Book contents
- Frontmatter
- Contents (outline)
- Contents
- Foreword to the 1995–2013 edition
- List of Abbreviations for Parts I and II
- Part I Appellate Body Reports
- A
- B
- C
- D
- E
- F
- G
- H
- I
- J
- L
- M
- N
- O
- P
- Q
- R
- S
- T
- V
- W
- PART II Arbitration Awards under Article 21.3(c) of the DSU
- Annexes
- Abbreviations used in the Table of References to the Covered Agreements and Other Instruments and in the Indexes
- Table of References to the Covered Agreements and Other Instruments by Article
- Subject Index
- Subject Index by Case (Appellate Body Reports)
- Subject Index by Case (Arbitration Awards under Article 21.3(c) of the DSU)
D
from Part I - Appellate Body Reports
Published online by Cambridge University Press: 05 March 2015
- Frontmatter
- Contents (outline)
- Contents
- Foreword to the 1995–2013 edition
- List of Abbreviations for Parts I and II
- Part I Appellate Body Reports
- A
- B
- C
- D
- E
- F
- G
- H
- I
- J
- L
- M
- N
- O
- P
- Q
- R
- S
- T
- V
- W
- PART II Arbitration Awards under Article 21.3(c) of the DSU
- Annexes
- Abbreviations used in the Table of References to the Covered Agreements and Other Instruments and in the Indexes
- Table of References to the Covered Agreements and Other Instruments by Article
- Subject Index
- Subject Index by Case (Appellate Body Reports)
- Subject Index by Case (Arbitration Awards under Article 21.3(c) of the DSU)
Summary
Development. See Enabling Clause (E.1); SCM Agreement, Article 27 ' special and differential treatment for developing country Members (S.2.35)
Directly Competitive or Substitutable Products. See also National Treatment, Article III:2 of the GATT 1994, second sentence – “directly competitive or substitutable” products (N.1.6); Textiles and Clothing Agreement, Article 6.2 – “directly competitive products” (T.7.4)
D.1.1 Korea – Alcoholic Beverages, para. 114
(WT/DS75/AB/R, WT/DS84/AB/R)
The term “directly competitive or substitutable” describes a particular type of relationship between two products, one imported and the other domestic. It is evident from the wording of the term that the essence of that relationship is that the products are in competition. This much is clear both from the word “competitive” which means “characterized by competition”, and from the word “substitutable” which means “able to be substituted”. The context of the competitive relationship is necessarily the marketplace since this is the forum where consumers choose between different products. Competition in the market place is a dynamic, evolving process. Accordingly, the wording of the term “directly competitive or substitutable” implies that the competitive relationship between products is not to be analyzed exclusively by reference to current consumer preferences. In our view, the word “substitutable” indicates that the requisite relationship may exist between products that are not, at a given moment, considered by consumers to be substitutes but which are, nonetheless, capable of being substituted for one another.
D.1.2 Korea – Alcoholic Beverages, para. 115
(WT/DS75/AB/R, WT/DS84/AB/R)
Thus, according to the ordinary meaning of the term, products are competitive or substitutable when they are interchangeable or if they offer, as the Panel noted, “alternative ways of satisfying a particular need or taste”. Particularly in a market where there are regulatory barriers to trade or to competition, there may well be latent demand.
D.1.3 Korea – Alcoholic Beverages, para. 118
(WT/DS75/AB/R, WT/DS84/AB/R)
… “Like” products are a subset of directly competitive or substitutable products: all like products are, by definition, directly competitive or substitutable products, whereas not all “directly competitive or substitutable” products are “like”.
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- Information
- WTO Appellate Body Repertory of Reports and Awards1995–2013, pp. 421 - 442Publisher: Cambridge University PressPrint publication year: 2014