The Nature of Remedies in International Trade Law

  • Sungjoon Cho

Abstract

On August 30, 2002, the World Trade Organization (WTO) authorized the European Communities (EC) to suspend its tariff concessions and other obligations toward the United States to the extent of U.S. $4 billion for the latter’s failure to comply with the Appellate Body’s decision that the United States had violated the WTO rules, in particular, the WTO Subsidy Code by providing the prohibited subsidies to foreign sales corporations (FSCs) in the form of tax breaks (the FSC Article 22.6 Report). The sheer scale of the EC’s suspension in response to the U.S. violation is unprecedented, far surpassing the suspensions authorized in two previous cases that invoked the WTO enforcement mechanism, Banana III and Hormones. At first glance, this dramatic finale for such a high-profile case might be welcomed as an impressive revelation of the real achievement of the WTO system equipped with teeth, unlike its predecessor the old GATT.
Published
2004-04-26
How to Cite
Cho, Sungjoon. 2004. “The Nature of Remedies in International Trade Law”. University of Pittsburgh Law Review 65 (4). https://doi.org/10.5195/lawreview.2004.5.
Section
Articles