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Mexico–Olive Oil: Remedy without a cause?

  • CHAD P. BOWN (a1) and Niall Meagher (a2)
Abstract
Abstract

This paper provides a legal-economic analysis of the unappealed WTO Panel Report in Mexico–Olive Oil. The case involved a countervailing-duty measure imposed by Mexico on imports of olive oil from the European Communities (in particular, Spain and Italy). The dispute raised important issues regarding the determination of causation of injury, as neither the Panel nor the investigating authority gave much credence to evidence that the main complaint of the domestic industry was the loss of a distribution agreement and brand-name rights with a Spanish exporter. The dispute also raised interesting concerns regarding the remedies for violations of procedural obligations in the conduct of anti-dumping/countervailing-duty investigations and the right of a domestic producer that has ceased production to seek protection under the trade-remedy laws.

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Corresponding author
*Email: cbown@brandeis.edu
**Email: Niall.Meagher@acwl.ch
References
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Appellate Body Report, United States – Safeguard Measures on Imports of Fresh, Chilled or Frozen Lamb Meat from New Zealand and Australia, WT/DS177/AB/R, WT/DS178/AB/R, adopted 16 May 2001, DSR 2001:IX, 4051.
Appellate Body Report, United States – Anti-Dumping Measures on Certain Hot-Rolled Steel Products from Japan, WT/DS184/AB/R, adopted 23 August 2001, DSR 2001:X, 4697.
Appellate Body Report, United States – Countervailing Duty Investigation on Dynamic Random Access Memory Semiconductors (DRAMS) from Korea, WT/DS296/AB/R, adopted 20 July 2005, DSR 2005:XVI, 8131.
Appellate Body Report, Mexico – Definitive Anti-Dumping Measures on Beef and Rice, Complaint with Respect to Rice, WT/DS295/AB/R, adopted 20 December 2005, DSR 2005:XXII, 10853.
Appellate Body Report, United States – Investigation of the International Trade Commission in Softwood Lumber from Canada – Recourse to Article 21.5 of the DSU by Canada, WT/DS277/AB/RW, adopted 9 May 2006, and Corr.1, DSR 2006:XI, 4761.
Economía, ‘Resolución final de la investigación por subvención de precios sobre las importaciones de aceite de oliva virgen, originarias de la Unión Europea (Comunidad Europea), principalmente del Reino de España y la República Italiana, independientemente del país de procedencia’, 1 August 2005, para. 22.89; available at http://www.pymes.gob.mx/upci/paginas/dofsc908.pdf (last accessed 22 October 2009).
Grossman Gene M. and Mavroidis Petros C. (2003), ‘United States – Imposition of Countervailing Duties on Certain Hot-Rolled Lead and Bismuth Carbon Steel Products Originating in the United Kingdom: here today, gone tomorrow? privatization and the injury caused by non-recurring subsidies’, in Horn Henrik and Mavroidis Petros C. (eds.), The WTO Case Law of 2001, Cambridge: Cambridge University Press.
Grossman Gene M. and Mavroidis Petros C. (2005a), ‘United States – Countervailing Duties on Certain Corrosion-Resistant Carbon Steel Flat Products from Germany: the sounds of silence’, in Horn Henrik and Mavroidis Petros C. (eds.), The WTO Case Law of 2002, Cambridge: Cambridge University Press.
Grossman Gene M. and Mavroidis Petros C. (2005b), ‘United States – Countervailing Measures Concerning Certain Products from the European Communities: recurring misunderstanding of non-recurring subsidies’, in Horn Henrik and Mavroidis Petros C. (eds.), The WTO Case Law of 2002, Cambridge: Cambridge University Press.
Horn Henrik and Mavroidis Petros C. (2006), United States – Final Determination with Respect to Certain Softwood Lumber from Canada (AB-2003-6, WT/DS257/AB/R), in Horn Henrik and Mavroidis Petros C. (eds.), The WTO Case Law of 2003, Cambridge: Cambridge University Press.
Kreier Jesse (2005), ‘Contingent trade remedies and WTO dispute settlement: some particularities’, in Yerxa Rufus and Wilson Bruce (eds.), Key Issues in WTO Dispute Settlement: The First Ten Years, Cambridge: Cambridge University Press.
Panel Report, Guatemala – Anti-Dumping Investigation Regarding Portland Cement from Mexico, WT/DS60/R, adopted 25 November 1998, as modified by Appellate Body Report WT/DS60/AB/R, DSR 1998:IX, 3797.
Panel Report, United States – Safeguard Measures on Imports of Fresh, Chilled or Frozen Lamb Meat from New Zealand and Australia, WT/DS177/R, WT/DS178/R, adopted 16 May 2001, as modified by Appellate Body Report WT/DS177/AB/R, WT/DS178/AB/R, DSR 2001:IX, 4107.
Panel Report, Mexico – Anti-Dumping Duties on Steel Pipes and Tubes from Guatemala, WT/DS331/R, adopted 24 July 2007.
Panel Report, Mexico – Definitive Countervailing Measures on Olive Oil from the European Communities, WT/DS341/R, adopted 21 October 2008.
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World Trade Review
  • ISSN: 1474-7456
  • EISSN: 1475-3138
  • URL: /core/journals/world-trade-review
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