WORLD TRADE
ORGANIZATIONTN/DS/W/12
24 July 2002
(02-4069)
Dispute Settlement Body
Special SessionOriginal:  English
PROPOSAL BY COSTA RICA - THIRD PARTY RIGHTS
Communication from Costa Rica
The following communication, dated 15 July 2002, has been received from the Permanent
Mission of Costa Rica.
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Costa Rica has identified a number of areas where improvements of the Dispute Settlement
Understanding (DSU) are required in order to ensure that the interests of third parties are fully taken
into account in a dispute, as stated by Article 10.1 of DSU.
1. Objectives
The proposed amendments should:
• Strengthen the rights of third parties while preserving the expeditiousness and
effectiveness of the dispute settlement mechanism.
• Grant effective application to the existing Article 10.1 of the DSU.
• Build on past GATT/WTO practice and Public International Law in establishing rights of
third parties.
• Achieve a better balance between the rights of the parties and those of the third parties in
the dispute settlement system.
2. Proposed amendments to the DSU
Costa Rica proposes the following amendments to the DSU:
• Amend the provision that limits the right of third parties to join in consultations.
• Require the panel and the Appellate Body to accord due consideration to the arguments
presented by third parties, instead of merely reflecting their views in the descriptivesection of the report.
• Allow third parties access to all the submissions and other information submitted to the
panel or the Appellate Body, both by the parties to the dispute and other third parties.TN/DS/W/12
Page 2
• Extend the right of third parties to be present at the first substantive meeting to all the
subsequent meetings of the panel and the Appellate Body.
• Allow Members to reserve their right as third parties during the appellate review,
irrespective of whether said Member had reserved its right as third party during the panelstage, pursuant to the existing article 4.11 of the DSU.
• Make available to the third parties the submissions of the party or parties to the dispute,
as well as the panel and Appellate Body reports, at the same time as it is made availableto the parties to the dispute.  Third parties should also be allowed to present comments
during the interim review stage.
Article 4
Consultations
11. Whenever a Member other than the consulting Members considers that it has a substantial
trade
 interest in consultations being held pursuant to paragraph 1 of Article XXII of GATT 1994,
paragraph 1 of Article XXII of GATS, or the corr esponding provisions in other covered agreements4,
such Member may notify the consulting Members and the DSB, within 10 days after the date of the
circulation of the request for consultations under said Article, of its desire to be joined in the
consultations.  Such Member shall be joined in the consultations, provided that the Member to which
the request for consultations was addressed agrees that the claim of substantial interest is well-
founded.   In that event they shall so inform the DSB.  If the request to be joined in the consultations is
not accepted, the applicant Member shall be free to request consultations under paragraph 1 of
Article XXII or paragraph 1 of Article XXIII of GATT 1994, paragraph 1 of Article XXII or
paragraph 1 of Article XXIII of GATS, or the corr esponding provisions in other covered agreements.
Article 10
Third Parties
2. Any Member having a substantial interest in a matter before a panel and having notified its
interest to the DSB within 10 days after the date of the establishment of the panel  (referred to in
this Understanding as a "third party") shall have an opportunity to be heard by the panel and to make
written submissions to the panel.  These submissions shall also be given to the parties to the dispute
and shall be reflected in the panel report.  The panel shall endeavour to address in its findings the
arguments and views expressed by third parties as related to the terms of reference of the panel .
3. Third parties shall receive the submissions of the parties to the dispute to the first meeting of
the panel .  Each third party shall receive a copy of all documents or information submitted to
the panel, at the time of submission, except for certain factual confidential information
designated as such by the disputing party that submitted it.1  Third parties shall have the
opportunity to be present at all stages of the proceeding .
                                                     
1 Documents of an administrative or pro cedural nature need not be provided.TN/DS/W/12
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Article 12
Panel Procedures
1. Panels shall follow the Working Procedures in Appendix 3 unless the panel decides otherwise
after consulting the parties to the dispute.  This decision shall not limit the rights of third parties
unless they have also been consulted .
4. In determining the timetable for the panel process, the panel shall provide sufficient time for
the parties to the dispute and the third parties, to prepare their submissions.
5. Panels should set precise deadlines for written submissions by the parties and the third
parties,  and the parties and third parties  should respect those deadlines.
6. Each party to the dispute  and third party  shall deposit its written submissions with the
Secretariat for immediate transmission to the panel, to the other party or parties to the dispute and to
other third parties .  The complaining party shall submit its first submission in advance of the
responding party's first submission unless the panel decides, in fixing the timetable referred to in
paragraph 3 and after consultations with the parties to the dispute, that the parties should submit their
first submissions simultaneously.  When there are sequential arrangements for the deposit of first
submissions, the panel shall establish a firm time-period for receipt of the responding party's
submission.  Any subsequent written submissions shall be submitted simultaneously.
Article 15
Interim Review Stage
1. Following the consideration of rebuttal submi ssions and oral arguments, the panel shall issue
the descriptive (factual and argument) sections of its draft report to the parties to the dispute and to
the third parties .  Within a period of time set by the panel, the parties and third parties  shall submit
their comments in writing.
2. Following the expiration of the set period of time for receipt of comments from the parties to
the dispute, the panel shall issue an interim report to the parties and third parties , including both the
descriptive sections and the panel's findings and conclusions.  Within a period of time set by the
panel, a party may submit a written request for the panel to review precise aspects of the interim
report prior to circulation of the final report to the Members.  At the request of a party, the panel shall
hold a further meeting with the parties on the issues identified in the written comments.  If no
comments are received from any party  within the comment period, the interim report shall be
considered the final panel report and circulated promptly to the Members.
Article 17
Appellate Review
Standing Appellate Body
4. Only parties to the dispute, not third parties, may appeal a panel report.  Third parties which
have notified the DSB of a substantial interest in the matter pursuant to paragraph 2 of Article 10 may
make written submissions to, and be given an opportunity to be heard by, the Appellate Body.  Any
Member not having notified its interest pursuant to Article 10.2 but having subsequently notified itsTN/DS/W/12
Page 4
substantial interest to the Appellate Body and the DSB, within [x] days immediately following the
date of the notice of appeal, may make written submissions as a third party to, and be given an
opportunity to be heard by, the Appellate Body.  The Appellate Body shall endeavour to address in its
findings, the arguments and views expressed by third parties, as related to the matter of the appeal.
Article 18
Communications with the panel or Appellate Body
2. Written submissions to the panel or the Appellate Body shall be treated as confidential, but
shall be made available to the parties to the dispute  and to the third parties .  Nothing in this
Understanding shall preclude a party to a dispute fr om disclosing statements of its own positions to
the public.  Members shall treat as confidential information submitted by another Member to the panel
or the Appellate Body which that Member has designated as confidential.  A party to a dispute or
third party  shall also, upon request of a Member, provide a non-confidential summary of the
information contained in its written submissions that could be disclosed to the public.
Article 21.5
(Amendment already contained in WT/GC/410/Rev.1)
During the reasonable period of time, each party to the dispute shall accord sympathetic
consideration to any request from another party to the dispute for consultations with a view to
reaching a mutually satisfactory solution regarding the implementation of the recommendations or
rulings of the DSB.  When such consultations are entered in to, the parties shall afford to any
third party, which so requests, an adequate opportunity to express its views .TN/DS/W/12
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APPENDIX 3
WORKING PROCEDURES
3. The deliberations of the panel and the documents submitted to it shall be kept confidential.
Nothing in this Understanding shall preclude a party or third party  to a dispute from disclosing
statements of its own positions to the public.  Members shall treat as confidential information
submitted by another Member to the panel which that Member has designated as confidential.  Where
a party to a dispute or third party  submits a confidential version of it written submissions to the
panel, it shall also, upon request of a Member, provide a non-confidential summary of the information
contained in its submissions that could be disclosed to the public.
6. All third parties which have notified their interest in the dispute to the DSB shall be invited in
writing to present their views during a session of  the first  all the substantive meeting s that  of the
panel set aside for that purpose.  All such third parties may be present during the entirety of this
session .  Third parties shall have the opportunity to be present at all stages of the proceeding.
In establishing the working procedures to be followed the panel may take into consideration the
rights and any special circumstances of a third party that are closely related to the matter under
dispute.
10. In the interest of full transparency, the presentations, rebuttals and statements referred to in
paragraphs 5 to 9 shall be made in the presence of the parties and third parties .  Moreover, each
party's and third parties’  written submissions, including any comments on the descriptive part of the
report and responses to questions put by the panel, shall be made available to the other party or parties
and third parties .
12. Proposed timetable for panel work:
(d)  Date, time and place of second
substantive meeting with the parties and
third parties: 1-2 weeks
(e)  Issuance of descriptive part of the
report to the parties  and third parties :2 - 4  w e e k s
(f)  Receipt of comments by the parties and
third parties on the descriptive part of the report:    2 weeks
(g)  Issuance of the interim report,
including the findings and
conclusions, to the parties and third parties :2 - 4  w e e k s
(i)  Period of review by panel, including
possible additional meeting withparties and third parties :     2 weeks
(j)  Issuance of final report to parties
to dispute and third parties :     2 weeks
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