Thailand wins in EU poultry case - THAILAND - The Thai poultry industry would soon be able to boost exports to the EU after a WTO ruling found the EU wrong to arbitrarily raise import tariffs on chicken.

The decision issued Sep 12 by WTO's Appellate Body upheld a lower panel ruling that found that the EU's reclassification of frozen boneless chicken cuts to a higher tariff level violating the bloc's obligations under the General Agreement on Tariffs & Trade (GATT 1994).

The Appellate Body said WTO should tell the EC to correct its error and cut tariffs on chicken imports from Thailand and Brazil, the other country affected by the situation.

The two countries had argued that in July 2002, when the EC reclassified the frozen chicken imports, it had raised import tariffs from 15.4 percent ad valorem to EUR102.4 for each 100 kilograms.

The WTO panel ruled on May 30 that Brazil and Thailand's complaints were justified; the EU was wrong to reclassify the chicken products.

The EC appealed the panel's ruling to the WTO Appellate Body-the highest level at the international trade watchdog.

The Appellate Body announced that it upheld the panel's findings. The final ruling now goes to WTO's Dispute Settlement Body. The ruling is expected to be ratified later this month, when the EC will be told to drop its reclassification of the boneless chicken cuts.

China and the US participated in the appeal process as third parties, with China supporting arguments raised by Brazil and Thailand.

Source: eFeedLink - 22nd September 2005