This paper critiques a Panel ruling that was permissive in allowing the EU to exclude China from the renegotiations of several tariff lines of poultry meat and the related allocation of new tariff-rate quotas (TRQs). The EU's basis for exclusion was that China lacked a principal or substantial supplying interest in the modified tariff lines. The Panel's ruling supported China for only two tariff lines in which China eventually served 50% of the EU market after certain SPS measures expired, on the narrow basis that this import increase should have been considered a special factor in the TRQ allocation. The paper argues that the Panel ruled too narrowly by disregarding China's broader claims for a principal or substantial supplying interest. An interpretation consistent with the object and purpose of the GATT supports utilizing a broader set of evidence in China's claim as a principal or substantial supplier for renegotiations of tariff schedules. Allowing nations to use TRQs to prevent emerging markets from achieving a substantial supplying interest is a significant obstacle to the WTO's purpose. The Panel's ruling will be important for future TRQ renegotiations, such as those that would be necessary under Brexit.
ASJC Scopus subject areas
- Economics and Econometrics
- Political Science and International Relations