A World Trade Organisation (WTO) panel said on Friday that Turkey unfairly restricted imports of rice and discriminated against them, in a case brought by the United States. The United States had protested that Turkey was not granting certificates to import rice outside the quotas at which it admitted rice at low tariffs.
The panel sided with the United States in the dispute and said Turkey broke WTO rules by restricting imports. It said the WTO should ask Turkey to bring measures into line with WTO practice. The United States also challenged Turkish requirements that force importers to first buy large quantities of rice in Turkey before they can qualify for lower tariff levels on rice imported from other countries.
The panel found that this discriminated against imports, again breaking WTO rules. The panel made no recommendations because Turkey has dropped the practice and says it will not reintroduce it.
"The panel's findings will help to level the playing field and give US rice growers fair access to Turkey's market," US Trade Representative Susan Schwab said in a statement. "I urge Turkey to comply fully and permanently dismantle its discretionary import licensing system for rice," she added. Turkish domestic production of rice has been on an upward trend, especially since 2003, while imports have fallen significantly. Data presented by the United States to the panel showed that rice imports from the US to Turkey fell to 17,789 tonnes in January-November 2006 from 171,147 tonnes in all of 2003.
Turkey's Association of Rice Millers says Turkey consumed 560,000 tonnes of rice in 2004, the latest year for which it has figures. It produced 483,000 tonnes and imported 289,000 tonnes, with the United States, Egypt and Australia the main suppliers.
The WTO panel in the case was set up in March 2006, after consultations between Turkey and the United States that began in November 2005. Australia, China, the European Union, South Korea, Thailand, Argentina, Egypt and Pakistan were third-party observers to the dispute.
Turkey has two months to appeal, otherwise the report will go to the WTO's Dispute Settlement Body to be adopted, after which Turkey will have to negotiate with the US on how to end the dispute.