WTO backs Panama’s complaint over Colombian tariff on textiles and clothes

Colombia’s neighbour Panama case which had been brought to the World Trade Organization in 2013 against Colombia’s tariff on textiles, clothes and shoes was backed by the WTO panel. Panama had complaint 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.

Previously, Panama had lodged two complaints against its neighbor for which the first was settled by Colombia out of court in 2006, while the second dispute in 2009 was won by Panama.

The WTO 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.

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.

However, the WTO panel failed to demonstrate 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.

Recent Posts

Indorama Ventures partners for commercial-scale bio-PET bottles

Indorama Ventures has teamed up with Suntory, Iwatani, and others to introduce the first commercial-scale bio-PET bottle, made from certified…

14 hours ago

Milliken & Company launches innovative moisture barrier

Milliken & Company has introduced Milliken Assure, first flame-resistant moisture barrier for firefighter turnout gear that is free from PFAS…

14 hours ago

Paradise Textiles, Kintra Fibers launch bio-synthetic material garment

Paradise Textiles has collaborated with Kintra Fibers, a leader in bio-based fibers, to produce the first garment made from Kintra’s…

14 hours ago

Swisstulle advances dyeing efficiency with JigMaster

Swisstulle adopted JigMaster for its dyeing and finishing operations, especially for high-quality technical textiles used in fashion and automotive industries.

6 days ago

Birla Cellulose and Circ partner to scale textile recycling

Birla Cellulose, a leader under the Aditya Birla Group, has announced a long-term partnership with Circ, a U.S.-based textile recycling…

6 days ago

CARBIOS unveils enzymatically recycled polyester t-shirt

CARBIOS has collaborated with leading brands Patagonia, PUMA, Salomon etc. to create a groundbreaking polyester garment made entirely from textile…

6 days ago