Washington, DC
September 24, 2007
A
World Trade Organization (WTO) dispute settlement panel
decision agreeing that Turkey’s failure to grant licenses to
import rice and its operation of a discretionary import
licensing system for rice are in breach of Turkey’s market
access obligations under the WTO Agreement on Agriculture will
help to level the playing field in trade with Turkey, USA Rice
Federation Chairman Al Montna said today.
“This finding should result in fair and greater access for U.S.
rice to Turkey’s rice market,” Montna said. “It is also good
news for the industry, but it is equally a victory to Turkish
consumers and importers.”
The panel also agreed with the United States that Turkey’s
domestic purchase requirement, under which Turkey requires
importers of rice to purchase large quantities of domestic rice
in order to import rice at preferential tariff rates, is in
breach of WTO national treatment provisions, according to a news
release issue Friday by U.S. Trade Representative (USTR) Susan
C. Schwab’s office. “I am extremely pleased with today’s panel
report,” Schwab said.
“The U.S. Rice Industry is very thankful for the diligent work
by U.S. Trade Representative Schwab and Acting U.S. Department
of Agriculture Secretary Chuck Connor and their staffs to help
bring this matter to a successful conclusion,” Montna said.
The “finding by the World Trade Organization in favor of the
United States in the Turkey rice dispute is great news for
American rice producers,” Connor said Friday. “Turkey is a key
market for U.S. rice and we felt strongly that Turkey’s system
for granting import licenses violated the country’s
international trade commitments. These unfair trade barriers had
a significant effect on U.S. rice exports to Turkey —causing
them to drop 74-percent from 2005 to 2006, from almost $34
million to $9 million.”
“It is gratifying to see industry and government efforts result
in a positive outcome. We look forward to working in cooperation
with Turkey to implement the WTO Panel finding and to resume our
mutually beneficial trade relationship,” Connor said.
The USTR news release provides background on the dispute. “The
[United States] argued that U.S. rice exporters face serious
market access restrictions in Turkey resulting from its import
licensing system for rice. By instituting a discretionary import
licensing system and making the receipt of import licenses
contingent upon the purchase of domestic rice, The WTO panel
found Turkey has acted inconsistently with several WTO covered
agreements, including the Agreement on Trade Related Investment
Measures (TRIMS), Articles III and XI of the GATT 1994, the
Agreement on Import Licensing Procedures, and the Agreement on
Agriculture.
“Turkey imposes a tariff-rate quota (TRQ) for rice. The most
recent TRQ opening governed the period November 1, 2005, to July
31, 2006. Under that opening, Turkish regulations permitted the
importation of 300,000 metric tons of milled rice equivalent at
preferential tariff levels below Turkey’s 45 percent bound rate.
In order to obtain a license to import at these levels, however,
the regulations required that importers purchase significant
quantities of domestic rice from the Turkish Grain Board or
Turkish producers. Further, importers not wishing to make these
purchases cannot import at the bound rate because Turkey’s
Ministry of Agriculture (MARA) fails to grant import licenses
for imports outside the TRQ. While Turkey has not re-opened the
TRQ since July 2006, it has imposed minimum import prices for
rice that are enforced by Turkish Customs.
“The United States requested formal WTO consultations with
Turkey on November 2, 2005. Consultations were held in Geneva on
December 1, 2005, but failed to resolve the dispute. The WTO
established the dispute settlement panel on March 17, 2006. The
United States and Turkey each have an opportunity to appeal
[Friday’s] report.”
The USA Rice Federation
is the global advocate for all segments of the U.S. rice
industry with a mission to promote and protect the interests of
producers, millers, merchants and allied businesses. |
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