European Communities–Payments and Subsidies Paid to Processors and Producers of Oilseeds and Related Animal-Feed Proteins
General Agreement on Tariffs and Trade Panel
GATT B.I.S.D. 86 (January 25, 1990)

- Written by Josh Lee, JD
Facts
The United States (plaintiff) negotiated a trade concession with the European Economic Community (EEC) (defendant) on oilseeds and related products. The trade concession was to reduce the tariff on such products down to zero. After this agreement was reached, the EEC adopted domestic-production subsidies for domestic producers of oilseeds. As a result, the domestic producers were protected completely from the movement of prices of imported goods and the removal of the tariffs had no effect on the competitive relationship between domestic and imported oilseeds. The United States claimed that this subsidy violated the General Agreement on Tariffs and Trade (GATT), and the EEC argued that domestic subsidies were specifically permitted by the GATT.
Rule of Law
Issue
Holding and Reasoning ()
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