WTO Dispute Panel Finds US CVD Measures on Spanish Olives Violates International Trade Laws

A World Trade Organization dispute panel found the U.S. violated WTO rules during investigations leading up to the imposition of countervailing duties on ripe olives from Spain. The panel found that the U.S. erred when finding that subsidies given to Spanish raw olive growers under the European Union's Common Agricultural Policy were specific to the olive growers, a finding that was inconsistent with measures in the WTO's Agreement on Subsidies and Countervailing Measures. The Court of International Trade independently came to the same conclusion. In June, the court said that the countervailing duties could not stand since they were not specific to Spanish olive growers (see 2106170075). The panel also said the Commerce Department'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 lacks any real factual basis and is inconsistent with WTO rules. The panel did not find, however, that the antidumping duties on the same goods violated the trade body's rules. "The Commission's efforts to vigorously defend the interests and rights of EU producers, in this case growers of Spanish ripe olives, are now paying off," Valdis Dombrovskis, the EU's commissioner for trade, said. "The WTO has upheld our claims about anti-subsidy duties being unjustified and in violation of WTO rules. These duties severely hit Spanish olive producers, who saw their exports to the US fall dramatically as a result. We now expect the US to take the appropriate steps to implement the WTO ruling, so that exports of ripe olives from Spain to the US can resume under normal conditions.”