WORLD TRADE
ORGANIZATIONWT/DS58/16
12 January 2000
(00-0117)
Original:  English
UNITED STATES - IMPORT PROHIBITION OF
CERTAIN SHRIMP AND SHRIMP PRODUCTS
Understanding between Malaysia and the United States
Regarding Possible Proceedings under Articles 21 and 22 of the DSU
The following communications, dated 22 December 1999, from the Permanent Missions of
Malaysia and the United States to the Chairman of the Dispute Settlement Body, are circulated at the
request of these delegations.
_______________
1. Letter from H.E. Mr. Hamidon Ali, Ambassador, Permanent Mission of Malaysia to
H.E. Ms Rita Hayes, Ambassador,  Permanent Mission of the United States, dated 22 December 1999
Dear Ms. Ambassador,
Our two Governments have been consulting in good faith on the implementation of the
Dispute Settlement Body (DSB) recommendations and rulings in United States - Import Prohibition
of Certain Shrimp and Shrimp Products  (WT/DS58);  and are determined to continue such
consultations.  This letter is to confirm the understanding reached between the Governments of
Malaysia and the United States regarding possible proceedings pursuant to Articles 21 and 22 of the
Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) concerning that
implementation.
Our two Governments have agreed as follows:
1. Malaysia will not at this stage initiate proceedings under Article 21.5 or Article 22 of the
DSU.
2. If Malaysia at some future date decides that it may wish to initiate proceedings under
Articles 21.5 and Article 22 of the DSU, Malaysia will initiate proceedings under Article 21.5 prior to
any proceedings under Article 22.  Malaysia will provide the United States advance notice of any
proposal to initiate proceedings under Article 21.5 and will consult with the United States before
requesting the establishment of a panel under Article 21.5.  Malaysia will not request authorization tosuspend concessions or other obligations under Article 22 until the adoption of the Article 21.5 panel
report.  If on the basis of the proceedings under Article 21.5 Malaysia decides to initiate proceedings
under Article 22, the United States will not assert that Malaysia is precluded from obtaining DSB
authorization because Malaysia's request was made outside the 30-day time period specified in the
first sentence of Article 22.6.  This is without prejudice to the rights of the United States to have the
matter referred to arbitration in accordance with Article 22.6.WT/DS58/16
Page 2
3. In light of the fact that the DSB recommendations and rulings in this dispute were based on a
report of the Appellate Body, if Malaysia at some  future date initiates proceedings under Article 21.5
of the DSU, either Malaysia or the United States may appeal the report of the panel established under
Article 21.5;  and Article 16.4 of the DSU, which prov ides in part that the DSB shall not consider the
report of that panel for adoption until after the completion of the appeal, shall apply.
This letter and your letter of confirmation in repl y shall constitute an understanding between our two
Governments.
Yours sincerely,Hamidon  Ali
2. Letter from H.E. Ms Rita D. Hayes, Ambassador,  Permanent Mission of the United States to
H.E. Mr. Hamidon Ali, Ambassador, Permanent Mission of Malaysia , dated 22 December 1999
Dear Mr. Ambassador,
Thank you for your letter of today's date which reads:"Our two Governments have been consulting  in good faith on the implementation of the
Dispute Settlement Body (DSB) recommendations and rulings in United States - Import Prohibition
of Certain Shrimp and Shrimp Products  (WT/DS58);  and are determined to continue such
consultations.  This letter is to confirm the understanding reached between the Governments of
Malaysia and the United States regarding possible proceedings pursuant to Articles 21 and 22 of the
Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) concerning thatimplementation.
Our two Governments have agreed as follows:
1. Malaysia will not at this stage initiate proceedings under Article 21.5 or Article 22 of the
DSU.
2. If Malaysia at some future date decides that it may wish to initiate proceedings under
Articles 21.5 and Article 22 of the DSU, Malaysia will initiate proceedings under Article 21.5 prior to
any proceedings under Article 22.  Malaysia will provide the United States advance notice of any
proposal to initiate proceedings under Article 21.5 and will consult with the United States before
requesting the establishment of a panel under Article 21.5.  Malaysia will not request authorization tosuspend concessions or other obligations under Article 22 until the adoption of the Article 21.5 panel
report.  If on the basis of the proceedings under Article 21.5 Malaysia decides to initiate proceedings
under Article 22, the United States will not assert that Malaysia is precluded from obtaining DSB
authorization because Malaysia's request was made outside the 30-day time period specified in the
first sentence of Article 22.6.  This is without prejudice to the rights of the United States to have thematter referred to arbitration in accordance with Article 22.6.
3. In light of the fact that the DSB recommendations and rulings in this dispute were based on a
report of the Appellate Body, if Malaysia at some  future date initiates proceedings under Article 21.5
of the DSU, either Malaysia or the United States may appeal the report of the panel established underArticle 21.5;  and Article 16.4 of the DSU, which prov ides in part that the DSB shall not consider the
report of that panel for adoption until after the completion of the appeal, shall apply.WT/DS58/16
Page 3
This letter and your letter of confirmation in repl y shall constitute an understanding between our two
Governments."
I have the honor to confirm this understanding between our two Governments.
Sincerely,
Rita D. Hayes.
__________