By Stern, B. (ed.), Ruiz Fabri, H. (ed.)
This bilingual quantity is the fourth in a sequence, which has the ambition to offer the jurisprudence of the WTO, in an easy, coherent and systematic style.
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Par. 98. 25 Korea – Taxes on Alcoholic Beverages On the question of whether the dissimilar taxation was applied so as to afford protection, the Panel adopted the reasoning which had been followed by the Panel and the Appellate Body in Japan – Taxes on Alcoholic Beverages II, namely that a very large tax differential supported a ﬁnding that dissimilar taxation was applied so as to afford protection. In this case the differences in taxation were very large. Moreover, the design, architecture and structure of the two Korean laws at issue were consistent with that ﬁnding.
The complainants, the European Communities and the United States, complained that Korea’s tax regime was protecting Korea’s domestic production of soju – a traditional Korean spirit – at the expense of foreign alcoholic beverages, even though these beverages and soju were “like” and/or “directly competitive or substitutable”. The Panel found that it was indeed wrong of Korea to apply dissimilar taxation to products which were directly competitive or substitutable. 2 of the GATT, the foundations of which had been laid in Japan – Taxes on Alcoholic Beverages, to which this Korean case bears many similarities.
22 The question of whether or not the products concerned were “similarly taxed” did not detain the Panel for long, as the differentials were very clearly in excess of de minimis levels. , para. 94. , para. 95. , para. 98. La jurisprudence de l’OMC 24 Circuits de distribution et les points de vente La Corée tentait de mettre en avant que le soju était vendu dans les restaurants coréens traditionnels ; les boissons de type occidental se vendaient au contraire dans des établissements « chics », « haut de gamme » et chers.