WT/DS481/5  
G/L/1072/Add.1  
 
11 May 2015  
(15-2469)  Page: 1/2  
  Original: English  
 
 INDONESIA – RECOURSE TO ARTI CLE 22.2 OF THE DSU IN THE  
US – CLOVE CIGARETTES DISPUTE 
NOTIFICATION OF A MUTUALLY AGREED SOLUTION AND  
A WITHDRAWAL OF A REQUEST FOR CONSULTATIONS 
The following communication, dated 6 May 2015, fr om the delegation of the European Union and 
the delegation of Indonesia to the Chairperson of the Dispute Settlement Body, is circulated 
pursuant to Articles 3.6 and 4.4 of the DSU. 
 
_______________ 
 
 
By communication dated 13 June 2014 the European Union requested consultations with the Government of the Republic of Indonesia ("Indo nesia") pursuant to Articles 1 and 4 of the 
Understanding on Rules and Procedures Govern ing the Settlement of Disputes ("DSU") and 
Article XXII:1 of the General Agreement on Tariffs and Trade 1994 ("GATT 1994") with particular respect to Indonesia's recourse to Article 22.2 of the DSU in the context of the proceedings in Case 
DS406 United States – Measures Affecting the Production and Sale of Clove Cigarettes , and the 
exclusion of third parties from those proceeding s. The European Union considered this to be 
inconsistent with Articles 21.5, 22.2, 23.1 and 23.2(a) of the DSU, as well as Articles 10.1, 10.2 and 10.3 of the DSU.
1 
By communication dated 3 October 2014 from the de legation of Indonesia and the delegation of 
the United States to the Chairperson of the Di spute Settlement Body Indonesia and the United 
States notified the DSB that they had reached a mutually agreed solution to the matter raised by 
the Government of Indonesia in United States – Measures Affecting the Production and Sale of 
Clove Cigarettes  (WT/DS406). In light of the mutually agreed solution, Indonesia withdrew its 
request to the DSB (circulated as WT/DS406/12) pursuant to Article 22.2 of the DSU for 
authorization to suspend the application to the United States of concessions and other obligations 
under the General Agreement on Tariffs and Trade 1994, the Agreement on Technical Barriers to Trade, and the Agreement on Import Licensing Procedures.  Indonesia having withdrawn its 
request under Article 22.2 of the DSU, the United States withdrew its objection to that request 
(circulated as WT/DS406/13).
2 
By communication dated 8 October 2014 the Chairperson of the Arbitrator/Arbitration Panel in 
DS406 informed the DSB that Indonesia and the United States had:  
a. indicated that they have reached a mutually agreed solution in this dispute, which 
they have jointly notified to the DSB; 
b. informed the Arbitrator/Arbitration Panel that Indonesia has withdrawn its request 
under Article 22.2 of the DSU (WT/DS406/12) and that the United States has 
withdrawn its objection to that request (WT/DS406/13); and  
c. jointly requested that the Arbitrator/Arbitration Panel notify the Dispute Settlement 
Body that it is not necessary for the Arbitrator/Arbitration Panel to issue a decision 
and that its work has been completed. 
                                               
1 WT/DS481/1 of 19 June 2014. 
2 WT/DS406/17, G/L/917/Add.1 of 9 October 2014. WT/DS481/5 • G/L/1072/Add.1 
 
- 2 - 
 
  In light of these circumstances, the Arbitrator/Arb itration Panel informed the DSB that it considers 
that it is not necessary for it to issue a decision on the matter referred to it. The Arbitrator/Arbitration Panel therefore considers that it has completed its work.
3 
In light of these developments, the Parties wish to inform the DSB that the European Union has 
withdrawn its Request for Consultations in DS481. 
We would ask you to circulate this notification to the relevant Councils and Committees, as well as 
to the DSB, in accordance with Articles 3.6 and 4.4 of the DSU. 
 
 
 
  
(Signed) 
H.E. Mr. Angelos Pangratis 
Ambassador 
Permanent Mission of the European Union 
to the WTO  
  
(Signed) 
H.E. Mr Iman Pambagyo 
Ambassador 
Deputy Permanent Representative  
In Charge of WTO issues 
Mission of Indonesia 
   
__________  
                                               
3 WT/DS406/18 of 9 October 2014.