WT/DS437/19  
 
20 April 2016  
(16-2219)  Page: 1/3  
  Original: English  
 
 UNITED STATES – COUNTERVAILING DUTY MEASURES ON  
CERTAIN PRODUCTS FROM CHINA 
UNDERSTANDING BETWEEN CHINA AND THE UNITED STATES  
REGARDING PROCEDURES UNDER AR TICLES 21 AND 22 OF THE DSU 
The following communication, dated 15 April 2 016, from the delegation of China and the 
delegation of the United States to the Chairperso n of the Dispute Settlement Body, is circulated at 
the request of these delegations. 
  
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The United States and China would like to info rm the Dispute Settlement Body of the attached 
"Agreed Procedures under Articles 21 and 22 of the Dispute Settlement Understanding" between the United States and China with respect to the dispute United States – Countervailing Duty 
Measures on Certain Products from China (DS437). 
 We request that you please circulate the atta ched agreement to the Members of the Dispute 
Settlement Body.  
 
 WT/DS437/19 
 
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Agreed Procedures under Articles 21 and 22 of the Dispute Settlement Understanding 
United States – Countervailing Duty Measures on Certain Products from China 
(WT/DS437) 
 
The Dispute Settlement Body ("DSB") adopted it s recommendations and rulings in the dispute  
United States – Countervailing Duty Measures on Certain Products from China (WT/DS437) on 
16 January 2015. 
Pursuant to Article 21.3(c) of the Understa nding on Rules and Procedures Governing the 
Settlement of Disputes ("DSU"), an arbitrator dete rmined that the reasonable period of time in 
which the United States of America ("United States") would have to implement the 
recommendations and rulings of the DSB in this dispute would be 14 months and 16 days, expiring 
on 1 April 2016 (WT/DS437/16). 
China and United States (collectively, "the Parties") have agreed on the following procedures for 
the exclusive purposes of this dispute.  They are de signed to facilitate the resolution of the dispute 
and reduce the scope for procedural disputes and are without prejudice to either Party's views on 
the correct interpretation of the DSU: 
1. Should China consider that the situation de scribed in Article 21.5 of the DSU exists, China 
will request that the United States enter into consultations with China.1  The Parties agree to 
hold such consultations within 15 days from the date of receipt of the request.  After this 15-day period has elapsed, China may at any time request the establishment of a panel 
pursuant to Article 21.5 of the DSU. 
2. At the first DSB meeting at which China's request for the establishment of an Article 21.5 
panel appears on the agenda, the United States shall accept the establishment of that panel. 
3. The Parties shall cooperate to enable the Article 21.5 panel to circulate its report within 
90 days of the panel's establishment, excluding such time during which the panel's work may be suspended pursuant to Article 12.12 of the DSU. 
4. Either Party may request the DSB to adopt the report of the Article 21.5 panel at a DSB 
meeting held at least 20 days after the circulat ion of the report to the Members unless either 
Party appeals the report.  
5. In the event of an appeal of the Article 21.5 panel report, the Parties shall cooperate to 
enable the Appellate Body to circulate its report to the Members within 90 days from the 
date of notification of the appeal to the DSB.   Further, either Party may request the DSB to 
adopt the reports of the Appellate Body and of  the Article 21.5 panel (as modified by the 
Appellate Body report) at a DSB meeting held  within 30 days of the circulation of the 
Appellate Body report to Members.  
6. In the event that the DSB concludes, follow ing a proceeding under Article 21.5 of the DSU, 
that a measure taken to comply does not exist or is inconsistent with a covered agreement, 
China may request authorization to suspend concessions or other obligations pursuant to Article 22.2 of the DSU. The United States shall not assert that China is precluded from obtaining such DSB authorization on the grounds that the request was made outside the 
30-day time period specified in Article 22.6 of the DSU.  This is without prejudice to the 
United States' right to refer the matter to arbitration by objecting in accordance with Article 22.6 of the DSU. 
7. If China requests authorization to suspend concessions or other obligations pursuant to 
Article 22.2 of the DSU, the United States shall have the right to object under Article 22.6 of the DSU to the level of suspension of concessions or other obligations and/or claim that the 
principles and procedures set forth in Article 22.3 of the DSU have not been followed.  The 
                                               
1 The Parties agree that under Article 21.5 of  the DSU, consultations are not obligatory. WT/DS437/19 
 
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  Parties agree that the matter is referred to arbitration and commences pursuant to Article 
22.6 of the DSU upon objection by the United States.   
8. The Parties 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.  
9. If any of the original panelists is not availa ble for either the Article 21.5 compliance panel or 
the Article 22.6 arbitration (or both), the Parties will promptly consult on a replacement, and either Party may request the Director-General of the WTO to appoint, within ten days of 
being so requested, a replacement for the proceeding or proceedings in which a replacement 
is required.  If an original panelist is unavailable to serve in either of the proceedings, the Parties will further request that, in making this appointment, the Director-General seek a person who will be available to act in both proceedings. 
10. The Parties will continue to cooperate in all matters related to these agreed procedures  and 
agree not to raise any procedural objection to an y of the steps set out herein.  If, during the 
application of these procedures, the Parties 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 aspects and steps agreed herein.  
11. These agreed procedures in no way prejudice other rights of either Party to take any action 
or procedural step to protect its rights and interests, including recourse to the DSU.  
 
Signed in Geneva, 15 April 2016.  
For the People's Republic of China For the United States of America 
  
 
  
(Signed) 
H.E. Mr YU Jianhua 
Ambassador 
Permanent Mission of 
the People's Republic of China 
  
 
 
  
(Signed) 
H.E. Mr Michael Punke 
Ambassador 
Permanent Mission of 
the United States of America 
  
 
  
  
 
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