RESTRICTED
WORLD TRADE WT/DSB/W/37
4October 1996
ORGANIZATION(96-4067)
DISPUTE SETTLEMENT BODY
DISPUTE SETTLEMENT BODY
Draft Annual Report (1996)
Thepresent report hasbeenprepared inpursuance oftheProcedures foranAnnual Overview
ofWTO Activities andforReporting under theWTO (WT/L/105), andsetsouttheactions taken by
theDispute Settlement Body (DSB) since theprevious overview ofWTO activities heldinDecember
1995.
Incarrying outitstask,theDSBhasheld13meetings since December 1995. Theminutes
ofthese meetings, which remain therecord oftheDSB'swork, arecontained indocuments
WT/DSB/M/10-WT/DSB/M/22.
Thefollowing subjects areincluded inthereport:
Page
1. DSBschedule ofmeetings 2
2. Election ofChairperson 2
3. Working procedures oftheAppellate Body 2
4. Indicative listofgovernmental andnon-governmental panelists 3
5. Curricula vitaeofrepresentatives totheWTO 4
6. Mutually agreed solutions 4
7. Requests tobejoined inconsultations under theDSU 4
8. Recourse todispute settlement procedures 4
(a) Brazil 4
(i) Export financing programme foraircraft 4
(ii) Measures affecting desiccated coconut 4
(b) Canada 5
- Certain measures concerning periodicals 5
(c) European Communities 5
(i) Implementation oftheUruguay Round commitments concerning
rice 5
(ii) Measures affecting livestock andmeat(hormones) 6
(iii) Measures concerning meatandmeatproducts (hormones) 6
(iv) Régime fortheimportation, saleanddistribution ofbananas 6
(v) Trade description ofscallops 7WT/DSB/W/37
Page2
(d) Korea 7
- Measures concerning bottled water 7
(e) Pakistan 7
- Patent protection forpharmaceutical andagricultural chemical
products 7
(f) Poland 8
- Import régime forautomobiles 8
(g) Turkey 8
- Action onimports oftextiles andclothing 8
(h) United States 9
(i) Anti-dumping investigation regarding imports offresh orchilled
tomatoes from Mexico 9
(ii) Increase intherates ofdutyoncertain products oftheEuropean
Communities (Presidential Proclamation No5759 of24December
1987) 9
(iii) Measures affecting imports ofwomen 'sandgirls'wool coats 9
(iv) Measures affecting imports ofwoven wool shirts andblouses 10
(v) Restrictions onimports ofcotton andman-made fibreunderwear 10
(vi) Standards forreformulated andconventional gasoline 11
(vii) Tariff increases onproducts from theEuropean Communities 12
9. USdraft billconcerning thedefinition of"domestic industry" intheareaof
safeguards 12
10. Report onprogress ofpreparatory work fortheSingapore Ministerial Conference 12
11. DSBreport totheGeneral Council fortheSingapore Ministerial Conference 13
12. Summary conclusions 13
1. DSBschedule ofmeetings (WT/DSB/M/10)
AttheDSBmeeting on31January 1996, theChairman announced thattheschedule ofDSB
meetings for1996 hadbeencirculated inWTO/AIR/237 on12December 1995.
TheDSBtooknoteofthisinformation.
2. Election ofChairperson (WT/DSB/M/10)
Atitsmeeting on31January 1996, theDSBelected Mr.Celso Lafer (Brazil) asChairman
byacclamation.
3. Working procedures oftheAppellate Body (WT/DSB/M/10, 11)
AttheDSBmeeting on31January 1996, theChairman saidthatthework ontheprocedures
fortheappellate review hadbeencarried outbytheAppellate Body members inJanuary 1996. The
views expressed byMembers onthismatter hadbeenconveyed totheAppellate Body inaccordanceWT/DSB/W/37
Page3
withparagraph 14inWT/DSB/1. Anyother views byMembers onkeyissues wererequired tobe
conveyed totheChairman thefollowing day,astheAppellate Body wasfinalizing itsprocedures.
TheDSBtooknoteofthisinformation.
AttheDSBmeeting on21February 1996, theChairman drew attention totheworking
procedures oftheAppellate Body contained inWT/AB/WP/1, which hadbeencirculated on15February
1996 asanunrestricted document. Healsodrew attention toacovering letter fromtheChairman of
theAppellate Body which hadaddressed theissues ofinterest toMembers, andhadexplained thereasons
oftheAppellate Body foritsconclusions oncertain keyelements oftheworking procedures.
Therepresentatives ofMexico, Egypt, India, theUnited States, Chile, Canada andtheEuropean
Communities spoke.
TheDSBtooknoteofthestatements.
4. Indicative listofgovernmental andnon-governmental panelists (WT/DSB/M/10, 14,20,21,22)
AttheDSB meeting on31January 1996, theChairman drew attention todocument
WT/DSB/W/17 containing names ofcandidates forinclusion ontheindicative list,andproposed that
theDSBapprove thenames contained therein.
TheDSBsoagreed.
AttheDSBmeetingon17April1996,theChairmandrewattentiontodocumentsWT/DSB/W/21
andWT/DSB/W/24, containing names ofcandidates forinclusion ontheindicative list,andproposed
thattheDSBapprove thenames contained therein.
Therepresentative oftheUnited States spoke.
TheDSB took note ofthestatement andapproved thenames inWT/DSB/W/21 and
WT/DSB/W/24.
AttheDSBmeeting on5July1996, theChairman drewattention todocument WT/DSB/W/30
containing names ofcandidates forinclusion ontheindicative list,andproposed thattheDSBapprove
thenames contained therein.
TheDSBsoagreed.
AttheDSB meeting on15and16July1996, theChairman drew attention todocument
WT/DSB/W/33 containing names ofcandidates forinclusion ontheindicative list,andproposed that
theDSBapprove thenames contained therein.
TheDSBsoagreed.
AttheDSB meeting on27September 1996, theChairman drew attention todocument
WT/DSB/W/36 containing names ofcandidates forinclusion ontheindicative list,andproposed that
theDSBapprove thenames contained therein.
TheDSBsoagreed.WT/DSB/W/37
Page4
5. Curricula vitaeofrepresentatives totheWTO (WT/DSB/M/20)
AttheDSBmeeting on5July1996, theChairman proposed thatinorder tofacilitate thework
oftheSecretariat withregard tothecomposition ofpanels, Members wereinvited tosubmit thecurricula
vitaeoftheirGeneva-based representatives which might beconsidered toserve onpanels.
TheDSBtooknoteofthestatement.
6. Mutually agreed solutions (WT/DSB/M/15)
AttheDSBmeeting on24April 1996, theChairman drew attention totheobligation under
Article 3.6oftheDSUtonotify mutually agreed solutions tomatters formally raised under thedispute
settlement provisions.
Therepresentative ofIndia spoke.1
TheDSBtooknoteofthestatements.
7. Requests tobejoined inconsultations under theDSU (WT/DSB/M/13)
AttheDSB meeting on27March 1996, theChairman presented aproposal concerning
communications containing requests tobejoined inconsultations pursuant toArticle 4.11oftheDSU.
Thetextofthisproposal wassubsequently circulated inWT/DSB/W/23.
TheDSBagreed torevert tothismatter atitsnextmeeting.
8. Recourse todispute settlement procedures
(a) Brazil
(i) Export financing programme foraircraft (WT/DSB/M/22)
Atitsmeeting on27September 1996, theDSB considered arequest byCanada forthe
establishment ofapanel toexamine itscomplaint regarding Brazil 'sexport financing programme for
aircraft (WT/DS46/2).
Therepresentatives ofCanada, Brazil andJamaica spoke.
TheDSBtooknoteofthestatements andagreed withCanada 'sdecision thatitsrequest for
apanel inWT/DS46/2 bewithdrawn andthatanewrequest forapanel onthismatter becirculated
andconsidered bytheDSBatitsnextregular meeting.
(ii) Measures affecting desiccated coconut (WT/DSB/M/10, 11,12)
AttheDSBmeetingon31January1996,therepresentativeofthePhilippinesinformedMembers
thatconsideration oftherequest fortheestablishment ofapanel toexamine thePhilippines 'complaint
1Inresponse toIndia'srequest theSecretariat circulated document WT/DSB/W/35.WT/DSB/W/37
Page5
regarding Brazil 'scountervailing duties onimports ofdesiccated coconut would bepostponed
(WT/DS22/5).
Therepresentative ofBrazil spoke.
TheDSBtooknoteofthestatements andagreed torevert tothismatter atitsnextmeeting.
Atitsmeeting on21February 1996, theDSBconsidered arequest bythePhilippines forthe
establishment ofapanel toexamine itscomplaint regarding Brazil 'scountervailing duties onimports
ofdesiccated coconut (WT/DS22/5).
Therepresentatives ofthePhilippines, Brazil, Indonesia onbehalf ofASEAN countries, and
SriLanka spoke.
TheDSBtooknoteofthestatements andagreed, attherequest ofthePhilippines, toconvene
itsnextmeeting on5March inorder toreconsider thismatter.
Atitsmeeting on5March 1996, theDSBagain considered thismatter.
Therepresentatives ofthePhilippines andBrazil spoke.
TheDSBtooknoteofthestatements, agreed toestablish apanel toexamine thePhilippines '
request, andauthorized theChairman oftheDSBtodraw uptheterms ofreference ofthepanel in
consultation withtheparties tothedispute inaccordance withArticle 7.3oftheDSU.
Therepresentatives oftheUnited States, theEuropean Communities, Canada, Indonesia and
Malaysia reserved theirthird-party rights toparticipate inthepanel proceedings.
(b) Canada
- Certain measures concerning periodicals (WT/DSB/M/18 andCorr.1, 19)
Atitsmeeting on6June1996, theDSB considered arequest bytheUnited States forthe
establishment ofapanel toexamine itscomplaint regarding Canada 'smeasures concerning periodicals
(WT/DS31/2).
Therepresentatives oftheUnited States andCanada spoke.
TheDSBtooknoteofthestatements andagreed torevert tothismatter atitsnextmeeting.
Atitsmeeting on19June1996, theDSBagain considered thismatter.
Therepresentatives oftheUnited States andCanada spoke.
TheDSBtooknoteofthestatements andagreed toestablish apanel withstandard terms of
reference inaccordance withArticle 6oftheDSU.
(c) European Communities
(i) Implementation oftheUruguay Round commitments concerning rice
(WT/DSB/M/10)
AttheDSBmeeting on31January 1996, therepresentative ofUruguay informed Members
thathiscountry hadrequested consultations under Article XXII:1 ofGATT 1994 withtheEuropeanWT/DSB/W/37
Page6
Communities withrespect totheimplementation ofthecommitments onriceundertaken bythelatter
intheUruguay Round (WT/DS25/1 andCorr.1).
TheDSBtooknoteofthestatement.
(ii) Measures affecting livestock andmeat(hormones) (WT/DSB/M/22)
Atitsmeeting on27September 1996, theDSB considered arequest byCanada forthe
establishment ofapanel toexamine itscomplaint regarding European Communities 'measures affecting
livestock andmeat(WT/DS48/5).
Therepresentatives ofCanada andtheEuropean Communities spoke.
TheDSBtooknoteofthestatements andagreed torevert tothismatter atitsnextregular
meeting.
(iii) Measures concerning meatandmeatproducts (hormones) (WT/DSB/M/16,17)
Atitsmeeting on8May1996, theDSB considered arequest bytheUnited States forthe
establishment ofapanel toexamine itscomplaint regarding theEuropean Communities 'measures
concerning meatandmeatproducts (WT/DS26/6).
Therepresentatives oftheUnited States, theEuropean Communities andArgentina spoke.
TheDSBtooknoteofthestatements andagreed torevert tothismatter atitsnextmeeting.
Atitsmeeting on20May1996, theDSBagain considered thismatter.
Therepresentatives oftheUnited States andtheEuropean Communities spoke.
TheDSBtooknoteofthestatements andagreed toestablish apanel withstandard terms of
reference inaccordance withArticle 6oftheDSU.
Therepresentatives ofAustralia, Canada, NewZealand andNorway reserved theirthird-party
rights toparticipate inthepanel proceedings.
(iv) Régime for the importation, sale and distribution ofbananas
(WT/DSB/M/15, 16,19)
Atitsmeeting on24April 1996, theDSB considered arequest byEcuador, Guatemala,
Honduras, Mexico andtheUnited States fortheestablishment ofapanel toexamine theircomplaint
regarding theEuropean Communities 'regime fortheimportation, saleanddistribution ofbananas
(WT/DS27/6).
Therepresentatives ofGuatemala, onbehalf ofEcuador, Honduras, Mexico andtheUnited
States, theEuropean Communities andMexico, onbehalf ofEcuador, Guatemala, Honduras andthe
United States spoke.
TheDSBtooknoteofthestatements andagreed torevert tothismatter atitsnextmeeting.
Atitsmeeting on8May1996, theDSBagain considered thismatter.WT/DSB/W/37
Page7
Therepresentative ofGuatemala, onbehalf ofEcuador, Honduras, Mexico andtheUnited
States, therepresentative ofSt.Lucia, onbehalf ofBelize, Dominica, Dominican Republic, Grenada
andSt.Vincent andtheGrenadines, andtherepresentatives ofIndia, Côted'Ivoire, Cameroon, Ghana,
Jamaica, Dominican Republic, Costa Rica, Colombia, Nicaragua, Venezuela, Canada, theEuropean
Communities andtheUnited States spoke.
TheDSBtooknoteofthestatements andagreed toestablish apanel withstandard terms of
reference inaccordance withArticle 6oftheDSU.
Therepresentatives ofBelize, Cameroon, Colombia, Costa Rica, Côted'Ivoire, Dominica,
Dominican Republic, Ghana, Grenada, India, Jamaica, Japan, Nicaragua, thePhilippines, St.Lucia,
St.Vincent andtheGrenadines, Senegal, Thailand andVenezuela reserved theirthird-party rights to
participate inthepanel proceedings.
AttheDSBmeeting on19June1996, therepresentative ofJamaica expressed hercountry 's
concerns withregard tothedecision taken bythepanel ontheCommunities régime fortheimportation,
saleanddistribution ofbananas, togrant ACP countries observer status during thefirstsubstantive
meeting ofthepanel. Sherequested theChairman toinitiate consultations onthismatter.
Therepresentatives ofCameroon, Côted'Ivoire, theEuropean Communities, theUnited States
andtheChairman spoke.
TheDSBtooknoteofthestatements.
(v) Trade description ofscallops (WT/DSB/M/20)
AttheDSBmeeting on5July1996, therepresentative ofCanada, speaking onbehalf ofthe
European Communities, Chile andPeru, announced thatmutually agreed solutions hadbeenreached
inbothdisputes regarding theFrench labelling regulation onscallops (WT/DS7, WT/DS12 and
WT/DS14).
TheChairman spoke.
TheDSBtooknoteofthestatements.
(d) Korea
- Measures concerning bottled water (WT/DSB/M/15)
AttheDSBmeeting on24April 1996, therepresentative ofCanada announced thatKorea
andCanada hadreached amutually agreed solution withregard toKorea 'smeasures concerning bottled
water (WT/DS20/6).
Therepresentative ofKorea spoke.
TheDSBtooknoteofthestatement.
(e) Pakistan
- Patent protection forpharmaceutical andagricultural chemical products
(WT/DSB/M/21)WT/DSB/W/37
Page8
Atitsmeeting on15and16July1996, theDSBconsidered arequest bytheUnited States
fortheestablishment ofapanel toexamine itscomplaint regarding Pakistan 'spatent protection for
pharmaceutical andagricultural chemical products (WT/DS36/3).
Therepresentatives oftheUnited States andPakistan spoke.
TheDSBtooknoteofthestatements andagreed torevert tothismatter atafuture meeting.
(f) Poland
- Import régime forautomobiles (WT/DSB/M/21,22)
AttheDSBmeeting on15and16July1996, therepresentative ofIndia announced thatthe
authorities ofIndia andPoland hadreached amutually agreed solution withregard toPoland 'simport
régime forautomobiles (WT/DS19/1).
Therepresentative ofPoland spoke.
TheDSBtooknoteofthisinformation.
AttheDSBmeetingon27September1996,therepresentativeoftheUnitedStatessoughtfurther
clarification withregard tothesettlement reached between Poland andIndia onpassenger cars
(WT/DS19/2).
Therepresentatives oftheUnited States andPoland spoke.
TheDSBtooknoteofthestatements.
(g) Turkey
- Action onimports oftextiles andclothing (WT/DSB/M/11, 13,14,15)
AttheDSBmeeting on21February 1996, therepresentative ofHong Kong informed Members
thathisGovernment hadrequested consultations withTurkey withregard totheimplementation of
theCustoms Union between Turkey andtheEuropean Community (WT/DS29/1).
Therepresentatives ofthePhilippines, onbehalf ofMalaysia andThailand, India, Korea, Peru,
Argentina, Colombia, Brazil, Pakistan, Turkey andtheEuropean Communities spoke.
TheDSBtooknoteofthestatements.
AttheDSBmeeting on27March 1996, therepresentative ofIndia informed Members that
hisGovernmenthadrequestedconsultationswithTurkeyonquantitativerestrictionsimposedunilaterally
onimports ofabroad range oftextile andclothing products from India (WT/DS34/1).
Therepresentatives ofTurkey, Hong Kong, theEuropean Communities andJapan spoke.
TheDSBtooknoteofthestatements.
AttheDSBmeeting on27March 1996, therepresentative ofHong Kong saidthatsince the
thirty-day period toenterintoconsultations pursuant toArticle 4.3oftheDSUhadexpired, herequested
Turkey toconfirm itsreadiness toenter intoconsultations withHong Kong (WT/DS29/1).
Therepresentatives ofThailand, onbehalf ofMalaysia andthePhilippines, andTurkey spoke.WT/DSB/W/37
Page9
TheDSBtooknoteofthestatements.
AttheDSB meeting on17April 1996, therepresentative ofHong Kong expressed his
delegation 'sposition regarding theparticipation oftheEuropean Communities inconsultations which
Hong Kong hadrequested withTurkey (WT/DS29/1).
Therepresentatives ofThailand, onbehalf ofMalaysia andthePhilippines, India, Peru, Turkey,
Brazil, theEuropean Communities andCanada spoke.
TheDSBtooknoteofthestatements.
AttheDSBmeeting on24April 1996, therepresentative ofIndia expressed hisdelegation 's
position regarding theparticipation oftheEuropean Communities inconsultations which India had
requested withTurkey (WT/DS34/1).
Therepresentatives ofTurkey, theEuropean Communities andHong Kong spoke.
TheDSBtooknoteofthestatements.
(h) United States
(i) Anti-dumping investigation regarding imports offreshorchilled tomatoes from
Mexico (WT/DSB/M/20)
AttheDSBmeeting on5July1996, therepresentative ofMexico informed Members thathis
country hadrequested consultations withtheUnited States withregard totheanti-dumping investigation
onimports offresh orchilled tomatoes from Mexico (WT/DS49/1)
TheDSBtooknoteofthestatement.
(ii) Increase intheratesofdutyoncertain products oftheEuropean Communities
(Presidential Proclamation No5759of24December 1987) (WT/DSB/M/13)
AttheDSBmeeting on27March 1996, therepresentative oftheEuropean Communities drew
attention totheunilateral measures taken bytheUnited States under Presidential Proclamation No5759
of24December 1987, inretaliation fortheCommunities 'directive prohibiting theuseofhormones
anditsbanonimports ofbeeffrom cattle raised withtheuseofhormones.
Therepresentatives ofJapan andCanada spoke.
TheDSBtooknoteofthestatements.
(iii) Measures affecting imports ofwomen 'sand girls'wool coats
(WT/DSB/M/13,14)
Atitsmeeting on27March 1996, theDSBconsidered arequest byIndiafortheestablishment
ofapanel toexamine itscomplaint regarding theUnited States 'measures affecting imports ofwomen 's
andgirls'wool coats from India (WT/DS32/1).
Therepresentatives ofIndia andtheUnited States spoke.
TheDSBtooknoteofthestatements andagreed toconvene ameeting on17April inorder
torevert tothismatter.WT/DSB/W/37
Page10
Atitsmeeting on17April 1996, theDSBagain considered thismatter.
Therepresentatives ofIndia andtheUnited States spoke.
TheDSBtooknoteofthestatements andagreed toestablish apanel withstandard terms of
reference inaccordance withArticle 6oftheDSU.
Therepresentatives ofCanada, Costa Rica, theEuropean Communities, Norway, Pakistan
andTurkey reserved theirthird-party rights toparticipate inthepanel proceedings.1
(iv) Measures affecting imports ofwoven wool shirts and blouses
(WT/DSB/M/13,14)
Atitsmeeting on27March 1996, theDSBconsidered arequest byIndia fortheestablishment
ofapanel toexamine itscomplaint regarding theUnited States 'measures affecting imports ofwoven
wool shirts andblouses from India (WT/DS33/1).
Therepresentatives ofIndia andtheUnited States spoke.
TheDSBtooknoteofthestatements andagreed toconvene ameeting on17April inorder
torevert tothismatter.
Atitsmeeting on17April 1996, theDSBagain considered thismatter.
Therepresentatives ofIndia, theUnited States, Norway, theEuropean Communities, Canada
andPakistan spoke.
TheDSBtooknoteofthestatements andagreed toestablish apanel withstandard terms of
reference inaccordance withArticle 6oftheDSU.
Therepresentatives ofCanada, theEuropean Communities, Norway, Pakistan andTurkey
reserved theirthird-party rights toparticipate inthepanel proceedings.
(v) Restrictions onimports ofcotton and man-made fibre underwear
(WT/DSB/M/10, 11,12)
AttheDSBmeeting on31January 1996, therepresentative ofCosta Ricainformed Members
thathisauthorities hadrequested consultations withtheUnited States under Article 4oftheDSU,
Article XXIII oftheGATT 1994, andthecorresponding provisions oftheAgreement onTextiles and
Clothing withregard totheintroduction andimplementation ofquantitative restrictions onimports
ofcotton andman-made fibreunderwear (WT/DS24/1 andCorr.1).
Therepresentatives ofIndia andHong Kong spoke.
TheDSBtooknoteofthestatements.
1Initscommunication dated 25April 1996 andcirculated inWT/DS32/2, India informed theDSB thatin
response tothewithdrawal oftherestraint bytheUnited States, itsGovernment haddecided toterminate the
panel proceedings withregard tothisdispute.WT/DSB/W/37
Page11
AttheDSBmeeting on21February 1996, therepresentative ofCosta Ricarequested thata
meeting oftheDSBbeconvened within thenext15daysinorder toconsider Costa Rica'srequest
fortheestablishment ofapanel onthismatter.
TheDSBtooknoteofthestatement.
Atitsmeeting on5March 1996, theDSB considered arequest byCosta Rica forthe
establishment ofapanel onthismatter (WT/DS24/2).
Therepresentatives ofCosta RicaandtheUnited States spoke.
TheDSBtooknoteofthestatements andagreed toestablish apanel withstandard terms of
reference inaccordance withArticle 6oftheDSU.
(vi) Standardsforreformulatedandconventionalgasoline(WT/DSB/M/11,17,19,20)
On10April 1995, theDSBhadestablished apanel toexamine thismatter attherequest of
Venezuela. On31May1995, theDSBhadestablished apanel toexamine thismatter attherequest
ofBrazil. Atthatmeeting, pursuant toArticle 9oftheDSU inrespect ofmultiple complainants the
DSBhaddecided, withtheagreement ofallparties, thatthismatter beexamined bythepanel already
established attherequest ofVenezuela.
Atitsmeeting on21February 1996, theDSBconsidered thepanel report onthecomplaints
byVenezuela andBrazil contained inWT/DS2/R. Mr.Harbinson (Hong Kong), onbehalf ofMr.
Wong, Chairman ofthePanel, introduced thepanel report.
Therepresentatives ofVenezuela, theUnited States andBrazil spoke.
TheDSBtooknoteofthestatements andoftheUnited States 'decision toappeal thepanel
report inDS2/R.
Atitsmeetingon20May1996,theDSBconsideredtheAppellateBodyreportinWT/DS2/AB/R
andthePanel report inWT/DS2/R pertaining tothecomplaints byVenezuela andBrazil.
Therepresentatives ofVenezuela, Brazil, theUnited States, theEuropean Communities and
Japan spoke.
TheDSBtooknoteofthestatements, adopted theAppellate Body report inWT/DS2/AB/R
andthePanel report inWT/DS2/R asmodified bytheAppellate Body report, andagreed thatin
accordance withtheprocedures adopted bytheGATT 1947 Council inMay1988 (BISD 35S/331),
bothreports bederestricted.
AttheDSBmeeting on19June1996, theUnited States informed theDSBofitsintentions
inrespect ofimplementation oftherecommendations oftheDSBatitsmeeting of20May(WT/DS2/9).
Therepresentatives ofVenezuela, Brazil andNorway spoke.
TheDSBtooknoteofthestatements andoftheinformation provided bytheUnited States
regarding itsintentions toimplement therecommendations oftheDSB.
AttheDSBmeeting on5July1996, therepresentative ofVenezuela informed Members that
parties tothedispute haddecided toextend the45-day period stipulated inArticle 21.3oftheDSUWT/DSB/W/37
Page12
with aview ofreaching amutually agreed time-period fortheimplementation oftheDSB
recommendations.
Therepresentative ofBrazil spoke.
TheDSBtooknoteofthestatements.
(vii) Tariff increases onproducts fromtheEuropean Communities (WT/DSB/M/19,
20,21)
AttheDSBmeetingon19June1996,therepresentativeoftheEuropeanCommunitiesrequested
aspecial meeting oftheDSBinorder toconsider theCommunities 'request fortheestablishment of
apanel regarding tariff increases bytheUnited States oncertain export products from theEuropean
Communities (WT/DS39/2).
TheDSBtooknoteoftherequest.
Atitsmeeting on5July1996, theDSBconsidered arequest bytheEuropean Communities
fortheestablishment ofapanel toexamine theircomplaint regarding tariff increases bytheUnited
States oncertain export products from theEuropean Communities.
Therepresentatives oftheEuropean Communities andtheUnited States spoke.
TheDSBtooknoteofthestatements andagreed torevert tothismatter atitsnextmeeting.
AttheDSBmeeting on15and16July1996, theDSBagain considered thismatter.
Therepresentatives oftheEuropean Communities andUnited States spoke.
TheDSBtooknoteofthestatements.
9. USdraft billconcerning thedefinition of"domestic industry" intheareaofsafeguards
(WT/DSB/M/16)
AttheDSBmeeting on8May1996, therepresentative ofMexico expressed hisdelegation 's
concerns regarding thedraftbilltobesubmitted forapproval bytheUSSenate under which thedefinition
of"domestic industry" contained intheUSlegislation onsafeguards would beredefined.
Therepresentatives ofCanada, Argentina, Australia, Brazil, Chile, Costa Rica, Dominican
Republic, Egypt, ElSalvador, Guatemala, Honduras, NewZealand, Nicaragua, Norway, Peru, the
Philippines onbehalf ofASEAN countries, andUruguay spoke.
TheDSBtooknoteofthestatements.WT/DSB/W/37
Page13
10. Report onprogress ofpreparatory work fortheSingapore Ministerial Conference
(WT/DSB/M/21)
AttheDSBmeeting on15and16July1996, theChairman announced thatatthemeeting of
theGeneral Council scheduled for18Julyhewould present anoralreport ontheactivities oftheDSB
inimplementing theprovisions oftheDSU.
TheDSBtooknoteoftheinformation.
11. DSBreporttotheGeneralCouncilfortheSingaporeMinisterialConference(WT/DSB/M/20,22)
AttheDSBmeeting on5July1996, theChairman proposed thattheDSBsubmit itsannual
report forconsideration bytheGeneral Council atitsmeeting on7November 1996.
TheDSBtooknoteofthestatement.
AttheDSBmeeting on27September 1996, theChairman drew totheattention ofMembers
thatcertain aspects concerning theDSB'sactivities referred toinhisstatement made attheGeneral
Council meeting on18July1996, would beincluded intheannual report oftheDSBtobesubmitted
forapproval bytheDSBatitsmeeting on16October 1996.
Therepresentatives ofJamaica, Mexico andNorway spoke.
TheDSBtooknoteofthestatements.
12. Summary conclusions
TheDispute Settlement Body (DSB) hasbeeninoperation forjustunder 2years. Thepurpose
ofthissection istohighlight certain aspects ofthedispute settlement process during thisperiod.
Since January 1995, 37distinct matters havebeenraised intheDSBunder theprovisions of
theDSU.2Dispute settlement panels havebeenestablished inrespect of11different matters, 3of
which were ultimately settled without panel decisions being issued. Ofthe8remaining matters, 2
panel reports havebeencirculated, bothofwhich wereappealed totheAppellate Body. TheAppellate
Body hasissued reports inthe2cases, ineachreport itupheld theresults reached bythepanel, but
modified thepanel'slegalreasoning. Theremaining 6panels areexpected toissue theirreports in
duecourse.
There areanumber ofcomments thatmaybemade inlightoftheDSB'sexperience in1995
and1996. First, thenumber ofmatters referred totheDSBisconsiderably greater thanwasthenumber
under GATT during similar periods. Themajor trading nations, andparticularly theUnited States,
2There haveactually been51formal requests forconsultations under theDSUand2matters brought
before theDSBpursuant totheAgreement onTextiles andClothing (ATC), which doesnotrequire
consultations intheDSU, butrather allows parties torequest theestablishment ofapanel following
completion ofconsultation andother procedures under theATC.WT/DSB/W/37
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havebeenthemajor participants inthedispute settlement system, bothascomplaining andresponding
Members. Anoteworthy development, however, istheparticipation ofdeveloping Members inthe
system ascomplainants, bothagainst developed andagainst other developing countries. Thus there
isisevidence thattheincreased useofthesystem isoccurring across theboard.
Second, there havebeenasignificant number ofsettlements reached under theDSU. In6
ofthe37matters referred toit,theDSBhasbeenformally notified ofsettlements. Inaddition, in
7other matters theDSBhasnotreceived arequest fortheestablishment ofapanel, eventhough more
than6months haselapsed since theinitial request forconsultations, suggesting thatother settlements
mayhaveoccurred. Thisrecord suggests thattheDSUisfulfilling itsfunction ofpermitting, wherever
possible, Members toresolve disputes quickly, without resort totheformal panel procedures.
Third, theexperience oftheDSBtodateshows thatthereisincreased transparency intheWTO
dispute settlement system. TheDSUcontains aspecific obligation tonotify totheDSBmutually agreed
solutions tomatters formally raised under theconsultation anddispute settlement provisions ofthe
covered agreements. Todate, theDSBhasreceived 6notifications reporting thatamutually agreed
solution wasfound andtheChairman oftheDSBhasencouraged Members tomake fulluseofthis
provision.
Asthebody dealing withdisputes intheWTO, theDSB, inaccordance withtheprovisions
laiddown intheDSU, hasdecided thatitshallholdmeetings asoften asnecessary inorder tocarry
outitsfunctions. Since January 1995, theDSBhasheld22meetings. Thisnumber reflects bothregular
DSBmeetings andspecial meetings heldattherequest ofMembers. There weretwospecial meetings
heldin1995 andsince January 1996, three suchmeetings havebeenheld.
Among itsfunctions theDSB administers theindicative listofgovernmental andnon-
governmental panelists having expertise indifferent fields. Thislistofpanelists hasprovided the
possibility toobtain optimum expertise indifferent panels.
Following thetradition ofGATT, theDSBhasworked inaspirit ofpragmatism andhasfostered
greater cooperation amongst Members, thusfacilitating theobtention ofmutually acceptable solutions
totradedisputes.TheDSBhashowevermovedbeyondtheGATTdisputesettlementproceduresthrough
thecodification andprogressive development intheDSU ofpastpractices. Ittherefore provides
Members withboththepossibility ofreaching mutually satisfactory solutions totheirdisputes, and
withthecertainty ofalegalsolution tosuchdisputes, when necessary.
Itmaytherefore beconcluded thattheroleoftheDSBinmanaging thesettlement ofdisputes
within thenewmultilateral trading system under theWTO hasbeenpositive. TheDSU, under the
management oftheDSB, iscontributing togreater security andpredictability inrelations amongst
partners intheopenmultilateral trading system. Certain problems intheoverall operation ofthedispute
settlement system havebeenidentified. Inmostcases, however, working practices havebeendeveloped
tosolve these problems inapragmatic manner. Further experience intheoperation ofthesystem
isnevertheless required before itcanbefullyevaluated. Inthisrespect, theDecision byMinisters
toreview theoperation ofthesystem within 4years afteritsentryintoforcewillprovide anopportunity
forsuchanevaluation andfortheintroduction ofimprovements inthesystem ifnecessary.
Itcanfinally bestated thatthesuccessful operation ofthedispute settlement system during
thetwofirstyears ofitsexistence confirms thegrowing trustwhich governments areconferring to
theWTO andtheopenmultilateral trading system.