India's Dispute with Turkey in WTO
INDIA had requested for consultations with Turkey, under the dispute settlement system, about the latter's safeguard measures on import of cotton yarn (other than sewing thread).
Turkey imposed definitive safeguard measures on imports of cotton yarn with effect from 15 July 2008 for a period of 3 years. The said measures were to expire on 14 July 2011. Turkey initiated a review on 11 June 2011 to consider extension of the period of application of the said measure. Turkey imposed provisional safeguard measures on 4 August 2011 with retroactive effect from 15 July 2011 without making the required determination in the said review. Upon conclusion of the review, Turkey issued the definitive findings on 25 January 2012 recommending continuation of the measures. The safeguard measures as recommended in the definitive findings were imposed on 28 January 2012 retroactively with effect from 14 July 2011.
India considers that as Turkey initiated a review to extend the safeguard measures, it is under an obligation as per the provision of Article 7.2 of the AoS to make a determination before the extension of measures, in conformity with the procedures set out in Articles 2, 3, 4 and 5 of the AoS that the safeguard measures continue to be necessary to prevent or remedy serious injury to its domestic industry, that there is evidence that the industry is adjusting and the pertinent provisions of Articles 8 and 12 have been observed. Without making a determination as required under Article 7.2, Turkey imposed provisional safeguard measures on 4 August 2011 with retroactive effect from 15 July, 2011 as per Decree /notification No. 2011/2041 dated 4 August 2011.
India considers that the extension of safeguard measures by imposing provisional measures is inconsistent with the AoS as Turkey cannot take recourse to provisional measures under Article 6 of the AoS while undertaking a review of existing measures. At the time of applying initial safeguard measures in 2008, Turkey had also applied safeguard measures on provisional basis for 200 days, which were followed by definitive safeguard measures.
India considers that imposition of provisional safeguard measures is permitted under Article 6 of the AoS for a maximum period of 200 days only in an original investigation and not in a review for extension of existing measures.
India considers that the measures at issue have a serious adverse impact on the export of cotton yarn from India to Turkey. India also reserves its right to raise additional claims and legal matters that may arise during the consultations in relation to the measures at issue and their application under the Agreement on Safeguards and the GATT 1994.
India looks forward to receiving Turkey's reply to this request within the prescribed time limit. India proposes that the date and venue of these consultations may be mutually agreed.
AoS = Agreement on Safeguards