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US move to block shrimp exports spiked

Our Economic Bureau

New Delhi, Oct 13: The appellate body of the World Trade Organisation (WTO) has rejected the United States' argument for blocking shrimp exports from India. The panel found that the US measure is not within the scope of measures permitted under article XX of GATT.

It has upheld India's contention that the US measure against import of shrimp and shrimp products harvested without using turtle extruder devices is unjustified as it is not within the scope of Article XX of GATT 1994. In its disputes with the US on the issue of measures against import of shrimp and shrimp products harvested without turtle extruder devices, India had contended that the US measure was not in conformity with its obligations under the WTO.

India along with Malaysia, Thailand and Pakistan had filed a complaint in the WTO dispute settlement mechanism against the US measure prohibiting the imports of certain shrimp and shrimp products which are harvested without using turtle extruder devices. The panel had given its findings in May,1998, to the effect that the US measure is not consistent with Article XI:1 of GATT 1994 (relating to elimination of quantitative restrictions) and cannot be justified under Article XX of GATT.

USA had taken the matter to the appellate body of the WTO, whose report has just been released. The findings and conclusions of the Apellate body confirm that the US measure fails to meet the requirements of Article XX and is therefore not justified. The appellate body has recommended that the dispute settlement body request USA to bring its measure into conformity with the obligations of the USA under Article XI of GATT 1994.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.

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