GENEVA: A World Trade Organization dispute panel ruled against Colombia’s tariff on textiles, clothes and shoes on Friday, dismissing its argument that the measures were needed to fight -money laundering.
The WTO panel backed a complaint from Colombia’s neighbour Panama that the tariffs, which consisted of a fixed 10 percent and a variable component, breached the maximum allowable 35-40 percent tariff on those products.
Colombia had argued that the imported goods constituted “illicit trade” because they were imported as artificially low prices in order to launder money, vindicating its use of a higher tariff than was permitted under its WTO agreement.
But the panel said it had failed to demonstrate that the tariff was either designed or necessary to fight money laundering, and because the tariff did not apply to imports from various countries or trade zones with special trade deals, it was illegally discriminating against Panama.
Panama brought the case to the WTO in 2013, having previously lodged two complaints against its neighbour. Colombia settled the first out of court in 2006, and Panama won the second dispute in 2009.
Colombia has 60 days in which to appeal against the ruling.
Reuters
GENEVA: A World Trade Organization dispute panel ruled against Colombia’s tariff on textiles, clothes and shoes on Friday, dismissing its argument that the measures were needed to fight -money laundering.
The WTO panel backed a complaint from Colombia’s neighbour Panama that the tariffs, which consisted of a fixed 10 percent and a variable component, breached the maximum allowable 35-40 percent tariff on those products.
Colombia had argued that the imported goods constituted “illicit trade” because they were imported as artificially low prices in order to launder money, vindicating its use of a higher tariff than was permitted under its WTO agreement.
But the panel said it had failed to demonstrate that the tariff was either designed or necessary to fight money laundering, and because the tariff did not apply to imports from various countries or trade zones with special trade deals, it was illegally discriminating against Panama.
Panama brought the case to the WTO in 2013, having previously lodged two complaints against its neighbour. Colombia settled the first out of court in 2006, and Panama won the second dispute in 2009.
Colombia has 60 days in which to appeal against the ruling.
Reuters
