WORLD TRADE  
ORGANIZATION   
 WT/DS302/17  
29 August 2005  
 (05-3767 ) 
   Original:   English  
 
 
 
 
 
 
 
 
 
 
 
 
 
DOMINICAN REPUBLIC – MEASURES AFFECTING THE IMPORTATION 
AND INTERNAL SALE OF  CIGARETTES  
 
 
 
 
 
 
 
Arbitration  
under Article 21.3(c) of the  
Understandi ng on Rules and Procedures  
Governing the Settlement of Disputes  
 
 
 
 
 
 
 
 
 
Report of the Arbitrator  
John Lockhart  
 
  WT/DS 302/17 
 Page 1 
 
 
1. On 19 May 2005, the Dispute Settlement Body (the "DSB") adopted the Appellate Body 
Report1 and the Panel Report2, as modified by the Appellat e Body Report, in Dominican Republic – 
Measures Affecting the Importation and Internal Sale of Cigarettes .3  At the DSB meeting of 
13 June 2005 , the Dominican Republic confirmed its intention to implement the recommendations 
and rulings of the DSB in this dispute and stated that it would require a "reasonable period of time" in 
which to do so, pursuant to Article 21.3 of the Understanding on Rules and Procedures Governing the 
Settlement of Disputes  (the "DSU") .4 
2. On 12  July 2005, Honduras informed the DSB th at consultations with the Dominican 
Republic had not resulted in agreement on the reasonable period of time for implementation.  
Honduras , therefore , requested that such period be determined by binding arbitration, in accordance 
with Article 21.3(c) of the  DSU.5 
3. In a joint letter dated 14 July 2005, Honduras and the Dominican Republic communicated to 
the Chair man of the DSB their agreement that, notwithstanding the 90 -day period for arbitration 
described in Article 21.3(c) of the DSU (which would expire on 17 August 2005), an arbitration 
completed within 60 days after the date of the appointment of the arbitrator  would be deemed by the 
parties to be the award of the arbitrator under  Article 21.3(c) of the DSU .6 
4. On 21 July 2005, the parties requested me to ac t as Arbitrator, pursuant to Article 21.3(c) of 
the DSU , to determine the reasonable period of time for implementation of the recommendations and 
rulings of the DSB in respect of this matter.  I accepted the appointment on 22 July 20057, and 
undertook to issue my award no later than 20 September 2005.  
5. By joint letter to me dated 29 July 2005, Honduras and the Dominican Republic 
communicated  their agreement  to suspend the arbitration  proceedings , pending agreement on a 
reasonable period of time for implement ation.  By letter dated 4 August 2005, I acknowledged receipt 
of the joint letter and agreed to treat the matter as suspended until further notice.8 
 
1Appellate Body Report, WT/DS302/AB/R.  
2Panel Report, WT/DS302/R.  
3WT/DS302/12.  
4WT/DSB/M191, para. 27. 
5WT/DS302/13.  
6WT/DS302/14.  
7WT/DS302/15.  
8WT/DS302/16.  WT/DS302/17  
Page 2 
 
 
6. By joint letter to me dated 16 August 2005 , the parties informed me that they had reached 
agreement on the reasonable period of time for compliance in this matter , and requested that I "issue 
such rulings reflecting this agreement as [I] may deem appropriate in the circumstances" .  The parties' 
agreement is set out in the joint letter dated 16 August 2005, atta ched as Annex 1 to this Report.  
Under the circumstances, it will not be necessary for me to issue an award in this arbitration.  
 
 
Signed in the original at Sydney  this 25th day of August 2005 by:  
 
 
 
 
 
________________________  
John Lockhart  
Arbitrator  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  WT/DS 302/17 
 Page 3 
 
 
PP 3 – 4 Annex  I attached in pdf