./.WORLD TRADE
ORGANIZATIONTN/DS/W/31
22 January 2003
(03-0358)
Dispute Settlement Body
Special SessionOriginal:  English
CONTRIBUTION TO CLARIFY AND IMPROVE THE DISPUTE SETTLEMENT
UNDERSTANDING:  PANEL SYSTEM
Communication from Thailand
The following communication, dated 15 January 2003, has been received from the Permanent
Mission of Thailand.
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I. INTRODUCTION
1. One of the proposals made by the European Communities and its Member States for the
Improvement of the WTO Dispute Settlement Understanding, contained in document TN/DS/W/1, is
the establishment of a system of permanent panelists as an alternative to the current system for panel
composition under the DSU.
2. Taking account of views expressed by Members in formal and informal discussions,
Thailand's proposal combines various elements of current system with the EC's suggested modality,
which may or may not be used for a more gradual evolution of the current system, based on the
demonstrated preferences of WTO members participating in disputes.
3. The impact of this proposed alternative system would be minimal, as the current indicative
list of candidates for panelists would be maintained in order to facilitate the selection of suitable
experts to serve as panelists.  In addition, a Roster of Panel Chairs would be established comprised of
experienced individuals who are available to serve as chairs of panels on a regular basis.
II. OVERVIEW
4. The proposed system would provide parties with a greater range of options for panel
composition.  In addition to retaining the current practice (i.e. mutual agreement on a complete panel
based on nominations proposed by the Secretariat, or panel composition by the DG at the request of
either party), a further option will be provided that allows a party to request that the Panel Chair beappointed by lot.  Following appointment of the Pane l Chair, the parties can continue with the process
of panel composition based on nominations proposed by the Secretariat or DG appointment of the
remaining panelists.
5. This system would have the following benefits:
(a) Parties will have greater control over the panel composition process, and will retain
the right to have the panel composed within 30 days of panel establishment.TN/DS/W/31
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(b) Parties retain the possibility of agreeing on panelists nominated by the Secretariat,
and have the option of a more flexible automatic system for panel composition,
supplemented by a more dedicated and experienced pool of Panel Chairs.
(c) Parties have the added option of having an experienced Panel Chair appointed at any
stage during the panel composition process, while retaining the ability to agree onpanelists with necessary expertise in the subject mater of the relevant covered
agreements.
III. PROPOSED NEW PANEL COMPOSITION PROCESS
6. The DSB will approve a "Roster of Panel Chairs" comprised of individuals who may be
appointed as Chair of a Panel by lot.  The number of individuals on the Roster shall be adjusted
according to the level of demand for appointments fr om the Roster.  An indicative list of potential
candidates for inclusion in the Roster shall be prep ared by the Director-General, all of whom should
have the particular qualifications, experience and expertise as envisaged in Article 8 of the DSU, as
well as prior experience as panelist;  and should be available to serve as a Chair upon request.
7. An individual listed in the Roster shall not be nominated by the Secretariat to serve as a
panelist pursuant to Article 8.6 of the DSU.  An i ndividual listed in the Roster may be included in a
panel composed by the Director-General pursuant to Article 8.7 of the DSU, provided the individualis selected by drawing lot.
8. As provided under Article 8 of the DSU, the parties to a dispute may agree on a panel, or on
individual panelists, based on nominations proposed by the Secretariat pursuant to Article 8.6 of the
DSU.
9. If there is no agreement on the panelists within 20 days after the date of the establishment of a
panel, any of the parties to the dispute may make a request to the Director-General to take the
necessary action, within 10 days of the date on which the request is received, to:
(a) appoint the Chair of the panel, by drawing lot, from the Roster of Panel Chairs
mentioned in paragraph 6 above;  or
(b) determine the composition of the panel as provided for under Article 8.7 of the DSU,
giving full effect to the prior appointment of a Panel Chair and/or any agreement by
the parties on a panelist nominated by the Secretariat.
10. In situations where the Director-General has recei ved concurrent requests from the parties to a
dispute for the appointment of a Chair and the compos ition of the panel, the Director-General shall, in
consultation with the parties, proceed to determine the composition of the panel as provided for underArticle 8.7, including, where the Director-General considers it to be appropriate, through the
selection, by drawing lot, of a Chair from the Roster of Chairs.
IV. PROPOSED DRAFT LEGAL TEXT
11. The current provisions of Article 8 of the DSU appear to provide sufficient flexibility for the
proposed changes to be introduced without an amendment to the DSU.  It is therefore proposed thatthe DSB take a decision based on the elements set out under Section III above.
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