WT/DS496/14  
 
27 March 2019  
(19-1933) Page: 1/3 
  Original: English  
 
INDONESIA – SAFEGUAR D ON CERTAIN IRON OR  STEEL PRODUCTS  
UNDERSTANDING BETWEE N INDONESIA  AND VIET NAM  
REGARDING PROCEDURES  UNDER ARTICLES 21 A ND 22 OF THE DSU  
The following communication, dated 22 March 2019 , from the delegation of Indonesia and the 
delegation of Viet  Nam to the Chairperson of the Dispute Settlement Body, is circulated at the 
request of these delegations.  
 
_______________  
 
 
Indonesia and Viet Nam would like to inform the Dispute Settlement Bo dy of the attached Agreed 
Procedures under Articles 21 and 22 of the Dispute Settlement Understanding between Indonesia 
and Viet Nam with respect to the dispute Indonesia – Safeguard on Certain Iron or Steel Products 
(DS496).  
We request that you please cir culate the attached agreement to the Members of the Dispute 
Settlement Body.  
  WT/DS496/14  
 
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Understanding between Viet Nam and Indonesia on the Sequencing of Proceedings  
 
The Dispute Settlement Body (DSB ) adopted its recommendations and rulings in the dispute 
Indonesia — Safeguard on Certain Iron or Steel Products  (DS496) on 27 August 2018.  
Pursuant to Article 21.3(b) of the Understanding on Rules and Procedures Governing the Settlement 
of Disputes (DSU),  Indonesia, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
(TPKM) and Viet Nam agreed that the reasonable period of time (RPT) during which Indonesia would 
have to implement the recommendations and rulings of the DSB in this dispute wou ld be seven 
months, which will expire on 27 March 2019 (WT/DS490/12 and WT/DS496/13).  
Viet Nam and Indonesia (collectively, "the parties") hereby agree on the following procedures for 
the exclusive purpose of this dispute. They are designed to facilitate a  satisfactory resolution to the 
dispute in a cooperative manner and to reduce the scope for procedural disagreements, without 
prejudice to either party's views on the correct interpretation and application of the DSU.  
1. The parties agree to  follow the proced ures provided in Articles 21.5, 22.2 and 22.6 of the DSU, 
in the manner set out below, in case of any disagreement as to the existence or consistency with 
a covered agreement of measures taken to comply with the recommendations and rulings of the 
DSB in th is dispute.  
2. The parties agree to resolve any disagreement as to the existence or consistency with a covered 
agreement of measures taken to comply with the recommendations and rulings in this dispute 
in accordance with the procedures set out in Article 21.5 of the DSU,  as modified and elaborated 
in this Understanding. The parties agree to hold informal consultations within 20 days before the 
end of the RPT to discuss Indonesia's progress regarding its compliance with the 
recommendations and rulings of the DSB in this di spute.  
3. The Parties agree to hold consultations under Article 21.5 of the DSU within 20 days from the 
date of receipt of the request. The request for such consultations can only be submitted after 
the expiry of the RPT.  
4. If the consultations as stipulated u nder paragraph 3 fail to resolve the issues, either party may 
request the establishment of a panel pursuant to Article 21.5 of the DSU at any time it deems it 
appropriate. At the first DSB meeting at which  any request for the establishment of an 
Article  21.5 panel is considered, the parties agree not to object to the establishment of that 
panel.  
5. The parties to the dispute shall cooperate to enable the Article 21.5 panel to circulate its report 
within 90 days of the panel's establishment, excluding any such  time during which the panel's 
work may be suspended pursuant to Article 12.12 of the DSU. To this end, the parties agree 
that the Article 21.5 proceedings will comprise two written submissions filed consecutively by 
the parties (double briefing) and the p anel will convene only one meeting with the parties.  
6. The parties agree that any Article 21.5 panel must be composed of the original panelists unless 
any of them is unavailable. If so, the parties shall seek agreement on the composition of the 
panel within  10 days after the establishment of the panel. In the absence of that agreement, 
either party may request the Director -General of the WTO to compose the panel in accordance 
with the procedures set out in Article 8.7 of the DSU. In the event that the Direct or-General is 
requested to compose the panel, the parties agree to request that, in doing so, the 
Director -General shall seek to compose the panel of persons who will be available to act in both 
the Article 21.5 and Article 22.6 proceedings.  
7. The parties ag ree that if, on the date of the circulation of the panel report under Article 21.5 of 
the DSU, the Appellate Body is composed of fewer than three Members available to serve on a 
division in an appeal in these proceedings, they will not appeal that report u nder Articles 16.4 
and 17 of the DSU.  
8. In the event that the DSB finds, pursuant to Article 21.5 of the DSU, that a measure taken to 
comply does not exist or that Indonesia has failed to bring the measure found to be inconsistent WT/DS496/14  
 
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  with a covered agreement in to compliance therewith Viet Nam may request negotiations with 
Indonesia with a view to developing mutually acceptable compensation or may request 
authorization to suspend concessions or other obligations pursuant to Article 22 of the DSU after 
the adoptio n by the DSB of the Article 21.5 panel report  and, where relevant, the Appellate Body 
report . 
9. Viet Nam may request authorization to suspend concessions or other obligations pursuant to 
Articles 22.2 and 22.6 of the DSU only if the procedures laid out in Ar ticle 21.5, as modified and 
elaborated in this Understanding, have been followed. Indonesia shall not object to any request 
made by Viet Nam in accordance with these provisions on the basis of the fact that the request 
was made outside the time period spec ified in the first sentence of Article 22.6 of the DSU. This 
provision is without prejudice to Indonesia's right to have the matter referred to arbitration in 
accordance with Article 22.6 of the DSU.  
10. The parties to the dispute will cooperate to enable the arbitrator under Article 22.6 of the DSU 
to circulate its decision within 60 days of the referral to arbitration.  
11. In the event that the parties reach a mutually agreed solution to this dispute during the course 
of the Article 21.5 compliance panel or the A rticle 22.6 arbitration proceedings, and upon 
notification of such a mutually agreed solution, the parties will jointly request the panel or the 
arbitrator to suspend its work (including the circulation of its report or award).  
12. The parties to this dispute  will continue to cooperate in all matters related to these agreed 
procedures and agree not to raise any procedural objection to any of the steps set out herein. 
If, during the application of these procedures, the parties to the dispute consider that a 
procedural aspect has not been properly addressed in these procedures, they will endeavor to 
find a solution within the shortest time possible that will not affect the other a spects and steps 
agreed herein.  
13. These agreed procedures in no way prejudice other rig hts of either party to take any action or 
procedural step to protect its rights and interests, including recourse to the DSU.  
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