RESTRICTEDWORLD TRADE
ORGANIZATIONWT/DSB/W/86
13 November 1998
(98-4512)
Dispute Settlement Body
DISPUTE SETTLEMENT BODY
Draft Annual Report (1998)1
The present report has been prepared in pursuance of the Procedures for an Annual Overview
of WTO Activities and for Reporting under the WTO (WT/L/105), and sets out the actions taken by
the Dispute Settlement Body (DSB) in the period since its previous annual report.2
In carrying out its task, the DSB has held 11 meetings since the period covered by the
previous report.  The minutes of these meetings, which remain the record of the DSB's work, are
contained in documents WT /DSB/M/40 – WT/DSB/M/50.
The following subjects are included in the report:
             Page
1. Election of Chairperson ..................................................................................................... ......3
2. Indicative list of governmental and non-governmental panelists  .......................................33. Review of the DSU ........................................................................................................... ........4
4. Confidentiality of documents in dispute settlement procedures ..........................................5
5. Delay in circulation of panel reports ......................................................................................5
6. Informal note by the Secretariat concerning notifications of mutually agreed
soluti ons ..................................................................................................................... ...............5
7. Next meeting of the DSB ..................................................................................................... .....6
8. Concluding remarks by the Chairman ..................................................................................69. Anti-dumping investigation by Ecuador on imports of cement from Mexico ....................7
10. European Communities  - Regime for the importation, sale and distribution of
bananas ....................................................................................................................... ..............7
11. United States  - The Cuban Liberty and Democratic Solidarity Act ..................................8
12. Recourse to dispute settlement procedures ............................................................................9
(a) Argen tina ................................................................................................................... .................9
(i) Measures affecting imports of footwe ar, textiles, apparel and other items ...............................9
(ii) Safeguard measures on imports of footwear .............................................................................9
(b) Austr alia................................................................................................................... .................10
                                                     
1 The Overview of the State of Play of WTO Disputes since 1 January 1995 to 31 October 1998
prepared by the Secretariat on its own responsibility is included, for practical purposes, in an Addendum to this
report.
2 WT/DSB/10 and Corr.1.WT/DSB/W/86
Page 2
(i) Measures affecting im portation of salmon ..............................................................................10
(ii) Subsidies provided to producers an d exporters of auto motive leather ....................................10
(c) Brazil...................................................................................................................... ...................11
(i) Export financing programme for aircraft ................................................................................11
(d) Canada ...................................................................................................................... ................11
(i) Measures affecti ng dairy exports ........................................................................................... ..11
(ii) Measures affecting the ex port of civilian aircraft ....................................................................11
(iii) Measures affecting the importation of milk  and the exportation of dairy products .................12
(e) Ch ile....................................................................................................................... ...................12
(i) Taxes on alc oholic beverages ............................................................................................... ...12
(f) Czech Republic.............................................................................................................. ...........13
(i) Measure affecting import du ty on wheat from Hungary ..........................................................13
(g) European Commun ities........................................................................................................ .....13
(i) Customs classification of cer tain computer equipment ...........................................................13
(ii) Measures affecting asbestos a nd products containing asbestos ..............................................13
(iii) Measures affecting the grant of copyright and neighbouring rights .......................................13
(iv) Measures affecting the importati on of certain poultry products .............................................14
(v) Measures concerning meat and meat products (hormones) ....................................................14(h) India ....................................................................................................................... ...................15
(i) Patent protection for pharmaceutical and agricultural chemic al products ............................15
(ii) Quantitative restrictions on imports of agr icultural, textile and i ndustrial products ..............16
(i) Indonesia................................................................................................................... ................16
(i) Certain measures affecti ng the automobile industry ...............................................................16
(j) Japan ....................................................................................................................... ..................17
(i) Measures affecting consumer photographic film and paper ...................................................17
(ii) Taxes on alc oholic beverages .............................................................................................. ....17
(k) Korea....................................................................................................................... ..................17
(i) Definitive safeguard measur e on certain dair y products .........................................................17
(l) Mexico ...................................................................................................................... ................18
(i) Anti-dumping investigation of high-fructose corn syrup (HFCS) from the United
States ........................................................................................................................ ................18
(m) Phili ppines ................................................................................................................. ...............18
(i) Measures affecting pork and poultry .......................................................................................1 8
(n) Slovak Republic............................................................................................................. ...........18
(i) Measure affecting import du ty on wheat from Hungary ..........................................................18
(o) Turkey...................................................................................................................... .................19
(i) Restrictions on imports of te xtile and clothing products .........................................................19WT/DSB/W/86
Page 3
(p) United States............................................................................................................... ..............19
(i) Anti-dumping duty on dynamic random access memory semiconductors (DRAMS) of
one megabit or above from Korea ...........................................................................................19
(ii) Imposition of anti-dumping duties on impor ts of colour television receivers from
Korea ......................................................................................................................... ..............20
(iii) Import prohibition of certain shrimp and shrimp products .....................................................20
(iv) Measure affecting gov ernment proc urement ...........................................................................20
(v) Measures affecting textil es and apparel products ...................................................................21
(vi) Tax treatment for "Forei gn Sales Corporations" ....................................................................21
13. Surveillance of implementation of recommendations adopted by the DSB.......................21
(a) Canada ...................................................................................................................... ................22
(i) Certain measures co ncerning periodicals ...............................................................................22
(b) European Commun ities........................................................................................................ .....23
(i) Regime for the impor tation, sale and dist ribution of bananas ................................................23
1. Election of Chairperson (WT/DSB/M/40,43 and Corr.1)
At the DSB meeting on 16 January 1998, the Chairman proposed that the DSB formally elect
its Chairperson at its next meeting following the meeting of the General Council to be held on
19 February.
The DSB took note of this information.
At its meeting on 13 March 1998, the DSB elected Mr. Kamel Morjane (Tunisia) as Chairman
by acclamation.
2. Indicative list of governmental and non-governmental panelists
(WT/DSB/M/41,44,45,47,48)
At its meeting on 22 January 1998, the DSB approved the names contained in
WT/DSB/W/69/Rev.1 proposed for inclusion on the in dicative list in accordance with Article 8.4 of
the DSU.
At its meeting on 25 March 1998, the DSB approved the names contained in WT/DSB/W/76
proposed for inclusion on the indicative list in accordance with Article 8.4 of the DSU.
The representative of the United States spoke.The DSB took note of the statement.
At is meeting on 22 April 1998, the DSB approved the names contained in WT/DSB/W/72
proposed for inclusion on the indicative list in accordance with Article 8.4 of the DSU.
At its meeting on 23 July 1998, the DSB appr oved the names contained in WT/DSB/W/80
proposed for inclusion on the indicative list in accordance with Article 8.4 of the DSU.WT/DSB/W/86
Page 4
At its meeting on 22 September 1998, the DSB approved the names contained in
WT/DSB/W/82 proposed for inclusion on the indicativ e list in accordance with Article 8.4 of the
DSU.
The representative of the United States spoke.
The DSB took note of the statement.
3. Review of the DSU (WT/DSB/M/42,44,45,46,47,48)
At the DSB meeting on 13 February 1998, the Chairman drew attention to a report outlining
the outcome of his consultations on procedural aspe cts of the DSU review.  He proposed that the DSB
take note of this report as a basis for further discussion (WT/DSB/W/74).
The DSB so agreed.At the DSB meeting on 25 March 1998, the Chairman invited delegations to continue their
work concerning the DSU review in two stages:  (i) in the first preliminary stage until the May 1998
Ministerial Conference, delegations would be invited to submit in writing to he Chairman of the DSB
informal suggestions with regard to the issues to be  taken up in the context of the DSU review;  (ii) in
the second stage, after the May 1998 Ministerial Conference, an informal meeting of the DSB would
be convened to take stock of the suggestions received and to discuss how to proceed further.
The representatives of Mexico, European Communities, Korea, United States, Japan,
Venezuela, Canada, Philippines on behalf of the ASEAN countries, Jamaica, Australia, Hungary, and
Hong Kong, China spoke.
The DSB took note of the statements.At the DSB meeting on 22 April 1998, the Chairman recalled that the proposal concerning the
review of the DSU, which had been made at the DSB meeting on 25 March 1998, had been revised in
the light of the discussions and had been faxed to delegations.  He informed Members that an informal
meeting of the DSB would be held on 29 April to further discuss procedural aspects of the DSUreview.
The DSB took note of the information.At the DSB meeting on 22 June 1998, the Chairman read out a statement concerning the DSU
review.  In light of the comments made, he proposed that an informal meeting of the DSB be held to
further consider this matter.
The representatives of India, Bulgaria and Mexico spoke.
The DSB took note of the statements.At the DSB meeting on 23 July 1998, Mr. Lafer, acting Chairman, read out a revised draft
statement concerning procedures for the DSU review.
The DSB took note of the statement.At the DSB meeting on 22 September 1998, the Chairman informed delegations that the
Secretariat had prepared a compilation of the informal and preliminary comments submitted by
Members for the DSU Review (Job No. 4762) as well as statistical information relating to theWT/DSB/W/86
Page 5
operation of the DSU (Job No. 4750).  It was his inte ntion to hold an informal meeting of the DSB in
order to start the examination of the compilation and to discuss how to organize further work.
The DSB took note of this information.
4. Confidentiality of documents in dispute settlement procedures (WT/DSB/M/41, 45)
At the DSB meeting on 22 January 1998, the EC representative expressed his delegation's
concern about the breach of confidentiality regarding the Panel established at the request of Brazil to
examine the EC's measures affecting importation of certain poultry products (WT/DS69).  He wished
to place on record the EC's concerns that the strict conditions of confidentiality under Article 18.2 of
the DSU should be respected by all parties.
The representatives of the European Communities and Brazil spoke.
The DSB took note of the statements.At the DSB meeting on 22 April 1998, the representative of Indonesia expressed concerns
that the interim report of the Panel on "Indonesia – Certain Measures Affecting the Automobile
Industry", which was to be strictly confidential had been leaked to the press.  Indonesia believed that
the DSB should seriously consider the question of  the leaking of panels and the Appellate Body
reports.
The representatives of Indonesia, United States, European Communities, India and Thailand
spoke.
The DSB took note of the statements.
5. Delay in circulation of panel reports (WT/DSB/M/46)
At the DSB meeting on 22 June 1998, the representative of Japan expressed concern with
regard to delays in circulation of panel reports du e to the workload in translation.  In particular, he
drew attention to the Panel Report on "Indonesia – Certain Measures Affecting the AutomobileIndustry", which had been circulated to the parties to the dispute on 22 April 1998 but had not yet
been circulated to Members due to technical reasons.
The representatives of Japan, European Communities, United States, Canada and Mexico
spoke.
The DSB took note of the statements.
6. Informal note by the Secretariat concerning notifications of mutually agreed solutions
(WT/DSB/M/45)
At the DSB meeting on 22 April 1998, the representative of Uruguay drew attention to an
informal note prepared by the Secretariat concerning notifications of mutually agreed solutions (Job
No. 1773), and proposed that this matter be included on the agenda of the next regular meeting of the
DSB.
The DSB took note of the statement.WT/DSB/W/86
Page 6
7. Next meeting of the DSB (WT/DSB/M/41,46,47,49)
At the DSB meeting on 22 January 1998, the Chairman proposed to reschedule the next
regular meeting the DSB in order to consider the adoption of the Appellate Body Report and the Panel
Report on "EC – Measures Concerning Meat and Meat Products (Hormones)" (WT/DS26, WT/DS48)
within the time-period required under Article 17.14 of the DSU.
The DSB took note of this information.
At the DSB meeting on 22 June 1998, the Chairman said that the Panel Report on "United
States – Import Prohibition of Sh rimp and Shrimp Products" (WT/DS58/R) had to be submitted for
adoption by the DSB before 14 July, unless appealed by a party to the dispute.  Since there was no
regular meeting scheduled during this period he proposed that the DSB hold a special meeting for this
purpose on the understanding that if one of the parties appealed the Report such a meeting would becancelled.
The representatives of India, Thailand, Ecuador, Mexico and the Secretary of the DSB spoke.The DSB took note of the statements.At the DSB meeting on 23 July 1998, the Chairman drew attention to the fact that a 60-day
time-period for adoption of the Panel Report on "Guatemala – Anti-Dumping Investigation Regarding
Imports of Portland Cement from Mexico" (WT/DS60/R), which had been in circulation since
19 June, would expire on 18 August.  He said that if a request to convene a DSB meeting within thatperiod of time would be made such a meeting would have to be held accordingly.
The representatives of Mexico, European Communities, India, Guatemala, Thailand and the
Secretary of the DSB spoke.
The DSB took note of the statements.
At the DSB meeting on 21 October 1998, the Chairman proposed to hold a special meeting of
the DSB for the purpose of adoption of the Appellate Body Reports:  (i) "United States – Import
Prohibition of Certain Shrimp and Shrimp Product s" (WT/DS58); and (ii) "Australia – Measures
Affecting Importation of Salmon" (WT/DS18).  He recalled that the current practice was to limit the
agendas of special meetings only to those matters which required the convening of special meetings.
The DSB took note of this information.
8. Concluding remarks by the Chairman (WT/DSB/M/42)
At the DSB meeting on 13 February 1998, the outgoing Chairman of the DSB,
Mr. W. Armstrong (New Zealand), made concluding remarks.
The representative of India spoke.
The DSB took note of the statements.WT/DSB/W/86
Page 7
9. Anti-dumping investigation by Ecuador on imports of cement from Mexico
(WT/DSB/M/46)
At the DSB meeting on 22 June 1998, the representative of Mexico informed the DSB that in
February 1998, Ecuador had decided to initiate an anti-dumping investigation on imports of cement
from Mexico.  Mexico considered that this investigation, which had not been conducted in
compliance with the provisions of the Anti-Dumping Agreement, should have never been initiated.
The representatives of Mexico and Ecuador spoke.The DSB took note of the statements.
10. European Communities  - Regime for the importation, sale and distribution of bananas
(WT/DSB/M/41,42,44,45,46,48)
At the DSB meeting on 22 January 1998, the representative of Guatemala expressed his
delegation's concerns about the EC's proposal to modify its banana import regime in order to
implement the DSB's recommendations.  In particular, Guatemala was concerned that this proposal, ifapproved, would lead to a more discriminatory banana regime than the current one.
The representatives of Guatemala, Mexico, Honduras, United States, Panama, Ecuador,
European Communities, Norway  and the Chairman spoke.
The DSB took note of the statements.At the DSB meeting on 13 February 1998, the representative of Mexico, speaking also on
behalf of Ecuador, Guatemala, Honduras, Panama and the United States, informed the DSB that the
six countries had received the Commission's proposal regarding the EC's banana import regime.Following the examination of this proposal, they considered that if this proposal was implemented itwould result in a banana import regime incompatible with the WTO rules.
The representatives of Mexico, speaking also on behalf of Ecuador, Guatemala, Honduras,
Panama and the United States, as well as the representatives of Ecuador and the EuropeanCommunities spoke.
The DSB took note of the statements.At the DSB meeting on 25 March 1998, the representative of Ecuador, speaking also on
behalf of Guatemala, Honduras, Mexico, Panama and the United States, reiterated concerns with
regard to the EC's proposal to modify its banana import regime.
The representative of Ecuador, speaking also on behalf of Guatemala, Honduras, Mexico,
Panama and the United States, as well as the representatives of the European Communities andColombia spoke.
The DSB took note of the statements.At the DSB meeting on 22 April 1998, the representative of Ecuador, speaking also on
behalf of Guatemala, Honduras, Mexico, Panama and the United States, expressed concerns that the
EC's proposal on its banana import regime was WTO-inconsistent.  He drew attention to newWT/DSB/W/86
Page 8
claims made by the European Communities in order to justify its proposal and provided a brief
explanation as to why the position of the six countries remained unchanged on this matter.
The representative of Ecuador, speaking also on behalf of Guatemala, Honduras, Mexico,
Panama and the United States, as well as the representatives of Colombia, European Communitiesand Costa Rica spoke.
The DSB took note of the statements.At the DSB meeting on 22 June 1998, the US representative, speaking also on behalf of
Ecuador, Guatemala, Honduras, Mexico and Panama, expressed the six-countries' continued
concerns about the EC's proposal with regard to the implementation of the DSB's recommendationson its banana import regime.
The representative of the United States, speaking also on behalf of Ecuador, Guatemala,
Honduras, Mexico and Panama as well as the representatives of Ecuador and the EuropeanCommunities spoke.
The DSB took note of the statements.
At the DSB meeting on 22 September 1998, the representative of the United States, speaking
also on behalf of Ecuador, Guatem ala, Honduras, Mexico and Panama said that the item was on the
agenda for information purposes only.  He expressed concerns about the EC's refusal of the requestmade by the complaining parties pursuant to Article 21.5 of the DSU (WT/DS27/21) that the original
panel examine the consistency of the EC's revised measures with the DSB's recommendations.
The representative of the United States, speaking also on behalf of Ecuador, Guatemala,
Honduras, Mexico and Panama, as well as the representatives of the European Communities,Colombia, Cuba, Saint Lucia, Jamaica, Brazil, Argentina, Costa Rica, Japan, Côte d'Ivoire,
Venezuela, Australia, Dominican Republic, Nicaragua, Ecuador, Honduras, Philippines and
Guatemala spoke.
The DSB took note of the statements.
11. United States  - The Cuban Liberty and Democratic Solidarity Act (WT/DSB/M/45,46)
At the DSB meeting on 22 April 1998, the representative of Cuba said that the panel
established at the request of the European Communities to examine the Helms-Burton Act
(WT/DS38) had lapsed since its work had not been re-activated within the period of 12 months
pursuant to Article 12.12 of the DSU.  He reserved his country's rights under the WTO Agreement torevert to this matter, if necessary.
The DSB took note of the statement.At the DSB meeting on 22 June 1998, the representative of Cuba sought clarification from the
European Communities with regard to its agreement of 18 May 1998 with the United States regarding
the Helms-Burton Act.  In particular, he was concerned that this agreement had not been notified to
the DSB pursuant to Article 3.6 of the DSU.
The representatives of Cuba and the European Communities spoke.The DSB took note of the statements.WT/DSB/W/86
Page 9
12. Recourse to dispute settlement procedures
(a) Argentina
(i) Measures affecting imports of footwear, textiles, apparel and other items (WT/DSB/M/45,46)
In February 19973, the DSB had established a panel to examine this matter at the request of
the United States.  In January 1998, Argentina had notified the DSB of its intention to appeal
certain issues of law and legal interpretations developed by the Panel.
At its meeting on 22 April 1998, the DSB considered the Appellate Body Report in
WT/DS56/AB/R and Corr.1 and the Panel Report in WT/DS56/R, pertaining to the complaint by
the United States.
The representatives of the United States, Argentina and the European Communities spoke.The DSB took note of the statements and adopted the Appellate Body Report in
WT/DS56/AB/R and Corr.1 and the Panel Report in WT/DS56/R as modified by the AppellateBody Report.
Following the adoption of the Reports, the representative of the IMF, speaking as an
observer, and India spoke.
The DSB took note of the statements.At the DSB meeting on 22 June 1998, the representative of Argentina informed the DSB
that his country and the United States had agreed on a reasonable period of time and modalities for
the implementation of the DSB's recommendations.  In accordance with this agreement, Argentinahad undertaken to bring its specific duties on textiles and apparel into conformity with the DSB'srecommendations by 19 October 1998.  With regard to its statistical tax, Argentina would completethe implementation process by 1 January 1999.
The representatives of Argentina and the United States spoke.The DSB took note of the statements.
(ii) Safeguard measures on imports  of footwear (WT/DSB/M/46,47)
At its meeting on 22 June 1998, the DSB considered a request by the European Communities
for the establishment of a panel to examine its co mplaint regarding Argentina's safeguard measures on
imports of footwear (WT/DS121/3).
The representatives of the European Communities and Argentina spoke.The DSB took note of the statements and agreed to revert to this matter.
At its meeting on 23 July 1998, the DSB again considered this matter.
The representatives of the European Communities and Argentina spoke.
                                                     
3 WT/DSB/M/29.WT/DSB/W/86
Page 10
The DSB took note of the statements and agreed to establish a panel in accordance with the
provisions of Article 6 of the DSU with standard terms of reference.
The representatives of Brazil, Indonesia, Paraguay, United States and Uruguay reserved their
third-party rights to participate in the Panel proceedings.
(b) Australia
(i) Measures affecting importat ion of salmon (WT/DSB/M/50)
In 19974, the DSB had established a panel to examine this matter at the request of Canada.  In
July 1998, Australia had notified the DSB of its intention to appeal certain issues of law and legal
interpretations developed by the Panel.
At its meeting on 6 November 1998, the DSB considered the Appellate Body Report in
WT/DS18/AB/R and the Panel Repo rt in WT/DS18/R and Corr.1, pertaining to the complaint by
Canada.
The representatives of Canada, Australia, Norway, United States and the European
Communities spoke.
The DSB took note of the statements and adopted the Appellate Body Report in
WT/DS18/AB/R and the Panel Report in WT/DS18/ R and Corr.1 as modified by the Appellate Body
Report.
(ii) Subsidies provided to producers and exporters of automotive leather (WT/DSB/M/41,46)
At its meeting on 22 January 1998, the DSB considered a request by the United States for
the immediate establishment of a panel pursuant to Article 4.4 of the Agreement on Subsidies and
Countervailing Measures (SCM) to examine Australia 's subsidies provided to its producers and
exporters of automotive leather (WT/DS106/2).
The representatives of the United States and Australia spoke.The DSB took note of the statements and agreed to establish a panel in accordance with the
accelerated procedures pursuant to Article 4.4 of the SCM Agreement with standard terms ofreference.
At its meeting on 22 June 1998, the DSB considered a new request for the immediate
establishment of a panel pursuant to Article 4.4 of the SCM Agreement to examine Australia's
subsidies provided to its producers and exporters of automotive leather (WT/DS126/2). Australia,supported by several countries, raised objections with regard to the US approach to withdraw itsearlier request (WT/DS106/2) with regard to the same measures, and to terminate any further actionin pursuance of the DSB's decision of 22 January 1998 establishing a panel to examine this matter.
The representatives of the United States, Australia, India, Mexico, European Communities,
Japan, Venezuela, Cuba, Bulgaria, Thailand and the Chairman spoke.
The DSB took note of the statements and agreed to establish a panel in accordance with the
accelerated procedures pursuant to Article 4.4 of the SCM Agreement with standard terms ofreference.
                                                     
4 WT/DSB/M/31.WT/DSB/W/86
Page 11
(c) Brazil
(i) Export financing programme fo r aircraft (WT/DSB/M/47)
At its meeting on 23 July 1998, the DSB considered a request by Canada for the immediate
establishment of a panel pursuant to Article 4.4 of the SCM Agreement to examine Brazil's export
subsidies granted under the PROEX; i.e., Programa de Financiamento às Exportações  (WT/DS46/5).
The representatives of Canada and Brazil spoke.
The DSB took note of the statements and agreed to establish a panel in accordance with the
accelerated procedures pursuant to Article 4.4 of the SCM Agreement with standard terms of
reference.
The United States reserved its third-party rights to participate in the Panel proceedings.
(d) Canada
(i) Measures affecting dairy exports (WT/DSB/M/44)
At its meeting on 25 March 1998, the DSB considered a request by New Zealand for the
establishment of a panel to examine its complaint with regard to Canada's export subsidies on dairy
products (WT/DS113/4).
The representatives of New Zealand and Canada spoke.
The DSB took note of the statements and agreed to establish a panel in accordance with the
provisions of Article 6 of the DSU with standard terms of reference.
Australia and Japan reserved their third-party rights to participate in the Panel proceedings.5
The Chairman proposed that New Zealand's complaint (WT/DS113/4) and the US
complaint with regard to Canada's measures affecting the importation of milk and the exportation ofdairy products (WT/DS103/4) be examined by a single panel in accordance with Article 9 of theDSU, provided that the rights which the parties to the dispute would have enjoyed had separatepanels examined the complaints would in no way be impaired.
The DSB so agreed.
(ii) Measures affecting the export of civilian aircraft (WT/DSB/M/47)
At its meeting on 23 July 1998, the DSB considered a request by Brazil for the immediate
establishment of a panel pursuant to Article 4.4 of the Agreement on Subsidies and Countervailing
Measures (SCM) to examine Canada's subsidies granted to support its export of civilian aircraft
(WT/DS70/2).
The representatives of Brazil and Canada spoke.
The DSB took note of the statements and agreed to establish a panel in accordance with the
accelerated procedures pursuant to Article 4.4 of the SCM Agreement with standard terms of
reference.
                                                     
5After the meeting the United States reserved its third-party rights to participate in the Panel
proceedings.WT/DSB/W/86
Page 12
The United States reserved its third-party rights to participate in the Panel proceedings.
(iii) Measures affecting the importation of milk and the exportation of dairy products
(WT/DSB/M/42,44)
At its meeting on 13 February 1998, the DSB considered a request by the United States for
the establishment of a panel to examine its complaint with regard to Canada's export subsidies on
dairy products and its administration of the tariff-rate quota for milk (WT/DS103/4).
The representatives of the United States and Canada spoke.The DSB took note of the statements and agreed to revert to this matter.At its meeting on 25 March 1998, the DSB again considered this matter.
The representatives of the United States and Canada spoke.The DSB took note of the statements and agreed to establish a panel in accordance with
Article 6 of the DSU with standard terms of reference.
Australia and Japan reserved their third-party rights to participate in the Panel proceedings.The Chairman proposed that the US complaint (WT/DS103/4) and New Zealand's
complaint with regard to Canada's measures affecting dairy exports (WT/DS113/4) be examined bya single panel in accordance with Article 9 of the DSU, provided that the rights which the partieswould have enjoyed had separate panels examined the complaints would in no way be impaired.
The DSB so agreed.
(e) Chile
(i) Taxes on alcoholic beverages (WT/DSB/M/44)
At its meeting on 25 March 1998, the DSB considered a request by the European
Communities for the establishment of a panel to examine its complaint with regard to Chile's tax
regime on alcoholic beverages (WT/DS110/4).  Since the DSB had already established a panel onthis matter (WT/DS87/5), the EC representative proposed that a single panel be established withstandard terms of reference to examine the two complaints.
The representatives of the European Communities, Chile, Mexico and Peru spoke.The DSB took note of the statements and agreed to establish a panel in accordance with the
provisions of Article 6 of the DSU with standard terms of reference.  In accordance with theagreement by the parties to the dispute, the DSB also agreed that the Panel examine both complaintsby the European Communities contained in documents WT/DS87/5 and WT/DS110/4.
The representatives of Canada, Peru and the United States reserved their third-party rights
to participate in the Panel proceedings.WT/DSB/W/86
Page 13
(f) Czech Republic
(i) Measure affecting import duty on wheat from Hungary (WT/DSB/M/49)
At the DSB meeting on 21 October 1998, the representative of Hungary informed Members
that his country was in the process of consultations, pursuant to Article 4.8 of the DSU, with the
Czech Republic concerning its measure imposed on wheat from Hungary (WT/DS148/1).  Hungary
hoped that a mutually agreed solution would be found shortly.
The representative of Hungary and the Czech Republic spoke.
The DSB took note of the statements.
(g) European Communities
(i) Customs classification of certain computer equipment (WT/DSB/M/46)
In February 19976, the DSB had established a panel to examine the complaint by the United
States with regard to the regulation by the EC Commission reclassifying certain local area network
adapter equipment and certain types of personal computers.  In March 19977, the DSB had agreed to
modify the terms of reference of the panel established at its meeting on 25 February 1997 in order to
incorporate the panel requests by the United States with regard to the reclassification of certain
computer equipment by customs authorities of Ireland and the United Kingdom.  In March 1998, the
Community had notified the DSB of its intention to appeal certain issues of law and legal
interpretations developed by the Panel.
At the DSB meeting on 22 June 1998, the DSB considered the Appellate Body Report in
WT/DS62/AB/R - WT/DS67/AB/R - WT/DS68/AB/R and the Panel Report in WT/DS62/R –
WT/DS67/R – WT/DS68/R pertaining to the complaint by the United States.
The representatives of the European Communities and the United States spoke.
The DSB took note of the statements and adopted the Appellate Body Report in
WT/DS62/AB/R – WT/DS67/AB/R – WT/DS68/AB/R and the Panel Report in WT/DS62/R –
WT/DS67/R – WT/DS68/R as modified  by the Appellate Body Report.
(ii) Measures affecting asbestos and produc ts containing asbestos (WT/DSB/M/49)
At its meeting on 21 October 1998, the DSB considered a request by Canada for the
establishment of a panel to examine its complaint with regard to the measures taken by France
prohibiting asbestos and products containing asbestos (WT/DS135/3).
The representatives of Canada and the European Communities spoke.
The DSB took note of the statements and agreed to revert to this matter.
(iii) Measures affecting the grant of copyri ght and neighbouring rights (WT/DSB/M/41)
At its meeting on 22 January 1998, the DSB considered two requests by the United States
for the establishment of a single panel to examine its complaint against Ireland (WT/DS82/2) and
                                                     
6 WT/DSB/M/29.
7 WT/DSB/M/30.WT/DSB/W/86
Page 14
the European Communities (WT/DS115/2) regarding the legal regime in Ireland for the protection
of copyright and neighbouring rights.
The representatives of the United States and the European Communities spoke.The DSB took note of the statements and agreed to revert to this matter.
(iv) Measures affecting the importation of certain poultry products (WT/DSB/M/47,49)
In July 1997
8, the DSB had established a panel to examine this matter at the request of Brazil.
In April 1998, the EC notified its decision to appeal against certain issues of law and legalinterpretations developed by the Panel.
At its meeting on 23 July 1998, the DSB considered the Appellate Body Report in
WT/DS69/AB/R and the Panel Report in WT/DS69/R pertaining to the complaint by Brazil.
The representatives of Brazil, European Communities and Colombia spoke.
The DSB took note of the statements and adopted the Appellate Body Report in
WT/DS69/AB/R and the Panel Report in WT/DS69/ R as modified by the Appellate Body Report.
At the DSB meeting on 21 October 1998, the EC representative informed Members that
pursuant to Article 21.3 of the DSU, Brazil and the EC had reached an agreement with regard to a
reasonable period of time ending on 31 March 1999 for compliance with the DSB's recommendations
on this matter.
The representatives of the European Communities and Brazil spoke.
The DSB took note of the statements.
(v) Measures concerning meat and meat produc ts (hormones) (WT/DSB/M/42, 43 and Corr.1)
In May 19969, the DSB had established a panel to examine this matter at the request of the
United States.  In October 199610, the DSB had established a panel to examine this matter at the
request of Canada.  In September 1997, the complaining parties had appealed from certain issues oflaw and legal interpretations developed by the Panel.
At its meeting on 13 February 1998, the DSB considered the Appellate Body Report in
WT/DS26/AB/R – WT/DS48/AB/R and the Panel Reports in WT/DS26/R/USA and
WT/DS48/R/CAN pertaining to the complaints by the United States and Canada.
The representatives of the United States, Canada, European Communities, Norway, New
Zealand, Australia, Argentina and Switzerland spoke.
The DSB took note of the statements and adopted the Appellate Body Report in
WT/DS26/AB/R-WT/DS48/AB/R and the Panel Reports in WT/DS26/R/USA, WT/DS48/R/CANas modified by the Appellate Body Report.
                                                     
8 WT/DSB/M/36.
9 WT/DSB/M/17.
10 WT/DSB/M/24.WT/DSB/W/86
Page 15
At the DSB meeting on 13 March 1998, the representative of the European Communities
informed the DSB of the EC's intentions in respect of implementation of the DSB's
recommendations pursuant to Article 21.3 of the DSU.  He said that the EC would require areasonable period of time since it could not begin to implement immediately and for that purpose itwould enter into discussions with the other parties to the dispute.
The representatives of the European Communities, United States and Canada spoke.The DSB took note of the statements and of the information provided by the Communities
regarding its intentions in respect of implementation of the DSB's recommendations.
(h) India
(i) Patent protection for pharmaceutical and agricultural chemical products
(WT/DSB/M/40,42,45,48,49)
In November 1996
11,  the DSB had established a panel to examine the complaint by the
United States.  In October 1997, India had notified its decision to appeal from certain issues of law
and legal interpretations developed by the Panel.
At its meeting on 16 January 1998, the DSB considered the Appellate Body Report in
WT/DS50/AB/R and the Panel Report in WT/DS50/R pertaining to the complaint by the United
States.
The representatives of the United States, India, Colombia and Switzerland spoke.The DSB took note of the statements and adopted the Appellate Body Report in
WT/DS50/AB/R and the Panel Report in WT/DS50/ R, as modified by the Appellate Body Report.
At the DSB meeting on 13 February 1998, the representative of India informed the DSB that
it was his country's intention to meet its WTO obligations and that India would require a reasonable
period of time to comply with the DSB's recommendations.
The representatives of India, and the United States spoke.The DSB took note of the statements.
At the DSB meeting on 22 April 1998, the representative of India informed the DSB that as a
result of bilateral consultations, his country and the United States had agreed, on 21 April 1998, that a
reasonable period of time for India to implement the DSB's recommendations would be 15 months, no
later than 19 April 1999.
The representatives of India and the United States spoke.
The DSB took note of the statements.In October 1997
12, the DSB had agreed to establish a panel to examine the complaint by the
European Communities with regard to the same matter.
                                                     
11 WT/DSB/M/26.
12 WT/DSB/M/38.WT/DSB/W/86
Page 16
At its meeting on 22 September 1998, the DSB considered the Panel Report in WT/DS79/R
pertaining to the complaint by the European Communities.
The representatives of the European Communities, India, Argentina and the United States
spoke.
The DSB took note of the statements and adopted the Panel Report in WT/DS79/R.
At the DSB meeting on 21 October 1998, the representative of India informed Members that
his country's intention was to meet its WTO obligations and that India would require a reasonable
period of time to comply with the DSB's recommendations.
The DSB took note of the information provided by  India regarding its intentions in respect of
implementation of the DSB's recommendations.
(ii) Quantitative restrictions on imports of agricultural, textile and industrial products
(WT/DSB/M/43 and Corr.1)
At the DSB meeting on 13 March 1998, the representative of the United States stated that his
delegation had been informed that Australia, Canada, European Communities, New Zealand and
Switzerland had reached bilateral settlements with India regarding its quantitative restrictions on
imports of agricultural, textile and industrial products.13  She inquired when these mutually agreed
solutions would be notified to the DSB.
The representatives of the United States, India and Mexico spoke.
The DSB took note of the statements.
(i) Indonesia
(i) Certain measures affecting the automobile industry (WT/DSB/M/47,48)
In June 199714, the DSB had agreed to establish a single panel to examine the complaints by
Japan and the European Communities.  In July 199715, the DSB had agreed to establish a panel to
examine the complaint by the United States with rega rd to the same matter.  At that meeting, the DSB
had also agreed that the panel established at the request of Japan and the EC would also examine theUS complaint.
At its meeting on 23 July 1998, the DSB considered the Panel Report in WT/DS54/R –
WT/DS55/R – WT/DS59/R – WT/DS64/R and Corr.2 pertaining to the complaint by the European
Communities, Japan and the United States.
The representatives of Indonesia, Japan, European Communities, United States and Canada
spoke.
The DSB took note of the statements and adopted the Panel Report in WT/DS54/R –
WT/DS55/R – WT/DS59/R – WT/DS64/R and Corr.2.
                                                     
13 Requests for consultations by Australia (WT/DS91/1), Canada (WT/DS92/1), New Zealand
WT/DS93/1) Switzerland (WT/DS94/1) and the EC (WT/DS96/1).
14 WT/DSB/M/34.
15 WT/DSB/M/36.WT/DSB/W/86
Page 17
At the DSB meeting on 22 September 1998, the EC representative expressed his delegation's
concern about a  reasonable period of time of 15 m onths requested by Indonesia in order to implement
the DSB's recommendations.  In the EC's view this period of time was excessively long.
The representatives of the European Communities, United States, Japan and Indonesia spoke.
The DSB took note of the statements.
(j) Japan
(i) Measures affecting consumer photogr aphic film and paper (WT/DSB/M/45)
In October 199616, the DSB had established a panel to examine the complaint by the United
States.
At its meeting on 22 April 1998, the DSB considered the Panel Report in WT/DS44/R
pertaining to the complaint by the United States.
The representatives of Japan, United States and the European Communities spoke.The DSB took note of the statements and adopted the Panel Report in WT/DS44/R.
(ii) Taxes on alcoholic beverages (WT/DSB/M/41)
At the DSB meeting on 22 January 1998, the representative of Japan informed the DSB that
his country and the parties to the dispute had reached, in December 1997, mutually satisfactory
solutions regarding the implementation by Japan of the DSB's recommendations.  He outlined themeasures pertaining to these solutions which would be adopted by Japan in accordance with its
legislative procedures.
17
The representatives of Japan, United States, Canada, European Communities and Mexico
spoke.
The DSB took note of the statements.
(k) Korea
(i) Definitive safeguard measure on certain dairy products (WT/DSB/M/41,46,47)
At its meeting on 22 January 1998, the DSB had before it for consideration a request by the
European Communities for the establishment of a pa nel to examine its complaint with regard to a
definitive safeguard measure imposed by Korea on imports of certain dairy products (WT/DS98/4).The consideration of this request was postponed since the Communities believed that the ongoing
consultations with Korea on this matter could result in a mutually agreed solution.
The representatives of the European Communities and Korea spoke.
The DSB took note of the statements and agreed to revert to this matter at its next meeting.
                                                     
16 WT/DSB/M/24.
17 Joint notifications are contained in documents:  WT/DS8/19 – WT/DS10/19 – WT/DS11/17;
WT/DS8/20 – WT/DS10/20 – WT/DS11/18;  WT/DS8/17/Add.1 – WT/DS10/17/Add.1 –WT/DS11/15/Add.1.WT/DSB/W/86
Page 18
At its meeting on 22 June 1998, the DSB considered a request by the European Communities
for the establishment of a panel to examine this matter (WT/DS98/4).
The representatives of the European Communities and Korea spoke.The DSB took note of the statements and agreed to revert to this matter.At its meeting on 23 July 1998, the DSB again considered this matter.
The representatives of the European Communities and Korea spoke.The DSB took note of the statements and agreed to establish a panel in accordance with the
provisions of Article 6 of the DSU with standard terms of reference.
The United States reserved its third-party rights to participate in the Panel proceedings.
(l) Mexico
(i) Anti-dumping investigation of high-fructose corn syrup (HFCS) from the United States
(WT/DSB/M/49)
At its meeting on 21 October 1998 the DSB considered a request by the United States to
examine its complaint with regard to Mexico's anti-dumping measures pertaining to high fructose corn
syrup (WT/DS132/2).
The representatives of the United States and Mexico spoke.The DSB took note of the statements agreed to revert to this matter.
(m) Philippines
(i) Measures affecting pork and poultry (WT/DSB/M/44)
At the DSB meeting on 25 March 1998, the representative of the United States announced
that her country and the Philippines had reached a mutually agreed solution concerning the
administration by the Philippines of its minimum access commitments for pork and poultry meat
(WT/DS74/5 – WT/DS102/6).
The representatives of the United States and the European Communities spoke.
The DSB took note of the statements.
(n) Slovak Republic
(i) Measure affecting import duty on wheat from Hungary (WT/DB/M/49)
At its meeting on 21 October 1998, the DSB considered a request by Hungary to examine its
complaint with regard to the measure taken by the Slovak Republic on imports of wheat from
Hungary (WT/DS143/2).
The representatives of Hungary and the Slovak Republic spoke.
The DSB took note of the statements and agreed to revert to this matter.WT/DSB/W/86
Page 19
(o) Turkey
(i) Restrictions on imports of textile and cl othing products (WT/ DSB/M/42,43 and Corr.1,47)
At its meeting on 13 February 1998, the DSB considered a request by India to examine its
complaint with regard to Turkey's imposition of quantitative restrictions on imports of a broad range
of textile and clothing products (WT/DS34/2).
The representatives of India, Turkey and the European Communities spoke.
The DSB took note of the statements and agreed to revert to this matter at its next meeting.At its meeting on 13 March 1998, the DSB again considered this matter.
The representatives of India, Turkey, European Communities, Mexico, United States and
Hong Kong, China spoke.
The DSB took note of the statements and agreed to establish a panel in accordance with the
provisions of Article 6 of the DSU with standard terms of reference.
The representatives of Japan, Philippines, United States, Thailand and Hong Kong, China
reserved their third-party rights to participate in the Panel proceedings.
At the DSB meeting on 23 July 1998, the representative of the European Communities
recalled that at the DSB meeting on 13 March his delegation had raised some legal questions with
regard to India's request for a panel to examine Turkey's restrictions on imports of textile and clothing
products.  Since the Community was not a party to this dispute it was not in a position to raise these
questions before the Panel.  He therefore wished to ask the Secretariat to provide a response to these
questions.
The representatives of the European Communities, India, United States and Mexico spoke.
The DSB took note of the statements.
(p) United States
(i) Anti-dumping duty on dynamic random access memory semiconductors (DRAMS) of one
megabit or above from Korea (WT/DSB/M/40)
At its meeting on 16 January 1998, the DSB considered a request by Korea to examine its
complaint with regard to a decision by the US Department of Commerce not to revoke the anti-
dumping duty on dynamic random access memory semiconductors (DRAMS) of one megabyte or
above from Korea (WT/DS99/2).
The representatives of Korea and the United States spoke.
The DSB took note of the statements and agreed to establish a panel in accordance with the
provisions of Article 6 of the DSU with standard terms of reference.WT/DSB/W/86
Page 20
(ii) Imposition of anti-dumping duties on imports of  colour television receivers from Korea
(WT/DSB/M/48)
At the DSB meeting on 22 September 1998, the representative of Korea said that his country
had withdrawn its request for the establishment of a panel to examine the US anti-dumping duties on
imports of colour television receivers from Korea (WT/DS89/9).
The representatives of Korea and the United States spoke.
The DSB took note of the statements.
(iii) Import prohibition of certain shrimp  and shrimp products (WT/DSB/M/50)
In February 199718, the DSB had established a single panel to examine the joint complaint by
Malaysia and Thailand as well as the complaint by Pakistan.  In April 199719, the DSB had
established a panel to examine the complaint by India on the same matter, and had agreed that the
Panel established at the request of Malaysia, Pakistan and Thailand would also examine India's
complaint in accordance with Article 9 of the DSU.  In July 1998, the United States notified its
intention to appeal certain issues of law and legal interpretations developed by the Panel.
At its meeting on 6 November 1998, the DSB considered the Appellate Body Report in
WT/DS58/AB/R and the Panel Report in WT/DS58/R and Corr.1 pertaining to the complaints by
India, Malaysia, Pakistan and Thailand.
The representatives of Thailand, Pakistan, Malaysia, India, United States, European
Communities, Brazil, Australia, Mexico, Switzerland, Philippines, Japan and Hong Kong, China
spoke.
The DSB took note of the statements and adopted the Appellate Body Report in
WT/DS58/AB/R and the Panel Report in WT/DS58/ R and Corr.1 as modified by the Appellate Body
Report.
(iv) Measure affecting government procurement (WT/DSB/M/48,49)
At its meeting on 22 September 1998, the DSB considered the requests by the European
Communities and Japan for the establishment of panels to examine the Act adopted by the
Commonwealth of Massachusetts on 25 June 1996, regulating state contracts with companies doing
business with Myanmar (WT/DS88/3; WT/DS95/3).
The representative of the European Communities, Japan and the United States spoke.The DSB took note of the statements and agreed to revert to this matter.At its meeting on 21 October 1998, the DSB again considered this matter.
The representatives of the European Communities, Japan, United States, Philippines, Cuba,
Colombia, Mexico, Argentina and Hong Kong, China spoke.
The DSB took note of the statements and agreed to establish a single panel in accordance with
Article 9 of the DSU with terms of reference pursuant to Article XXII:4 of the Agreement on
Government Procurement.
                                                     
18 WT/DSB/M/29.
19 WT/DSB/M/31.WT/DSB/W/86
Page 21
(v) Measures affecting textiles and apparel products (WT/DSB/M/40)
At the DSB meeting on 16 January 1998, the representative of Hong Kong, China raised his
delegation's concerns with regard to the lack of notification of a mutually agreed solution in the case
of the consultations requested by the European Communities with the United States concerning
changes in the US rules of origin for textiles and apparel products (WT/DS85/1).  His delegationbelieved that this was a systemic issue which related to transparency and should therefore be
considered in the review of the DSU.
The representatives of Hong Kong, China as well as the representative of the United States,
European Communities and Japan spoke.
The DSB took note of the statements.
(vi) Tax treatment for "Foreign Sales Corporations" (WT/DSB/M/47,48)
At its meeting on 23 July 1998, the DSB considered a request by the European Communities
for the establishment of a panel to examine its complaint with regard to Sections 921-927 of the US
Internal Revenue Code and related measures, establishing special tax treatment for "Foreign SalesCorporations" (WT/DS108/2).
The representatives of the European Communities and the United States spoke.The DSB took note of the statements and agreed to revert to this matter.At its meeting on 22 September 1998, the DSB again considered this matter.
The representatives of the European Communities and the United States spoke.
The DSB took note of the statements and agreed to establish a panel in accordance with the
provisions of Article 6 of the DSU with standard terms of reference.
Canada reserved its third-party right to participate in the Panel proceedings.20
13. Surveillance of implementation of recommendations adopted by the DSB
Matters considered by the DSB under this item are included on the agenda pursuant to
Article 21.6 of the DSU which provides that:  "U nless the DSB decides otherwise, the issue of
implementation of the recommendations or rulings shall be placed on the agenda of the DSB meeting
after six months following the date of establishment of the reasonable time-period pursuant to
paragraph 3 and shall remain on the DSB's agenda until the issue is resolved.  At least 10 days prior toeach such DSB meeting, the Member concerned shall provide the DSB with a status report in writing
of its progress in the implementation of the recommendations or rulings."
                                                     
20 After the meeting, Barbados and Japan reserved their third-party rights to participate in the Panel
proceedings.WT/DSB/W/86
Page 22
(a) Canada
(i) Certain measures concerning pe riodicals (WT/DSB/M/44,45,46,47,48,49)
At its meeting on 25 March 1998, the DSB considered the first status report by Canada on the
implementation of the DSB's recommendations on this matter (WT/DS31/9).
The representatives of Canada and the United States spoke.
The DSB took not of the statements and agreed to revert to this matter at its next regular
meeting.
At its meeting on 22 April 1998, the DSB considered the second status report by Canada
contained in WT/DS31/9/Add.1.
The representatives of Canada and the United States spoke.
The DSB took note of the statements and agreed to revert to this matter at its next regular
meeting.
At its meeting on 22 June 1998, the DSB considered the third status report by Canada
contained in WT/DS31/9/Add.2.
The representatives of Canada and the United States spoke.
The DSB took note of the statements and agreed to revert to this matter at its next regular
meeting.
At its meeting on 23 July 1998, the DSB considered the fourth status report by Canada
contained in WT/DS31/9/Add.3.
The representatives of Canada, United States and the European Communities spoke.
The DSB took note of the statements and agreed to revert to this matter at its next regular
meeting.
At its meeting on 22 September 1998, the DSB considered the fifth status report by Canada
contained in WT/DS31/9/Add.4.
The representatives of Canada and the United States spoke.The DSB took note of the statements and agreed to revert to this matter at its next regular
meeting.
At its meeting on 21 October 1998, the DSB considered the sixth status report by Canada
contained in WT/DS31/9/Add.5.
The representatives of Canada and the United States spoke.
The DSB took note of the statements.WT/DSB/W/86
Page 23
(b) European Communities
(i) Regime for the importation, sale and distribution of bananas (WT/DSB/M/47,48,49)
At its meeting on 23 July 1998, the DSB considered the first status report by the European
Communities on the implementation of the DSB's recommendations on this matter (WT/DS27/17).
The representatives of the European Communities, Honduras, speaking also on behalf of
Ecuador, Guatemala, Mexico, Panama and the United States, as well as the representatives of
Colombia, Brazil and Costa Rica spoke.
The DSB took note of the statements and agreed to revert to this matter at its next regular
meeting.
At its meeting on 22 September 1998, the DSB considered the second status report by the
European Communities contained in WT/DS27/17/Add.1.
The representative of the European Communities spoke.The DSB took note of the statements and agreed to revert to this matter at its next regular
meeting.
At its meeting on 21 October 1998, the DSB considered the third status report by the
European Communities contained in WT/DS27/17/Add.2.
The representatives of the European Communities, Ecuador, speaking also on behalf of
Honduras, Guatemala, Mexico, Panama and United Stat es, as well as the representatives of Honduras,
Guatemala, Mexico, United States, Panama, Japan, Australia, Jamaica and Cuba spoke.
The DSB took note of the statements and agreed to revert to this matter at its next regular
meeting.
__________