie" o he assessmen o& he e3isen'e or 'onsisen'# %ih he 'overe" agreemens o& he meas$res

a@en o 'ompl# %ih re'ommen"aions an" r$lings o& he +,!/ Th$s %ha maers in Ari'le 24/5

pro'ee"ings is %heher he res$l o& implemenaionP%haever means are 'hosenPbrings abo$

s$bsanive 'omplian'e %ih he +,! re'ommen"aions an" r$lings/ As he anel noe" he

'on&ormi# o& he meas$res a@en o 'ompl# %ih he 'overe" agreemens %ill "epen" on %heher

a'$al implemenaion o& he +,! re'ommen"aions an" r$lings has been a'hieve" b# he ?ember

'on'erne"/64 There&ore %e agree %ih he anel ha he meas$res a'$all# a@en b# a ?ember o

'ompl# %ih +,! re'ommen"aions an" r$lings %heher or no he# &ollo% he s$ggesions &or

implemenaion ma"e in previo$s pro'ee"ings are he s$be' maer o& he 'hallenge in Ari'le 24/5

pro'ee"ings/

7/ e 'onsi"er ha s$ggesions ma"e b# panels or he Appellae !o"# ma# i& 'orre'l# an"

&$ll# implemene" lea" o 'omplian'e %ih he +,!s re'ommen"aions an" r$lings/ <o%ever &$ll

'omplian'e %ih +,! r$lings an" TO-'onsisen'# o& he meas$res a'$all# a@en o 'ompl# 'anno

be pres$me" simpl# be'a$se a ?ember "e'lares ha is meas$res a@en o 'ompl# 'on&orm o a

s$ggesion ma"e $n"er Ari'le 49/4 o& he +,./ As poine" o$ above Ari'le 24/5 pro'ee"ings

&o'$s on he meas$re a'$all# a@en o 'ompl# no he %a#s in %hi'h he ?ember 'o$l" implemen

he re'ommen"aions an" r$lings/ ollo%ing a s$ggesion "oes no g$aranee s$bsanive 'omplian'e

%ih he re'ommen"aions an" r$lings b# he +,!/ heher s$'h 'omplian'e has been a'hieve"

nee"s o be "eermine" hro$gh Ari'le 24/5 pro'ee"ings/ The a"opion o& a panel or Appellae !o"#

repor b# he +,! ma@es he re'ommen"aions an" r$lings herein bin"ing $pon he paries/ As noe"

earlier s$'h a"opion b# he +,! "oes no ma@e s$ggesions &or implemenaion bin"ing $pon he

paries (espe'iall# %here as in his 'ase he &irs E'$a"or Ari'le 24/5 panel ma"e several

s$ggesions)B nor "oes +,! a"opion mean ha a'ions a@en o implemen s$ggesions m$s be

pres$me" o be TO-'onsisen or shiel"e" &rom revie% in Ari'le 24/5 pro'ee"ings/

64E'$a"or anel epor para/ 7/27/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 444

8/ e here&ore agree %ih he anel ha E'$a"or ha" he righ o 'hallenge be&ore an

Ari'le 24/5 panel he E$ropean omm$niies meas$re a@en o 'ompl# %heher or no s$'h meas$re

implemene" a s$ggesion ma"e b# an earlier panel or he Appellae !o"#/ The &$n'ion o&Ari'le 24/5 pro'ee"ings is o resolve "isagreemen over 'omplian'e/ Even i& he meas$re a@en o

'ompl# 'on&orme" o a s$ggesion ma"e his %o$l" no bar E'$a"or &rom bringing Ari'le 24/5

pro'ee"ings o "eermine %heher he implemening meas$re a'hieves &$ll 'omplian'e %ih he +,!

re'ommen"aions an" r$lings/ e "o no 'onsi"er ha as a 'onseD$en'e o& he +,! a"opion o& a

panel or Appellae !o"# repor 'onaining a s$ggesion he meas$re implemening s$'h a s$ggesion

'an be pres$me" o be TO-'onsisen/62 1n o$r vie% a +,. r$le ha esablishes a legal

pres$mpion o& 'on&ormi# sho$l" "o so in 'lear an" $nambig$o$s erms/ 6 There&ore %e "o no see

ho% he erms in Ari'le 49/4 se'on" senen'e Limpl#L a legal pres$mpion pari'$larl# as his

provision has o be rea" in he 'one3 o& Ari'le 24/5 %hi'h eniles ?embers o he revie% o&

implemenaion meas$res in 'omplian'e pro'ee"ings/

9/ ,$ggesions ma"e b# panels or he Appellae !o"# ma# provi"e $se&$l g$i"an'e an"

assisan'e o ?embers an" &a'iliae implemenaion o& +,! re'ommen"aions an" r$lings

pari'$larl# in 'omple3 'ases/ <o%ever he &a' ha a ?ember has 'hosen o &ollo% a s$ggesion

"oes no 'reae a pres$mpion o& 'omplian'e in Ari'le 24/5 pro'ee"ings/ The &a' ha a ?ember has

'hosen o &ollo% a s$ggesion is par o& he hisor# an" ba'@gro$n" o& he meas$re a iss$e inAri'le 24/5 pro'ee"ings b$ i sho$l" no in isel& pre-emp a panels assessmen o& 'omplian'e $n"er

Ari'le 24/5/ 1n o$r vie% s$ggesions provi"e g$i"an'e %hi'h is ne'essaril# prospe'ive in na$re

an" 'anno here&ore a@e a''o$n o& all 'ir'$msan'es in %hi'h implemenaion ma# o''$r/

40/ 1n hese 'ir'$msan'es %e 'onsi"er ha he anel "i" no err %hen i "e'i"e" o e3amine

%heher he E !ananas 1mpor egime %as 'onsisen %ih he 'overe" agreemens raher han

e3amining %heher i 'omplie" %ih he s$ggesions &or implemenaion ma"e b# he &irs E'$a"or

Ari'le 24/5 panel/

44/ e here&ore uphold he anels &in"ing in paragraphs 7/26 an" 7/265 o& he E'$a"or

anel epor ha o he e3en ha he E$ropean omm$niies arg$es ha i has implemene" a

s$ggesion p$rs$an o Ari'le 49/4 o& he +,. he anel %as no prevene" &rom 'on"$'ing $n"er

Ari'le 24/5 o& he +,. he assessmen reD$ese" b# E'$a"orB an" ha here&ore he anel "i" no

62E$ropean omm$niies appellans s$bmission para/ 90 (E'$a"or)/6or e3ample Ari'le /8 o& he +,. %hi'h esablishes a legal pres$mpion ha a brea'h o& TO

r$les 'onsi$es n$lli&i'aion or impairmen "oes so in 'lear an" $nambig$o$s erms/ ,imilarl# a legal

pres$mpion o& 'on&ormi# %ih he ATT 499 is esablishe" in 'lear an" $nambig$o$s erms b# Ari'le 2/ o&he Agreement on the Application of #anitary and Phytosanitary Measures &or meas$res 'on&orming o haAgreemen/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 442

nee" o assess %heher he E$ropean omm$niies has e&&e'ivel# implemene" an# o& he

s$ggesions o& he &irs 'omplian'e panel reD$ese" b# E'$a"or/

2/ Ari'les 111:4 an" 111:2 o& he ATT 499 (E'$a"or an" .nie" ,aes)

4/ e no% $rn o he E$ropean omm$niies appeal o& he anels &in"ings ha he

E !ananas 1mpor egime %as in'onsisen %ih Ari'le 111:4 he 'hapea$ o& Ari'le 111:2 an"

Ari'le 111:2(") o& he ATT 499/

(a) Ari'le 111:4 o& he ATT 499

4/ The E$ropean omm$niies arg$es ha he anel misinerpree" he noion o& LD$aniaive

resri'ionL in Ari'le 111:4 o& he ATT 499/ A''or"ing o he E$ropean omm$niies he

limiaion on he ari&& pre&eren'e &or A s$ppliers "oes no &all %ihin he s'ope o& Ari'le 111:4 o&

he ATT 499 be'a$se i "oes no 'onsi$e a LD$aniaive resri'ionL impose" on he impors o&

he Laggrieve" ?emberL/6 The E$ropean omm$niies 'onen"s ha he anel L"evelope" a heor#

p$rs$an o %hi'h a lo%er ari&& o&&ere" o one ?ember FPhe A =ero ari&&PG be'omes

a$omai'all# a D$aniaive resri'ion on all oher ?embers provi"e" ha i is o&&ere" o onl# some

FP775000 mPG an" no all D$aniies e3pore" b# he bene&i'iar#L/65

2/ The anel &o$n" ha he E !ananas 1mpor egime %as a Lari&&-D$oa-base" impor

regimeL %ih an in-D$oa =ero "$# reserve" &or 775000 m o& A bananas an" an o$-o&-D$oa "$#

o& M476*m &or A impors in e3'ess o& he D$oa an" &or impors &rom all oher 'o$nries/66

A''or"ing o he anel he E !ananas 1mpor egime L'on&erFe"G a bene&i alho$gh a

D$aniaivel# limie" one o A 'o$nries an" E'$a"or li@e oher ?N banana s$ppliers F'o$l"

noG have a''ess o ha D$aniaivel# limie" bene&iLB an" LFbG# is ver# na$re s$'h a bene&i

reserve" &or some ?embers generall# represens a "isa"vanage &or oher ?embers/L 67 The anel

'on'l$"e" ha $n"er he erms o& Ari'le 111:4 ?N impors are no similarl# resri'e" be'a$se

A s$ppliers have a''ess o he "$#-&ree ari&& D$oa %hile non-A s$ppliers are "enie" a''ess o

ha D$oa68 an" ha &or he same reasons he "$#-&ree ari&& D$oa &ails o 'ompl# %ih he

allo'aion r$les se o$ in Ari'le 111:2 o& he ATT 499/69

6E$ropean omm$niies appellans s$bmissions para/ 445 (E'$a"or) para/ 42 (.,)/65E$ropean omm$niies appellans s$bmissions para/ 405 (E'$a"or) para/ 422 (.,)/66E'$a"or anel epor para/ 7/29B ., anel epor para/ 7/68/67

E'$a"or anel epor para/ 7/2/ (&oonoe omie") ,ee also ., anel epor para/ 7/679/68E'$a"or anel epor para/ 7/9B ., anel epor para/ 7/684/69E'$a"or anel epor para/ 7/66B ., anel epor para/ 7/708/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 44

/ Ari'le 111:4 o& he ATT 499 on LNon-"is'riminaor# A"minisraion o& $aniaive

esri'ionsL saes:

No prohibiion or resri'ion shall be applie" b# an# ?ember on heimporaion o& an# pro"$' o& he errior# o& an# oher ?ember or onhe e3poraion o& an# pro"$' "esine" &or he errior# o& an# oher?ember $nless he imporaion o& he li@e pro"$' o& all hir"'o$nries or he e3poraion o& he li@e pro"$' o all hir" 'o$nries issimilarl# prohibie" or resri'e"/

/ The 'hapea$ Ari'le 111:2 an" Ari'le 111:2(") o& he ATT 499 provi"e:

1n appl#ing impor resri'ions o an# pro"$' ?embers shall aim aa "isrib$ion o& ra"e in s$'h pro"$' approa'hing as 'losel# as

possible he shares %hi'h he vario$s ?embers migh be e3pe'e" oobain in he absen'e o& s$'h resri'ions an" o his en" shall observehe &ollo%ing provisions:

(d ) 1n 'ases in %hi'h a D$oa is allo'ae" among s$ppl#ing'o$nries he ?ember appl#ing he resri'ions ma# see@ agreemen%ih respe' o he allo'aion o& shares in he D$oa %ih all oher?embers having a s$bsanial ineres in s$ppl#ing he pro"$''on'erne"/ 1n 'ases in %hi'h his meho" is no reasonabl#

pra'i'able he ?ember 'on'erne" shall allo o ?embers having as$bsanial ineres in s$ppl#ing he pro"$' shares base" $pon he

proporions s$pplie" b# s$'h ?embers "$ring a previo$srepresenaive perio" o& he oal D$ani# or val$e o& impors o& he

pro"$' "$e a''o$n being a@en o& an# spe'ial &a'ors %hi'h ma#have a&&e'e" or ma# be a&&e'ing he ra"e in he pro"$'/ No'on"iions or &ormaliies shall be impose" %hi'h %o$l" preven an#?ember &rom $ili=ing &$ll# he share o& an# s$'h oal D$ani# orval$e %hi'h has been alloe" o i s$be' o imporaion being ma"e%ihin an# pres'ribe" perio" o %hi'h he D$oa ma# relae/

5/ Ari'le 111:5 o& he ATT 499 rea"s:

The provisions o& his Ari'le shall appl# o an# ari&& D$oa insi$e"

or mainaine" b# an# ?ember an" in so &ar as appli'able he prin'iples o& his Ari'le shall also e3en" o e3por resri'ions/

6/ e begin o$r anal#sis b# 'onsi"ering he relaionship be%een Ari'le 1 o& he ATT

499 on Leneral Eliminaion o& $aniaive esri'ionsL an" Ari'le 111 on LNon-"is'riminaor#

A"minisraion o& $aniaive esri'ionsL/ Ari'le 1:4 'onains a general prohibiion on

D$aniaive resri'ions/ Ari'le 1:2 provi"es &or e3'epions o he general prohibiion in

Ari'le 1:4/70 A D$aniaive resri'ion ha is la%&$l b# reason o& an e3'epion $n"er Ari'le 1:2

70e noe ha here are oher provisions in he 'overe" agreemens ha ma# provi"e a legal basis &orhe imposiion o& a D$aniaive resri'ion %hose appli'aion is hen s$be' o he reD$iremens o& Ari'le 111/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 445

insan'es o& a$hori=e" &orms o& allo'aion %hen a ?ember 'hooses o allo'ae shares o& he ari&&

D$oa/ Ari'le 111:2(") allo%s &or he 'ase %here a D$oa is allo'ae" among s$ppl#ing 'o$nries

eiher b# %a# o& agreemen or %here his is no reasonabl# pra'i'able b# allomen o ?embershaving a s$bsanial ineres in s$ppl#ing he pro"$' 'on'erne" an" in a''or"an'e %ih he

proporions s$pplie" b# hose ?embers "$ring a previo$s represenaive perio" a@ing "$e a''o$n o&

Lspe'ial &a'orsL/ 1n oher %or"s Ari'le 111:2(") is a permissive Lsa&e harbo$rLB 'omplian'e %ih

he reD$iremens o& Ari'le 111:2(") is pres$me" o lea" o a "isrib$ion o& ra"e as &oreseen in he

'hapea$ o& Ari'le 111:2 as &ar as s$bsanial s$ppliers are 'on'erne"/74 1 &ollo%s &rom his anal#sis

ha a ari&& D$oa is no per se $nla%&$l be'a$se i &ails o a"here o he "is'iplines o& Ari'le 111/

aher he a"minisraion o& he ari&& D$oa is $nla%&$l i& i is applie" in a manner ha "oes no

'ompl# %ih he reD$iremens o& Ari'le 111/

44/ e no% $rn o e3amine %heher he ari&& D$oa o& 775000 m reserve" &or impors &rom

A 'o$nries %as applie" an" a"minisere" 'onsisenl# %ih he reD$iremens o& Ari'le 111/

.n"er he E !ananas 1mpor egime he "$#-&ree ari&& D$oa o& 775000 m is reserve" &or impors

&rom A 'o$nriesB non-A s$ppliers "o no have a''ess o his ari&& D$oa/ Ari'le 111:4 as %e

have observe" ari'$laes a prin'iple o& a''ess o an" pari'ipaion in a ari&& D$oa &or impors o& he

li@e pro"$' &rom all ?embers/ The "$#-&ree ari&& D$oa reserve" &or A 'o$nries plainl#

e3'l$"es non-A 'o$nries/ !# so "oing he ari&& D$oa "oes no appl# o or Lsimilarl# resri'Limpors o& li@e pro"$'s &rom non-A 'o$nries an" h$s o&&en"s he prin'iple o& a''ess o an"

pari'ipaion in a ari&& D$oa in Ari'le 111:4/

42/ The ari&& D$oa also &ails o mee he reD$iremens regar"ing "isrib$ion an" allo'aion in

Ari'le 111:2/ The e3'l$sion o& non-A s$ppliers &rom he ari&& D$oa is no aime" La a

"isrib$ion o& ra"e /// approa'hing as 'losel# as possible he shares %hi'h he vario$s ?embers

migh be e3pe'e" o obain in he absen'e o& FheG resri'ionsL as reD$ire" b# Ari'le 111:2/ On he

'onrar# he e3'l$sion o& non-A s$ppliers is no aime" a a "isrib$ion o& ra"e ha a&&or"s a''ess

o an" 'ompeiive oppor$niies $n"er he ari&& D$oa o all s$ppl#ing ?embers re&le'ing heir

'omparaive a"vanageB nor "oes he e3'l$sion o& non-A s$ppliers respe' he Lsa&e harbo$rL

allo'aion reD$iremens in Ari'le 111:2(") base" $pon he represenaive proporions o& ?embers

having a s$bsanial ineres in he s$ppl# o& bananas o he E$ropean omm$niies/ Allo'aing he

enire ari&& D$oa e3'l$sivel# o A 'o$nries an" reserving no shares o non-A s$ppliers 'anno

be 'onsi"ere" o be base" on he respe'ive shares o& A an" non-A s$pplier 'o$nries in he

741& a ?ember allo'aes D$oa shares o ?embers %ih a s$bsanial ineres in s$ppl#ing he pro"$' ina''or"an'e %ih Ari'le 111:2(") i m$s also respe' he reD$iremen in he 'hapea$ o& Ari'le 111:2Pha

"isrib$ion o& ra"e approa'h as 'losel# as possible he shares ha ?embers ma# be e3pe'e" o obain in heabsen'e o& he resri'ion/ This is $s$all# "one b# allo'aing a share o a general LohersL 'aegor# &or alls$ppliers oher han ?embers %ih a s$bsanial ineres in s$ppl#ing he pro"$'/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 446

E$ropean omm$niies banana mar@e/ As a res$l he e3'l$sion o& non-A s$ppliers &rom he

ari&& D$oa o& 775000 m reserve" &or A 'o$nries is in'onsisen %ih he reD$iremens o&

Ari'le 111:4 he 'hapea$ o& Ari'le 111:2 an" Ari'le 111:2(") o& he ATT 499/ O$r'on'l$sion is no alere" b# he &a' ha impors &rom non-A s$ppliers are s$be' o an ?N ari&&

onl# $n"er he E !ananas 1mpor egime/

4/ The E$ropean omm$niies arg$es ha &or Ari'le 111:4 o appl# o a ari&& D$oa i m$s

be sho%n ha i imposes a Lresri'ionL on he Laggrieve" ?embersL in his 'ase he non-A

s$pplier 'o$nries/ e noe ha he e3 o& Ari'le 111:4 e3pressl# re&ers o Lprohibiion or

resri'ionL applie" Lb# an# ?emberL on he imporaion o& Lan# pro"$'L o& he errior# o& Lan#

oher ?emberL/ e ree' here&ore he E$ropean omm$niies arg$men ha be'a$se here %as

no resri'ion on he D$aniies o& bananas ha E'$a"or an" he oher ?N 'o$nries 'o$l" e3por o

he E$ropean omm$niies Lhe &irs 'on"iion &or he appli'aion o& Ari'le 111:4 (i/e/ he

imposiion o& a D$aniaive resri'ion on he impors 'oming &rom he aggrieve" ?ember) F%asG no

sais&ie"L/72 There&ore he A "$#-&ree ari&& D$oa is s$be' o he reD$iremens o& Ari'le 111:4

regar"less o& he ?embers $pon %hi'h he resri'ion is impose"/

72E$ropean omm$niies appellans s$bmissions para/ 445 (E'$a"or) (re&erring o E'$a"or anelepor para/ 7/) para/ 42 (.,) (re&erring o ., anel epor para/ 7/684)/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 447

4/ The E$ropean omm$niies &$rher 'onen"s ha LFaGn a"vanage grane" o a "i&&eren

'o$nr# is no he same as a meas$re imposing a prohibiion or resri'ion on ha spe'i&i' TO

?ember/L

7

The E$ropean omm$niies 'laims ha Lhe noion o& less &avo$rable reamen F$n"erAri'le 1 o& he ATT 499G is no he same as he noion o& prohibiion or resri'ion $n"er

Ari'le 111/L7 The E$ropean omm$niies &$rher arg$es ha LAri'le 111:4 "oes no inro"$'e an

?N r$le i/e/ i "oes no impose on a ?ember he obligaion o e3en" o all ?embers he

pre&eren'es i grans o onl# some 'o$nries/L75

45/ e 'onsi"er ha he noion o& Lnon-"is'riminaionL in he appli'aion o& ari&&s $n"er

Ari'le 1:4 an" he noion o& non-"is'riminaor# appli'aion o& a Lprohibiion or resri'ionL $n"er

Ari'le 111 are "isin' an" ha Ari'le 111 ens$res ha a ?ember appl#ing a resri'ion or

prohibiion "oes no "is'riminae among all oher ?embers/ Ari'le 1:4 %hi'h applies o ari&&s an"

Ari'le 111:4 %hi'h applies o D$aniaive resri'ions an" ari&& D$oas ma# appl# o "i&&eren

elemens o& a meas$re or impor regime/ Ari'le 111 a"aps he ?N-reamen prin'iple o spe'i&i'

#pes o& meas$res ha is D$aniaive resri'ions an" b# vir$e o& Ari'le 111:5 ari&& D$oas/

Tari&& D$oas m$s 'ompl# %ih he reD$iremens o& boh Ari'le 1:4 an" Ari'le 111 o& he ATT

499/ This in o$r vie% "oes no ma@e Ari'le 111 re"$n"an in respe' o& ari&& D$oas: i& a

?ember imposes "i&&erenial in-D$oa "$ies on impors o& li@e pro"$'s &rom "i&&eren s$pplier

'o$nries $n"er a ari&& D$oa Ari'le 1:4 %o$l" be impli'ae"B i& ha ?ember &ails o give a''ess oor allo'ae ari&& D$oa shares on a non-"is'riminaor# basis among s$pplier 'o$nries he

reD$iremens o& Ari'les 111:4 an" 111:2 %o$l" appl#/ 1n he absen'e o& Ari'le 111 Ari'le 1

%o$l" no provi"e spe'i&i' g$i"an'e on ho% o a"miniser ari&& D$oas in a manner ha avoi"s

"is'riminaion in he allo'aion o& shares/

46/ The A "$#-&ree ari&& D$oa inso&ar as i grans more &avo$rable ari&& reamen an"

D$oa allo'aion o A s$ppliers &alls %ihin he s'ope o& boh provisions/ e 'onsi"er ha he

A "$#-&ree ari&& D$oa is no a limiaion on a ari&& pre&eren'e ha is s$be' onl# o Ari'le 1:4

b$ a ari&& D$oa s$be' also o Ari'le 111/

47/ 1n o$r vie% here&ore he pre&erenial in-D$oa ari&& rae &alls %ihin he s'ope o&

Ari'le 1:4 %hile he appli'aion an" he "isrib$ion o& he ari&& D$oa m$s 'ompl# %ih he non-

"is'riminaion reD$iremens o& Ari'le 111 as %ell regar"less o& he appli'able in-D$oa an" o$-o&-

D$oa "$# raes

7




T*+,27*A!*2*E.T*+,27*A!**.,A

age 449

22/ aiver %as grane" in 2004 a&er he Appellae !o"# ha" ren"ere" is &in"ings in he

original

E) – Bananas III pro'ee"ings 'lari&#ing ha he >omH aiver &rom Ari'le 1:4 'o$l" no $si&#meas$res in'onsisen %ih Ari'le 111/79

2/ e "o no 'onsi"er ha ATT an" TO pra'i'e o& graning %aivers &rom Ari'le 1:4 an"

Ari'le 111 provi"e 'on'l$sive g$i"an'e on %heher "$#-&ree ari&& D$oas are s$be' o Ari'le 111/

<o%ever %e &in" he arg$men ha he +oha Ari'le 111 aiver 'on&irms he appli'abili# o&

Ari'le 111 o "$#-&ree ari&& D$oas more pers$asive/ This is so be'a$se he +oha Ari'le 111

aiver is relae" o a previo$s A "$#-&ree ari&& D$oa 80 an" be'a$se i %as a"ope" s$bseD$en o

he +,! re'ommen"aions an" r$lings in he original pro'ee"ings %hi'h 'lari&ie" he relaionship

be%een Ari'le 1:4 an" Ari'le 111 o& he ATT 499/

2/ e 'onsi"er ha o$r 'on'l$sions on Ari'le 111 are 'onsisen %ih he +,!

re'ommen"aions an" r$lings in he original E) – Bananas III pro'ee"ings an" he &irs E'$a"or

Ari'le 24/5 pro'ee"ings/ The panel in he original pro'ee"ings &o$n" ha ari&& D$oas Lare no

D$aniaive resri'ions per seL an" are permie" $n"er ATT r$les b$ LAri'le 111:5 ma@es i

'lear /// ha Ari'le 111 applies o he a"minisraion o& ari&& D$oasL/84 The Appellae !o"# &o$n"

ha Lalho$gh Ari'les 1 an" 111 o& he ATT 499 are boh non-"is'riminaion provisions heir

relaionship is no s$'h ha a %aiver &rom he obligaions $n"er Ari'le 1 implies a %aiver &rom he

obligaions $n"er Ari'le 111L an" ha here&ore he >omH aiver &rom Ari'le 1 "i" no %aive he

in'onsisen'# %ih Ari'le 111 o& he "$#-&ree ari&& D$oa appli'able o A 'o$nries a ha ime/82

25/ The Appellae !o"# ha" also &o$n" ha Lhe non-"is'riminaion provisions appl# o all

impors o& bananas irrespe'ive o& %heher an" ho% a ?ember 'aegori=es or s$b"ivi"es hese

impors &or a"minisraive or oher reasonsL8 an" ha here&ore he e3isen'e o& separae regimes &or

79

1n is appellees s$bmission he .nie" ,aes noes ha is mos re'en %aiver reD$ess &or pre&erenial programmes 'overe" boh Ari'les 1 an" 111 o& he ATT 499/ The .nie" ,aes re&ers o he&ollo%ing %aiver reD$ess "ae" 22 ?ar'h 2007: o$n'il &or Tra"e in oo"s eD$es &or a aiver aribbean!asin E'onomi' e'over# A' (!EA as amen"e") ***508 an" ev/4B o$n'il &or Tra"e in oo"seD$es &or a aiver A&ri'an ro%h an" Oppor$ni# A' (AOA) ***509 an" ev/4B o$n'il &or Tra"ein oo"s eD$es &or a aiver An"ean Tra"e re&eren'e A' (ATA as amen"e") ***540 an" ev/4/(.nie" ,aes appellees s$bmission &oonoe 8 o para/ 4)

80The +oha Ari'le 111 aiver %aive" Ari'le 111:4 an" 2 %ih respe' o a similar "$#-&ree ari&&D$oa &or A 'o$nries $n"er a previo$s bananas impor regime o& he E$ropean omm$niies/ aragraph 4 o&he +oha Ari'le 111 aiver saes:

ih respe' o he Es impors o& bananas as o& 4 Can$ar# 2002 an" $nil 4 +e'ember2005 paragraphs 4 an" 2 o& Ari'le 111 o& he ATT 499 are %aive" %ih respe' o heEs separae ari&& D$oa o& 750000 onnes &or bananas o& A origin/84

anel epors E) – Bananas III &Ecuador' an" &/#' para/ 7/68/82Appellae !o"# epor E) – Bananas III para/ 48/8Appellae !o"# epor E) – Bananas III para/ 490/ (original emphasis)



T*+,27*A!*2*E.T*+,27*A!**.,Aage 420

he imporaion o& bananas (he "$#-&ree ari&& D$oa &or ra"iional A bananas an" he erga omnes

ari&& D$oa regime &or all oher impors o& bananas) "i" no e3'l$"e he appli'aion o& he non-

"is'riminaion provisions o& he ATT 499Pspe'i&i'all# Ari'les 1:4 an" 111/

8

1 &ollo%s in o$rvie% ha he appli'abili# o& Ari'le 111 "oes no "epen" on %heher he A "$#-&ree ari&& D$oa

e3iss si"e b# si"e %ih oher ?N ari&& D$oas or %ih an ?N ari&& rae %iho$ D$aniaive

resri'ion/

26/ inall# %e noe ha he &irs E'$a"or Ari'le 24/5 panel &o$n" ha Lhe reservaion o& he

D$ani# o& 857700 onnes &or ra"iional A impors $n"er he revise" regime F%asG in'onsisen

%ih paragraphs 4 an" 2 o& Ari'le 111 o& ATTL/85 e agree %ih he anel ha he main "i&&eren'e

be%een he ari&& D$oa regime e3amine" b# he &irs E'$a"or Ari'le 24/5 panel an" he E !ananas

1mpor egime a iss$e in hese pro'ee"ings is he level o& he D$aniaive limi (857700 m vers$s

775000 m on "$#-&ree impors)/86 <o%ever ha "i&&eren'e is o& no relevan'e &or he D$esion

%heher Ari'le 111 applies/

27/ 1n 'on'l$sion %e re'all ha he anel &o$n" ha he E !ananas 1mpor egime %as

in'onsisen %ih boh Ari'le 1:4 an" Ari'le 111 o& he ATT 499 an" ha boh he +oha Ari'le 1

aiver an" he +oha Ari'le 111 aiver ha" e3pire" on 4 +e'ember 2005/ e noe ha he

E$ropean omm$niies has no appeale" he anels &in"ings 'on'erning Ari'le 1:4 o& he ATT

499 an" he +oha Ari'le 1 aiver nor "oes i 'ones ha he +oha Ari'le 111 aiver e3pire" on

4 +e'ember 2005/ Th$s on appeal he E$ropean omm$niies "oes no 'ones ha he =ero "$#

%ihin he A ari&& D$oa is in'onsisen %ih Ari'le 1:4 an" is no 'overe" b# a s$iable %aiver/

onsi"ering ha b# vir$e o& Ari'le 111:5 an# ari&& D$oa is s$be' o he "is'iplines o&

Ari'le 111 an" &or he reasons e3plaine" above %e 'on'l$"e ha he "$#-&ree A ari&& D$oa

is also in'onsisen %ih Ari'le 111:4 he 'hapea$ o& Ari'le 111:2 an" Ari'le 111:2(") o& he

ATT 499/

28/ There&ore in he ligh o& he &oregoing %e uphold he anels &in"ings albei &or "i&&eren

reasons in paragraph 7/82 o& he E'$a"or anel epor an" paragraph 7/720 o& he ., anel epor

ha he E !ananas 1mpor egime in pari'$lar is "$#-&ree ari&& D$oa reserve" &or A

'o$nries %as in'onsisen %ih Ari'le 111:4 an" Ari'le 111:2 o& he ATT 499/

8

Appellae !o"# epor E) – Bananas III para/ 494/85anel epor E) – Bananas III &Article +,-. – Ecuador' para/ 6/29/86E'$a"or anel epor para/ 7/0B ., anel epor para/ 7/659/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 422

A pre&eren'e 'a$se" an# ne% or additional n$lli&i'aion or impairmen o E'$a"or $n"er

Ari'le 111 o& he ATT/L92

/ e have 'on'l$"e" above ha he A "$#-&ree ari&& D$oa %as in'onsisen %ih

Ari'le 111 o& he ATT 499 an" ha he "enial o& a''ess o he A "$#-&ree ari&& D$oa n$lli&ie"

or impaire" E'$a"ors bene&is $n"er he ATT 499/ <o%ever having rea'he" his 'on'l$sion %e

"o no e3'l$"e ha an# n$lli&i'aion or impairmen 'a$se" o E'$a"or b# he in'onsisen'# o& he

A "$#-&ree ari&& D$oa %ih Ari'le 111 ma# 'oin'i"e %ih he n$lli&i'aion or impairmen

res$ling &rom a violaion o& Ari'le 1:4/

/ e believe ha n$lli&i'aion or impairmen res$ling &rom in'onsisen'ies %ih Ari'les 1:4

an" 111 ma# 'oin'i"e or overlap an" ha an# s$'h overlap is relevan onl# o he 'al'$laion o& he

oal level o& n$lli&i'aion or impairmen s$&&ere" &or he p$rposes o& negoiaing 'ompensaion or

assessing he amo$n o& n$lli&i'aion an" impairmen in an arbiraion $n"er Ari'le 22 o& he +,./

<o%ever %e "o no nee" o prono$n'e on s$'h D$esions in hese Ari'le 24/5 pro'ee"ings/ heher

or no n$lli&i'aion or impairmen 'a$se" b# he violaion o& one provision overlap or 'oin'i"e %ih

ha 'a$se" b# he violaion o& anoher provision "oes no aler he &a' ha boh in&ringemens rigger

he pres$mpion o& n$lli&i'aion or impairmen $n"er Ari'le /8/ 1n an# even a "emonsraion ha

n$lli&i'aion or impairmen 'a$se" b# he in&ringemens o& "isin' TO obligaions ma# overlap is

no s$&&i'ien o reb$ he pres$mpion in Ari'le /8 o& he +,. ha an# o& hese in&ringemens

'onsi$es a prima facie 'ase o& n$lli&i'aion or impairmen/

5/ 1n s$m %e "o no nee" o "e'i"e in his 'ase %heher n$lli&i'aion or impairmen o

E'$a"ors ineress "$e o he in'onsisen'# o& he D$oa allo'aion $n"er he A ari&& D$oa %ih

Ari'le 111 ma# 'oin'i"e or overlap %ih ha "$e o he in'onsisen'# o& he ari&& pre&eren'e %ih

Ari'le 1:4/ 1n an# even o$r 'on'l$sion rea'he" above ha he appli'aion o& he A "$#-&ree

ari&& D$oa %as in'onsisen %ih Ari'le 111 o& he ATT 499 %o$l" san"/

6/ e here&ore uphold he anels &in"ing in paragraph 8/ o& he E'$a"or anel epor ha

he E$ropean omm$niies b# mainaining meas$res in'onsisen %ih "i&&eren provisions o& he

ATT 499 in'l$"ing Ari'le 111 has n$lli&ie" or impaire" bene&is a''r$ing o E'$a"or $n"er ha

Agreemen/

92E$ropean omm$niies appellans s$bmission para/ 4 (E'$a"or)/ (original emphasis)



T*+,27*A!*2*E.T*+,27*A!**.,A

age 42

>I. A($)*% II # $'% GATT 1""@ :E+0#(;

4/ e no% $rn o he E$ropean omm$niies appeal o& he anels &in"ing ha hro$gh he

+oha Ari'le 1 aiver TO ?embers agree" o e3en" be#on" 4 +e'ember 2002 4 he ari&& D$oa

'on'ession (a a level o& 2/2 million m %ih an in-D$oa rae o& M75*m) in he E$ropean

omm$niies ,'he"$le o& on'essionsB an" he E$ropean omm$niies appeal o& he anels

'onseD$enial &in"ing ha he ari&& o& M476*m applie" b# he E$ropean omm$niies o ?N

impors o& bananas is in'onsisen %ih Ari'le 11:4(b) o& he ATT 499 be'a$se i is in e3'ess o& is

ari&& bin"ings on bananas/2 e %ill hen 'onsi"er E'$a"ors oher appeal o& he anels &in"ing ha

he E$ropean omm$niies ari&& D$oa 'on'ession &or bananas %as inen"e" o e3pire on

4 +e'ember 2002 p$rs$an o paragraph 9 o& he !ananas rame%or@ Agreemen anne3e" o he

E$ropean omm$niies ,'he"$le o& on'essions/

2/ ,e'ion A s$mmari=es he &in"ings ma"e b# he anel in he '$rren Ari'le 24/5

pro'ee"ings/ ,e'ion ! presens he arg$mens raise" on appeal b# he pari'ipans an" he hir"

pari'ipans in relaion o he E$ropean omm$niies appeal/ 1n se'ion %e "is'$ss he E$ropean

omm$niies 'laim ha he anel erre" in &in"ing ha he +oha Ari'le 1 aiver mo"i&ie" he

E$ropean omm$niies ,'he"$le o& on'essions an" e3en"e" he ari&& D$oa 'on'ession o&

2/2 million m bo$n" a an in-D$oa rae o& M75*m be#on" 4 +e'ember 2002/

/ ,e'ion + presens he pari'ipans arg$mens relaing o E'$a"ors oher appeal/ 1n

se'ion E %e "is'$ss E'$a"ors oher appeal o& he anels &in"ing ha he E$ropean omm$niies

ari&& D$oa 'on'ession &or bananas o& 2/2 million m bo$n" a an in-D$oa rae o& M75*m %as inen"e"

o e3pire on 4 +e'ember 2002 as a res$l o& paragraph 9 o& he !ananas rame%or@ Agreemen/ 5

inall# %e 'onsi"er %heher he anel erre" in &in"ing ha he ari&& applie" b# he E$ropean

omm$niies o ?N impors o& bananas se a M476*m %as in'onsisen %ih Ari'le 11:4(b) o& he

ATT 499/6

4E'$a"or anel epor para/ 7/92/2E'$a"or anel epor para/ 7/50/E'$a"or anel epor para/ 7/6/

E'$a"or anel epor para/ 7/92/5E'$a"or anel epor para/ 7/6/6E'$a"or anel epor para/ 7/50/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 42

A/ 4he )urrent Article +,-. Proceedings

4/ !e&ore he anel E'$a"or 'laime" ha he E$ropean omm$niies meas$re 'onsising o& a

Lari&&-rae D$oa %ih a single "$# rae appli'able o bananas no bene&iing &rom he =ero "$# ari&&-

rae D$oaL an" applie" o all bananas originaing in E'$a"or an" oher ?N 'o$nries %as in brea'h

o& he E$ropean omm$niies ari&& bin"ing on bananas/7 E'$a"or arg$e" ha in pari'$lar he

E$ropean omm$niies "$# o& M476*m %as in'onsisen %ih he E$ropean omm$niies

obligaions $n"er Ari'le 11 o& he ATT 499 an" he E$ropean omm$niies ,'he"$le 8 %hi'h

'onaine" an ?N ari&& D$oa o& 2/2 million m %ih an in-D$oa ari&& rae bo$n" a M75*m/ The

E$ropean omm$niies 'onen"e" ha he ari&& rae &or bananas bo$n" in is ,'he"$le %as M680*m

an" ha he ari&& D$oa o& 2/2 million m a he in-D$oa ari&& rae o& M75*m ha" e3pire" on

4 +e'ember 2002 in a''or"an'e %ih he erms an" 'on"iions se &orh in he !ananas rame%or@

Agreemen as anne3e" o he E$ropean omm$niies ,'he"$le/

2/ The anel noe" ha he ari&& D$oa bin"ing o& 2/2 million m an" he in-D$oa ari&& rae o&

M75*m in he E$ropean omm$niies ,'he"$le %as s$be' o he erms an" 'on"iions Las in"i'ae"

in he Anne3L/9 The Anne3 'onaine" he !ananas rame%or@ Agreemen %hi'h provi"e" in

paragraph 9 ha Lhis agreemen shall appl# $nil 4 +e'ember 2002L/ The anel also noe" ha

Ari'le 11:4(b) allo%s ?embers o aa'h Lerms 'on"iions or D$ali&i'aionsL o he ari&& 'on'essions

in heir ,'he"$les40 an" ha Lhere is nohing in he TO Agreemen ha %o$l" preven a ?ember

&rom D$ali&#ing a spe'i&i' 'on'ession in is ,'he"$le b# s$be'ing i o a "ae o& e3pir#/L44 The anel

here&ore &o$n" ha he ari&& D$oa o& 2/2 million m a a bo$n" ari&& rae o& M75*m in he E$ropean

omm$niies ,'he"$le %as $neD$ivo'all# inen"e" o e3pire on 4 +e'ember 2002/42

/ The anel ho%ever %en on o &in" ha in a"oping he +oha Ari'le 1 aiver LTO

?embers agree" o e3en" he "$raion o& he E$ropean omm$niies ari&& D$oa 'on'ession &or

bananas be#on" 4 +e'ember 2002L an" L$nil he 'ompleion o& he Ari'le ;111 negoiaions &or

he p$rpose o& he rebin"ing o& he E$ropean omm$niies ari&& on bananasL/4

7E'$a"ors &irs %rien s$bmission o he anel para/ /8E'$a"ors &irs %rien s$bmission o he anel para/ /9E'$a"or anel epor para/ 7/24/40E'$a"or anel epor para/ 7/2/44

E'$a"or anel epor para/ 7/29/42E'$a"or anel epor para/ 7/6/4E'$a"or anel epor para/ 7/6/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 425

/ The anel 'onsi"ere" ha he +oha Ari'le 1 aiver Las i relaes o he E$ropean

omm$niies TO mar@e-a''ess 'ommimens relaing o bananas is a s$bseD$en agreemen

be%een he paries o he !ananas rame%or@ Agreemen (i/e/ he TO ?embers) regar"ing heappli'aion o& he provisions o& he TO agreemen as i perains o s$'h mar@e a''ess

'ommimensL %hi'h 'o$l" no be ignore" Lin or"er o as'erain he 'ommon inenions o& he TO

?embers regar"ing he E$ropean omm$niies TO mar@e a''ess 'ommimens relaing o

bananasL/4 1n his respe' he anel &o$n" ha he +oha Ari'le 1 aiver Lre'ogni=es he TO

?embers 'ommon inenion ha $nil he enr# ino &or'e o& he ne% E$ropean omm$niies ari&&-

onl# regime he in-D$oa ari&& applie" o bananas shall no e3'ee" 75M*m as %ell as he 'ommon

inenion ha an# rebin"ing o& he E$ropean omm$niies ari&& on bananas $n"er ATT

Ari'le ;111 pro'e"$res sho$l" res$l in a leas mainaining oal mar@e a''ess &or ?N banana

s$ppliers/L45

5/ The anel also relie" on s$pplemenar# means o& inerpreaion %ihin he meaning o&

Ari'le 2 o& he 8ienna )onvention o 'on&irm he 'on'l$sion i ha" rea'he" Lregar"ing he 'ommon

inenion o& he TO ?embers /// ha he E$ropean omm$niies ari&& D$oa 'on'ession &or

bananas %o$l" remain in &or'e in is s$bsan'e pen"ing an# laer rebin"ing o& he E$ropean

omm$niies ari&& on bananas/L46 The anel &o$n" in pari'$lar ha he &ollo%ing elemens

'on&irme" is &in"ings on he E$ropean omm$niies mar@e a''ess 'ommimens on bananas: (i) he.r$g$a# o$n" L?o"aliies aperL47 &or agri'$l$ral mar@e a''ess negoiaions L'alle" &or bin"ing

ari&& D$oas in an amo$n an" a a "$# level s$&&i'ien o permi a''ess a leas eD$ivalen o ha

e3ising in he base perio"L48B (ii) he E$ropean omm$niies iniiae" negoiaions p$rs$an o

Ari'le ;111 o& he ATT 499 %hi'h %ere ne'essar# in or"er o in'rease he ari&& bin"ing (&rom

he in-D$oa level o& M75*m) an" no o re"$'e i (&rom he o$-o&-D$oa level o& M680*m) 49B an"

(iii) he &irs a%ar" o& he arbiraor a'ing p$rs$an o he LAnne3 on !ananasL o he +oha Ari'le 1

aiver "es'ribe" he E$ropean omm$niies ,'he"$le o& on'essions as in'l$"ing a D$oa o&

2/2 million m %ih an in-D$oa ari&& rae o& M75*m/20

4E'$a"or anel epor para/ 7//45E'$a"or anel epor para/ 7//46E'$a"or anel epor para/ 7/78/47?o"aliies &or he Esablishmen o& ,pe'i&i' !in"ing ommimens Noe b# he hairman o& he

?ar@e A''ess ro$p ?TN/N*?A**2 20 +e'ember 499/48

E'$a"ors se'on" %rien s$bmission o he anel para/ 59/49E'$a"or anel epor para/ 7/85/20E'$a"or anel epor para/ 7/94/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 426

!/ )laims and Arguments relating to the European )ommunities Appeal

4/ The E$ropean omm$niies reD$ess he Appellae !o"# o reverse he anels &in"ings ha

he +oha Ari'le 1 aiver Lmo"i&ie" he ,'he"$le o& he E$ropean omm$niies an" e3en"e" he

'on'ession &or he ari&& D$oa be#on" +e'ember 4 2002L24 as %ell as he anels 'onseD$enial

&in"ing ha Lhe E$ropean omm$niies has brea'he" Ari'le 11 o& he ATTL/22

2/ The E$ropean omm$niies arg$es ha he anel erre" in &in"ing ha he +oha Ari'le 1

aiver %as a Ls$bseD$en agreemenL relaing o he ari&& D$oa 'on'ession bo$n" in he E$ropean

omm$niies ,'he"$le o& on'essions an" ha he aiver 'o$l" be inerpree" as an agreemen b#

TO ?embers Lo e3en" he "$raion o& he E$ropean omm$niies ari&& D$oa 'on'ession &or

bananas be#on" 4 +e'ember 2002/L2 The E$ropean omm$niies also 'laims ha he anel ma"e

&$rher errors o& legal inerpreaion an" reasoning in rel#ing on as s$pplemenar# means o&

inerpreaion he .r$g$a# o$n" ?o"aliies aper an" he &a' ha he E$ropean omm$niies

iniiae" ari&& renegoiaions p$rs$an o Ari'le ;111 o& he ATT 499/2

/ E'$a"or respon"s ha he anel "i" no err in &in"ing ha he +oha Ari'le 1 aiver %as a

s$bseD$en agreemen %ihin he meaning o& Ari'le 4()(a) o& he 8ienna )onvention 25 regar"ing

he appli'aion o& he E$ropean omm$niies 'on'ession an" ha he aiver 'on&irme" or e3en"e"

he e&&e'iveness o& he 'on'ession/26

/ E'$a"or s$bmis ha he anel %as 'orre' in &in"ing Lha he on'ession remains in e&&e'

be'a$se o& is e3ension via he agreemen mani&ese" in he +oha aiverL27 an" ha Lhe +oha

aiver %as an agreemen regar"ing he application o& he 'on'ession %hi'h is %ihin he s'ope o&

Ari'le 4() Fo& he 8ienna )onventionGL/28 $rhermore a''or"ing o E'$a"or Lhe +oha aiver ///

srongl# s$pporFsG E'$a"ors posiion ha he on'ession %as never inen"e" o e3pire on a''o$n o&

paragraph 9 o& he F!ananas rame%or@ AgreemenG/L29

/ Analysis of the European )ommunities Appeal

4/ 1n his se'ion %e a""ress he E$ropean omm$niies 'laim ha he anel erre" in &in"ing

ha he +oha Ari'le 1 aiver mo"i&ie" he E$ropean omm$niies ,'he"$le o& on'essions an"

24E$ropean omm$niies appellans s$bmission para/ 46 (E'$a"or)/22E$ropean omm$niies appellans s$bmission para/ 48 (E'$a"or)/2E$ropean omm$niies appellans s$bmission para/ 48 (E'$a"or)/2E$ropean omm$niies appellans s$bmission para/ 49 (E'$a"or)/25E'$a"ors appellees s$bmission para/ 58/26E'$a"ors appellees s$bmission para/ 59/27




T*+,27*A!*2*E.T*+,27*A!**.,A

age 427

e3en"e" he ari&& D$oa 'on'ession o& 2/2 million m bo$n" a an in-D$oa rae o& M75*m be#on"

4 +e'ember 2002/0

2/ The anel &o$n" ha Lhe E$ropean omm$niies ari&& D$oa 'on'ession &or bananas %as

$neD$ivo'all# inen"e" o e3pire on 4 +e'ember 2002/L4 The anel hen &o$n" ha he +oha

Ari'le 1 aiver Las i relaes o he E$ropean omm$niies TO mar@e a''ess 'ommimens on

bananas is a s$bseD$en agreemen be%een he paries /// regar"ing he appli'aion o& he provisions

o& he TO Agreemen as i perains o s$'h mar@e a''ess 'ommimens/L 2 1n ma@ing his &in"ing

he anel noe" ha he +oha Ari'le 1 aiver is an agreemen rea'he" be%een he same paries ha

agree" o in'orporae he !ananas rame%or@ Agreemen as an anne3 o he E$ropean omm$niies

,'he"$le o& on'essionsB i is s$bseD$en o he !ananas rame%or@ AgreemenB an" li@e ha

agreemen he aiver "eals %ih inter alia he E$ropean omm$niies TO mar@e a''ess

'ommimens relaing o bananas/

/ The anel hen $rne" o he D$esion %heher in a"oping he +oha Ari'le 1 aiver TO

?embers ha" agree" o e3en" he E$ropean omm$niies ari&& D$oa 'on'ession &or bananas

be#on" 4 +e'ember 2002 he "ae he !ananas rame%or@ Agreemen %as inen"e" o e3pire/

The anel 'on'l$"e" ha he 'ommon inenion o& TO ?embers as re&le'e" in he e3 o& he +oha

Ari'le 1 aiver "e'ision %as ha pen"ing he Ari'le ;111 negoiaions on he rebin"ing o& he

banana ari&& in he E$ropean omm$niies ,'he"$le he E$ropean omm$niies ari&& D$oa

'on'ession %o$l" 'onin$e o 'onsi$e he E$ropean omm$niies bo$n" 'ommimens regar"ing

bananas/5

4/ aivers ?$lilaeral 1nerpreaions an" Amen"mens

4/ e begin b# noing hree "i&&eren meho"s ha ?embers ma# $se o inerpre or mo"i&#

TO la% provi"e" &or in he >4= Agreement : (i) %aivers (Ari'le 1:)B (ii) m$lilaeral

inerpreaions (Ari'le 1:2)B an" (iii) amen"mens (Ari'le )/ e %ill ne3 'onsi"er he "isin'

0E'$a"or anel epor para/ 7/92/4E'$a"or anel epor para/ 7/6/2E'$a"or anel epor para/ 7//

E'$a"or anel epor para/ 7//E'$a"or anel epor para/ 7//5E'$a"or anel epor para/ 7/56/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 428

2/ roles an" &$n'ions o& hese meho"s in TO la%/ e %ill hen a""ress he anels &in"ing

ha he +oha Ari'le 1 aiver %as a Ls$bseD$en agreemenL %ihin he meaning o& Ari'le 4()(a)

o& he 8ienna )onvention ha res$le" in an e3ension o& he ari&& D$oa 'on'ession be#on" 4+e'ember 2002 he "ae %hen a''or"ing o paragraph 9 o& he !anana rame%or@ Agreemen Lhis

agreemenL %as o e3pire/

/ The &irs meho" i"eni&ie" above is a %aiver/ Ari'le 1: o& he >4= Agreement allo%s

he ?iniserial on&eren'e o %aive in e3'epional 'ir'$msan'es an" b# a "e'ision a@en b# a leas

hree &o$rhs o& TO ?embers an obligaion impose" on a ?ember b# he >4= Agreement an" b#

an# o& he m$lilaeral agreemens/ Ari'le 1: o& he >4= Agreement saes:

A "e'ision b# he ?iniserial on&eren'e graning a %aiver shallsae he e3'epional 'ir'$msan'es $si&#ing he "e'ision he ermsan" 'on"iions governing he appli'aion o& he %aiver an" he "aeon %hi'h he %aiver shall erminae/ An# %aiver grane" &or a perio"o& more han one #ear shall be revie%e" b# he ?iniserialon&eren'e no laer han one #ear a&er i is grane" an" herea&erann$all# $nil he %aiver erminaes/ 1n ea'h revie% he ?iniserialon&eren'e shall e3amine %heher he e3'epional 'ir'$msan'es

$si&#ing he %aiver sill e3is an" %heher he erms an" 'on"iionsaa'he" o he %aiver have been me/ The ?iniserial on&eren'eon he basis o& he ann$al revie% ma# e3en" mo"i&# or erminaehe %aiver/

/ Ari'le 1: reD$ires ha he "e'ision graning he %aiver sae he "ae on %hi'h he %aiver

shall erminae h$s ens$ring ha %aivers are grane" &or limie" perio"s o& ime/ A %aiver m$s

sae he e3'epional 'ir'$msan'es $si&#ing he "e'ision he erms an" 'on"iions governing he

appli'aion o& he %aiver an" he "ae i erminaes/ The /ruguay *ound /nderstanding in *espect

of >aivers of =$ligations under the 1eneral Agreement on 4ariffs and 4rade ,??5 "es'ribes in

"eail he 'onens o& a reD$es &or a %aiver/ aragraph 4 o& his .n"ersan"ing saes:

A reD$es &or a %aiver or &or an e3ension o& an e3ising %aiver shall"es'ribe he meas$res %hi'h he ?ember proposes o a@e hespe'i&i' poli'# obe'ives %hi'h he ?ember see@s o p$rs$e an" hereasons %hi'h preven he ?ember &rom a'hieving is poli'#obe'ives b# meas$res 'onsisen %ih is obligaions $n"erATT 499/

5/ These provisions spe'i&# he elemens ha m$s be in'l$"e" in %aiver reD$ess an"

"e'isions/ The nee" o sae he e3'epional 'ir'$msan'es o spe'i&# he erms an" 'on"iions

governing he appli'aion o& he %aiver an" o "es'ribe he spe'i&i' poli'# obe'ives ha a ?ember

see@s o p$rs$e ma@e 'lear ha a %aiver is a spe'i&i' an" e3'epional insr$men s$be' o sri'

"is'iplines/ These elemens "o no s$gges ha a %aiver sho$l" be 'onsr$e" as an agreemen on



T*+,27*A!*2*E.T*+,27*A!**.,A

age 429

iss$es no e3pli'il# re&le'e" in is erms an" 'on"iions $si&#ing 'ir'$msan'es an" sae" poli'#

obe'ives/ 1n he original E) – Bananas III pro'ee"ings he Appellae !o"# emphasi=e":

Alho$gh he >4= Agreement "oes no provi"e an# spe'i&i' r$les onhe inerpreaion o& %aivers Ari'le 1 o& he >4= Agreement an"he /nderstanding in *espect of >aivers of =$ligations under the

1eneral Agreement on 4ariffs and 4rade ,??5 %hi'h provi"ereD$iremens &or graning an" rene%ing %aivers sress hee3'epional na$re o& %aivers an" s$be' %aivers o sri'"is'iplines/ Th$s %aivers sho$l" be inerpree" %ih grea 'are/6

6/ 1n o$r vie% he &$n'ion o& a %aiver is o relieve a ?ember &or a spe'i&ie" perio" o& ime

&rom a pari'$lar obligaion provi"e" &or in he 'overe" agreemens s$be' o he erms 'on"iions

$si&#ing e3'epional 'ir'$msan'es or poli'# obe'ives "es'ribe" in he %aiver "e'ision/ 1s p$rpose is no o mo"i&# e3ising provisions in he agreemens le alone 'reae ne% la% or a"" o or

amen" he obligaions $n"er a 'overe" agreemen or ,'he"$le/ There&ore %aivers are e3'epional in

na$re s$be' o sri' "is'iplines an" sho$l" be inerpree" %ih grea 'are/

7/ ?$lilaeral inerpreaions o& provisions o& TO la% are he ne3 meho" i"eni&ie" above/

Ari'le 1:2 o& he >4= Agreement ses o$ spe'i&i' reD$iremens &or "e'isions ha ma# be a@en b#

he ?iniserial on&eren'e or he eneral o$n'il o a"op inerpreaions o& provisions o& he

?$lilaeral Tra"e Agreemens/ ,$'h m$lilaeral inerpreaions are mean o 'lari&# he meaning o&

e3ising obligaions no o mo"i&# heir 'onen/ Ari'le 1:2 emphasi=es ha s$'h inerpreaions

Lshall no be $se" in a manner ha %o$l" $n"ermine he amen"men provisions in Ari'le L/ A

m$lilaeral inerpreaion sho$l" also be "ising$ishe" &rom a %aiver %hi'h allo%s a ?ember o

"epar &rom an e3ising TO obligaion &or a limie" perio" o& ime/ e 'onsi"er ha a m$lilaeral

inerpreaion p$rs$an o Ari'le 1:2 o& he >4= Agreement 'an be li@ene" o a s$bseD$en

agreemen regar"ing he inerpreaion o& he rea# or he appli'aion o& is provisions p$rs$an o

Ari'le 4()(a) o& he 8ienna )onvention as &ar as he inerpreaion o& he TO agreemens is

'on'erne"/

8/ The hir" meho" menione" above is amen"mens o he TO agreemens/ Ari'le o&

he >4= Agreement ses o$ r$les an" pro'e"$res o amen" he provisions in he ?$lilaeral Tra"e

Agreemens/ Ari'le spe'i&ies he pro'ess an" D$or$m reD$ire" o amen" pari'$lar provisions or

'overe" agreemens/ Amen"mens $nli@e %aivers are no limie" in ime an" 'reae ne% or mo"i&#

e3ising righs an" obligaions &or TO ?embers/ ,pe'ial r$les on a''epan'e an" enr# ino &or'e

appl# "epen"ing on he provisions ha are being amen"e" an" on %heher he amen"men L%o$l"




T*+,27*A!*2*E.T*+,27*A!**.,A

age 44

/ e agree %ih he anel ha he +oha Ari'le 1 aiver %as a"ope" b# he same paries

ha approve" he E$ropean omm$niies ,'he"$le in'l$"ing he !ananas rame%or@ Agreemen

anne3e" hereo/ The aiver "e'ision %as also a@en s$bseD$en o he enr# ino &or'e o& heE$ropean omm$niies ,'he"$le/ <o%ever %e are no pers$a"e" ha he +oha Ari'le 1 aiver

'o$l" D$ali&# as a Ls$bseD$en agreemenL regar"ing he inerpreaion o& he rea# or appli'aion o&

is provisions %ihin he meaning o& Ari'le 4()(a) o& he 8ienna )onvention/

/ e have 'onsi"ere" above he "i&&eren'es be%een a %aiver as oppose" o a m$lilaeral

inerpreaion an" an amen"men o a 'overe" agreemen/ As noe" earlier a %aiver "e'ision relieves

a ?ember &or a limie" perio" &rom a pari'$lar e3ising obligaion $n"er he 'overe" agreemens

s$be' o he erms an" 'on"iions $si&#ing e3'epional 'ir'$msan'es or poli'# obe'ives

"es'ribe" in he %aiver "e'ision/ The p$rpose o& a %aiver is no o mo"i&# he inerpreaion or

appli'aion o& e3ising provisions in he agreemens le alone o a"" o or amen" he obligaions $n"er

a 'overe" agreemen or ,'he"$le/ As %e "is'$ss belo% he "e'ision o gran he +oha Ari'le 1

aiver p$rs$an o Ari'le 1: o& he >4= Agreement "oes no D$ali&# as an agreemen on he

inerpreaion or appli'aion o& a rea# provision %ihin he meaning o& Ari'le 4()(a) o& he 8ienna

)onvention/

5/ e &$rher observe ha in is 'ommenar# on he +ra& Ari'les on he >a% o& Treaies he

1nernaional >a% ommission (he L1>L) "es'ribes a s$bseD$en agreemen %ihin he meaning o&

Ari'le 4()(a) o& he 8ienna )onvention Las a &$rher authentic element of interpretation o be

a@en ino a''o$n ogeher %ih he 'one3L/9 1n o$r vie% b# re&erring o La$heni' inerpreaionL

he 1> rea"s Ari'le 4()(a) as re&erring o agreemens bearing spe'i&i'all# $pon he inerpreaion

o& a rea#/ 1n he TO 'one3 m$lilaeral inerpreaions a"ope" p$rs$an o Ari'le 1:2 o& he

>4= Agreement are mos a@in o s$bseD$en agreemens %ihin he meaning o& Ari'le 4()(a) o& he

8ienna )onvention b$ no %aivers a"ope" p$rs$an o Ari'les 1: an" o& he >4= Agreement /

6/ Also &or anoher reason %e "o no believe ha he +oha Ari'le 1 aiver D$ali&ies as a

Ls$bseD$en agreemenL %ihin he meaning o& Ari'le 4()(a) o& he 8ienna )onvention be%een all

TO ?embers regar"ing he appli'aion o& he ari&& D$oa 'on'ession in ar 1 ,e'ion 1-! o& he

E$ropean omm$niies ,'he"$le/0 1n his respe' %e re'all ha he anel 'on'l$"e" ha:

he aiver as i relaes o he E$ropean omm$niies TOmar@e-a''ess 'ommimens relaing o bananas is a Ls$bseD$enagreemen be%een he pariesL o he !ananas rame%or@

9Lepor o& he 1nernaional >a% ommission on he or@ o& is 48h ,ession eneva ?a#-

49 C$l# 4966L (4966) 11 Gear$oo0 of the International La% )ommission 472 a 224 para/ 4/ (emphasis a""e")0E'$a"or anel epor para/ 7// The relevan e3'erps &rom ,e'ions 1-A an" 1-! o& ar 1 o& heE$ropean omm$niies ,'he"$le > are repro"$'e" in Anne3 ;1 aa'he" o his epor/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 42

Agreemen (i/e/ he TO ?embers) regar"ing he application o&he provisions o& he TO agreemen as i perains o s$'h mar@ea''ess 'ommimens/4 (emphasis a""e")

1n o$r vie% he erm Lappli'aionL in Ari'le 4()(a) relaes o he si$aion %here an agreemen

spe'i&ies ho% e3ising r$les or obligaions in &or'e are o be Lapplie"LB he erm "oes no 'onnoe he

'reaion o& ne% or he e3ension o& e3ising obligaions ha are s$be' o a emporal limiaion an"

are o e3pire/ e &in" he anels 'on'l$sion ha he +oha Ari'le 1 aiver e3en"e" he "$raion o&

he ari&& D$oa 'on'ession be#on" 4 +e'ember 2002 an" hereb# mo"i&ie" or 'hange" he 'onen

o& he E$ropean omm$niies ,'he"$le "i&&i'$l o re'on'ile %ih is 'on'l$sion ha he aiver

sho$l" be 'onsi"ere" an agreemen on he application o& e3ising 'ommimens 'onaine" in ha

,'he"$le/ As s$'h %e "o no 'onsi"er ha he +oha Ari'le 1 aiver 'o$l" be regar"e" as an

agreemen on he appli'aion o& he ari&& D$oa 'on'ession in he E$ropean omm$niies ,'he"$le

%ihin he meaning o& Ari'le 4()(a) o& he 8ienna )onvention/

7/ 1n"ee" he anel appears o have rea" he +oha Ari'le 1 aiver as an agreemen

mo"i&#ing he E$ropean omm$niies ,'he"$le in ha i %o$l" provi"e &or an e3ension o& he ari&&

D$oa 'on'ession be#on" 4 +e'ember 2002 he e3pir# "ae o& he !ananas rame%or@ Agreemen/

The anel spe'i&i'all# &o$n" ha Lhe E$ropean omm$niies ari&& D$oa 'on'ession &or bananas

%as $neD$ivo'all# inen"e" o e3pire on 4 +e'ember 2002L2 an" ha Lin a"oping he aiver he

TO ?embers agree" o e3en" he "$raion o& he E$ropean omm$niies ari&& D$oa 'on'ession

be#on" 4 +e'ember 2002L/ This &in"ing o& he anel means ha he anel 'onsi"ere" ha he

aiver in &a' modified he E$ropean omm$niies original ,'he"$le raher han simpl# interpreted

or applied i/ There&ore b# he anels o%n logi' i 'anno be s$saine" ha he +oha Ari'le 1

aiver 'o$l" be 'hara'eri=e" as a Ls$bseD$en agreemenL %ihin he meaning o& Ari'le 4()(a) o&

he 8ienna )onvention on he application o& he mar@e a''ess 'ommimens &or bananas in he


8/ or all hese reasons %e "isagree %ih he anels &in"ing ha he Lhe +oha aiver as i

relaes o he E$ropean omm$niies TO mar@e-a''ess 'ommimens relaing o bananas is a

s$bseD$en agreemen be%een he paries o he !ananas rame%or@ Agreemen (i/e/ he TO

?embers) regar"ing he appli'aion o& he provisions o& he F >4= Agreement G as i perains o s$'h

mar@e a''ess 'ommimens/L

4E'$a"or anel epor para/ 7//2

E'$a"or anel epor para/ 7/6/E'$a"or anel epor para/ 7/6/E'$a"or anel epor para/ 7//



T*+,27*A!*2*E.T*+,27*A!**.,A

age 4

9/ e are also o& he vie% ha he +oha Ari'le 1 aiver "oes no 'onsi$e an amen"men o&

he E$ropean omm$niies ,'he"$le a"ope" in a''or"an'e %ih he reD$iremens an" pro'e"$res o&

Ari'le o& he >4= Agreement / E3en"ing an obligaion %ih a emporal limiaion is amo"i&i'aion ha LalerFsG he righs an" obligaions o& he ?embersL/ There&ore i& implemene" b#

means o& an amen"men Ari'le : reD$ires ha s$'h an amen"men Lshall a@e e&&e' &or he

?embers ha have a''epe" FiG $pon a''epan'e b# %o hir"s o& he ?embers an" herea&er &or

ea'h ?ember $pon a''epan'e b# iL/ A''or"ing o Ari'le :7 a''epan'e o& s$'h an amen"men

reD$ires "eposiing an insr$men o& a''epan'e %ih he +ire'or-eneral o& he TO/ The +oha

Ari'le 1 aiver is a "e'ision a@en b# he ?iniserial on&eren'e %hi'h "i" no reD$ire &ormal

a''epan'e b# he ?embership as &oreseen $n"er Ari'le :7/

40/ ?oreover %hile i is r$e ha p$rs$an o Ari'le 11:7 o& he ATT 499 ?embers

,'he"$les o& on'essions are inegral pars o& he 'overe" agreemens ,'he"$les are $s$all# no

mo"i&ie" b# means o& an amen"men p$rs$an o Ari'le o& he >4= Agreement : spe'ial r$les an"

pro'e"$res ha ?embers are reD$ire" o &ollo% %hen he# %ish o mo"i&# heir ,'he"$les $nless he#

ener ino ari&& 'ommimens b# means o& he 'on'l$sion o& m$lilaeral ro$n"s o& ra"e negoiaions

are provi"e" in Ari'le ;111 o& he ATT 499/ 1n o$r vie% i& he "$raion o& he ari&& D$oa

'on'ession in he E$ropean omm$niies ,'he"$le ha" o be mo"i&ie" or e3en"e" negoiaions

$n"er Ari'le ;111 %o$l" be he proper pro'e"$re o &ollo%/

5

/ heher he Tari&& $oa on'ession in he E$ropean omm$niies ,'he"$le %as E3en"e" b# he +oha Ari'le 1 aiver

4/ A''or"ing o he anel he ari&& D$oa 'on'ession in he E$ropean omm$niies ,'he"$le

o& on'essions %as o e3pire $n"er he erms o& he !ananas rame%or@ Agreemen an" he +oha

Ari'le 1 aiver e3en"e" ha 'on'ession be#on" he "ae %hen he !ananas rame%or@ Agreemen

%as o e3pire/ 1n his se'ion %e 'onsi"er he arg$men b# he E$ropean omm$niies ha he anel

erre" in is inerpreaion o& he erms an" 'on"iions in he +oha Ari'le 1 aiver %hen i &o$n" hahro$gh he aiver LTO ?embers agree" o e3en" he "$raion o& he E$ropean omm$niies

ari&& D$oa 'on'ession &or bananas be#on" 4 +e'ember 2002L/6 The E$ropean omm$niies arg$es

ha here is no re&eren'e in he +oha Ari'le 1 aiver o he E$ropean omm$niies ,'he"$le le

alone o an# agreemen o e3en" he ari&& D$oa 'on'ession/7

5hile he E$ropean omm$niies has iniiae" Ari'le ;111 negoiaions &or he p$rpose o&inro"$'ing a ari&&-onl# regime hese negoiaions "i" no involve a possible e3ension o& he ari&& D$oa'on'ession be#on" 4 +e'ember 2002/ 1n an# even he renegoiaions $n"er Ari'les ;111 an" 1;:6

have no been 'omplee" o "ae/6E'$a"or anel epor para/ 7/6/7E$ropean omm$niies appellans s$bmission paras/ 465 an" 466 (E'$a"or)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 4

2/ The anel 'onsi"ere" ha he e3 o& he +oha Ari'le 1 aiver re&le'e" he 'ommon

inenion o& TO ?embers ha pen"ing he 'ompleion o& he Ari'le ;111 negoiaions an" $nil

he enr# ino &or'e o& a ne% ari&& regime he E$ropean omm$niies .r$g$a# o$n" ari&& D$oa'on'ession &or bananas %o$l" 'onin$e o appl#/8

/ e noe" above ha a "e'ision graning a %aiver is an e3'epional insr$men/ aivers are

s$be' o he sri' "is'iplines se o$ in Ari'le 1: o& he >4= Agreement / e noe ha he +oha

Ari'le 1 aiver a$hori=e" he E$ropean omm$niies LFsG$be' o he erms an" 'on"iions se o$

FGhere$n"erL o "erogae $nil 4 +e'ember 2007 &rom Ari'le 1:4 o& he ATT 499:

/// o he e3en ne'essar# o permi FiG o provi"e pre&erenial ari&&

reamen &or pro"$'s originaing in A ,aes as reD$ire" b#Ari'le 6/ Anne3 ; an" is roo'ols o& he A-E arnershipAgreemen %iho$ being reD$ire" o e3en" he same pre&erenialreamen o li@e pro"$'s o& an# oher member/ (&oonoe omie")

/ The aivers erms an" 'on"iions "o no e3pressl# inerpre or mo"i&# he ari&& D$oa o&

2/2 million m bo$n" in he E$ropean omm$niies ,'he"$le he in-D$oa ari&& rae o& M75*m

appli'able o ?N s$ppliers or he erms o& he !ananas rame%or@ Agreemen as anne3e" o he

E$ropean omm$niies ,'he"$le/ The +oha Ari'le 1 aiver is 'on'erne" %ih he =ero-"$#

pre&eren'e &or A s$ppliers no %ih he ari&& D$oa 'on'ession &or ?N s$ppliers spe'i&ie" in he


5/ The re&eren'e in he re'ial o& he preamble o& he +oha Ari'le 1 aiver o ari&& D$oas LAL

an" L!L &or banana impors &rom ?N s$ppliers an" o he in-D$oa ari&& rae o& M75*m appli'able

o ?N s$ppliers "oes no pers$a"e $s oher%ise/ 1n &a' ari&& D$oas A an" ! a"" $p o

2/55 million m %hi'h is no he same as he 2/2 million m ins'ribe" in he E$ropean omm$niies

,'he"$le/ ?oreover he preamble re'ial is inro"$'e" b# he %or" LnoingL an" "oes no &orm par

o& he operaional se'ion o& he aiver "e'ision/ There&ore he re&eren'e in he preamble o& he

8E'$a"or anel epor para/ 7/56/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 45

6/ +oha Ari'le 1 aiver o he ari&& D$oas relaing o ?N s$ppliers 'anno be "eeme" o

'onsi$e a "e'ision o e3en" he ari&& D$oa 'on'ession be#on" 4 +e'ember 2002/9

7/ 1n rea'hing his 'on'l$sion he anel also relie" on he Anne3 on !ananas o he +oha

Ari'le 1 aiver %hi'h saes ha in he rebin"ing o& he E$ropean omm$niies ari&& 'on'ession

p$rs$an o Ari'le ;111 o& he ATT 499 Lall E TO mar@e-a''ess 'ommimens relaing o

bananas sho$l" be a@en ino a''o$nL/50 The Anne3 also pres'ribe" he arbiraors man"ae o be he

"eerminaion o& %heher s$'h rebin"ing Lres$lFe"G in a leas mainaining oal mar@e a''ess &or

?N banana s$ppliers a@ing ino a''o$n he above-menione" E 'ommimensL/54 inall# he

Anne3 on !ananas provi"e" ha LFGhe Ari'le ;111 negoiaions an" he arbiraion pro'e"$res

shall be 'on'l$"e" be&ore he enr# ino &or'e o& he ne% E ari&& onl# regime on 4 Can$ar# 2006/L 52

The anel &$rher 'on'l$"e" ha 'onsi"ering ha he E$ropean omm$niies ha" no 'omplie" %ih

he provisions in he Anne3 on !ananas5 an" ha Ari'le ;111 negoiaions ha" no been

'on'l$"e" Lhe ne% E ari&& regimeL ha" no #e enere" ino &or'e/5

9e'ial 9 o& he preamble rea"s: 6oting ha he ari&& applie" o bananas impore" in he LAL an" L!L D$oasshall no e3'ee" 75 M*onne $nil he enr# ino &or'e o& he ne% E ari&&-onl# regime/

50Anne3 on !ananas se'on" ire rea"s:

No laer han 40 "a#s a&er he 'on'l$sion o& Ari'le ;111 negoiaionsinerese" paries %ill be in&orme" o& he E inenions 'on'erning herebin"ing o& he E ari&& on bananas/ 1n he 'o$rse o& s$'h 'ons$laionshe E %ill provi"e in&ormaion on he meho"olog# $se" &or s$'hrebin"ing/ 1n his regar" all E TO mar@e-a''ess 'ommimens relaingo bananas sho$l" be a@en ino a''o$n/

54Anne3 on !ananas &o$rh ire rea"s:The arbiraor shall be appoine" %ihin 40 "a#s &ollo%ing he reD$ess$be' o agreemen be%een he %o paries &ailing %hi'h he arbiraorshall be appoine" b# he +ire'or-eneral o& he TO &ollo%ing'ons$laions %ih he paries %ihin 0 "a#s o& he arbiraion reD$es/ Theman"ae o& he arbiraor shall be o "eermine %ihin 90 "a#s o& hisappoinmen %heher he envisage" rebin"ing o& he E ari&& on bananas

%o$l" res$l in a leas mainaining oal mar@e a''ess &or ?N bananas$ppliers a@ing ino a''o$n he above-menione" E 'ommimens/52Anne3 on !ananas &i&h ire rea"s:

1& he arbiraor "eermines ha he rebin"ing %o$l" no res$l in a leasmainaining oal mar@e a''ess &or ?N s$ppliers he E shall re'i&# hemaer/ ihin 40 "a#s o& he noi&i'aion o& he arbiraion a%ar" o heeneral o$n'il he E %ill ener ino 'ons$laions %ih hose inerese"

paries ha reD$ese" he arbiraion/ 1n he absen'e o& a m$$all#sais&a'or# sol$ion he same arbiraor %ill be as@e" o "eermine %ihin0 "a#s o& he ne% arbiraion reD$es %heher he E has re'i&ie" hemaer/ The se'on" arbiraion a%ar" %ill be noi&ie" o he eneralo$n'il/ 1& he E has &aile" o re'i&# he maer his %aiver shall 'ease oappl# o bananas $pon enr# ino &or'e o& he ne% E ari&& regime/ The

Ari'le ;111 negoiaions an" he arbiraion pro'e"$res shall be'on'l$"e" be&ore he enr# ino &or'e o& he ne% E ari&& onl# regime on 4Can$ar# 2006/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 46

8/ The provisions in he Anne3 on !ananas %ere aime" a ens$ring in he 'o$rse o& he

inro"$'ion o& a ari&&-onl# s#sem he rebin"ing o& he E$ropean omm$niies ari&& a a level ha

%o$l" res$l in a leas mainaining oal mar@e a''ess &or ?N banana s$ppliers a@ing ino a''o$nall he E$ropean omm$niies 'ommimens in'l$"ing he si=e o& he ari&& D$oa an" he in-D$oa

ari&& appli'able o ?N s$ppliers/ e "o no see in his provision an# e3press or implie" e3ension

o& he ari&& D$oa 'on'ession $nil he pro'ess o& rebin"ing o& a ari&&-onl# s#sem is 'omplee"/

,everal paragraphs o& he Anne3 on !ananas re&er o he nee" o a@e ino a''o$n in he rebin"ing o&

he E$ropean omm$niies banana ari&& Lall E TO mar@e-a''ess 'ommimens relaing o

bananasL/ <o%ever he obe' o& ha Anne3 is o se o$ he ben'hmar@ an" he arbiraion pro'ess

&or assessing %heher he Lenvisage" rebin"ing o& he E ari&& on bananas %o$l" res$l in a leas

mainaining oal mar@e a''ess &or ?N banana s$ppliersL/ 1 "oes no provi"e &or he e3ension o&

he E$ropean omm$niies ari&& D$oa 'on'essionB raher i appears o ass$me he 'onin$e"

vali"i# o& he ari&& D$oa 'on'ession ha &orms par o& he e3ising oal mar@e a''ess 'ommimens

vis-U-vis ?N s$ppliers ha a ari&& rebin"ing b# he E$ropean omm$niies %o$l" have o a leas

mainain/

9/ or hese reasons %e 'anno "is'ern &rom he erms an" 'on"iions an" he 'ir'$msan'es

i"eni&ie" as $si&i'aion &or he +oha Ari'le 1 aiver a "e'ision mo"i&#ing he ari&& D$oa

'on'ession relaing o impors &rom ?N s$ppliers in he E$ropean omm$niies ,'he"$le/ The&o'$s o& he Anne3 is 'learl# he pre&erenial ari&& reamen &or A 'o$nries/ e also noe ha no

par# arg$e" be&ore he anel ha he +oha Ari'le 1 aiver a$hori=ing he E$ropean omm$niies

o provi"e s$be' o 'erain erms an" 'on"iions pre&erenial ari&& reamen o pro"$'s o& A

origin e3en"e" he "$raion o& he ari&& D$oa 'on'ession relaing o impors &rom ?N s$pplier

'o$nries/

51n he se'on" a%ar" b# he arbiraors a'ing p$rs$an o he Anne3 on !ananas aa'he" o he +ohaAri'le 1 aiver he arbiraors &o$n" ha he se'on" propose" ari&& rebin"ing (a he level o& M487*m) b# heE$ropean omm$niies "i" no Lres$l in a leas mainaining oal mar@e a''ess &or ?N banana s$ppliersa@ing ino a''o$n he above-menione" E 'ommimensL an" ha here&ore he E$ropean omm$niies ha"

&aile" o re'i&# he maer in a''or"an'e %ih he &i&h ire o& he Anne3 on !ananas/ (A%ar" o& he Arbiraor E) – 4he A)PE) Partnership Agreement II para/ 427)

5E'$a"or anel epor paras/ 7/54 an" 7/52/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 47

40/ inall# he E$ropean omm$niies arg$es ha he anel ma"e 'onra"i'or# saemens in

is legal inerpreaion an" reasoning/ The E$ropean omm$niies arg$es ha he anel ha" &o$n"

earlier in is epor

55

ha he +oha Ari'le 1 aiver e3pire" on 4 Can$ar# 2006 an" here&ore 'o$l"no appl# o he E !ananas 1mpor egime in 'lear 'onra"i'ion %ih is laer &in"ing ha he +oha

Ari'le 1 aiver e3en"e" he ari&& D$oa 'on'ession be#on" ha "ae/56

44/ e noe ha in is reasoning regar"ing Ari'le 1:4 o& he ATT 499 he anel sae" ha

he +oha Ari'le 1 aiver no longer applie" o he E !ananas 1mpor egime 'onsi"ering ha i

ha" e3pire" on 4 Can$ar# 2006 be'a$se all he inerme"iae pro'e"$ral seps $n"er he Anne3 on

!ananas ha" been 'omplee" an" he Lne% E ari&& regimeL ha" enere" ino &or'e/ 57 1n 'onras in

is &in"ings $n"er Ari'le 11 o& he ATT 499 he anel &o$n" ha hro$gh he same +oha Ari'le 1

aiver TO ?embers ha" agree" o e3en" he ari&& D$oa 'on'ession be#on" 4 Can$ar# 2006 an"

$nil he E$ropean omm$niies ,'he"$le o& on'essions &or bananas ha" been rebo$n" in

a''or"an'e %ih he Ari'le ;111 pro'e"$res/58

42/ e have some "i&&i'$l# $n"ersan"ing ho% he +oha Ari'le 1 aiver 'o$l" e3en" he

vali"i# o& a 'on'ession be#on" he e3pir# "ae o& he aiver/ On he one han" he anel sae" ha

he +oha Ari'le 1 aiver ha" e3pire" on 4 Can$ar# 2006 an" 'o$l" no appl# o he E !ananas

1mpor egime/ On he oher han" he anel 'onsi"ere" ha an aspe' o& he aiver sill applie" o

he E !ananas 1mpor egime inso&ar as i 'onains an agreemen o e3en" he ari&& D$oa

'on'ession be#on" 4 Can$ar# 2006/59 e 'onsi"er ha his in'oheren'e in he anels reasoning

&$rher $n"ermines he anels &in"ing ha hro$gh he +oha Ari'le 1 aiver TO ?embers

agree" o e3en" he E$ropean omm$niies ari&& D$oa 'on'ession &or bananas/

4/ !ase" on he above menione" 'onsi"eraions %e are no pers$a"e" ha he erms an"

'on"iions e3'epional 'ir'$msan'es an" $si&i'aions i"eni&ie" in he +oha Ari'le 1 aiver

re&le' a "e'ision b# TO ?embers o e3en" he "$raion o& he E$ropean omm$niies ari&& D$oa

'on'ession &or bananasPha a''or"ing o he anel %as o e3pire on 4 +e'ember 2002P$nil he

rebin"ing o& he E$ropean omm$niies ari&& 'on'ession %as 'omplee"/

55E'$a"or anel epor paras/ 7/200 an" 7/204/56E$ropean omm$niies appellans s$bmission para/ 472 (E'$a"or)/57E'$a"or anel epor paras/ 7/200 an" 7/204/ 1n is appeal he E$ropean omm$niies "oes no

'hallenge his &in"ing b# he anel/ The anel ha" earlier &o$n" ha he e3pression Lhe ne% E Tari&& regimeL$se" in he &i&h ire o& he Anne3 on !ananas applie" o E eg$laion 496*2005/ (E'$a"or anel epor

para/ 7/48)58E'$a"or anel epor para/ 7/56/59E$ropean omm$niies appellans s$bmission para/ 472 (E'$a"or)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 48

/ ,$pplemenar# ?eans o& 1nerpreaion

4/ e e3plaine" above %h# %e believe ha he anel erre" in &in"ing ha he erms an"

'on"iions in he +oha Ari'le 1 aiver re&le' he 'ommon inenion o& TO ?embers o e3en" he

E$ropean omm$niies ari&& D$oa 'on'ession be#on" 4 +e'ember 2002 $nil he rebin"ing o& is

ari&& 'on'ession is 'omplee"/ The anel 'ombine" is anal#sis b# 'onsi"ering s$pplemenar# means

o& inerpreaion o 'on&irm is rea"ing o& he +oha Ari'le 1 aiver/ The anel 'onsi"ere" he

?o"aliies aper an" he Ari'le ;111 negoiaions iniiae" b# he E$ropean omm$niies/ e "o

no see ho% he 'onsi"eraion o& s$pplemenar# means o& inerpreaion re&erre" o b# he anel 'o$l"

'hange o$r 'on'l$sion on his iss$e/ 1n his respe' %e agree %ih he anel ha boh he ?o"aliies

aper an" he Ari'le ;111 negoiaions iniiae" b# he E$ropean omm$niies "o no in

hemselves Lprovi"e a "e&iniive orienaion regar"ing he 'ommon inenion o& he TO ?embers

as i perains o he E$ropean omm$niies TO mar@e-a''ess 'ommimens relaing o bananasL/ 60

5/ on'l$sion

4/ or he above reasons %e "o no 'onsi"er ha he +oha Ari'le 1 aiver 'onsi$e" a

Ls$bseD$en agreemenL $n"er Ari'le 4()(a) o& he 8ienna )onvention regar"ing he inerpreaion

or appli'aion o& he E$ropean omm$niies ,'he"$le o& on'essions/ e also "o no 'onsi"er ha

he +oha Ari'le 1 aiver 'onsi$e" an agreemen b# TO ?embers o e3en" he "$raion o& he

E$ropean omm$niies ari&& D$oa 'on'ession &or bananas %hi'h in he anels vie% %as o e3pire

on 4 +e'ember 2002/ e here&ore reverse he anels &in"ings in paragraphs 7/56 an" 7/92 o&

he E'$a"or anel epor ha he +oha Ari'le 1 aiver 'onsi$e" a s$bseD$en agreemen

re&le'ing he 'ommon inenion o& TO ?embers ha he E$ropean omm$niies ari&& D$oa

'on'ession &or bananas %o$l" 'onin$e o 'onsi$e is s'he"$le" 'ommimens regar"ing bananas

pen"ing he 'ompleion o& he Ari'le ;111 negoiaions &or he p$rpose o& he rebin"ing o& he

E$ropean omm$niies ari&& on bananas an" he s$bseD$en enr# ino &or'e o& a ne% E$ropean

omm$niies ari&& regime/

+/ )laims and Arguments relating to Ecuadors =ther Appeal

4/ E'$a"ors oher appeal is 'on"iional $pon a reversal o& he anels &in"ing ha hro$gh he

+oha Ari'le 1 aiver TO ?embers agree" o e3en" he ari&& D$oa 'on'ession be#on"

4 +e'ember 2002 $nil he rebin"ing o& he E$ropean omm$niies ,'he"$le o& on'essions &or

bananas/ <aving reverse" his &in"ing %e no% $rn o 'onsi"er E'$a"ors oher appeal/

60E'$a"or anel epor paras/ 7/78 an" 7/88/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 49

2/ E'$a"or s$bmis ha he anel erre" in &in"ing ha he e3piraion o& he !ananas

rame%or@ Agreemen L%o$l" a$omai'all# impl# FheG e3piraion o& he E$ropean omm$niies

ari&& D$oa 'on'ession $n"er he erms o& is ,'he"$leL/

64

E'$a"or 'laims ha paragraph 9 o& he!ananas rame%or@ Agreemen "i" no esablish an e3piraion "ae &or he enire 'on'ession as i

relaes o bananasB raher i esablishe" an e3piraion "ae onl# &or he erms an" 'on"iions in he

!ananas rame%or@ Agreemen oher han hose se o$ in 'ol$mns 4 o 6 in he E$ropean

omm$niies ,'he"$le isel&/62

/ E'$a"or here&ore reD$ess he Appellae !o"# o reverse he anels &in"ing ha he

E$ropean omm$niies ari&& D$oa 'on'ession %as inen"e" o e3pire on 4 +e'ember 2002

p$rs$an o paragraph 9 o& he !ananas rame%or@ Agreemen/ E'$a"or reD$ess he Appellae !o"#

o &in" insea" ha he E$ropean omm$niies ari&& D$oa 'on'ession remains in e&&e' an"

a''or"ingl# o $phol" he anels 'on'l$sion Lha he ari&& applie" b# he E$ropean omm$niies o

?N impors o& bananas se a M476*m /// %iho$ 'onsi"eraion o& he ari&& D$oa &or 2/2 million m

bo$n" a an in-D$oa ari&& rae o& M75*m FisG in e3'ess o& ha se &orh /// in he E$ropean

omm$niies ,'he"$leL an" 'onseD$enl# in'onsisen %ih Ari'le 11:4(b) o& he ATT 499/L6

/ The E$ropean omm$niies respon"s ha he ari&& D$oa o& 2/2 million m o& bananas an"

he in-D$oa ari&& o& M75*m ins'ribe" in he E$ropean omm$niies ,'he"$le %ere s$be' o he

erms 'on"iions an" D$ali&i'aions se o$ in he !ananas rame%or@ Agreemen anne3e" o he

,'he"$le an" here&ore 'anno be rea" in isolaion &rom ha Agreemen/6 The E$ropean

omm$niies agrees %ih he anels 'on'l$sion ha he ari&& D$oa 'on'ession %as $neD$ivo'all#

inen"e" o e3pire on 4 +e'ember 2002 in a''or"an'e %ih he erms o& he !ananas rame%or@

Agreemen/65 The E$ropean omm$niies here&ore reD$ess he Appellae !o"# o reverse he

anels &in"ing ha he ari&& o& M476*m is in'onsisen %ih Ari'le 11 o& he ATT 499/

E/ Analysis of Ecuadors =ther Appeal

4/ 1nerpreaion o& he E$ropean omm$niies ?ar@e A''ess ommimenson !ananas

4/ The anel &o$n" ha Lall elemens o& he E$ropean omm$niies ari&& D$oa &or bananas

are "es'ribe" in he !ananas rame%or@ AgreemenL an" ha Lhe E$ropean omm$niies ari&&

D$oa

64E'$a"ors oher appellans s$bmission para/ 26/62E'$a"ors oher appellans s$bmission paras/ 44 an" 28/6

E'$a"ors oher appellans s$bmission para/ / (&oonoe omie")6E$ropean omm$niies appellees s$bmission paras/ 42 an" 4 (E'$a"or)/65E$ropean omm$niies appellees s$bmission para/ 46/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 40

2/ 'on'ession &or bananas m$s here&ore be $n"ersoo" $n"er he erms 'on"iions or

D$ali&i'aions se &orh /// in he !ananas rame%or@ AgreemenL an" L'anno be rea" in isolaion

&rom he erms in he !ananas rame%or@ Agreemen/L

66

The anel here&ore 'on'l$"e":

F1Gn ligh o& he or"inar# meaning o be given o he erms o& heE$ropean omm$niies ,'he"$le a@ing ino a''o$n ar 1,e'ions 1/A (Tari&&s) an" 1/! (Tari&& D$oas) an" he !ananasrame%or@ Agreemen in heir 'one3 an" in he ligh o& he rea#sobe' an" p$rpose he E$ropean omm$niies ari&& D$oa'on'ession &or bananas %as $neD$ivo'all# inen"e" o e3pire on4 +e'ember 2002/67

/ e noe ha Ari'le 11:4(b) o& he ATT 499 saes:

The pro"$'s "es'ribe" in ar 1 o& he ,'he"$le relaing o an#?ember %hi'h are he pro"$'s o& erriories o& oher ?embersshall on heir imporaion ino he errior# o %hi'h he ,'he"$lerelaes an" s$be' o he erms 'on"iions or D$ali&i'aions se &orhin ha ,'he"$le be e3emp &rom or"inar# '$soms "$ies in e3'esso& hose se &orh an" provi"e" herein/

/ hile i is $n$s$al ha a ari&& 'on'ession ins'ribe" in a ?embers ,'he"$le %o$l" be

limie" in ime s$'h limiaion "oes no appear o be pre'l$"e" b# he %or"ing o& Ari'le 11:4(b)

%hi'h re&ers o Lerms 'on"iions or D$ali&i'aionsL se &orh in a ?embers ,'he"$le/ The paries

agree in prin'iple ha Ari'le 11:4(b) allo%s TO ?embers o s$be' ari&& 'on'essions o he

Lerms 'on"iions or D$ali&i'aions se &orh in FheirG ,'he"$leL/68 <o%ever he paries "isagree on

he legal sa$s o& he !ananas rame%or@ Agreemen anne3e" o he E$ropean omm$niies

,'he"$le an" in pari'$lar on %heher an" i& so ho% i sho$l" be rea" o 'on"iion he ari&& D$oa

'on'ession &or bananas in he E$ropean omm$niies ,'he"$le/

66E'$a"or anel epor paras/ 7/25 an" 7/26/67E'$a"or anel epor para/ 7/6/68

E'$a"or arg$es ho%ever ha i& a ime-limi is aa'he" o a spe'i&i' 'on'ession his sho$l" be "one'learl# an" $neD$ivo'all#/ (E'$a"ors oher appellans s$bmission para/ 27) The onl# oher e3ample provi"e" b# he anel an" 'ie" b# he E$ropean omm$niies in is appellees s$bmission o& a ari&& 'on'ession s$be'o a L"ae o& e3pir#L is he .nie" ,aes ari&& 'on'ession on s$gar revie%e" b# he ATT panel in /# – #ugar

>aiver / 1 sho$l" be noe" ho%ever ha his 'on'ession $nli@e he E$ropean omm$niies ari&& D$oa'on'ession &or bananas %as no se o e3pire on a &i3e" "ae b$ %as ma"e "epen"en on he 'onin$e"e3isen'e o& 'erain "omesi' legislaion/ The panel in /# – #ugar >aiver noe" ha he .nie" ,aes'on'ession on s$gar %as:

/// s$be' o he 'on"iion ha he bo$n" raes Lshall be e&&e'ive onl#"$ring s$'h ime as Tile 11 o& he ,$gar A' o& 498 or s$bsaniall#eD$ivalen legislaion is in e&&e' in he .nie" ,aesL an" ha he# Lshallres$me &$ll e&&e'iveness /// i& legislaion s$bsaniall# eD$ivalen o Tile 11o& he ,$gar A' o& 498 sho$l" s$bseD$enl# be'ome e&&e'iveL/

(ATT anel epor /# – #ugar >aiver para/ 2/) e &$rher noe ha he .nie" ,aes 'on'ession ons$gar %as s$be' o he e3isen'e o& LTile 11 o& he ,$gar A' o& 498 or s$bsaniall# eD$ivalen legislaionLma@ing i 'lear ha s$'h 'on"iion applie" o he 'on'ession in is enire#/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 44

5/ 1n ATT an" TO $rispr$"en'e i has been re'ogni=e" ha here are limis o he erms

'on"iions or D$ali&i'aions ha ma# be in'orporae" in a ?embers ,'he"$le o& on'essions/ 1n

E) – Bananas III he Appellae !o"# sae" ha Lhe or"inar# meaning o& he erm 'on'essions$ggess ha a ?ember ma# #iel" righs an" gran bene&is b$ i 'anno "iminish is obligaionsL

$n"er he TO 'overe" agreemens hro$gh an enr# in is ,'he"$le/ 69 The ATT panel in /# –

#ugar &o$n" ha:

Ari'le 11 gives ?embers he possibili# o in'orporae ino he legal&rame%or@ o& he eneral Agreemen 'ommimens a""iional ohose alrea"# 'onaine" in he eneral Agreemen an" o D$ali&#s$'h a""iional 'ommimens no ho%ever o re"$'e heir'ommimens $n"er oher provisions o& ha Agreemen/70

6/ 1nso&ar as a emporal limiaion "oes no "iminish obligaions or re"$'e 'ommimens $n"er

oher provisions o& he 'overe" agreemens s'he"$ling a emporal limiaion o a ari&& 'on'ession

"oes no seem in'ompaible %ih he &in"ings o& he Appellae !o"# in E) – Bananas III an" he

ATT panel in /# – #ugar /

7/ The &ollo%ing bin"ings in he E$ropean omm$niies ,'he"$le are relevan o his "isp$e/

ar 1 ,e'ion 1-A (Tari&&s) o& he E$ropean omm$niies ,'he"$le74 'onains a ari&& bin"ing on

bananas a he level o& M680*m/ The paries agree ha i %o$l" appl# o o$-o&-D$oa ?N impors

an" has no emporal limiaion/ The 'onese" ari&& D$oa 'on'ession (ha is he ari&& D$oa o&

2/2 million m o& bananas bo$n" a an in-D$oa ari&& o& M75*m) is &o$n" in ar 1 ,e'ion 1-! (Tari&&

D$oas) o& he E$ropean omm$niies ,'he"$le/ 1 rea"s:

+es'ripion o& pro"$'

Tari&& iemn$mber(s)

1niial D$oaD$ani# an"

in-D$oaari&& rae

inal D$oaD$ani# an"

in-D$oaari&& rae

1mplemen-aion perio"

&rom*o

1niialnegoiaing

righ

Oher ermsan"

'on"iions

1 2 8 @ 5 7

resh bananasoher han planains

080 00 42 2/200/000 75 E.*

2/200/000 75 E.*

As in"i'ae"in he Anne3

8/ The Anne3 menione" $n"er LOher erms an" 'on"iionsL in 'ol$mn 7 'onains he e3 o&

he !ananas rame%or@ Agreemen %hi'h rea"s in relevan par:

4/ The global basi' ari&& D$oa is &i3e" a 2/400/000 &or 499an" a 2/200/000 &or 4995 an" he &ollo%ing #ears s$be'

69Appellae !o"# epor E) – Bananas III para/ 45 (re&erring o Appellae !o"# epor E) –

Export #u$sidies on #ugar para/ 220)/70

ATT anel epor /# – #ugar para/ 5//74The relevan e3'erps &rom ,e'ions 1-A an" 1-! o& ar 1 o& he E$ropean omm$niies ,'he"$le> are repro"$'e" in Anne3 ;11 aa'he" o his epor/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 42

o an# in'rease res$ling &rom he enlargemen o& heomm$ni#/

2/ This D$oa is "ivi"e" $p ino spe'i&i' D$oas allo'ae" o he&ollo%ing 'o$nries:

o$nr# er'enage o& he global D$oa

osa i'a 2/

olombia 24/0

Ni'arag$a /0

;ene=$ela 2/0

+omini'an ep$bli'an" oher A 'on'erning

non-ra"iional D$aniies 90/000 /

Ohers 6/2V (499)6V (4995)

///

7/ The in-D$oa ari&& rae shall be 75 E'$s onne/

8/ The agree" s#sem %ill be operaional b# 4 O'ober 499 ahe laes %iho$ pre$"i'e o an# provisional or ransiionalmeas$res o be e3amine" &or he #ear 499/

9/ This agreemen shall appl# $nil 4 +e'ember 2002/ $ll'ons$laions %ih he >ain Ameri'an s$ppliers ha areATT ?embers sho$l" sar no laer han in #ear 2004/

The &$n'ioning o& he agreemen %ill be revie%e" be&ore heen" o& he hir" #ear %ih &$ll 'ons$laion o& ATT ?ember>ain Ameri'an s$ppliers/

40/ This agreemen %ill be in'orporae" ino he omm$ni#s.r$g$a# o$n" ,'he"$le/

44/ This agreemen represens a selemen o& he "isp$e be%een

olombia osa i'a ;ene=$ela Ni'arag$a an" heomm$ni# on he omm$ni#s banana regime/ The parieso his agreemen %ill no p$rs$e he a"opion o& he ATT

panel repor on his iss$e/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 4

9/ 1n "eermining %heher he ari&& D$oa 'on'ession a iss$e e3pire" on 4 +e'ember 2002 or

remaine" in &or'e %e nee" o e3amine he elemens o& ar 1 ,e'ion 1-! o& he E$ropean

omm$niies ,'he"$le an" he !ananas rame%or@ Agreemen anne3e" hereo in heir enire#/ Allhe 'ol$mns o& ,e'ion 1-! o& he ,'he"$le an" he paragraphs o& he !ananas rame%or@ Agreemen

ma# provi"e inerpreaive g$i"an'e/

40/ e sar b# noing ha all erms an" 'on"iions in he E$ropean omm$niies ,'he"$le

sho$l" be given meaning an" e&&e' regar"less o& he 'ol$mn in %hi'h he# are ins'ribe" or %heher

he# are 'onaine" in an anne3 ha is 'ross-re&eren'e" in one o& he 'ol$mns/

44/ e observe ha he global ari&& D$oa o& 2/2 million m an" he in-D$oa rae o& M75*m

bo$n" in 'ol$mns an" o& ,e'ion 1-! are resae" in paragraphs 4 an" 7 o& he !ananas rame%or@

Agreemen/ 1n o$r vie% meaning m$s be given o he &a' ha he ari&& D$oa D$ani# an" he in-

D$oa rae are ins'ribe" in 'ol$mns an" o& he ,'he"$le an" resae" in paragraphs 4 an" 7 o& he

!ananas rame%or@ Agreemen/ e are no pers$a"e" b# he 'on'l$sion ha he same 'on'ession

has been sae" %i'e %ih he same meaning &irs in he ,'he"$le an" hen in he !ananas

rame%or@ Agreemen/ e 'onsi"er ha he !ananas rame%or@ Agreemen per&orms a "i&&eren

&$n'ion o ha o& he ,'he"$le an" ha he Agreemen "oes no s$bs$me he erms an" 'on"iions

'onaine" in 'ol$mns an" o& he ,'he"$le/ 1 is he Loher erms an" 'on"iionsL in he !ananas

rame%or@ Agreemen ha sho$l" be rea" in he ligh o& he 'ommimens in 'ol$mns an" o& he

,'he"$le/ The ari&& D$oa D$ani# an" he in-D$oa rae %hi'h are 'ommie" in he ,'he"$le are

resae" in paragraphs 4 an" 7 o& he !ananas rame%or@ Agreemen &or he p$rpose o& allo'aing he

ari&& D$oa/ As s$'h here&ore paragraphs 4 an" 7 o& he !ananas rame%or@ Agreemen "o no

esablish he ari&& D$oa 'on'ession/

42/ e &$rher noe ha paragraphs 2 hro$gh 6 o& he !ananas rame%or@ Agreemen "eal a

lengh %ih he allo'aion among s$pplier 'o$nries o& he Lglobal basi' ari&& D$oaL i"eni&ie" in

paragraph 4: paragraph 2 allo'aes spe'i&i' D$oa shares o he s$pplier 'o$nries ha %ere paries o

he ATT panel in EE) – Bananas II an" leaves a resi"$al allo'aion o LohersLB paragraphs an"

spe'i&# %hen a 'o$nr# ma# &ill is allo'aion %ih "eliveries &rom oher s$ppliers an" ho% shor&alls

ma# be re-allo'ae" among s$pplier 'o$nriesB paragraph 5 provi"es ha a$onomo$s D$oa in'reases

b# he E$ropean omm$niies are allo'ae" a''or"ing o he same per'enage shares se o$ in

paragraph 2 #e s$ppliers %ih 'o$nr#-spe'i&i' allo'aions ma# oinl# reD$es an" he ommission

Lshall agree o a "i&&eren allo'aionLB an" paragraph 6 'onains a""iional r$les on he managemen

o& he D$oa shares/ A''or"ing o paragraph 8 LFGhe agreed system %ill be operaional b# 4 O'ober

499LB an" he &irs senen'e o& paragraph 9 &ollo%s saing ha LFGhis agreement shall appl# $nil



T*+,27*A!*2*E.T*+,27*A!**.,Aage 4

4 +e'ember 2002/L72 aragraph 9 &$rher provi"es &or 'ons$laions %ih s$ppliers an" he revie% o&

he agreemens &$n'ioning a&er hree #ears/ aragraph 40 reD$ires in'orporaion o& Lhis agreemenL

ino he E$ropean omm$niies ,'he"$le/ A''or"ing o paragraph 44 LFGhis agreemen represens aselemenL among he paries o he EE) – Bananas II "isp$e/

4/ O$r revie% o& hese elemens reveals ha he !ananas rame%or@ Agreemen 'onsi$es an

agreemen on he allo'aion managemen an" reallo'aion o& 'o$nr#-spe'i&i' shares %ihin he

Lglobal basi' ari&& D$oaL re&erre" o in paragraph 4/ There&ore %e are o& he vie% ha he senen'e

LFGhis agreemen shall appl# $nil 4 +e'ember 2002L in paragraph 9 re&ers o an agreemen on he

allo'aion o& shares/ 1 "oes no menion he Lglobal basi' ari&& D$oaL nor "oes i re&er o he ari&&

D$oa 'on'ession ins'ribe" in 'ol$mn o& ar 1 ,e'ion 1-! o& he E$ropean omm$niies ,'he"$le

$n"er he hea"ing L Final D$oa D$ani# an" in-D$oa ari&& raeL/7 hen a 'rii'al emporal

limiaion is 'onaine" in an anne3 o a ,'he"$le he &a' ha an LagreemenL is menione" b$ no

re&eren'e is ma"e o he &inal ari&& D$oa 'on'ession is signi&i'an an" m$s be given %eigh in an#

inerpreaion/ e believe ha he emporar# na$re o& he agreemen re&erre" o in paragraph 9 o& he

!ananas rame%or@ Agreemen an" he ari&& D$oa 'on'ession bo$n" in 'ol$mn o& ,e'ion 1-! o&

he E$ropean omm$niies ,'he"$le 'an boh be given meaning an" e&&e'/ 1n o$r vie% he ari&&

D$oa D$ani# o& 2/2 million m an" he in-D$oa ari&& are bo$n" in 'ol$mn as L&inalL/ The !ananas

rame%or@ Agreemen a''or"ing o 'ol$mn 7 o& he ,'he"$le $n"er he hea"ing LOher erms an"'on"iionsL 'on'erns elemens other han hose ins'ribe" in 'ol$mns an" / The e3piraion "ae

an" he revie% 'onemplae" a&er hree #ears in paragraph 9 relae o he allo'aion o& shares %ihin

he Lglobal basi' ari&& D$oaL o& 2/2 million m as resae" in paragraph 4 o& he !ananas rame%or@

Agreemen/ This rea"ing o& ,e'ion 1-! o& he E$ropean omm$niies ,'he"$le an" spe'i&i'all# o&

paragraph 9 o& he !ananas rame%or@ Agreemen is also borne o$ b# Ari'le 111:2(") an"

Ari'le 111: o& he ATT 499/

4/ One o& he opions $n"er Ari'le 111:2(") &or ari&& D$oa managemen is he allo'aion o&

shares %ih he agreemen o& s$bsanial s$ppliers a''or"ing o proporions a@en &rom a previo$s

represenaive perio" a@ing "$e a''o$n o& an# spe'ial &a'ors/ E'$a"or poins o$ ha he 'o$nr#-

spe'i&i' allo'aions an" 'erain erms an" 'on"iions o& D$oa managemen se o$ in he !ananas

rame%or@ Agreemen have be'ome inappli'able be'a$se he# %ere &o$n" o be in'onsisen %ih

Ari'le 111:2 in he original pro'ee"ings/7 The anel re'alle" ha L'erain provisions o& he !ananas

rame%or@ Agreemen s$'h as he allo'aion o& 'o$nr#-spe'i&i' D$oa shares b$ no he !ananas

rame%or@ Agreemen as a %hole %ere &o$n" in he original pro'ee"ings o be in'onsisen %ih he

72

Emphasis a""e"/7Emphasis a""e"/7E'$a"ors oher appellans s$bmission para/ 2/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 45

TO agreemens/L75 1n o$r vie% his 'on&irms ha he E$ropean omm$niies bo$n" ari&& D$oa

'on'ession remains in &or'e even ho$gh 'erain erms an" he agreemen se o$ in he !ananas

rame%or@ Agreemen have e3pire"/

76

This is pari'$larl# so %hen he relevan erms an" 'on"iions'on'ern elemens ha are "isin' an" severable &rom one anoher (s$'h as he overall ari&& D$oa

D$ani# an" he in-D$oa ari&& rae on he one han" an" he allo'aion o& he D$oa shares among

s$ppliers on he oher han")/

45/ e &$rher noe ha a ?ember see@ing an allo'aion agreemen %ih s$ppl#ing 'o$nries is

reD$ire" $n"er Ari'le 111: o 'ons$l %ih ?embers having a s$bsanial ineres in s$ppl#ing he

pro"$' Lregar"ing he nee" &or an a"$smen o& he proporion "eermine" or he base perio"

sele'e"L/ 1n his respe' %e re'all ha he original panel &o$n" ha:

/// alho$gh he E rea'he" an agreemen %ih all ?embers %hoha" a s$bsanial ineres in s$ppl#ing he pro"$' a one poin inime $n"er he 'ons$laion provisions o& Ari'le 111: he E%o$l" have o 'onsi"er he ineress o& a ne% ?ember %ho ha" as$bsanial ineres in s$ppl#ing he pro"$' i& ha ne% ?emberreD$ese" i o "o so/ The provisions on 'ons$laions an"a"$smens in Ari'le 111: mean in an# even ha he F!ananasrame%or@ AgreemenG 'o$l" no be invo@e" o $si&# a permanenallo'aion o& ari&& D$oa shares/77 (&oonoe omie")

46/ 1n o$r vie% paragraph 9 o& he !ananas rame%or@ Agreemen %hi'h se an e3pir# "ae

&or he agreemen a 4 +e'ember 2002 provi"e" &or 'ons$laions be%een he E$ropean

omm$niies an" L>ain Ameri'an s$ppliers ha are ATT ?embersL b# 2004 an" he revie% o& he

&$n'ioning o& he agreemen %ihin hree #ears re&le's he reD$iremens o& Ari'le 111: %hi'h

reD$ires 'ons$laion %ih s$bsanial s$ppliers reappraisal o& spe'ial &a'ors an" an a"$smen o&

he allo'aion agreemen/

47/ or hese reasons %e 'onsi"er ha he e3pir# "ae in paragraph 9 o& he !ananas

rame%or@ Agreemen re&ers onl# o he agreemen on he allo'aion o& he ari&& D$oa shares/ Theoverall ari&& D$oa D$ani# an" he in-D$oa ari&& rae on he one han" an" he allo'aion o& he

D$oa shares among s$pplier 'o$nries on he oher han" are "isin' aspe's o& he E$ropean

omm$niies mar@e a''ess 'ommimens relaing o bananas/ The main &$n'ion an" 'onen o& he

!ananas rame%or@ Agreemen is he allo'aion o& he D$oa shares &or a 'erain perio" o& ime

%hereas he ari&& D$oa D$ani# an" he in-D$oa ari&& rae are se o$ as LiniialL an" L&inalL

'ommimens in 'ol$mns an" respe'ivel# o& ar 1 ,e'ion 1-! o& he E$ropean omm$niies

75

E'$a"or anel epor para/ 7/25/76E'$a"or anel epor paras/ 7/25 an" 7/26/77anel epor E) – Bananas III &Ecuador' para/ 7/92/ (&oonoe omie")



T*+,27*A!*2*E.T*+,27*A!**.,Aage 46

,'he"$le an" i"eni&ie" as he Lglobal basi' ari&& D$oaL in paragraph 4 o& he !ananas rame%or@

Agreemen/

48/ e "isagree %ih he anel ha Lhe e3piraion o& he !ananas rame%or@ Agreemen on

4 +e'ember 2002 %o$l" a$omai'all# impl# e3piraion o& he E$ropean omm$niies ari&& D$oa

'on'ession $n"er he erms o& is ,'he"$leL/78 1n rea'hing his 'on'l$sion %e are giving &$ll e&&e' o

all erms an" 'on"iions 'onaine" in he E$ropean omm$niies ,'he"$le o& on'essions/

<o%ever in o$r vie% paragraph 9 o& he !ananas rame%or@ Agreemen relaes o he agreemen on

he allo'aion o& D$oa shares se o$ in paragraph 2 no o he enire D$oa 'on'ession an" provi"es

ha his agreemen e3pire" on 4 +e'ember 2002/ e here&ore 'onsi"er ha he ari&& D$oa

'on'ession &or 2/2 million m bo$n" a he in-D$oa rae o& M75*m remaine" in &or'e be#on"

4 +e'ember 2002 $nil he rebin"ing o& he E$ropean omm$niies ,'he"$le o& on'essions &or

bananas/

49/ E'$a"or arg$es ha he anel erre" in 'on'l$"ing ha he obe' an" p$rpose o& he TO

agreemens s$ppore" is inerpreaion ha he ari&& D$oa 'on'ession in he E$ropean omm$niies

,'he"$le ha" e3pire"/79 The E$ropean omm$niies agrees %ih he anels 'onsi"eraions/

20/ The anel relie" on he obe' an" p$rpose o& he >4= Agreement an" he ATT 499 as

re&le'e" in he preambles o& hese %o Agreemens/ 1 noe" ha L'on'essions ma"e b# TO

?embers sho$l" be inerpree" so as o &$rher he general obe'ive o& e3pan"ing ra"e in goo"s an"

servi'es an" re"$'ing barriers o ra"e hro$gh he negoiaion o& re'ipro'al an" m$$all#

a"vanageo$s arrangemens/L80 A he same ime he anel 'onsi"ere" ha Lhis general obe' an"

p$rpose is 'onsisen %ih he more spe'i&i' obe' an" p$rpose o& Ari'le 11:4(a) an" (b)/L84 1

re&erre" in pari'$lar o he Lobe'ive o& promoing se'$ri# an" pre"i'abili# in inernaional ra"e

hro$gh he e3'hange o& 'on'essionsL82 %hi'h is s$be' o 'on"iions an" D$ali&i'aions in ?embers

,'he"$les/ A''or"ing o he anel is &in"ing ha he ari&& D$oa 'on'ession ha" e3pire" %as

'onsisen %ih he spe'i&i' obe'ive o& promoing se'$ri# an" pre"i'abili# in inernaional ra"e

hro$gh he e3'hange o& 'on'essions be'a$se i gave e&&e' o he erms an" 'on"iions in'orporae"

ino he E$ropean omm$niies ,'he"$le in'l$"ing he emporal limiaion provi"e" &or in he

!ananas rame%or@ Agreemen/ The anel 'onsi"ere" ha he general obe' an" p$rpose o& he

>4= Agreement an" he ATT 499 o& e3pan"ing ra"e an" re"$'ing barriers o ra"e hro$gh

78E'$a"or anel epor para/ 7/27/79E'$a"ors oher appellans s$bmission para/ 29/80

E'$a"or anel epor para/ 7/4/84E'$a"or anel epor para/ 7//82E'$a"or anel epor para/ 7//



T*+,27*A!*2*E.T*+,27*A!**.,A

age 47

24/ he negoiaion o& re'ipro'al an" m$$all# a"vanageo$s arrangemens ha" o be re'on'ile"

%ih he spe'i&i' obe'ive o& respe'ing s'he"$le" 'on'essions in'l$"ing he erms an" 'on"iions

ins'ribe" in ,'he"$les/ 1n he anels vie% hese 'onsi"eraions o& he obe' an" p$rpose 'on&irme"is inerpreaion ha paragraph 9 o& he !ananas rame%or@ Agreemen provi"e" a emporal

limiaion o he E$ropean omm$niies ari&& D$oa 'on'ession &or bananas/

22/ e agree %ih he anel ha L'on'essions ma"e b# TO ?embers sho$l" be inerpree" so

as o &$rher he general obe'ive o& e3pan"ing ra"e in goo"s an" servi'es an" re"$'ing barriers o

ra"e hro$gh he negoiaion o& re'ipro'al an" m$$all# a"vanageo$s arrangemens/L 8 e also

'onsi"er ha he Lobe'ive o& promoing se'$ri# an" pre"i'abili# in inernaional ra"eL is &$rhere"

Lhro$gh he e3'hange o& 'on'essionsL8 %hi'h are s$be' o 'on"iions an" D$ali&i'aions ins'ribe"

in ?embers ,'he"$les/ <o%ever as e3plaine" above he emporal limiaion in paragraph 9 o& he

!anana rame%or@ Agreemen ha Lhis agreemen shall appl# $nil 4 +e'ember 2002L is properl#

rea" o relae o he agreemen on he allo'aion o& D$oa shares re&le'e" in paragraph 2/ 1n o$r vie%

i is no 'onsisen %ih he obe'ive o& promoing se'$ri# an" pre"i'abili# in inernaional ra"e

hro$gh he e3'hange o& 'on'essions i& erms 'on"iions an" emporal limiaions relaing o an

agreemen on D$oa allo'aion are improperl# rea" o D$ali&# a ari&& D$oa 'on'ession ha is bo$n" as

he L&inal D$oa D$ani# an" in-D$oa ari&& raeL/ To he 'onrar# o$r inerpreaion ha he ari&&

D$oa 'on'ession bo$n" in ar 1 ,e'ion 1-! (ha is 2/2 million m a an in-D$oa rae o& M75*m) o&he E$ropean omm$niies ,'he"$le remains in &or'e is 'onsisen %ih he obe'ive o& promoing

se'$ri# an" pre"i'abili# in inernaional ra"e hro$gh he e3'hange o& 'on'essions an" %ih he

obe'ive o& e3pan"ing ra"e an" re"$'ing barriers o ra"e hro$gh he negoiaion o& re'ipro'al an"

m$$all# a"vanageo$s arrangemens/

2/ e &$rher noe ha he se'on" senen'e o& paragraph 9 o& he !ananas rame%or@

Agreemen saes ha LF&G$ll 'ons$laions %ih he >ain Ameri'an s$ppliers ha are ATT ?embers

sho$l" sar no laer han in #ear 2004/L 1& %e ass$me arguendo ha he ari&& D$oa 'on'ession

e3pire" on 4 +e'ember 2002 p$rs$an o he &irs senen'e o& paragraph 9 his %o$l" leave ?N

s$ppliers %ih he o$-o&-D$oa ari&& rae bo$n" a M680*m an" a 'ommimen b# he E$ropean

omm$niies o 'ons$l on a possible rebin"ing/ The s$bsanial s$ppliers o& he E$ropean

omm$niies ha negoiae" he mar@e a''ess 'ommimens on bananas an" ma"e re'ipro'al ari&&

'on'essions %o$l" remain bo$n" b# heir s'he"$le" 'on'essions b$ %o$l" &orego he ari&& D$oa

'on'ession &or bananas he# bargaine" &or %ih he E$ropean omm$niies/ 1& he anels

inerpreaion ha paragraph 9 o& he !ananas rame%or@ Agreemen Le3ing$ishe"L he ari&& D$oa

8E'$a"or anel epor para/ 7//8E'$a"or anel epor para/ 7//



T*+,27*A!*2*E.T*+,27*A!**.,Aage 48

'on'ession &rom ar 1 ,e'ion 1-! o& he E$ropean omm$niies ,'he"$le %ere a''epe" onl# he

o$-o&-D$oa ari&& rae bo$n" in ar 1 ,e'ion 1-A a a level o& a M680*m %o$l" remain 'o$ple"

%ih a reD$iremen o 'ons$l on a rebin"ing/ 1n o$r vie% his %o$l" no provi"e se'$ri# or pre"i'abili# o& ari&& 'on'essions an" %o$l" no promoe he obe'ive o& e3pan"ing ra"e an"

re"$'ing barriers o ra"e hro$gh he negoiaion o& re'ipro'al an" m$$all# a"vanageo$s

'on'essions an" arrangemens/

2/ or hese reasons %e believe ha o$r inerpreaion o& he E$ropean omm$niies ,'he"$le

o& on'essions an" he !ananas rame%or@ Agreemen anne3e" hereo is 'onsisen %ih he

obe'ive o provi"e pre"i'abili# an" se'$ri# o he m$lilaeral ra"ing s#sem an" o promoe he

obe'ive o& e3pan"ing ra"e an" re"$'ing barriers o ra"e hro$gh Lre'ipro'al an" m$$all#

a"vanageo$s arrangemens "ire'e" o he s$bsanial re"$'ion o& ari&&s/L85 e 'onsi"er here&ore

ha paragraph 9 o& he !ananas rame%or@ Agreemen sho$l" no be rea" o a&&e' he vali"i# o& he

E$ropean omm$niies ari&& D$oa 'on'ession ins'ribe" in 'ol$mns an" o& ar 1 ,e'ion 1-! o&

is ,'he"$le $nil he Ari'le ;111 negoiaions have been 'omplee" an" ha his is 'onsisen

%ih he obe' an" p$rpose o& he ATT 499 an" he >4= Agreement /

2/ ,$pplemenar# ?eans o& 1nerpreaion

4/ e $rn ne3 o he negoiaing hisor# o& he E$ropean omm$niies .r$g$a# o$n"

,'he"$le o& on'essions an" he !ananas rame%or@ Agreemen/ The ,'he"$le in'l$"ing he ari&&

D$oa 'on'ession is a m$lilaerall# agree" insr$men %hi'h is an inegral par o& he ATT 499

p$rs$an o Ari'le 11:7 herein/ 1n 'onras he !ananas rame%or@ AgreemenPin'orporae" ino

he ,'he"$le as LOher erms an" 'on"iionL in 'ol$mn 7P%as originall# a pl$rilaeral agreemen

'on'l$"e" be%een he E$ropean omm$niies an" &o$r >ain Ameri'an ATT ?embers (olombia

osa i'a ;ene=$ela an" Ni'arag$a) as a selemen o& he EE) – Bananas II "isp$e/

2/ The &inal o&&er presene" b# he E$ropean omm$niies in he &rame%or@ o& he .r$g$a#o$n" agri'$l$ral negoiaions on 4 +e'ember 499 in'l$"e" re&eren'e o an earlier "ra& o& he

!ananas rame%or@ Agreemen %hi'h allo'ae" shares o& he D$oa also o E'$a"or anama

<on"$ras an" $aemala (e3'l$"e" &rom he &inal !ananas rame%or@ Agreemen) an" provi"e" &or

he agreemen o e3pire on 4 +e'ember 2002/ The !ananas rame%or@ Agreemen in he 499 o&&er

esablishe" ha i %o$l" be Lregisere" an" legali=e" in he .r$g$a# o$n"L/ A he 'on'l$sion o&

he .r$g$a# o$n" negoiaions ATT ?embers agree" o s$bmi L"ra& &inal ,'he"$lesL o&

on'essions on agri'$l$ral an" non-agri'$l$ral mar@e a''ess b# 45 ebr$ar# 499/ !e%een

45 ebr$ar# an" 4 ?ar'h 499 La pro'ess o& veri&i'aion Foo@G pla'e o ens$re ha he &inal

85reamble o& he >4= Agreement hir" re'ial/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 49

s'he"$les "$l# re&le'e" he negoiae" 'on'essions e3'hange" be%een pari'ipans an" ha errors

an" omissions %ere re'i&ie"L/86

/ The L"ra& &inal ,'he"$leL o& on'essions s$bmie" b# he E$ropean omm$niies

in'l$"e" a ari&& D$oa 'on'ession &or 2 million m bo$n" a an in-D$oa rae o& M400*m %iho$

re&eren'e o he !ananas rame%or@ Agreemen/ The E$ropean omm$niies "ra& &inal ,'he"$le o&

on'essions "i" no here&ore 'onain an e3pir# "ae &or he ari&& D$oa 'on'ession/ On 29 ?ar'h

499 "$ring he veri&i'aion pro'ess he E$ropean omm$niies s$bmie" a L'orrigen"$mL o is

,'he"$le as regar"s bananas %hi'h in'l$"e" re&eren'e o he !ananas rame%or@ Agreemen in

'ol$mn 7 o& ar 1 ,e'ion 1-! o& is ,'he"$le/ This 'orre'e" version o& he E$ropean omm$niies

,'he"$le on bananas %as in'orporae" in ,'he"$le > %hi'h %as a"ope" b# he TO ?embers

ogeher %ih he res$ls o& he .r$g$a# o$n" o& negoiaions/

/ As noe" earlier paragraph 44 o& he !ananas rame%or@ Agreemen saes ha i

Lrepresens a selemen o& he "isp$e be%een olombia osa i'a ;ene=$ela Ni'arag$a an" he

omm$ni# on he omm$ni#s banana regimeL/ The negoiaing hisor# 'on&irms ha he !ananas

rame%or@ Agreemen %as no originall# a 'omponen o& he E$ropean omm$niies ?N ari&&

D$oa 'on'ession &or bananas/ 1 %as an agreemen be%een he E$ropean omm$niies an" a gro$p

o& banana s$ppl#ing 'o$nr# ?embers %hi'h allo'ae" D$oa shares in e3'hange &or he selemen o&

he ATT "isp$e in EE) – Bananas II /

5/ The L"ra& &inal ,'he"$leL s$bmie" b# he E$ropean omm$niies be&ore he veri&i'aion

pro'ess in'l$"e" a ari&& D$oa 'on'ession &or bananas &or a D$ani# o& 2 million m a he in-D$oa

rae o& M400*m b$ "i" no 'onain an e3pir# "ae/ e $n"ersan" ha he in'l$sion o& he re&eren'e

o he !ananas rame%or@ Agreemen in he E$ropean omm$niies ,'he"$le %as mean o Lregiser

an" legali=eL (as sae" in he "ra& 499 o&&er) he agreemen rea'he" be%een he E$ropean

omm$niies olombia osa i'a Ni'arag$a an" ;ene=$ela/

6/ inall# %e $rn o 'onsi"er several arg$mens ma"e b# E'$a"or ha relae o

s$pplemenar# means o& inerpreaion in s$ppor o& is posiion ha he E$ropean omm$niies ari&&

D$oa 'on'ession "i" no e3pire/ E'$a"or arg$es ha: (i) a ime-limie" 'ommimen %o$l" be

'onrar# o he .r$g$a# o$n" ?o"aliies aperB (ii) he +oha Ari'le 1 aiver is premise" on he

bo$n" ari&& D$oa 'on'ession remaining in &or'e $nless an" $nil rebo$n"B an" (iii) he E$ropean

omm$niies iniiae" %i'e Ari'le ;111 negoiaions o mo"i&# is 'on'essions %hi'h have no as

#e been 'omplee"/87

86 Negoiaing ro$p on ?ar@e A''ess ?eeing o& 45 +e'ember 499 Noe b# he ,e'rearia para/ 2/87E'$a"ors oher appellans s$bmission para/ /



T*+,27*A!*2*E.T*+,27*A!**.,Aage 450

7/ The inro"$'ion o he ?o"aliies aper saes ha i is Lbeing re-iss$e" &or he p$rpose o&

'ompleing "ra& ,'he"$les o& 'on'ession an" 'ommimens in he agri'$l$ral negoiaions an" &or

&a'iliaing he veri&i'aion pro'ess lea"ing o he esablishmen o& &ormal ,'he"$les o be anne3e" ohe .r$g$a# o$n" roo'ol/L 1n o$r vie% his inro"$'or# lang$age an" he 'onen o& he

?o"aliies aper ma@e 'lear ha i D$ali&ies as Lpreparaor# %or@ o& he rea#L %ihin he meaning o&

Ari'le 2 o& he 8ienna )onvention/ The ?o"aliies aper e3pli'il# saes ha i Lshall no be $se"

as a basis &or "isp$e selemen pro'ee"ingsLB his means ha i "oes no in isel& 'on&er on TO

?embers righs an" obligaions en&or'eable in "isp$e selemen/ <o%ever his "oes no pre'l$"e

re&eren'e o he ?o"aliies aper %hen inerpreing he TO agreemens an" ?embers ,'he"$les o&

on'essions ha %ere prepare" in a''or"an'e %ih hese mo"aliies/88 There&ore %e 'onsi"er ha i

is no inappropriae o re&er o he ?o"aliies aper as s$pplemenar# means o& inerpreaion o

'on&irm o$r inerpreaion o& he E$ropean omm$niies ,'he"$le o& on'essions an" o& he !ananas

rame%or@ Agreemen/

8/ 1& he anels inerpreaion %ere 'orre' an" he ari&& D$oa 'on'ession ha" e3pire" on

4 +e'ember 2002 he "e&a$l ari&& in he E$ropean omm$niies ,'he"$le %o$l" be he bo$n" o$-

o&-D$oa ari&& rae o& M680*m/ The reD$iremen o 'ons$l %ih >ain Ameri'an s$ppliers b# 2004

p$rs$an o paragraph 9 o& he !ananas rame%or@ Agreemen %o$l" provi"e no g$aranee ha a

rebin"ing %o$l" be agree" an" 'onsoli"ae" in he E$ropean omm$niies ,'he"$le b# he en" o&2002 le alone an# 'erain# an" pre"i'abili# regar"ing he level o& an# s$'h rebin"ing/ 1n 'onras

he ?o"aliies aper as par o& he .r$g$a# o$n" ari&&i'aion pro'ess reD$ire" ?embers o

mainain L'$rren a''ess oppor$niiesL ha sho$l" be Lno less han average ann$al impor D$aniies

&or he #ears 4986 o 4988 (he re&eren'e perio")/L89 As %e $n"ersan" i he ari&& D$oa o&

2/2 million m a M75*m &or bananas %as mean o mainain L'$rren a''ess oppor$niiesL &or ?N

banana s$ppliers in a''or"an'e %ih he ?o"aliies aper/ ?oreover he ?o"aliies aper "oes no

envisage emporal limiaions o his 'ommimen res$ling &rom he ari&&i'aion pro'ess/ <o%ever

i& he anels inerpreaion o& he E$ropean omm$niies ,'he"$le o& on'essions %ere a''epe"

88egar"ing he $se o& he ?o"aliies aper o inerpre ?embers ,'he"$les o& on'essions he panelin E) – Export #u$sidies on #ugar sae":

learl# he so-'alle" ?o"aliies aper is no a 'overe" agreemen an" h$s'anno provi"e &or TO righs an" obligaions o ?embers/ Noneheless i'o$l" be relevan %hen inerpreing he Agreemen on Agri'$l$rein'l$"ing ?embers ,'he"$les/

(anel epors E) – Export #u$sidies on #ugar para/ 7/50 (&oonoes omie")) The Appellae !o"# in ha'ase 'on&irme" he panels &in"ings ha he ?o"aliies aper %as Lno an agreemen among TO ?embersan" b# is erms F'o$l" noG be he basis o& "isp$e selemenL b$ "i" no r$le on he relevan'e o& he

?o"aliies aper o he inerpreaion o& ?embers ,'he"$les/ (Appellae !o"# epor E) – Export #u$sidieson #ugar para/ 499 (D$oing Appellae !o"# epor E) – Bananas III para/ 457))

89?o"aliies aper Anne3 para/ 44/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 454

&rom 4 +e'ember 2002 on%ar"s he ,'he"$le %o$l" no longer provi"e &or s$'h L'$rren a''ess

oppor$niiesL &or bananas o be mainaine"/

9/ e here&ore 'onsi"er ha he ?o"aliies aper as a s$pplemenar# means o&

inerpreaion 'on&irms he 'on'l$sion %e rea'he" above ha he ari&& D$oa 'on'ession in he

E$ropean omm$niies ,'he"$le "i" no e3pire on 4 +e'ember 2002 a''or"ing o paragraph 9 o&

he !ananas rame%or@ Agreemen 'onsi"ering ha he reD$iremen in he ?o"aliies aper o

mainain L'$rren a''ess oppor$niiesL is no limie" in ime/

40/ egar"ing he +oha Ari'le 1 aiver %e 'on'l$"e" above ha he anel erre" in &in"ing

ha he aiver 'onsi$es a Ls$bseD$en agreemenL %ihin he meaning o& Ari'le 4()(a) o& he

8ienna )onvention an" ha i e3en"e" he ari&& D$oa 'on'ession be#on" 4 +e'ember 2002/ 1

'o$l" be arg$e" ho%ever ha he +oha Ari'le 1 aiver 'o$l" D$ali&# as s$pplemenar# means o&

inerpreaion o 'on&irm he meaning o& he E$ropean omm$niies ,'he"$le o& on'essions/ 90

44/ The +oha Ari'le 1 aiver appears o be pre"i'ae" on he 'onin$e" appli'aion o& he

E$ropean omm$niies ari&& D$oa 'on'ession be#on" 4 +e'ember 2002 inso&ar as i saes in is

preamble:

6oting ha he ari&& applie" o bananas impore" in he LAL an" L!LD$oas shall no e3'ee" 75 M*onne $nil he enr# ino &or'e o& hene% E ari&&-onl# regime/

42/ $rhermore he r$les an" pro'e"$res se o$ in he Anne3 on !ananas pres$ppose he

'onin$e" e3isen'e o& he ari&& D$oa 'on'ession inso&ar as he# reD$ire ha in Lhe rebin"ing o& he

E ari&& on bananas /// all E TO mar@e-a''ess 'ommimens relaing o bananas sho$l" be a@en

ino a''o$n/L 1n"ee" he a%ar" o& he arbiraor iss$e" on 4 A$g$s 2005 p$rs$an o he Anne3 on

!ananas reieraes ha he ari&& D$oa 'on'ession o& 2/2 million m an" he in-D$oa ari&& rae o&

M75*m 'onin$e o bin" he E$ropean omm$niies/94

4/ There&ore in o$r vie% he lang$age o& he +oha Ari'le 1 aiver 'on&irms he 'on'l$sion

%e rea'he" above ha he ari&& D$oa 'on'ession has no e3pire" an" remains in &or'e $nil he

90e re'all in his regar" ha in E) – )hic0en )uts he Appellae !o"# sae":

e sress /// ha Ari'le 2 "oes no "e&ine e3ha$sivel# he s$pplemenar#means o& inerpreaion o %hi'h an inerpreer ma# have re'o$rse/ 1 saesonl# ha he# include he preparaor# %or@ o& he rea# an" he'ir'$msan'es o& is 'on'l$sion/ Th$s an inerpreer has a 'erain &le3ibili#in 'onsi"ering relevan s$pplemenar# means in a given 'ase so as o assis

in as'eraining he 'ommon inenions o& he paries/(Appellae !o"# epor E) – )hic0en )uts para/ 28)

94A%ar" o& he Arbiraor E) – 4he A)PE) Partnership Agreement para/ 4/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 452

rebin"ing pro'ess an" he Ari'le ;111 negoiaions have been 'omplee" an" he res$ling ari&&

rae has been 'onsoli"ae" ino he E$ropean omm$niies ,'he"$le/

4/ inall# E'$a"or arg$es is posiion ha he E$ropean omm$niies ari&& D$oa 'on'ession

"i" no e3pire on 4 +e'ember 2002 is &$rher s$ppore" b# he &a' ha he E$ropean omm$niies

iniiae" %i'e negoiaions p$rs$an o Ari'le ;111 o& he ATT 499 o mo"i&# is 'on'essions/

E'$a"or arg$es ha iniiaion o& Ari'le ;111 pro'e"$res %o$l" no have been ne'essar# i& he

E$ropean omm$niies merel# inen"e" o lo%er is bo$n" rae &rom M680*m/ 92 The E$ropean

omm$niies 'onen"s ha an# mo"i&i'aion o& a ari&& 'on'ession reD$ires re'o$rse o

Ari'le ;111/

45/ e noe ha Ari'le ;111 enile" L?o"i&i'aion o& ,'he"$lesL saes ha a ?ember

Lma# /// mo"i&# or %ih"ra% a 'on'essionL %iho$ spe'i&#ing %heher Lmo"i&#L re&ers onl# o a

re"$'ion in he s'ope o& he 'on'ession (s$'h as an in'rease in he ari&& bin"ing)/ The or"inar#

meaning o& he erm Lmo"i&#L appears o in'l$"e boh he si$aion in %hi'h he s'ope o& a 'on'ession

is re"$'e" (&or e3ample a ari&& in'rease) an" %hen he s'ope is e3pan"e" (&or e3ample a ari&&

re"$'ion)/ 1n &a' %heher he propose" mo"i&i'aion a'$all# 'onsi$es a re"$'ion or an

e3pansion o& he 'on'ession ma# onl# be'ome 'lear in he 'o$rse o& he renegoiaions an" %ill

"eermine %heher an" o %ha e3en he mo"i&#ing ?ember o%es 'ompensaor# a"$smen %ihin

he meaning o& Ari'le ;111:2/

46/ e also &in" s$ppor &or he arg$men ha an# mo"i&i'aion o& he s'ope o& a 'on'ession

%o$l" reD$ire iniiaion o& Ari'le ;111 pro'e"$res in he +e'ision on he ro'e"$res &or

?o"i&i'aion an" e'i&i'aion o& ,'he"$les o& Tari&& on'ession a"ope" b# he ATT ?iniserial

on&eren'e on 26 ?ar'h 4980/9 These pro'e"$res i"eni&# %o #pes o& 'hanges o he a$heni'

e3s o& ,'he"$les %hi'h 'an be a"ope" b# ?embers b# means o& 'eri&i'aion/ The &irs are

L'hanges in he a$heni' e3s o& ,'he"$les anne3e" o he eneral Agreemen %hi'h re&le'

mo"i&i'aions res$ling &rom a'ion $n"er Ari'le 11 Ari'le ;111 Ari'le 1; Ari'le ;11 or

Ari'le ;111L9B he se'on" are L'hanges in he a$heni' e3s o& ,'he"$les /// ma"e %hen

amen"mens or rearrangemens %hi'h "o no aler he s'ope o& a 'on'ession are inro"$'e" in naional

'$soms ari&&s in respe' o& bo$n" iemsL/95

92E'$a"ors oher appellans s$bmission para/ /9+e'ision o& 26 ?ar'h 4980 ro'e"$res &or ?o"i&i'aion an" e'i&i'aion o& ,'he"$les o& Tari&&

on'essions ATT "o'$men >*962 !1,+ ,27*25/9+e'ision o& 26 ?ar'h 4980 ro'e"$res &or ?o"i&i'aion an" e'i&i'aion o& ,'he"$les o& Tari&&

on'essions ATT "o'$men >*962 !1,+ ,27*25 para/ 4/95+e'ision o& 26 ?ar'h 4980 ro'e"$res &or ?o"i&i'aion an" e'i&i'aion o& ,'he"$les o& Tari&&on'essions ATT "o'$men >*962 !1,+ ,27*25 para/ 2/



T*+,27*A!*2*E.T*+,27*A!**.,A

age 45

47/ 1n o$r vie% he E$ropean omm$niies propose" rebin"ing 'anno be regar"e" as a 'hange

ha %o$l" no aler he s'ope o& a 'on'ession/ Th$s %e 'onsi"er ha he E$ropean omm$niies ha"

o iniiae Ari'le ;111 negoiaions o rebin" is ari&& 'on'ession in is ,'he"$le %heher ires$le" in an in'rease or in a re"$'ion o& he bo$n" ari&& rae/ or his reason he iniiaion b# he

E$ropean omm$niies o& Ari'le ;111 negoiaions %o$l" no provi"e a 'lear in"i'aion ha he

ari&& D$oa 'on'ession ha" no e3pire" an" he ari&& rae nee"e" o be in'rease" hro$gh negoiaions/

e 'onsi"er here&ore ha he &a' ha he E$ropean omm$niies iniiae" %i'e Ari'le ;111

negoiaions o mo"i&# is 'on'essions is no 'on'l$sive as o %heher he ari&& D$oa 'on'ession "i"

no e3pire on 4 +e'ember 2002/

/ on'l$sion

4/ or all he above reasons %e 'on'l$"e ha he ari&& D$oa 'on'ession o& 2/2 million m

bo$n" a he in-D$oa rae o& M75*m in he E$ropean omm$niies ,'he"$le o& on'essions "i" no

e3pire on 4 +e'ember 2002 an" remains in &or'e $nil he rebin"ing pro'ess an" he Ari'le ;111

negoiaions have been 'omplee" an" he res$ling ari&& rae has been 'onsoli"ae" in he E$ropean

omm$niies ,'he"$le/ e here&ore reverse he anels &in"ing in paragraph 7/6 o& he E'$a"or

anel epor ha Lhe E$ropean omm$niies ari&& D$oa 'on'ession &or bananas %as $neD$ivo'all#

inen"e" o e3pire on 4 +e'ember 2002/L

/ Ari'le 11:4(b) o& he ATT 499

4/ e have reverse" he anels &in"ing ha hro$gh he +oha Ari'le 1 aiver TO

?embers agree" o e3en" he ari&& D$oa 'on'ession &or 2/2 million m bo$n" a he in-D$oa rae o&

M75*m in he E$ropean omm$niies ,'he"$le o& on'essions be#on" 4 +e'ember 2002/ e have

also reverse" he anels &in"ing ha he same ari&& D$oa 'on'ession %as inen"e" o e3pire on

4 +e'ember 2002 in a''or"an'e %ih paragraph 9 o& he !ananas rame%or@ Agreemen an" &o$n"

insea" ha he E$ropean omm$niies ari&& D$oa 'on'ession remains in &or'e $nil he rebin"ing pro'ess an" he Ari'le ;111 negoiaions have been 'omplee" an" he res$ling ari&& rae has

been 'onsoli"ae" in he E$ropean omm$niies ,'he"$le/

2/ A''or"ingl# %e uphold he anels &in"ings albei &or "i&&eren reasons in paragraph

7/50 o& he E'$a"or anel epor ha he ari&& applie" b# he E$ropean omm$niies o ?N

impors o& bananas se a M476*m %iho$ 'onsi"eraion o& he ari&& D$oa o& 2/2 million m bo$n" a

an in-D$oa ari&& rae o& M75*m is in'onsisen %ih he &irs senen'e o& Ari'le 11:4(b) o& he ATT

499 inso&ar as i 'onsi$es Lan or"inar# '$soms "$# in e3'ess o& ha se &orh an" provi"e" &or in

ar 1 o& he E$ropean omm$niies ,'he"$le an" res$ls in a reamen &or he 'ommer'e o& bananas



T*+,27*A!*2*E.T*+,27*A!**.,A

age 455

he .nie" ,aes an# n$lli&i'aion or impairmen o& a bene&i &or %hi'h he E$ropean omm$niies

'an &a'e s$spension o& 'on'essions F$n"er Ari'le 22 o& he +,.GL/

2/ The anel in hese pro'ee"ings relie" on he &in"ings b# he panel an" he Appellae !o"#

in he original pro'ee"ings ree'ing a similar 'laim b# he E$ropean omm$niies ha he .nie"

,aes ha" no s$&&ere" n$lli&i'aion or impairmen be'a$se o& he in'onsisen'ies %ih he ATT

499 an" he AT, o& he E$ropean omm$niies bananas impor regime a iss$e in he original

pro'ee"ings/ The anel also emphasi=e" ha hese 'omplian'e pro'ee"ings %ere 'on"$'e" p$rs$an

o Ari'le 24/5 an" h$s LF"i"G no o''$r in isolaion &rom he original pro'ee"ingsL b$ L&ormFe"G

par o& a 'onin$$m o& evensL/5 The anel 'on'l$"e" ha LF'Gonsi"ering he lin@ be%een he '$rren

'omplian'e pro'ee"ings an" he original pro'ee"ings /// he E$ropean omm$niies has FnoG

s$''ess&$ll# reb$e" he legal pres$mpion esablishe" b# Ari'le /8 o& he +,. ha is in'onsisen

meas$res n$lli&# or impair bene&is a''r$ing o he .nie" ,aes $n"er he TO agreemensL/ 6

/ )laims and Arguments on Appeal

4/ The E$ropean omm$niies arg$es ha he anel erre" in &in"ing ha he .nie" ,aes ha"

s$&&ere" n$lli&i'aion or impairmen as a res$l o& he E !ananas 1mpor egime/ onsi"ering ha

he .nie" ,aes is a ne imporer o& bananas ha "i" no e3por bananas o an# 'o$nr# in he %orl"

he pre&eren'e &or A bananas L"i" no "eprive he .nie" ,aes &rom an# 'ompeiive oppor$ni#

o e3por bananas o%ar"s he mar@e o& he E$ropean omm$niies nor "i" i 'hange he .nie"

,aes 'ompeiive relaionship %ih an# banana e3poring 'o$nr# in he %orl"L/7

2/ The .nie" ,aes respon"s ha he Appellae !o"# alrea"# ree'e" similar arg$mens

ma"e b# he E$ropean omm$niies in he original pro'ee"ings an" ha he &in"ings o& he Appellae

!o"# in he original pro'ee"ings &orme" he basis &or he r$lings an" re'ommen"aions a""resse" o

he E$ropean omm$niies in his pro'ee"ing/8 The .nie" ,aes arg$es ha a sho%ing o& a"verse

., anel epor para/ 8/5/5., anel epor para/ 8/9 (re&erring o Appellae !o"# epor )hile – Price Band #ystem

&Article +,-. – Argentina' para/ 46)/6

., anel epor para/ 8/40/7E$ropean omm$niies appellans s$bmission para/ 465 (.,)/8.nie" ,aes appellees s$bmission para/ 96/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 456

/ ra"e e&&e's is $nne'essar# &or he p$rpose o& "emonsraing ha a brea'h o& a ATT

provision res$ls in he n$lli&i'aion or impairmen o& bene&is/9 The .nie" ,aes &$rher s$bmis ha

he 'lear brea'hes o& Ari'les 1 an" 111 o& he ATT 499 obviae" he nee" &or he .nie" ,aes o"emonsrae a&&irmaivel# he ra"e e&&e's 'a$se" b# he E$ropean omm$niies banana meas$res/40

+/ 4he Panels Findings under Article 2- of the !#/

4/ The E$ropean omm$niies 'laims ha he anel L'on&$se" he noion o& n$lli&i'aion or

impairmen in Ari'le /8 o& he +,. %ih he ineres ha a 'omplaining par# m$s have in or"er o

have san"ing o 'ommen'e "isp$e selemen pro'ee"ingsL/44 !# 'onras he Lsan"ar" ha nee"s

o be sais&ie" &or a &in"ing o& n$lli&i'aion or impairmen $n"er Ari'le /8 is more "i&&i'$l o sais&#

han he san"ar" ha nee"s o be sais&ie" &or a &in"ing o& san"ing o bring a 'omplain/L42

2/ e 'onsi"er ha he noion o& Lsan"ingL as inerpree" b# he Appellae !o"# in he

original pro'ee"ings is broa"er han he noion o& Ln$lli&i'aion or impairmenL/ 1n oher %or"s i&

here is n$lli&i'aion or impairmen here %ill also be san"ing o bring a 'omplain/ <o%ever

san"ing ma# also e3is in 'ases ha res$l in no &in"ing o& n$lli&i'aion or impairmen/ 1n he original

E) – Bananas III pro'ee"ings he Appellae !o"# &o$n" ha La ?ember has broa" "is'reion in

"e'i"ing %heher o bring a 'ase agains anoher ?ember $n"er he +,.L an" ha La ?ember is

e3pe'e" o be largel# sel&-reg$laing in "e'i"ing %heher an# s$'h a'ion %o$l" be &r$i&$lL/ 4 The

Appellae !o"# &$rher 'on'l$"e" ha 'onsi"ering ha he .nie" ,aes %as a pro"$'er an"

poenial e3porer o& bananas i %as $si&ie" in bringing is 'laims $n"er he ATT 499/4 The

Appellae !o"# hen $se" his same arg$men o &in" ha he .nie" ,aes ha" s$&&ere" n$lli&i'aion

or impairmen o& bene&is/45

/ e "o no believe ha he anel in he '$rren pro'ee"ings 'on&$se" he noions o&

Ln$lli&i'aion or impairmenL an" Lsan"ingL/ 1n"ee" he anel a""resse" hese iss$es separael#

9.nie" ,aes appellees s$bmission paras/ 96-98 (re&erring o ATT anel epor /# – #uperfund para/ 5/49)/

40.nie" ,aes appellees s$bmission para/ 9944E$ropean omm$niies appellans s$bmission para/ 456 (.,)/42E$ropean omm$niies appellans s$bmission para/ 459 (.,)/4Appellae !o"# epor E) – Bananas III para/ 45/4The panel an" he Appellae !o"# in he original pro'ee"ings $se" he same arg$men o 'on'l$"e

ha he .nie" ,aes ha" Lsan"ingL o bring he 'ase an" ha i ha" s$&&ere" n$lli&i'aion or impairmen o& bene&is (ha is ha he .nie" ,aes is a poenial e3porer o& bananas o he E$ropean omm$niies an" ha

here 'o$l" be e&&e's on is inernal mar@e)/ <o%ever he &a' ha n$lli&i'aion or impairmen implies a highersan"ar" han Llegal san"ingL "oes no mean ha Lsan"ingL 'anno be &o$n" base" on s$'h higher san"ar"/




T*+,27*A!*2*E.T*+,27*A!**.,A

age 457

even ho$gh he E$ropean omm$niies ha" presene" hese 'laims oinl#/ 46 1n &a' in a se'ion o&

he ., anel epor enile" L;eri&i'aion o& he .nie" ,aes san"ing o 'ommen'e hese

pro'ee"ingsL he anel &o$n" ha he .nie" ,aes ha" san"ing o iniiae he pro'ee"ings/

47

1sae" in he same se'ion ha i %o$l" $rn o he iss$e o& n$lli&i'aion or impairmen laer in he

epor onl# La&er having 'onsi"ere" he s$bsanive 'laims ma"e $n"er Ari'les 1 an" 111 o& he

ATT 499 b# he .nie" ,aes agains he pre&eren'es grane" b# he E$ropean omm$niiesL/48

/ <aving &o$n" ha he pre&erenial A ari&& D$oa %as in'onsisen %ih Ari'les 1:4

an" 111 he anel a""resse" he D$esion o& n$lli&i'aion or impairmen in a separae se'ion a he

en" o& he ., anel epor/ el#ing on panel an" Appellae !o"# &in"ings in he original

pro'ee"ings he anel &o$n" ha 'onsi"ering ha LTO r$les are no 'on'erne" %ih a'$al ra"e

e&&e's b$ raher %ih 'ompeiive oppor$niiesL49 he .nie" ,aes as a poenial e3porer o&

bananas ha" s$&&ere" n$lli&i'aion or impairmen be'a$se o& he E$ropean omm$niies in'onsisen

meas$res/ The anel also re&erre" o he saemens ma"e b# he panel an" he Appellae !o"# in he

original pro'ee"ings ha even i& he .nie" ,aes "i" no have a poenial e3por ineres LFGhe

inernal mar@e o& he .nie" ,aes &or bananas 'o$l" be a&&e'e" b# he E bananas regime b# is

e&&e's on %orl" s$pplies an" %orl" pri'es o& bananas/L20

5/ The E$ropean omm$niies 'laims ha he anel erre" in &in"ing ha he .nie" ,aes ha"

s$&&ere" n$lli&i'aion or impairmen as a res$l o& he in'onsisen'ies &o$n" in respe' o& he meas$res

a iss$e/ The E$ropean omm$niies arg$es ha as a ne imporer o& bananas he .nie" ,aes %as

Lno a'ivel# involve" in he b$siness o& e3poring bananas o an# 'o$nr# in he %orl" le alone he

E$ropean omm$niiesL an" ha as a res$l he 'onese" meas$res L'o$l" no an" "i" no "eprive

he .nie" ,aes o& an# 'ompeiive oppor$ni# o e3por bananas o%ar"s he mar@e o& he

E$ropean omm$niies nor "i" i 'hange he .nie" ,aes 'ompeiive relaionship %ih an#

banana e3poring 'o$nr# in he %orl"L 'onsi"ering ha Lhe .nie" ,aes never ha" s$'h a

'ompeiive relaionshipL/24 ?oreover he E$ropean omm$niies arg$es ha he anel L&aile" o

e3plain %ha 'o$l" be he e&&e' o& he 'onese" meas$res on he %orl" s$pplies an" pri'es o&

bananas an" ho% his poenial e&&e' 'o$l" res$l in n$lli&i'aion or impairmen &or he .nie"

,aes/L22

46., anel epor paras/ 7/47-7/22/47., anel epor para/ 7/5/48., anel epor para/ 7/7/49., anel epor para/ 8/7 (D$oing anel epor E) – Bananas III &/#' para/ 7/50)/20Appellae !o"# epor E) – Bananas III para/ 254 (re&erring o anel epors E) – Bananas III

paras/ 7/7-7/52)/24E$ropean omm$niies appellans s$bmission para/ 465 (.,)/22E$ropean omm$niies appellans s$bmission para/ 464 (.,)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 458

6/ e noe ha Ari'le /8 o& he +,. pla'es he b$r"en on he respon"en o& reb$ing he

pres$mpion ha he in'onsisen meas$re n$lli&ies or impairs he bene&is a''r$ing o he 'omplainan

$n"er he TO agreemen 'on'erne"/ Ari'le /8 provi"es:

1n 'ases %here here is an in&ringemen o& he obligaions ass$me"$n"er a 'overe" agreemen he a'ion is 'onsi"ere" prima facie o'onsi$e a 'ase o& n$lli&i'aion or impairmen/ This means hahere is normall# a pres$mpion ha a brea'h o& he r$les has ana"verse impa' on oher ?embers paries o ha 'overe" agreemenan" in s$'h 'ases i shall be $p o he ?ember agains %hom he'omplain has been bro$gh o reb$ he 'harge/

7/ 1n hese pro'ee"ings as in he original pro'ee"ings he 'onese" meas$re ma# no have

a'$al ra"e e&&e's be'a$se a presen here are no e3pors o& bananas &rom he .nie" ,aes o heE$ropean omm$niies/ <o%ever in or"er o "eermine %heher he .nie" ,aes has s$&&ere"

n$lli&i'aion or impairmen L'ompeiive oppor$niiesL an" in pari'$lar an# poenial e3por

ineres o& he .nie" ,aes m$s be a@en ino a''o$n/ e "o no 'onsi"er ha he E$ropean

omm$niies arg$menPha as a ne imporer o& bananas he .nie" ,aes 'o$l" no 're"ibl# have

a LpoenialL ineres in e3poring bananas o he E$ropean omm$niiesPis s$&&i'ien o reb$ he

pres$mpion o& n$lli&i'aion or impairmen $n"er Ari'le /8/ As noe" b# he panel an" he Appellae

!o"# in he original pro'ee"ings %hile presen pro"$'ion in he .nie" ,aes is minimal i 'o$l" a

an# ime sar e3poring he &e% bananas i pro"$'es o he E$ropean omm$niies/ Tha his ma# be

$nli@el# "oes no "isprove ha he .nie" ,aes is a poenial e3porer o& bananas o he E$ropean

omm$niies/ 1n his respe' %e re'all he 'on'l$sion o& he ATT panel in /# – #uperfund :

Ari'le 111:2 &irs senen'e 'anno be inerpree" o proe'e3pe'aions on e3por vol$mesB i proe's e3pe'aions on he'ompeiive relaionship be%een impore" an" "omesi' pro"$'s/ A'hange in he 'ompeiive relaionship 'onrar# o ha provision m$s'onseD$enl# be regar"e" ipso facto as a n$lli&i'aion or impairmeno& bene&is a''r$ing $n"er he eneral Agreemen/ A "emonsraion

ha a meas$re in'onsisen %ih Ari'le 111:2 &irs senen'e has no orinsigni&i'an e&&e's %o$l" here&ore in he vie% o& he anel no be as$&&i'ien "emonsraion ha he bene&is a''r$ing $n"er ha

provision ha" no been n$lli&ie" or impaire" even i& s$'h a reb$al%ere in prin'iple permie"/2

8/ e "o no 'onsi"er i s$&&i'ien &or he E$ropean omm$niies o allege ha he anel

&aile" o e3plain %ha 'o$l" be he e&&e' o& he in'onsisen meas$re on he .nie" ,aes inernal

mar@e/ 1n &a' i is he E$ropean omm$niies ha bears he b$r"en o& reb$ing he pres$mpion

2Appellae !o"# epor in E) – Bananas III para/ 252 (re&erring o ATT anel epor /# –

#uperfund para/ 5/4/9/)



T*+,27*A!*2*E.T*+,27*A!**.,A

age 459

ha he meas$re &o$n" o be in'onsisen %ih he ATT 499 n$lli&ies or impairs bene&is a''r$ing

"ire'l# or in"ire'l# o he .nie" ,aes $n"er he 'overe" agreemens/

9/ $rhermore %e re'all ha he +,! a"ope" re'ommen"aions an" r$lings in he original

pro'ee"ings &or he E$ropean omm$niies o bring isel& ino 'omplian'e %ih he ATT 499 an"

he AT,/ The meas$re a iss$e in hese 'omplian'e pro'ee"ings %as &o$n" o be in brea'h o& he

same provisions o& he 'overe" agreemens as in he original pro'ee"ings/ The anels man"ae %as

o e3amine %heher he E$ropean omm$niies ha" 'omplie" %ih he +,!s re'ommen"aions an"

r$lings in he original pro'ee"ings/ e agree %ih he anel ha LFGhe arg$mens a"van'e" b# he

E$ropean omm$niies on he allege" la'@ o& n$lli&i'aion or impairmen have no ren"ere" irrelevan

he 'onsi"eraions ma"e b# he panel an" b# he Appellae !o"# in he 'o$rse o& he original

pro'ee"ings regar"ing he a'$al an" poenial ra"e ineress o& he .nie" ,aes in he "isp$eL/2

40/ 1n a""iion he E$ropean omm$niies 'onen"s ha he anel erre" in rel#ing on he

&in"ings o& he panel an" he Appellae !o"# in he original pro'ee"ings Lbe'a$se he &a's o& he

presen 'ase are ver# "i&&eren &rom he &a's o& 4997L %hen he &in"ing o& n$lli&i'aion or

impairmen o& bene&is a''r$ing o he .nie" ,aes %as base" on he in'onsisen'# o& he E$ropean

omm$niies bananas impor regime in &or'e a ha ime %ih he AT, an" he Agreement on

Import Licensing Procedures/25

44/ e observe ha in he original pro'ee"ings n$lli&i'aion or impairmen o& bene&is

a''r$ing o he .nie" ,aes %as &o$n" o res$l &rom he in'onsisen'ies o& he E$ropean

omm$niies meas$res %ih 'erain provisions o& he ATT 499 an" he AT,/ As a s$pplier o&

%holesale ra"e servi'es in bananas he .nie" ,aes servi'e s$ppl# o an" in he E$ropean

omm$niies %as "ire'l# a&&e'e" b# he in'onsisen meas$res/ e &$rher noe ha in he original

pro'ee"ings he Appellae !o"# "i" no hol" ha he .nie" ,aes ha" s$&&ere" n$lli&i'aion or

impairmen e3'l$sivel# as a res$l o& violaions o& he AT,/ 1n"ee" he Appellae !o"# "e'line" o

reverse he original panels &in"ing ha he E$ropean omm$niies brea'hes o& he ATT ha"

n$lli&ie" or impaire" bene&is a''r$ing o he 'omplainans (in'l$"ing he .nie" ,aes)/26 1n

a""iion %e noe ha he allo'aion pro'e"$res &or he banana impor li'en'es a iss$e in he original

"isp$e %ere &o$n" o be meas$res a&&e'ing boh ra"e in goo"s an" servi'es an" in'onsisen %ih

boh he naional an" ?N reamen provisions o& he ATT 499 an" he AT,/ Th$s he impor

li'ensing pro'e"$res &o$n" o be ATT-in'onsisen %ere also &o$n" o be "is'riminaing agains

.nie" ,aes %holesale servi'e s$ppliers/ There&ore he &in"ings o& n$lli&i'aion or impairmen in

2., anel epor para/ 8/40/25

E$ropean omm$niies appellans s$bmission para/ 467 (.,)/26Appellae !o"# epor E) – Bananas III para/ 25 (re&erring o anel epors E) – Bananas III para/ 7/98)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 460

he original pro'ee"ings %ere no base" e3'l$sivel# on 'overe" agreemens oher han he ATT

499/ or hese reasons he &a' ha hese 'omplian'e pro'ee"ings involve onl# ATT 499 'laims

an" are h$s narro%er in s'ope han he original pro'ee"ings "oes no mean ha he anel sho$l" nohave relie" on he &in"ings o& n$lli&i'aion an" impairmen in relaion o he ATT 499 in he

original pro'ee"ings/

42/ inall# he E$ropean omm$niies arg$es ha he a%ar" in he arbiraion $n"er

Ari'le 22/6 o& he +,. in 4999 involving he .nie" ,aes 'on&irme" ha he onl# so$r'e o&

n$lli&i'aion o& impairmen o& bene&is a''r$ing o he .nie" ,aes in he original pro'ee"ings %ere

he AT,-in'onsisen aspe's o& he meas$res an" in pari'$lar he impa' on he .nie" ,aes

share o& %holesale ra"e servi'es sol" in he E$ropean omm$niies an" on he .nie" ,aes share o&

allo'ae" banana impor li'en'es/27 e alrea"# 'onsi"ere" above ha he &in"ings o& n$lli&i'aion or

impairmen b# he Appellae !o"# in he original pro'ee"ings also relae" o he ATT 499 as "o

hose o& his 'omplian'e anel/ e "o no here&ore believe ha he &a' ha he original

pro'ee"ings res$le" in a""iional &in"ings o& violaion o& he AT, assiss he E$ropean

omm$niies in "ising$ishing he '$rren 'omplian'e pro'ee"ings &rom he original pro'ee"ings an"

in reb$ing he pres$mpion o& n$lli&i'aion or impairmen %ih respe' o he violaions o& he

ATT 499 &o$n" b# his anel/

4/ 1n ma@ing his arg$men he E$ropean omm$niies re&ers o he Ari'le 22/6 arbiraion

involving he .nie" ,aes in he E) – Bananas III "isp$e/ e agree %ih he arbiraors ha he

D$esion %heher n$lli&i'aion or impairmen e3iss %ihin he meaning o& Ari'le /8 o& he +,. an"

he D$esion o& %ha level o& s$spension o& 'on'essions is eD$ivalen o he level o& n$lli&i'aion or

impairmen $n"er Ari'le 22/6 are "isin'/28 There&ore he D$esion ho% he arbiraors 'al'$lae"

he level o& n$lli&i'aion or impairmen $n"er Ari'le 22/6 arises in a "i&&eren pro'e"$ral 'one3 in

TO "isp$e selemen/ 1n an# even he arbiraors sae" ha here %as L'onin$aion o&

n$lli&i'aion or impairmen o& ., bene&is $n"er he revise" E regimeL in'l$"ing as a 'onseD$en'e

o& an in'onsisen'# %ih Ari'le 111 o& he ATT 499/29

27E$ropean omm$niies appellans s$bmission para/ 468 (.,)/28The Ari'le 22/6 arbiraors &o$n" ha:

FGhe presumption o& n$lli&i'aion or impairmen in he 'ase o& anin&ringemen o& a ATT provision as se &orh b# Ari'le /8 o& he +,.'anno in an" o& isel& be a@en sim$laneo$sl# as evidence proving a

pari'$lar level o& n$lli&i'aion or impairmen allege"l# s$&&ere" b# a?ember reD$esing a$hori=aion o s$spen" 'on'essions $n"er Ari'le 22

o& he +,. a a m$'h laer sage o& he TO "isp$e selemen s#sem/(+e'ision b# he Arbiraors E) – Bananas III &/#' &Article ++-3 – E)' para/ 6/40)

29+e'ision b# he Arbiraors E) – Bananas III &/#' &Article ++-3 – E)' paras/ 5/96-5/98/



T*+,27*A!*2*E.age E.-46

>III. F)0) 0 C#*+)# ) $'% A%**$% B#0= R%#($ WT/DS27/AB/RW2/ECU:E+0#(;

4/ 1n he appeal o& he anel epor European )ommunities – *egime for the Importation(

#ale and !istri$ution of Bananas – #econd *ecourse to Article +,-. of the !#/ $y Ecuador

(T*+,27*2*E.) &or he reasons se o$ in his epor he Appellae !o"#:


(i) &in"s ha he anel "i" no a' in'onsisenl# %ih Ari'le 9/ o& he +,.

b# mainaining "i&&eren imeables in he Ari'le 24/5 pro'ee"ings be%een

he E$ropean omm$niies an" E'$a"or an" be%een he E$ropean

omm$niies an" he .nie" ,aesB an"

(ii) $phol"s he anels &in"ing albei &or "i&&eren reasons in paragraph 7/46 o&

he E'$a"or anel epor ha E'$a"or %as no barre" b# he .n"ersan"ing

on !ananas &rom iniiaing his 'omplian'e pro'ee"ingB


(i) $phol"s he anels &in"ings in paragraphs 7/26 an" 7/265 o& he E'$a"or

anel epor ha o he e3en ha he E$ropean omm$niies arg$es ha ihas implemene" a s$ggesion p$rs$an o Ari'le 49/4 o& he +,. he anel

%as no prevene" &rom 'on"$'ing $n"er Ari'le 24/5 o& he +,. he

assessmen reD$ese" b# E'$a"orB an" ha here&ore he anel "i" no nee"

o assess %heher he E$ropean omm$niies has e&&e'ivel# implemene"

an# o& he s$ggesions o& he &irs 'omplian'e panel reD$ese" b# E'$a"orB

an"

(ii) $phol"s albei &or "i&&eren reasons he anels &in"ing in paragraph 7/82

o& he E'$a"or anel epor ha he E !ananas 1mpor egime in

pari'$lar is "$#-&ree ari&& D$oa reserve" &or A 'o$nries %as

in'onsisen %ih Ari'le 111:4 an" Ari'le 111:2 o& he ATT 499B



T*+,27*A!*2*E.age E.-46

(') %ih respe' o Ari'le 11 o& he ATT 499:

(i) reverses he anels &in"ing in paragraphs 7/56 an" 7/92 o& he E'$a"or

anel epor ha he +oha Ari'le 1 aiver 'onsi$e" a s$bseD$enagreemen be%een he paries e3en"ing he ari&& D$oa 'on'ession &or

bananas lise" in he E$ropean omm$niies ,'he"$le o& on'essions

be#on" 4 +e'ember 2002 $nil he rebin"ing o& he E$ropean omm$niies

ari&& on bananasB

(ii) reverses he anels &in"ing in paragraph 7/6 o& he E'$a"or anel epor

ha he E$ropean omm$niies ari&& D$oa 'on'ession &or bananas %as

inen"e" o e3pire on 4 +e'ember 2002 on a''o$n o& paragraph 9 o& he

!ananas rame%or@ AgreemenB an"

(iii) $phol"s albei &or "i&&eren reasons he anels &in"ings in paragraph 7/50

o& he E'$a"or anel epor ha he ari&& applie" b# he E$ropean

omm$niies o ?N impors o& bananas se a M476*m %iho$

'onsi"eraion o& he ari&& D$oa o& 2/2 million m bo$n" a an in-D$oa ari&&

rae o& 75M*m is an or"inar# '$soms "$# in e3'ess o& ha provi"e" &or in

he E$ropean omm$niies ,'he"$le o& on'essions an" h$s in'onsisen

%ih Ari'le 11:4(b) o& he ATT 499B an"

(") $phol"s he anels &in"ing in paragraph 8/ o& he E'$a"or anel epor ha he

E$ropean omm$niies b# mainaining meas$res in'onsisen %ih "i&&eren

provisions o& he ATT 499 in'l$"ing Ari'le 111 has n$lli&ie" or impaire"

bene&is a''r$ing o E'$a"or $n"er ha Agreemen/

2/ The Appellae !o"# re'ommen"s ha he +,! reD$es he E$ropean omm$niies o bring

is meas$re &o$n" in his epor an" in he E'$a"or anel epor as mo"i&ie" b# his epor o bein'onsisen %ih he ATT 499 ino 'on&ormi# %ih is obligaions $n"er ha Agreemen/



T*+,27*A!*2*E.age E.-465

,igne" in he original in eneva his 4h "a# o& November 2008 b#:

WWWWWWWWWWWWWWWWWWWWWWWWW

>$i= Olavo !apisa

resi"ing ?ember

WWWWWWWWWWWWWWWWWWWWWWWWW WWWWWWWWWWWWWWWWWWWWWWWWW

,hoaro Oshima +avi" .nerhaler

?ember ?ember



T*+,27*A!**.,Aage .,A-464

>III. F)0) 0 C#*+)# ) $'% A%**$% B#0= R%#($ WT/DS27/AB/RW/USA:U)$%0 S$$%;

78/ 1n he appeal o& he anel epor European )ommunities – *egime for the Importation(

#ale and !istri$ution of Bananas – *ecourse to Article +,-. of the !#/ $y the /nited #tates

(T*+,27**.,A) &or he reasons se o$ in his epor he Appellae !o"#:


(i) &in"s ha he anel "i" no a' in'onsisenl# %ih Ari'le 9/ o& he +,. b#

mainaining "i&&eren imeables in he Ari'le 24/5 pro'ee"ings be%een he


omm$niies an" he .nie" ,aesB

(ii) $phol"s he anels &in"ing albei &or "i&&eren reasons in paragraph 7/465 o&

he ., anel epor ha he .nie" ,aes %as no barre" b# he

.n"ersan"ing on !ananas &rom iniiaing his 'omplian'e pro'ee"ingB

(iii) $phol"s albei &or "i&&eren reasons he anels &in"ing in paragraph 7/54

o& he ., anel epor ha he E !ananas 1mpor egime 'onsi$e" a

Lmeas$re a@en o 'ompl#L %ihin he meaning o& Ari'le 24/5 o& he +,.

an" %as here&ore properl# be&ore he anelB

(iv) &in"s ha he anel "i" no err in ma@ing &in"ings %ih respe' o a meas$re

ha ha" 'ease" o e3is s$bseD$en o he esablishmen o& he anel b$

be&ore he anel iss$e" is eporB an"

(v) &in"s ha he "e&i'ien'ies in he E$ropean omm$niies Noi'e o& Appeal "o

no lea" o "ismissal o& he E$ropean omm$niies appealB


$phol"s albei &or "i&&eren reasons he anels &in"ing in paragraph 7/720

o& he ., anel epor ha he E !ananas 1mpor egime in pari'$lar is

"$#-&ree ari&& D$oa reserve" &or A 'o$nries %as in'onsisen %ih

Ari'le 111:4 an" Ari'le 111:2 o& he ATT 499B an"



T*+,27*A!**.,Aage .,A-462

(') $phol"s he anels &in"ing in paragraph 8/42 o& he ., anel epor ha o he

e3en ha he E !ananas 1mpor egime 'onaine" meas$res in'onsisen %ih

vario$s provisions o& he ATT 499 i n$lli&ie" or impaire" bene&is a''r$ing o he

.nie" ,aes $n"er ha Agreemen/

79/ As he meas$re a iss$e in his "isp$e is no longer in e3isen'e %e "o no ma@e an#

re'ommen"aion o he +,! p$rs$an o Ari'le 49/4 o& he +,./

,igne" in he original in eneva his 4h "a# o& November 2008 b#:

WWWWWWWWWWWWWWWWWWWWWWWWW

>$i= Olavo !apisa

resi"ing ?ember

WWWWWWWWWWWWWWWWWWWWWWWWW WWWWWWWWWWWWWWWWWWWWWWWWW

,hoaro Oshima +avi" .nerhaler

?ember ?ember



T*+,27*A!*2*E.T*+,27*A!**.,A

age A-4

ANNE 1

WORLD TRADEORGANIZATION

WT/DS27/!"29 A$g$s 2008

(08-064)

Original: English


,e'on" e'o$rse o Ari'le 24/5 o& he +,. b# E'$a"or

Noi&i'aion o& an Appeal b# he E$ropean omm$niies$n"er Ari'le 46/ an" Ari'le 47 o& he .n"ersan"ing on $lesan" ro'e"$res overning he ,elemen o& +isp$es (+,.)

an" $n"er $le 20(4) o& he >or0ing Procedures for Appellate *evie%

The &ollo%ing noi&i'aion "ae" 28 A$g$s 2008 &rom he +elegaion o& he E$ropeanommission is being 'ir'$lae" o ?embers/

4/ $rs$an o Ari'le 46/ an" Ari'le 47 o& he +,. an" o $le 20/4 o& he or@ingro'e"$res &or Appellae evie% he E$ropean omm$niies s$bmis is Noi'e o& Appeal on'erain iss$es o& la% an" 'erain legal inerpreaions "evelope" b# he anel in he epor on

European )ommunities regime for the importation( sale and distri$ution of $ananas –

*ecourse to Article +,-. of the !#/ $y Ecuador /4

2/ The E$ropean omm$niies see@s revie% b# he Appellae !o"# o& he &ollo%ing iss$es o&la% an" legal inerpreaions in he epor o& he anel:

(a) The anels erroneo$s inerpreaion an" appli'aion o& Ari'le 9/ o& he +,.B

(b) he anels erroneo$s &in"ings 'on'erning he legal e&&e's o& he .n"ersan"ing on!ananas signe" b# E'$a"or an" he E$ropean omm$niies in 2004B

(') he anels erroneo$s inerpreaion an" appli'aion o& he prin'iple o& goo" &aih in TOla%B

(") he anels legal errors 'on'erning he legal e&&e's o& he +oha %aiver on he E$ropeanomm$niies ,'he"$le o& on'essionsB

(e) he anels erroneo$s inerpreaion o& Ari'le 111 o& he ATT an" erroneo$s &in"ing o&a violaion o& ha provisionB

4T*+,27*2*E. 'ir'$lae" on 7 April 2008/



T*+,27*A!*2*E.T*+,27*A!**.,Aage A-2

(&) he anels legal errors in 'onsi"ering ha a limiaion impose" on he D$ani# o& goo"sha 'an bene&i &rom a pre&erenial ari&& la%&$ll# grane" o 'erain ?embers n$lli&iesor impairs bene&is a''r$ing $n"er he ATT o all oher ?embers an" he anels

erroneo$s &in"ing ha E'$a"or s$&&ere" n$lli&i'aion or impairmen arising &rom an#in'onsisen'# o& he E$ropean omm$niies meas$res %ih Ari'le 111 o& heATTB

(g) he anels legal errors relaing o he legal e&&e's o& s$ggesions ma"e b# panels p$rs$an o Ari'le 49/4 o& he +,. an" he anels &ail$re o e3amine he E$ropeanomm$niies meas$res in he ligh o& hese s$ggesions/



T*+,27*A!*2*E.T*+,27*A!**.,A

age A-

ANNE 11


WT/DS27/"29 A$g$s 2008

(08-060)

Original: English


e'o$rse o Ari'le 24/5 o& he +,. b# he .nie" ,aes

Noi&i'aion o& an Appeal b# he E$ropean omm$niies$n"er Ari'le 46/ an" Ari'le 47 o& he .n"ersan"ing on $lesan" ro'e"$res overning he ,elemen o& +isp$es (+,.)

an" $n"er $le 20(4) o& he >or0ing Procedures for Appellate *evie%

The &ollo%ing noi&i'aion "ae" 28 A$g$s 2008 &rom he +elegaion o& he E$ropeanommission is being 'ir'$lae" o ?embers/

4/ $rs$an o Ari'le 46/ an" Ari'le 47 o& he +,. an" o $le 20/4 o& he or@ingro'e"$res &or Appellae evie% he E$ropean omm$niies s$bmis is Noi'e o& Appeal on'erain iss$es o& la% an" 'erain legal inerpreaions "evelope" b# he anel in he epor on

European )ommunities regime for the importation( sale and distri$ution of $ananas –

*ecourse to Article +,-. of the !#/ $y the /nited #tates of America/2

2/ The E$ropean omm$niies see@s revie% b# he Appellae !o"# o& he &ollo%ing iss$es o&la% an" legal inerpreaions in he epor o& he anel:

(a) The anels erroneo$s inerpreaion an" appli'aion o& Ari'le 9/ o& he +,.B

(b) he anels erroneo$s &in"ing ha he banana impor regime ha he E$ropeanomm$niies ha" in pla'e be%een Can$ar# 4 2006 an" +e'ember 4 2007 %as aLmeas$re a@en o 'ompl#L %ih he r$lings an" re'ommen"aions a"ope" b# he+,! in 4997B

(') he anels erroneo$s &in"ings 'on'erning he legal e&&e's o& he .n"ersan"ing on!ananas signe" b# he .nie" ,aes an" he E$ropean omm$niies in 2004B

(") he anels erroneo$s inerpreaion an" appli'aion o& he prin'iple o& goo" &aih in TOla%B

2T*+,27**.,A 'ir'$lae" on 49 ?a# 2008/



T*+,27*A!*2*E.T*+,27*A!**.,Aage A-

(e) he anels erroneo$s inerpreaion o& Ari'le 111 o& he ATT an" is erroneo$s &in"ingo& a violaion o& ha provisionB

(&) he anels erroneo$s &in"ing ha he .nie" ,aes s$&&ere" Ln$lli&i'aion or impairmenLas a res$l o& he banana impor regime ha he E$ropean omm$niies ha" in pla'e be%een Can$ar# 4 2006 an" +e'ember 4 2007B

(g) he anels &ail$re o a@e ino 'onsi"eraion he repeal o& he 'onese" meas$re/



T*+,27*A!*2*E.T*+,27*A!**.,A

age A-5

ANNE 111


WT/DS27/"145 ,epember 2008

(08-258)

Original: English


,e'on" e'o$rse o Ari'le 24/5 o& he +,. b# E'$a"or

Noi&i'aion o& an Oher Appeal b# E'$a"or$n"er Ari'le 46/ an" Ari'le 47 o& he .n"ersan"ing on $les

an" ro'e"$res overning he ,elemen o& +isp$es (+,.)an" $n"er $le 2(4) o& he >or0ing Procedures for Appellate *evie%

The &ollo%ing noi&i'aion "ae" 9 ,epember 2008 &rom he +elegaion o& E'$a"or is being'ir'$lae" o ?embers/

$rs$an o Ari'les 46/ an" 47 o& he /nderstanding on *ules and Procedures 1overning

the #ettlement of !isputes (L+,.L) an" $le 2(4) o& he >or0ing Procedures for Appellate *evie% E'$a"or s$bmis his Noi'e o& Oher Appeal on 'erain iss$es o& la% 'overe" an" 'erain legalinerpreaions "evelope" b# he anel in he epor on: European )ommunities – *egime for the

Importation( #ale an !istri$ution of Bananas – #econd *ecourse to Article +,-. of the !#/ $y

Ecuador /

On 28 A$g$s 2008 he E$ropean omm$niies (E) &ile" is Noi'e o& Appeal p$rs$an o$le 20(4) o& he >or0ing Procedures for Appellate *evie%/ The E reD$ese" ha he Appellae!o"# revie% 'erain &in"ings an" 'on'l$sions o& he anel/

1& as a res$l o& is revie% o& an# o& he maers appeale" b# he E he Appellae !o"#'onsi"ers ha he anels 'on'l$sion ha he Es applie" "$# on bananas is in'onsisen %ih he&irs senen'e o& Ari'le 11:4(b) o& he ATT 499 is no $si&ie" on he bases &o$n" b# he anelE'$a"or appeals he &ollo%ing iss$es o& la% an" legal inerpreaion in he epor o& he anel:

The anels erroneo$s &in"ings (e/g/ in paragraphs 7/27 7/6 7/82 7/92) 'on'erning hee&&e' o& he e3piraion 'la$se (paragraph 9) o& he !anana rame%or@ Agreemen on he'onin$e" bin"ing e&&e' $n"er Ari'le 11 o& he ATT 499 o& he Es ari&& D$oa a75 e$ro*m/

anel epor European )ommunities – *egime for the Importation( #ale and !istri$ution of Bananas – #econd *ecourse to Article +,-. of the !#/ $y Ecuador T*+,27*2*E. 'ir'$lae" on 7 April 2008(he Lanel eporL)/



T*+,27*A!*2*E.T*+,27*A!**.,Aage A-6

ANNE 1;

ORGANISATION MONDIALE ORGANIZACIN MUNDIAL

DU COMMERCE DEL COMERCIO

WORLD TRADE ORGANIZATION

APPELLATE BODY

European )ommunities – *egime for the Importation( #ale and !istri$ution of Bananas

,e'on" e'o$rse o Ari'le 24/5 o& he +,. b# E'$a"orA!-2008-8

European )ommunities – *egime for the Importation( #ale and !istri$ution of Bananas

e'o$rse o Ari'le 24/5 o& he +,. b# he .nie" ,aes

A!-2008-9

ro'e"$ral $ling

4/ On 29 A$g$s 2008 he Appellae !o"# +ivision hearing he above appeals re'eive" %o oin reD$ess &rom E'$a"or an" he E$ropean omm$niies an" &rom he .nie" ,aes an" heE$ropean omm$niies o allo% observaion b# he p$bli' o& he oral hearing in he appellae

pro'ee"ings/ The pari'ipans arg$e" ha nohing in he /nderstanding on *ules and Procedures

1overning the #ettlement of !isputes (he L+,.L) or he >or0ing Procedures for Appellate *evie%

(he L>or0ing ProceduresL) pre'l$"es he Appellae !o"# &rom a$hori=ing p$bli' observaion o& heoral hearing/

2/ On 4 ,epember 2008 %e invie" he hir" pari'ipans o 'ommen in %riing on he reD$esso& he pari'ipans/ 1n pari'$lar %e as@e" he hir" pari'ipans o provi"e heir vie%s on he

permissibili# o& opening he hearing $n"er he +,. an" he >or0ing Procedures an" i& he# so%ishe" on he spe'i&i' logisi'al arrangemens propose" in he reD$ess/ e re'eive" 'ommens on5 ,epember &rom olombia on 9 ,epember &rom anama an" Ni'arag$a an" on 40 ,epember &rom!ra=il Camai'a an" Capan/ olombia Camai'a Capan Ni'arag$a an" anama e3presse" heirs$ppor &or he reD$es o& he pari'ipans/ !ra=il e3presse" he vie% ha he provision o& he +,.e3pressl# "isallo% p$bli' hearings a he appellae sage/ A''or"ing o !ra=il opening he oralhearing in hese pro'ee"ings o p$bli' observaion %o$l" e3rapolae he &le3ibili# grane" o?embers in Ari'le 48/2 o& he +,. an" r$n 'o$ner o he obligaion o& 'on&i"eniali# impose" b#Ari'le 47/40 o& he +,./

/ e 'onsi"er i ne'essar# ha a r$ling is ma"e b# $s on he reD$ess o& he pari'ipans/A''or"ingl# %e ma@e he &ollo%ing r$ling/

/ ,imilar reD$ess %ere ma"e in he /nited #tates – )ontinued #uspension of =$ligations in the

E) – Hormones !ispute an" )anada – )ontinued #uspension of =$ligations in the E) – Hormones

!ispute appeals in %hi'h he Appellae !o"# se o$ is reasoning &or graning he reD$ess/ Thesalien reasoning re&le'e" in ha 'ase is as &ollo%s:

The pari'ipans e3presse" a pre&eren'e &or sim$laneo$s 'lose"-'ir'$i elevision broa"'as o anoherroom %ih he broa"'as being inerr$pe" %hen an# hir" pari'ipan ha "oes no %ish o ma@e is saemen

p$bli' a@es he &loor/



T*+,27*A!*2*E.T*+,27*A!**.,A

age A-7

The hir" pari'ipans ha obe' o he reD$es o allo% p$bli' observaion arg$e ha he'on&i"eniali# reD$iremen in Ari'le 47/40 is absol$e an" permis o& no "erogaion/ e"isagree %ih his inerpreaion be'a$se Ari'le 47/40 m$s be rea" in 'one3 pari'$larl# in

relaion o Ari'le 48/2 o& he +,./ The se'on" senen'e o& Ari'le 48/2 e3pressl# provi"esha LFnGohing in his .n"ersan"ing shall pre'l$"e a par# o a "isp$e &rom "is'losingsaemens o& is o%n posiions o he p$bli'L/ Th$s $n"er Ari'le 48/2 he paries ma#"e'i"e o &orego 'on&i"eniali# proe'ion in respe' o& heir saemens o& posiion/ ih hee3'epion o& 1n"ia he pari'ipans an" hir" pari'ipans agree" ha he erm Lsaemens o&is o%n posiionsL in Ari'le 48/2 e3en"s be#on" he %rien s$bmissions re&erre" o in he&irs senen'e o& Ari'le 48/2 an" in'l$"es oral saemens an" responses o D$esions pose"

b# he Appellae !o"# a he oral hearing/ The hir" senen'e o& Ari'le 48/2 saes haL?embers shall rea as 'on&i"enial in&ormaion s$bmie" b# anoher ?ember o he panelor he Appellae !o"# %hi'h ha ?ember has "esignae" as 'on&i"enial/L This provision%o$l" be re"$n"an i& Ari'le 47/40 %ere inerpree" o reD$ire absol$e 'on&i"eniali# inrespe' o& all elemens o& appellae pro'ee"ings/ There %o$l" be no nee" o reD$ire p$rs$an

o Ari'le 48/2 ha a ?ember "esignae 'erain in&ormaion as 'on&i"enial/ The lassenen'e o& Ari'le 48/2 ens$res ha even s$'h "esignaion b# a ?ember "oes no p$ an en"o he righ o& anoher ?ember o ma@e "is'los$re o he p$bli'/ .pon reD$es a ?emberm$s provi"e a non-'on&i"enial s$mmar# o& he in&ormaion 'onaine" in is %riens$bmissions ha i "esignae" as 'on&i"enial %hi'h 'an hen be "is'lose" o he p$bli'/Th$s Ari'le 48/2 provi"es 'one3$al s$ppor &or he vie% ha he 'on&i"eniali# r$le inAri'le 47/40 is no absol$e/ Oher%ise no "is'los$re o& %rien s$bmissions or ohersaemens %o$l" be permie" "$ring an# sage o& he pro'ee"ings/

1n pra'i'e he 'on&i"eniali# reD$iremen in Ari'le 47/40 has is limis/ Noi'es o& Appealan" Appellae !o"# repors are "is'lose" o he p$bli'/ Appellae !o"# repors 'onains$mmaries o& he pari'ipans an" hir" pari'ipans %rien an" oral s$bmissions an"

&reD$enl# D$oe "ire'l# &rom hem/ $bli' "is'los$re o& Appellae !o"# repors is aninheren an" ne'essar# &ea$re o& o$r r$les-base" s#sem o& a"$"i'aion/ onseD$enl#$n"er he +,. 'on&i"eniali# is relaive an" ime-bo$n"/

1n o$r vie% he 'on&i"eniali# reD$iremen in Ari'le 47/40 is more properl# $n"ersoo" asoperaing in a relaional manner/FSG There are "i&&eren ses o& relaionships ha areimpli'ae" in appellae pro'ee"ings/ Among hem are he &ollo%ing relaionships/ irs arelaionship be%een he pari'ipans an" he Appellae !o"#/ ,e'on"l# a relaionship

be%een he hir" pari'ipans an" he Appellae !o"#/ The reD$iremen ha he pro'ee"ingso& he Appellae !o"# are 'on&i"enial a&&or"s proe'ion o hese separae relaionships an" isinen"e" o sa&eg$ar" he ineress o& he pari'ipans an" hir" pari'ipans an" hea"$"i'aive &$n'ion o& he Appellae !o"# so as o &oser he s#sem o& "isp$e selemen$n"er 'on"iions o& &airness impariali# in"epen"en'e an" inegri#/ 1n his 'ase he

pari'ipans have oinl# reD$ese" a$hori=aion o &orego 'on&i"eniali# proe'ion &or heir'omm$ni'aions %ih he Appellae !o"# a he oral hearing/ The reD$es o& he pari'ipans"oes no e3en" o an# 'omm$ni'aions nor o$'hes $pon he relaionship be%een he hir"

pari'ipans an" he Appellae !o"#/ The righ o 'on&i"eniali# o& hir" pari'ipans vis

vis he Appellae !o"# is no impli'ae" b# he oin reD$es/ The D$esion is h$s %heher hereD$es o& he pari'ipans o &orego 'on&i"eniali# proe'ion sais&ies he reD$iremens o&&airness an" inegri# ha are he essenial arib$es o& he appellae pro'ess an" "e&ine herelaionship be%een he Appellae !o"# an" he pari'ipans/ 1& he reD$es mees hesesan"ar"s hen he Appellae !o"# %o$l" in'line o%ar"s a$hori=ing s$'h a oin reD$es/

FSGThis relaional vie% o& righs an" obligaions o& 'on&i"eniali# is 'onsisen %ih he approa'h&ollo%e" in "omesi' $ris"i'ions %ih respe' o similar iss$es s$'h as privilege/



T*+,27*A!*2*E.T*+,27*A!**.,A

age A-9

!ispute he Appellae !o"# has he po%er o a$hori=e a oin reD$es b# he pari'ipans o li&'on&i"eniali# provi"e" ha his "oes no a&&e' he 'on&i"eniali# o& he relaionship be%een hehir" pari'ipans an" he Appellae !o"# or impair he inegri# o& he appellae pro'ess/ There is no

reason in his 'ase no o a$hori=e he reD$ess ma"e o $s/ The pari'ipans have s$ggese"alernaive mo"aliies ha allo% &or p$bli' observaion o& he oral hearing %hile sa&eg$ar"ing he'on&i"eniali# proe'ion eno#e" b# he hir" pari'ipans/ The mo"aliies in'l$"e sim$laneo$s or"ela#e" 'lose"-'ir'$i elevision broa"'asing in a room separae &rom he room $se" &or he oralhearing/ inall# %e "o no see he p$bli' observaion o& he oral hearing $sing he means "es'ribe"above as having an a"verse impa' on he inegri# o& he a"$"i'aive &$n'ions per&orme" b# heAppellae !o"#/

7/ or hese reasons he Appellae !o"# +ivision hearing his appeal a$hori=es he p$bli'observaion o& he oral hearing in hese pro'ee"ings on he erms se o$ belo%/ A''or"ingl#

p$rs$an o $le 46(4) o& he >or0ing Procedures %e a"op he &ollo%ing a""iional pro'e"$res &orhe p$rposes o& his appeal:

(a) The oral hearing %ill be open o p$bli' observaion b# means o& sim$laneo$s'lose"-'ir'$i elevision/ The 'lose"-'ir'$i elevision signal %ill be sho%n in aseparae room o %hi'h "$l# regisere" "elegaes o& TO ?embers an" members o&he general p$bli' %ill have a''ess/

(b) Oral saemens an" responses o D$esions b# hir" pari'ipans %ishing omainain he 'on&i"eniali# o& heir s$bmissions %ill no be s$be' o p$bli'observaion/

(') An# hir" pari'ipan ha has no alrea"# "one so ma# reD$es ha is oralsaemens an" responses o D$esions remain 'on&i"enial an" no be s$be' o p$bli'

observaion/ ,$'h reD$ess m$s be re'eive" b# he Appellae !o"# ,e'reariano laer han 5:00 p/m/ eneva ime on ri"a# 26 ,epember 2008 /

(") An appropriae n$mber o& seas %ill be reserve" &or "elegaes o & TO?embers in he room %here he 'lose"-'ir'$i broa"'as %ill be sho%n/

(e) Noi'e o& he oral hearing %ill be provi"e" o he general p$bli' hro$gh heTO %ebsie/ TO "elegaes an" members o& he general p$bli' %ishing o observehe oral hearing %ill be reD$ire" o regiser in a"van'e %ih he TO ,e'rearia/

(&) ,ho$l" pra'i'al 'onsi"eraions no allo% sim$laneo$s broa"'as o& he oralhearing "e&erre" sho%ing o& he vi"eo re'or"ing %ill be $se" in he alernaive/

eneva 48 ,epember 2008



T*+,27*A!*2*E.T*+,27*A!**.,Aage A-40

ANNE ;


WT/MIN:1;/154 November 2004

(04-5786)

MINISTERIAL CONFERENCEF#+($' S%)#D#', " - 1@ N#4%63%( 21

EUROPEAN COMMUNITIES – THE ACP-EC PARTNERSHIP AGREEMENT

+e'ision o& 4 November 2004

The ?iniserial on&eren'e

Having regard o paragraphs 4 an" o& Ari'le 1 o& he ?arra@e'h Agreemen Esablishinghe orl" Tra"e Organisaion (he LTO AgreemenL) he $i"ing rin'iples o be &ollo%e" in'onsi"ering appli'aions &or %aivers a"ope" on 4 November 4956 (!1,+ 5,*25) he .n"ersan"ingin espe' o aivers o& Obligaions $n"er he eneral Agreemen on Tari&&s an" Tra"e 499

paragraph o& Ari'le 1 o& he TO Agreemen an" +e'ision-?a@ing ro'e"$res $n"erAri'les 1 an" 11 o& he TO Agreemen agree" b# he eneral o$n'il (T*>*9)B

4a0ing note o& he reD$es o& he E$ropean omm$niies (E) an" o& he overnmens o& heA ,aes %hi'h are also TO members (hereina&er also he Laries o he AgreemenL) &or a%aiver &rom he obligaions o& he E$ropean omm$niies $n"er paragraph 4 o& Ari'le 1 o& heeneral Agreemen %ih respe' o he graning o& pre&erenial ari&& reamen &or pro"$'soriginaing in A ,aes as reD$ire" b# Ari'le 6/ Anne3 ; an" is roo'ols o& he A-Earnership Agreemen (hereina&er also re&erre" o as Lhe AgreemenL)5B

)onsidering ha in he &iel" o& ra"e he provisions o& he A-E arnership AgreemenreD$ires pre&erenial ari&& reamen b# he E o& e3pors o& pro"$'s originaing in he A ,aesB

)onsidering ha he Agreemen is aime" a improving he san"ar" o& living an" e'onomi'"evelopmen o& he A ,aes in'l$"ing he leas "evelope" among hemB

)onsidering also ha he pre&erenial ari&& reamen &or pro"$'s originaing in A ,aesas reD$ire" b# Ari'le 6/ Anne3 ; an" is roo'ols o& he Agreemen is "esigne" o promoe hee3pansion o& ra"e an" e'onomi' "evelopmen o& bene&i'iaries in a manner 'onsisen %ih heobe'ives o& he TO an" %ih he ra"e &inan'ial an" "evelopmen nee"s o& he bene&i'iaries an"no o raise $n"$e barriers or o 'reae $n"$e "i&&i'$lies &or he ra"e o& oher membersB

5As 'onaine" in "o'$mens ***487 ***20 ***25 an" ***269/



T*+,27*A!*2*E.T*+,27*A!**.,A

age A-44

)onsidering ha he Agreemen esablishes a preparaor# perio" e3en"ing $nil 4 +e'ember2007 b# he en" o& %hi'h ne% ra"ing arrangemens shall be 'on'l$"e" be%een he aries o heAgreemenB

)onsidering ha he ra"e provisions o& he Agreemen have been applie" sin'e 4 ?ar'h 2000on he basis o& ransiional meas$res a"ope" b# he A-E oin insi$ionsB

6oting he ass$ran'es given b# he aries o he Agreemen ha he# %ill $pon reD$es prompl# ener ino 'ons$laions %ih an# inerese" member %ih respe' o an# "i&&i'$l# or maerha ma# arise as a res$l o& he implemenaion o& he pre&erenial ari&& reamen &or pro"$'soriginaing in A ,aes as reD$ire" b# Ari'le 6/ Anne3 ; an" is roo'ols o& he AgreemenB

6oting ha he ari&& applie" o bananas impore" in he LAL an" L!L D$oas shall no e3'ee"75 M*onne $nil he enr# ino &or'e o& he ne% E ari&&-onl# regime/

6oting ha he implemenaion o& he pre&erenial ari&& reamen &or bananas ma# be a&&e'e"as a res$l o& ATT Ari'le ;111 negoiaionsB

6oting he ass$ran'es &rom he aries o he Agreemen ha an# re-bin"ing o& he E ari&&on bananas $n"er he relevan ATT Ari'le ;111 pro'e"$res sho$l" res$l in a leas mainainingoal mar@e a''ess &or ?N banana s$ppliers an" heir %illingness o a''ep a m$lilaeral 'onrol onhe implemenaion o& his 'ommimen/

)onsidering ha in ligh o& he &oregoing he e3'epional 'ir'$msan'es $si&#ing a %aiver&rom paragraph 4 o& Ari'le 1 o& he eneral Agreemen e3isB

!ecides as &ollo%s:

4/ ,$be' o he erms an" 'on"iions se o$ here$n"er Ari'le 1 paragraph 4 o& he eneralAgreemen shall be %aive" $nil 4 +e'ember 2007 o he e3en ne'essar# o permi heE$ropean omm$niies o provi"e pre&erenial ari&& reamen &or pro"$'s originaing inA ,aes as reD$ire" b# Ari'le 6/ Anne3 ; an" is roo'ols o& he A-E arnershipAgreemen6 %iho$ being reD$ire" o e3en" he same pre&erenial reamen o li@e pro"$'so& an# oher member/

2/ The aries o he Agreemen shall prompl# noi&# he eneral o$n'il o& an# 'hanges in he pre&erenial ari&& reamen o pro"$'s originaing in A ,aes as reD$ire" b# he relevan provisions o& he Agreemen 'overe" b# his %aiver/

/ The aries o he Agreemen %ill $pon reD$es prompl# ener ino 'ons$laions %ih an#inerese" member %ih respe' o an# "i&&i'$l# or maer ha ma# arise as a res$l o& heimplemenaion o& he pre&erenial ari&& reamen &or pro"$'s originaing in A ,aes asreD$ire" b# Ari'le 6/ Anne3 ; an" is roo'ols o& he AgreemenB %here a member'onsi"ers ha an# bene&i a''r$ing o i $n"er he eneral Agreemen ma# be or is beingimpaire" $n"$l# as a res$l o& s$'h implemenaion s$'h 'ons$laions shall e3amine he

possibili# o& a'ion &or a sais&a'or# a"$smen o& he maer/

6An# re&eren'e o he arnership Agreemen in his +e'ision shall also in'l$"e he perio" "$ring

%hi'h he ra"e provisions o& his Agreemen are applie" on he basis o& ransiional meas$res a"ope" b# heA-E oin insi$ions/



T*+,27*A!*2*E.T*+,27*A!**.,Aage A-42

bis ih respe' o bananas he a""iional provisions in he Anne3 shall appl#/

/ An# member %hi'h 'onsi"ers ha he pre&erenial ari&& reamen &or pro"$'s originaing in

A ,aes as reD$ire" b# Ari'le 6/ Anne3 ; an" is roo'ols o& he Agreemen is beingapplie" in'onsisenl# %ih his %aiver or ha an# bene&i a''r$ing o i $n"er he eneralAgreemen ma# be or is being impaire" $n"$l# as a res$l o& he implemenaion o& he

pre&erenial ari&& reamen &or pro"$'s originaing in A ,aes as reD$ire" b# Ari'le 6/Anne3 ; an" is roo'ols o& he Agreemen an" ha 'ons$laions have prove"$nsais&a'or# ma# bring he maer be&ore he eneral o$n'il, %hi'h %ill e3amine i

prompl# an" %ill &orm$lae an# re'ommen"aions ha he# $"ge appropriae/

5/ The aries o he Agreemen %ill s$bmi o he eneral o$n'il an ann$al repor on heimplemenaion o& he pre&erenial ari&& reamen &or pro"$'s originaing in A ,aes asreD$ire" b# Ari'le 6/ Anne3 ; an" is roo'ols o& he Agreemen/

6/ This %aiver shall no pre'l$"e he righ o& a&&e'e" members o have re'o$rse oAri'les 11 an" 111 o& he eneral Agreemen/



T*+,27*A!*2*E.T*+,27*A!**.,A

age A-4

ANNE>

The %aiver %o$l" appl# &or A pro"$'s $n"er he oono$ Agreemen $nil

4 +e'ember 2007/ 1n he 'ase o& bananas he %aiver %ill also appl# $nil 4 +e'ember 2007s$be' o he &ollo%ing %hi'h is %iho$ pre$"i'e o righs an" obligaions $n"er Ari'le ;111/

- The paries o he oono$ Agreemen %ill iniiae 'ons$laions %ih ?embers e3poring ohe E. on a ?N basis (inerese" paries) earl# eno$gh o &inali=e he pro'ess o&'ons$laions $n"er he pro'e"$res hereb# esablishe" a leas hree monhs be&ore he enr#ino &or'e o& he ne% E ari&& onl# regime/

- No laer han 40 "a#s a&er he 'on'l$sion o& Ari'le ;111 negoiaions inerese" paries%ill be in&orme" o& he E inenions 'on'erning he rebin"ing o& he E ari&& on bananas/1n he 'o$rse o& s$'h 'ons$laions he E %ill provi"e in&ormaion on he meho"olog# $se"&or s$'h rebin"ing/ 1n his regar" all E TO mar@e-a''ess 'ommimens relaing o

bananas sho$l" be a@en ino a''o$n/

- ihin 60 "a#s o& s$'h an anno$n'emen an# s$'h inerese" par# ma# reD$es arbiraion/

- The arbiraor shall be appoine" %ihin 40 "a#s &ollo%ing he reD$es s$be' o agreemen be%een he %o paries &ailing %hi'h he arbiraor shall be appoine" b# he +ire'or-eneral o& he TO &ollo%ing 'ons$laions %ih he paries %ihin 0 "a#s o& hearbiraion reD$es/ The man"ae o& he arbiraor shall be o "eermine %ihin 90 "a#s o& hisappoinmen %heher he envisage" rebin"ing o& he E ari&& on bananas %o$l" res$l in aleas mainaining oal mar@e a''ess &or ?N banana s$ppliers a@ing ino a''o$n heabove-menione" E 'ommimens/

- 1& he arbiraor "eermines ha he rebin"ing %o$l" no res$l in a leas mainaining oalmar@e a''ess &or ?N s$ppliers he E shall re'i&# he maer/ ihin 40 "a#s o& henoi&i'aion o& he arbiraion a%ar" o he eneral o$n'il he E %ill ener ino'ons$laions %ih hose inerese" paries ha reD$ese" he arbiraion/ 1n he absen'e o& am$$all# sais&a'or# sol$ion he same arbiraor %ill be as@e" o "eermine %ihin 0 "a#so& he ne% arbiraion reD$es %heher he E has re'i&ie" he maer/ The se'on" arbiraiona%ar" %ill be noi&ie" o he eneral o$n'il/ 1& he E has &aile" o re'i&# he maer his%aiver shall 'ease o appl# o bananas $pon enr# ino &or'e o& he ne% E ari&& regime/ TheAri'le ;111 negoiaions an" he arbiraion pro'e"$res shall be 'on'l$"e" be&ore heenr# ino &or'e o& he ne% E ari&& onl# regime on 4 Can$ar# 2006/



T*+,27*A!*2*E.T*+,27*A!**.,Aage 4

ANNE ;1

SCHEDULE L>>> – EUROPEAN COMMUNITIESAT 1 ?O,T-A;O.E+-NAT1ON TA1

,ET1ON 1 Agri'$l$ral ro"$'s

,ET1ON 1 - A Tari&&s

&*eproduced excerpt'

Tari&& iemn$mber

+es'ripion o& pro"$'s !ase raeo& "$#

!o$n" raeo& "$#

1mplemen-aion

perio"&rom*o

,pe'ialsa&eg$ar"

1niialnegoiaing

righ

Oher"$ies an"

'harges

ommens

4 2 5 6 7 8 9

08000 !ananas in'l$"ing planains &resh or "rie":

080004 -resh:

0800044 --lanains 20/0 V 46/0 V

0800042 --Oher 850 E.*T 680 E.*T ,,

0800090 -+rie" 20/0 V 46/0 V

,ET1ON 1 - ! Tari&& $oas

&*eproduced excerpt'

$rren A''ess $oas

+es'ripion o& pro"$' Tari&& iemn$mber(s)

1niial D$oaD$ani# an"

in-D$oaari&& rae

inal D$oaD$ani# an"

in-D$oaari&& rae

1mplemen-aion perio"

&rom*o

1niialnegoiaing

righ

Oher erms an"'on"iions

4 2 5 6 7

resh bananas oher han planains

080 00 42 2/200/000 2/200/000 As in"i'ae" in heAnne3/

75 E.* 75 E.*



T*+,27*A!*2*E.T*+,27*A!**.,Aage A-46

The a$hori=aion o "eliver he spe'ial e3por 'eri&i'aes shall be grane" b# he ommissionin or"er o ma@e i possible o improve reg$lar an" sable ra"e relaions be%een pro"$'ersan" imporers an" on he 'on"iion ha he e3por 'eri&i'aes %ill be iss$e" %iho$ an#

"is'riminaion among operaors/

7/ The in-D$oa ari&& rae shall be 75 E'$s*onne/

8/ The agree" s#sem %ill be operaional b# 4 O'ober 499 a he laes %iho$ pre$"i'e oan# provisional or ransiional meas$res o be e3amine" &or he #ear 499/

9/ This agreemen shall appl# $nil 4 +e'ember 2002/ $ll 'ons$laions %ih he >ainAmeri'an s$ppliers ha are ATT ?embers sho$l" sar no laer han in #ear 2004/

The &$n'ioning o& he agreemen %ill be revie%e" be&ore he en" o& he hir" #ear %ih &$ll'ons$laion o& ATT ?ember >ain Ameri'an s$ppliers/

40/ This agreemen %ill be in'orporae" ino he omm$ni#s .r$g$a# o$n" ,'he"$le/

44 This agreemen represens a selemen o& he "isp$e be%een olombia osa i'a

ec bananas(ab)(21.5 us) (21.5ii ecuador)

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