WTO Panel Grants Victory to Panama in Colombia Textiles Case

A WTO dispute panel granted a victory last Friday to Panama in finding that a Colombian compound tariff on imports of textiles, apparel, and footwear is inconsistent with global trade rules. The compound tariff in the case has been imposed by Colombia on certain imports since 2013, with the tariff made up of a combination of 10 percent of the import priceas well as a “specific component,” the latter of which varies according to the import price and customs classification. Exempted from these tariffs, which were imposed by presidential decrees, include imports from countries with trade deals with Colombia under certain conditions; imports serving as production inputs; or imports entering certain regions of Colombia to improve local development, among others. These decrees are set to remain in force for a limited time, with the Colombian Customs Tariff in 2011 and related amendments set to take effect again once those decrees expire. Panama first requested consultations with Colombia in June 2013, later asking a WTO panel to hear the case ( DS461 ). Panama argued that the compound tariff results in duties greater than those outlined in Colombia’s WTO tariff schedule – thus violating Article II of the General Agreement on...