WORLD TRADE  
ORGANIZATION  WT/DS207/16 
7 January 2004 
 
 (04-0040) 
 Original:   Spanish 
  
 
 
CHILE – PRICE BAND SYSTEM AND SAFEGUARD MEASURES 
RELATING TO CERTAIN AGRICULTURAL PRODUCTS 
 
Understanding Between Argentina and Chile Regarding Procedures
 
Under Articles 21 and 22 of the DSU  
   The following communication, dated 24 December 2003, from the delegation of Argentina and the delegation of Chile to the Chairman of the Dispute Settlement Body, is circulated at the 
request of these delegations. 
 
_______________ 
 
  The Argentine Republic and the Republic of Chile would like to inform the Dispute 
Settlement Body that they have concluded th e attached "Understanding between the Argentine 
Republic and the Republic of Chile Regarding Proc edures Under Articles 21 and 22 of the DSU with 
Respect to the Dispute Chile – Price Band System and Safeguard Measures Relating to Certain 
Agricultural Products (WT/DS207)". 
 
 
 (signed) (signed)  Alicia de Hoz Alejandro Jara Puga  Minister Ambassador  Chargé d'Affaires a.i. Permanent Representative of Chile  Permanent Mission of the Argentine Republic to the WTO 
 to the United Nations Office at Geneva 
 WT/DS207/16 
Page 2  
 
 Understanding Between the Argentine Repub lic and the Republic of Chile Regarding 
Procedures Under Articles 21 and 22 of the DSU with Respect to the Dispute 
Chile – Price Band System and Safeguard Measures Relating 
to Certain Agricultural Products  (WTO/DS207) 
  
 Considering that on 23 October 2002 the Disput e Settlement Body (DSB) adopted the Report 
of the Appellate Body
1 and the Report of the Panel2 as modified by the Appellate Body in the dispute 
Chile – Price Band System and Safeguard Measu res Relating to Certain Agricultural Products;  
  Recalling that on 6 December 2002, Chile communicated a request to the DSB "that the 
determination of a reasonable period be the subj ect of binding arbitration, in accordance with 
Article 21.3(c) of the Understanding on Rul es and Procedures Governing the Settlement of 
Disputes."
3 
 
 Given that on 17 March 2003, the award of the arbitrator determined that the reasonable 
period of time for Chile to implement the recomme ndations and rulings of the DSB was 14 months 
from the date of adoption of the above-mentioned re ports, and that this reasonable period of time 
expired on 23 December 2003;   Considering that Argentina and Chile disagree, within the meaning of Article 21.5 of the 
DSU, as to the consistency of the measures taken by Chile with the recommendations and rulings of 
the DSB, and that it is therefore necessary to agree on the rules of procedure applicable to Article 21.5 
and 22.6 of the DSU for the exclusive purpo ses of the dispute referred to as WT/DS207; 
  The Argentine Republic and the Republic of Chile hereby agree as follows: 
 
1. If it so deems appropriate, Argentina shall request  consultations, which the parties shall agree 
to hold within 15 days from the date of circulation of the request.  Argentina and Chile agree that at 
the end of such consultations, should either party so state, the parties shall jointly consider that the 
consultations have failed to settle the dispute. 
2. Consequently, as from the date of the said statem ent, Argentina shall be entitled to request the 
establishment of a panel pursuant to Article 21.5 of the DSU. 
3. At the first DSB meeting in which Argentina's request for the establishment of an Article 21.5 
panel appears on the agenda, Chile shall accept the establishment of that panel. 
4. Argentina and Chile shall cooperate to enable the Article 21.5 panel to circulate its report 
within 90 days of the panel's establishment, ex cluding such time during which the panel's work may 
be suspended pursuant to Article 12.12 of the DSU. 
5. In case there is an appeal against the Article  21.5 panel report, Argentina and Chile shall 
cooperate to enable the Appellate Body to circulate its report within no more than 90 days from the 
date of notification of the appeal to the DSB. 
6. With respect to the adoption of the panel a nd Appellate Body reports in the Article 21.5 
proceedings, the time-frames of Articles 16 and 17.14 of the DSU shall apply. 
                                                     
 
1 WT/DS207/AB/R. 
2 WT/DS207/R. 
3 WT/DS207/9.  WT/DS207/16 
 Page 3 
 
 
 7. Argentina shall not request authorization to suspend concessions or other obligations under 
Article 22 of the DSU until the adoption by the DSB of the Article 21.5 reports.  If on the basis of the results of these reports, Argentina should decide to initiate proceedings under Article 22 of the DSU, 
Chile shall not assert that Argentina is precl uded from obtaining DSB authorization because its 
request was made outside the 30-day time-period sp ecified in Article 22.6 of the DSU.  This is 
without prejudice to Chile's right to have the ma tter referred to arbitration in accordance with 
Article 22.6. 
8. If Argentina requests authorization to suspend concessions or other obligations pursuant to 
Article 22.2 of the DSU, and if Chile objects under Ar ticle 22.6 of the DSU to the level of suspension 
of concessions or other obligations and/or makes a claim under DSU Article 22.3, the matter shall be 
referred to arbitration pursuant to DSU Article 22. 6.  Argentina shall not pose any objection to the 
referral of the matter to such arbitration. 
9. If any of the original panellists were not availa ble either for the Article 21.5 panel or for the 
Article 22.6 arbitration, or both, Argentina and Ch ile agree to request the Director-General of the 
WTO to appoint, as soon as possible, a replacement for the proceeding or pro ceedings in which such a 
replacement is required. 
10. Argentina and Chile agree to continue to co operate in all matters referred to in this 
Understanding and not to raise any procedural objections  to any of the steps set out therein.  If, during 
the application of these procedures, Argentina and Chile consider that a procedural aspect has not 
been properly addressed they shall endeavour to find a solution within the shor test time possible that 
will not affect the other aspects and steps herein agreed. 
 
 Agreed in Geneva on 24 December 2003   
 
 (signed) (signed)  Alicia de Hoz Alejandro Jara Puga  Minister Ambassador  Chargé d'Affaires a.i. Permanent Representative of Chile Permanent Mission of the Argentine Republic to the WTO 
 to the United Nations Office at Geneva 
 
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