Brussels, 22 October 2002
EU requests WTO dispute settlement consultations over Korean unfair shipbuilding practices
The European Commission has requested the World Trade Organisation (WTO) to set up formal consultations under its Dispute Settlement mechanism over the unfair Korean shipbuilding practices. This decision has been taken further to the failure to reach an amicable solution to this long-standing dispute by 30 September 2002. EU Trade Commissioner Pascal Lamy said: "The lack of progress in our bilateral discussions so far has left us with no option but to take Korea to the WTO. I now call on Korea to swiftly settle this matter within the WTO consultations".
In these consultations, the European Commission will convey to Korea its view that the granting of subsidies to its shipbuilders has caused a damage to the EU shipbuilding industry and is therefore in violation of WTO Agreement on Subsidies. If these consultations fail to solve the dispute within 60 days from the request the way ahead would he to request a WTO panel.
In a Decision published in the Official Journal of the European Communities on 19 October 2002 (OJ L 281/15) the Commission announced the initiation of dispute settlement procedures against Korea under the relevant WTO provisions. The European Commission has now officially notified the WTO of its request for consultations with Korea under Article 4 of the WTO Dispute Settlement Understanding. The Notice allowing temporary and limited authorisation of State aid to EU shipbuilders will be published in the Official Journal before the end of this week.
For more information:
IP/01/630, MEMO/01/167, IP/01/656, IP/01/1078, SPEECH/02/22, IP/02/642, IP/02/1389 and IP/02/1395