Ds461 colombia actions relating to the importation

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This dispute was brought about by Compared with who supposed that a “compound tariff have been imposed by Colombia about certain materials, apparel and footwear. Columbia had been impacting a compound tariff (in the form of the ad valorem levy, stated as a percentage of the persuits value with the goods) and a specific levy (WTO Appellate Body Record: Colombia Materials, 2016) up against the import of textiles, attire, and footwear from Panama. Panama disagreed with this practice and filed a dispute while using World Operate Organization (WTO). The -panel agreed with Panama the compound tariff was a traditions duty that exceeded the amount bound in Colombias tariff schedule, in violation of GATT Document II: 1(a) and (b) (WTO Appellate Body Report: Colombia Fabrics, 2016).

The Colombian compound tariff had been forced since 2013, and consisted of a combination of 10 percent of the importance price as well as a “specific aspect, ” the latter of which differs according to the import price and customs category (McGivern, 2016). According to Colombia, the thresholds incorporated in the chemical substance tariff shown a distinction between licit imports, and also imports that they can had identified were imported at unnaturally low prices to launder money, on the other hand (McGivern, 2016). Colombia also asserted that a evaluate designed to combat illegal control operations that are not covered by Article II from the GATT year 1994 (WTO Appellate Body Record: Colombia Textiles, 2016).

The WTO Appellate Body system ruled a Colombian rules designed to overcome money washing violates Colombias tariff responsibilities under Article II of the General Arrangement on Tariffs and Transact (GATT) year 1994 (McGivern, 2016). Colombia asserted that certain items entering their territory at artificially affordable prices were being used to launder funds, and therefore applied a substance tariff to impose larger duties. In upholding the complaint by Panama, the Appellate Human body rejected Colombias argument that GATT Document II did not apply to dubious trade. In addition, it rejected Colombias arguments that its assess was required to protect general public morals and necessary to secure compliance with Colombias anti-money laundering regulations (McGivern, 2016).

This dispute and decision are notable since they put in force other rulings were WTO members tried to use “public morals” to implement inconsistent regulations. The basis for Colombia’s argument was that it was planning to combat money laundering in to the country. However , in the before proceedings in the disputes we were holding unable to demonstrate proof. Based on the WTO judges, the dealing with money washing reflected “societal interests”. Based on this as well as the arguments about both sides Certainly with the appellate body’s decision. I believe that given Colombia’s history of data corruption and dubious activities they felt that they could can charge whatever types of charges they sensed necessary. This really is a prime sort of why the World Trade Firm was created. In the event that they were certainly not around there can be trade arguments among countries consistently. Perhaps effecting political relations. Without one to regulate the trade industry countries would be able to do as they please in regards to imports and exports. These costs will then become passed until us the consumers. Imagine the costs of your imported merchandise. The WTO is a place for its people to go and sort out any kind of trade issues that may exist amongst each other.


1 . Slope, C. W. (2014). International Business Rivalling in the Global Marketplace. New York, NY: McGraw-Hill Education.

2 . McGivern, B. (2016, June 16). WTO Appellate Body Report: Colombia – Textiles. Recovered from White colored Case: https://www. whitecase. com/publications/alert/wto-appellate-body-report-colombia-textiles WTO Appellate Body Record: Colombia Textiles. (2016, 06 16). Recovered January twenty-one, 2018, by Lexology internet site: https://www. lexology. com/library/detail. aspx? g=bc31dd73-5f81-4d4a-971f-0568c98d0896

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