EU Opens WTO Compliance Proceedings Against US in Spanish Olives Dispute
The EU opened compliance proceedings against the U.S. stemming from its alleged "failure to comply with" the World Trade Organization ruling on its countervailing duties covering ripe olives from Spain, the EU's Directorate-General for Trade announced last week. The proceedings' first step involves a "request for consultations" at the WTO with the U.S. with the goal of "reaching a negotiated settlement." If this measure fails, the EU can request a compliance panel. If the panel confirms noncompliance, the EU will be allowed to take "further measures," the bloc said.
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A WTO dispute panel in November 2021 found the U.S. violated WTO rules during the investigations leading up to its countervailing duty order on ripe olives (see 2111190028). The panel said the U.S. erred when finding subsidies given to Spanish raw olive growers under the EU's Common Agricultural Policy were specific to the olive growers, a finding inconsistent with measures in the WTO's Agreement on Subsidies and Countervailing Measures. The panel also said the U.S. regulation permitting it to deem the full amount of subsidies taken in by raw olive growers to have passed through to the downstream producers is inconsistent with WTO rules.
The U.S. has not imposed any changes to its domestic legislation despite the ruling. "Attempts to settle the matter with the US have failed so far," the EU said. "The WTO’s ruling dispute is not only important to preserve the rights of EU olive producers and processors, but is also to protect the EU’s Common Agricultural Policy from similar legally unfounded challenges."