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Colombia—Measures Relating to the Importation of Textiles, Apparel and Footwear

WT/DS461/AB/R (2016)

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Colombia—Measures Relating to the Importation of Textiles, Apparel and Footwear

World Trade Organization
WT/DS461/AB/R (2016)

Facts

Colombia (defendant) instituted compound tariffs on various textile, apparel, and footwear products imported from Panama (plaintiff). Panama filed a complaint with the World Trade Organization (WTO) alleging that the tariffs violated the General Agreement on Tariffs and Trade (GATT). Colombia justified the tariffs by contending that the products were being sold at artificially low prices to support money-laundering schemes. Colombia claimed that, therefore, the tariffs met a GATT exception allowing tariffs to protect public morals. The WTO panel held that Colombia had failed to demonstrate that the tariffs were designed for a protective moral purpose—to impede money laundering. Colombia appealed to the WTO’s appellate body.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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