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WTO Rules Against Colombia's Apparel Duties

The World Trade Organisation Appellate Body has confirmed that Colombia’s compound tariff system on apparel, footwear and textile made-ups results in certain circumstances in duties in excess of the bound rates set forth in Colombia’s schedule of concessions. It has also ruled that Colombia failed to demonstrate that its compound tariff is a measure (i) necessary to protect public morals within the meaning of Article XX(a) of the General Agreement on Tariffs and Trade or (ii) necessary to secure compliance with Article 323 of Colombia’s Criminal Code within the meaning of Article XX(d) of the GATT. Following the decision of the Appellate Body, which settled a complaint filed by Panama in June 2013, Panamanian authorities urged Colombia to repeal the violative duties as soon as possible.

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