WT/DS477/20  
 
17 August 2018  
(18-5247) Page: 1/3 
  Original: English  
 
INDONESIA – IMPORTATION OF HORTI CULTURAL PRODUCTS,  
ANIMALS AND ANIMAL P RODUCTS  
UNDERSTANDING BETWEE N NEW ZEALAND AND IN DONESIA  
REGARDING PROCEDURES  UNDER ARTICLES 21 AN D 22 OF THE DSU  
The following communication, dated 10 August 2018, from the delegation  of New Zealand and the 
delegation of Indonesia to the Chairperson of the Dispute Settlement Body, is circulated at the 
request of these delegations.  
 
_______________  
 
 
New Zealand and Indonesia would like to inform the Dispute Settlement Body of the attac hed 
"Agreed Procedures under Articles 21 and 22 of the Dispute Settlement Understanding" between 
Indonesia and New Zealand with respect to the dispute Indonesia – Importation of Horticultural 
Products, Animals and Animal Products (DS477) . 
   
We request tha t you please circulate the attached agreement to the Members of the Dispute 
Settlement Body.  
  WT/DS477/20  
 
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  Agreed Procedures under Articles 21 and 22 of the Dispute Settlement Understanding  
Indonesia – Importation of Horticultural Products, Animals and Animal Products  
(DS477)  
   
In this dispute, the Dispute Settlement Body (DSB) adopted its recommendations and  rulings on 
22 November 2017. Pursuant to Article 21.3(b) of the Understanding on Rules and Procedures 
Governing the Settlement of Disputes , Indonesia, the United  States, and New Zealand mutually 
agreed that  the reasonable period of time for Indonesia to comp ly with the recommendations 
and rulings of  the DSB shall be 8 months. Accordingly, the reasonab le period of time expired on 
22 July 2018.  
 
New Zealand and Indo nesia (the "parties") have agreed on the following procedures for the 
exclusive purposes of this dispute. They are designed to facilitate the resolution of the dispute and 
reduce the scope for procedural disputes:  
1. Should New Zealand consider that the situation described in Article 21.5 of the DSU exists, 
New Zealand will request consultations. The parties agree to hold such consultations within 14 
days from the date of circulation of such request. The parties agree that after the end of such 
period for consultations, New Zealand 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 New Zealand's request for the establishment of an 
Article  21.5 panel appears on the agenda, Indonesia will accept the establishment of that 
panel.  
 
3. The parties will 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 pane l's work may be 
suspended pursuant to Article 12.12 of the DSU.  
 
4. Either party to the dispute 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 circulation 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 will cooperate to enable 
the Appellate Body to circulate its report to Members within 90 days from the date of 
notification of the appeal to the DSB .  
 
6. In the event of an appeal, either party to the dispute 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 th e Appellate Body report to 
the Members.  
 
7. In the event the DSB rules, following a proceeding under 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 with a cov ered agreement into compliance, New Zealand may 
request negotiations with Indonesia with a view to developing mutually acceptable 
compensation, or New  Zealand may request authorisation to suspend concessions or other 
obligations pursuant to Article 22 of t he DSU.    
 
8. Indonesia will not assert that New Zealand is precluded from requesting such negotiation for 
developing mutually acceptable compensation or obtaining such DSB authorization on the 
grounds that the request was made outside the 20 -day time -period specified in Article 22.2 or 
the 30 -day time period specified in Article 22.6 of the DSU. This is without prejudice to the 
right of Indonesia to have the matter referred to arbitration in accordance with Article 22.6 of 
the DSU.  
 
9. If New Zealand requests a uthorisation to suspend concessions or other obligations pursuant to 
Article 22.2 of the DSU, and Indonesia objects under Article 22.6 of the DSU to the level of 
suspension of concessions or other obligations or claims that the principles and procedures se t 
forth in DSU Article 22.3 have not been followed, the parties agree that the matter will be WT/DS477/20  
 
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  referred to arbitration and proceedings will commence pursuant to DSU Article 22.6 upon such 
objection by Indonesia.  
 
10. The parties will cooperate to enable the ar bitrator under Article 22.6 of the DSU to circulate 
its decision within 60 days of the referral to arbitration.  
 
11. The parties will cooperate to facilitate the participation of the ori ginal panellists in the 
Article  21.5 compliance panel and the Article 22.6  arbitration.  
 
12. If any of the original panellists is not available 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 panellist is unavailable to serve in either of the proceedings, the 
parties will further reques t that, in making this appointment, the Director -General seek a 
person who will be available to act in both proceedings.  
 
13. 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 Article 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, as the 
case may be).  
 
14. The parties 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 consider that a proced ural aspect has not been 
properly addressed in these procedures, they will endeavour to find a solution within the 
shortest time possible that will not affect the other a spects and steps agreed herein.  
 
15. 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.  
 
 
 
Signed in Geneva, on 10 August 2018  
   
 
For New Zealand  For Indonesia  
   
   
   
   
 
(Signed)    
Mr. Thomas Haidon  
Chargé D'affaires / Deputy Permanent 
Representative   
Permanent Mission of New Zealand to the World 
Trade Organization    
     
   
   
 
   
(Signed)    
H. E. Mr. Hasan Kleib  
Ambassador Extraordinary and  
Plenipotentiary / Permanent Representative  
of the Republic of Indonesia to the United  
Nations, World Trade Organization, and  
Other International Organizations in  
Geneva  
 
 
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