GD/36

French Assistance to Exports of Wheat and Wheat Flour

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Other titles

France Wheat Exports (Source: GATT Analytical Index)

Parties

Complainant
Australia
Respondent
France
Third Parties
Japan

Products at Issue

Products at issue
Wheat and wheat flour
Type of product
Agricultural
Product sub-type
Grains/Flour

Related disputes

GATT
WTO

Key legal aspects

Legal basis
  • GATT Article XXII
  • GATT Article XXIII:2
Claims raised
  • GATT Article XVI:3
Defences raised
  • GATT Article XVI

Adjudicators

Type Panel for conciliation
Chairperson Mr. T. Swaminathan (India)
Other members R. Arents (Belgium), F. Gundelach (Denmark), E.C. Boissovain (Netherlands)

Report

Type Panel for conciliation
Legal basis at issue
  • GATT Article XXII
  • GATT Article XXIII:2
Claims at issue
  • GATT Article XVI:3
Defences at issue
  • GATT Article XVI
No of Pages (total / legal reasoning) 15
  • -
  • -
  • Inconsistency found
  • Defence found to be inapplicable

Timeline

Request for consultations
  • (01/04/1956)
Request for establishment
Establishment
Composition
Report
Adoption of report
Mutually agreed solution

Outcome

Outcome of the proceedings
Report adopted, mutually agreed solution
Additional Info IC/SR.38 (19/05/1958) Summary Record of Intersessional Committee. Australia informed of consultations since April 1956 and referred the matter to the Committee and proposed the Committee refer it to a Panel.

L/924 (20/11/1958) Report by the Panel for Conciliation: The Panel examined a complaint by Australia that subsidies granted by France on exports of wheat and wheat flour have displaced Australian trade in these products, particularly in Ceylon, Indonesia, and Malaya. The Panel examined whether the operation of the French system involved financial contributions from the government and found that it did result in export subsidies within GATT Article XVI:3, and resulted in more than equitable share of world market inconsistent with GATT Article XVI:3; and that French exports "have in fact to a large extent displaced Australian supplies in the three markets" and thus Australia suffered direct and indirect damage. Draft recommendation of the Contracting Parties recommended France avoid that its system of payments to exporters of wheat and wheat flour operate in a manner to create adverse effects on normal Australian exports. Suggested a revision of the system or consultations with Australia before new contracts with South East Asian markets (Ceylon, Indonesia, Malaya).

SR.13/20 (03/12/1958) CP Thirteenth Session Summary Record of the Twentieth Meeting (21/11/1958) Contracting Parties approved the Recommendation and adopted the Report.

L/1323 (24/10/1960) Notification by France and Australia to Executive Secretary that an agreement was reached on 20/04/1960 on exports of French flour to South East Asia, following the Recommendation of 21/11/1958 (SR.13/20).

L/1548 (14/09/1961) French-Australian Arrangement of 28 July 1961 on Exports of Flour to South East Asia.