Follow-up on the Panel Report "European Economic Community - Payments and Subsidies Paid to Processors and Producers of Oilseeds and Related Animal-Feed Proteins"

Other titles

EEC Oilseeds II (Source: GATT Analytical Index)


Third Parties

Products at Issue

Products at issue
Oilseeds and related animal-feed proteins
Type of product
Product sub-type
Vegetable fats and oils

Related disputes


Key legal aspects

Legal basis
  • GATT Article XXIII:2
Claims raised
  • GATT Article III:4
  • GATT Article II
  • GATT Article XXIII:1(b)
Defences raised


Type Panel
Chairperson Michael Cartland (Hong Kong)
Other members János Nyerges (Hungary), Pierre Pescatore (Luxembourg)


Type Panel
Legal basis at issue
  • GATT Article XXIII:2
Claims at issue
  • GATT Article II
  • GATT Article III:4
  • GATT Article XXIII:1(b)
Defences at issue
  • n.a.
No of Pages (total / legal reasoning) 29 (and 5 annex)
  • -
  • Inconsistency found
  • Inconsistency found
  • Finding nullification or impairment
  • -


Outcome of the proceedings
Report issued, two interpretations as to whether the report was adopted
Additional Info C/M/253 (28/11/1991) Minutes of Council Meeting (12/11/1991) The US requested the approval of the Draft Decision so Contracting Parties request the Director-General to reconvene the members of the Panel on EEC - Payments and Subsidies Paid to Processors and Producers of Oilseeds and Related Animal-Feed Proteins, for the purpose of examining whether the measures taken by the EEC comply with the recommendations and rulings of the Panel Report (W.47/22 (29/11/1991)SR.47/1 (14/02/1992) Summary Record of the First Meeting of CP Forty-Seventh Session (03/12/1991) At the EEC's suggestion, the Chairman proposed and the Contracting Parties agreed that without further action of the Contracting Parties the Chairman would reconvene the original Panel as soon as the EEC informed the Director-General that the oilseeds regulation was final; and W.47/22 would be the basis for the work of the original Panel reconvened.

C/M/256 The EEC was not prepared to implement the Panel's recommendations. The US would announce the unilateral withdrawal of GATT concessions (published a proposed list of items of possible retaliation). Nordic states and Japan: unclear status of reconvened Panel's report.

DS28/2 (05/06/1992) Proposal by the EEC (04/06/1992) Requested authorization to the Contracting Parties to enter into GATT Article XXVIII:4 renegotiations to implement the reconvened Panel's report.

C/M/257 (10/07/1992) Minutes of Council Meeting (19/06/1992) The Council authorized the EEC to negotiate modifications of its tariff concessions. On the adoption of the follow-up report of the Panel, "[t]wo different views had been given (...) he did not see the prospect of resolving the issue now."

DS28/3 (23/09/1992) Request by the US (23/09/1992) for establishment of an arbitral body: to determine the total value to be ascribed to the impairment of tariff concessions in the area of oilseeds by the EEC subsidy programme.

C/M/259 (27/10/1992) Minutes of Council Meeting (29/09/1992-01/10/1992) EEC could not accept the US proposal for arbitration (DS28/3). There was an impasse, and consultations were carried out with the Council Chairman.

SECRET/336/Add.1 (21/08/1992) Article XXVIII:4 Negotiations - Schedule LXXX - Communication from the EEC (19/08/1992) Request inclusion of item in the agenda of the Council of Representatives under GATT Article XXVIII:4(d) first sentence.

L/7096 (07/10/1992) Article XXVIII:4 Negotiations - Schedule LXXX - European Communities (28/09/1992) The EEC submitted to the Contracting Parties the issues in connexion with the negotiating method under GATT Article XXVIII:4(c) and (d) first sentence, to be resolved to allow the negotiations and consultations to be pursued and concluded and formulate a final compensation offer; requesting primarily the Contracting Parties concerned with achieving a settlement to examine them and submit their views.

C/M/260 (26/11/1992) Minutes of Council Meeting (04-05/11/1992) EEC requested Contracting Parties to submit their views, Council unable to provide an answer. US requested authorization to suspend concessions pursuant to GATT Article XXIII:1. EEC noted "there would be fatal repercussions for the Uruguay Round negotiations." Discussion on Council authorising withdrawal of concessions, EEC noted "there would be fatal repercussions for the Uruguay Round negotiations." There was no consensus.

DS28/4 (05/11/1992) Communication from the US announcing withdrawal of concessions.

SR.48/2 (05/01/1993) Summary of Second Meeting of the Contracting Parties Forty-Eighth Session on 03/12/1992: EEC compromise agreed with US ad referendum, to pursue negotiations with other Contracting Parties. Argentina ready to continue GATT Article XXVIII:4 negotiations but reserved its GATT rights (without requesting consultations). Canada, Uruguay, Brazil, Pakistan, India, Japan, Hungary, Poland and Mexico interest in negotiating.

C/M/261 (12/03/1993) Minutes of Council Meeting (9-10/02/1993) Argentina, Canada, Uruguay, Brazil, India and Pakistan expressed lack of progress in GATT Article XXVIII:4 negotiations. EEC: acknowledged a failure to find appropriate compromise but would resume negotiations. Argentina "should this situation continue [the delay of EEC negotiations], Argentina would initiate Article XXIII procedures with a view of determining the consistency of the Community's oilseeds regime with its GATT obligations and the amount of impairment caused to Argentina." Brazil: "reserved the right to resort to relevant GATT provisions to ensure adequate compensation for the prejudice inflicted on its trade." Pakistan: hoped the EEC would comply with its GATT obligations to "spare the Contracting Parties concerned the need to invoke GATT procedures to protect their rights." Canada: associated with Argentina's concern. Uruguay: prepared to negotiate. India: hoped for an early resolution.

C/M/263 (09/06/1993) Minutes of Council Meeting (12-13/05/1993) Argentina: "exercise of its GATT rights in the future (...) only option left to safeguard its interests." Brazil, Uruguay, India, Pakistan and Hungary urged for rapid solution. Sweden: informed of satisfactory conclusion of bilateral negotiations.

C/M/264 (14/07/1993) Minutes of Council Meeting (16-17/06/1993): Argentina: "requested the Community to indicate when and in what manner it intended to comply with the provisions of Article XXVIII:4 to provide compensation". Canada, Brazil and Uruguay also concerned. EEC: Community's Council of Ministers approved December 1992 agreement with US; now able to resume negotiations "as soon as its internal negotiating position had been defined."