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A WTO Dispute Settlement Body panel circulated its report in the EU challenge to U.S. §232 aluminum measures (DS621), finding the 2018 duties and the restructured 2026 rates inconsistent with GATT Articles I, II, and XI and not justified under the Article XXI security exception. The panel rejected the U.S. self-judging interpretation of the national-security exception, continuing the pattern established in Russia-Traffic in Transit and the 2022 §232 Steel disputes. Because the Appellate Body remains non-functional, the U.S. is expected to file an 'appeal into the void,' freezing the panel report and avoiding retaliation authorization. The EU has signaled it will invoke the MPIA (Multi-Party Interim Appeal Arrangement) even though the U.S. is not a party, and rebalancing measures under EU Regulation 2021/167 remain on the table for 2026 H2.
The panel expedited the report after the April 2 Section 232 restructuring raised rates on EU-origin aluminum, vitiating the 2021 U.S.-EU arrangement that had paused the original challenge.
The finding continues the pattern (Russia-Ukraine Transit, Saudi Arabia-IP, U.S.-Steel) of panels rejecting self-judging Article XXI claims. Because the Appellate Body remains non-functional, the U.S. can file 'appeal into the void,' freezing the panel report and avoiding retaliation authorization. The EU may invoke the MPIA (Multi-Party Interim Appeal Arrangement) even though the U.S. is not a party.