INTRODUCTION

India appeals from certain issues of law and legal interpretations in the Panel Report, United States - Measure Affecting Imports of Woven Wool Shirts and Blouses from India, WT/DS33/R (the “Panel Report”). That Panel was established on 17 April 1996 to consider a complaint by India against the United States relating to a transitional safeguard restraint imposed on imports of woven wool shirts and blouses (category 440) from India.

The measure was imposed by the United States on 14 July 1995 after bilateral consultations with India in April and June 1995 did not result in a mutually- agreed solution. The restraint was effective as from 18 April 1995 for one year and was later extended through 17 April 1997. The United States took this transitional safeguard action pursuant to Article 6 of the Agreement on Textiles and Clothing (the “ATC”). As required by Article 6.10 of the ATC, the United States referred the matter to the Textiles Monitoring Body (the “TMB”), which concluded and confirmed upon review that the transitional safeguard action in this case was imposed in accordance with the requirements of the ATC. The TMB found that “actual threat of serious damage had been demonstrated” and that “this actual threat could be attributed to the sharp and substantial increase in imports from India”. At India's request, the Dispute Settlement Body (the “DSB”) established a panel (the “Panel”) to examine the legality of the United States’ transitional safeguard measure.

After the release of the interim report of the Panel, the United States announced that it would withdraw the transitional safeguard measure, effective as of 22 November 1996, “due to a steady decline in imports of woven wool shirts and blouses from India and the adjustment of the industry”. Nevertheless, India requested that the Panel continue its work and produce a comprehensive report on the dispute. The Panel Report in United States - Measure Affecting Imports of Woven Wool Shirts and Blouses from India was circulated to the Members of the World Trade Organization (the “WTO”) on 6 January 1997. The Panel Report contains the following conclusions and recommendations: