INTRODUCTION

The United States and the European Communities appeal certain issues of law and legal interpretations in the Panel Report, United States – Definitive Safeguard Measures on Imports of Wheat Gluten from the European Communities (the “Panel Report”). The Panel was established to consider a complaint by the European Communities with respect to a definitive safeguard measure imposed by the United States on certain imports of wheat gluten.

On 1 October 1997, the United States International Trade Commission (the “USITC”) initiated a safeguard investigation into certain imports of wheat gluten. By Proclamation of the President of the United States, dated 30 May 1998, the United States imposed a definitive safeguard measure, in the form of a quantitative restriction on imports of wheat gluten, effective as of 1 June 1998. Products from Canada, a partner with the United States in the North American Free-Trade Agreement (“NAFTA”), and certain other countries were excluded from the application of the safeguard measure. The United States notified the initiation of the investigation, the determination of serious injury, and the decision to apply the safeguard measure to the Committee on Safeguards. The factual aspects of this dispute are set out in greater detail in the Panel Report.

The Panel considered claims by the European Communities that, in imposing the safeguard measure on imports of wheat gluten, the United States acted inconsistently with Articles I and XIX of the General Agreement on Tariffs and Trade 1994 (the “GATT 1994”), and with Articles 2.1, 4, 5, 8, and 12 of the Agreement on Safeguards.

In its Report, circulated to Members of the World Trade Organization (the “WTO”) on 31 July 2000, the Panel concluded that: