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Synopsis and References of the Case

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Chapter Summary

This chapter presents the Korea - Dairy case that relates to a definitive safeguard measure imposed on imports of certain European Community (EC) dairy products by Korea through import quotas. Claiming breaches of Articles 2, 4, 5 and 12 of the Agreement on Safeguards, and Article XIX of the GATT 1994, the EC brought the dispute before the Dispute Settlement Body (DSB) with a view to establishing a Panel. In its report, the Panel found that the Korean measure was incompatible with Article 4.2(a) of the Agreement on Safeguards, but rejected the EC claims under Article XIX of the GATT 1994 and Articles 2.1, 12.1, 12.2 and 12.3 of the Agreement on Safeguards. While both parties to the dispute appealed this decision, raising serious substantive and procedural issues, the case illustrates the strengthening of the multilateral trade system (and the role of the Appellate Body) through a dispute settlement mechanism.

Keywords: dairy products; import quotas; Korea - Dairy case; safeguard measures



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