WORLD TRADE  
ORGANIZATION  WT/DS176/16 
1 July 2005 
 (05-2867) 
 Original:   English 
  
 
UNITED STATES – SECTION 211 OMNIBUS APPROPRIATIONS ACT OF 1998 
 
Understanding between the European Communities and the United States
 
  
 The following communication, dated 30 June 2005, from the delegation of the European 
Communities and the delegation of the United States to the Chairman of the Dispute Settlement Body, 
is circulated at the request of those delegations.  
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  The European Communities and the United States would like to inform the Dispute Settlement Body of the attached "Understanding between the European Co mmunities and the United 
States" with respect to the dispute United States – Section 211 Omni bus Appropriations Act of 1998  
(WT/DS176). 
 
 We request that you please circulate this notification to the Members of the Dispute Settlement Body. WT/DS176/16 
Page 2  
 
 Understanding between the European Comm unities and the United States of America
 
   Noting that the United States has informed th e Dispute Settlement Body (DSB) that it will 
continue to work to bring Section 211 of the Om nibus Appropriations Act of 1998 into conformity 
with its WTO obligations, 
  The European Communities (EC) and the United States have reached the following 
understanding with regard to the dispute US – Section 211 Appropriations Act : 
 
1. The EC will not at this stage request author ization from the DSB to suspend concessions or 
other obligations pursuant to Article 22.2 of the Understanding on Rules and Procedures 
Governing the Settlement of Disputes  (DSU). 
 2. If the EC at some future date decides to re quest DSB authorization to suspend concessions or 
other obligations under Article 22.2 of the DS U, it will provide the United States advance 
notice and will consult with the United States before making such a request. 
 3. The EC retains its right to be granted DSB authorization to suspend concessions or other 
obligations pursuant to Article 22.6 of the DS U at any future date and the United States will 
not seek to block the EC’s request for DSB authorization on the grounds that such DSB action 
would not be within the time period set out in the first sentence of Article 22.6 of the DSU. 
 4. The United States retains the right to object to the level of suspension proposed, or to claim 
that the principles and procedures set forth in Article 22.3 of the DSU have not been 
followed, and to have the matter referred to arbitration under Article 22.6 of the DSU. 
 
5. The EC and the United States agree to request  jointly the adoption by the DSB of the draft 
decision attached to this Understandi ng at its meeting on 20 July 2005. 
   
 
 (signed) (signed)  H.E. Mr Carlo Trojan Mr David Shark  Ambassador Deputy Chief/Chargé d'Affaires a.i.  Permanent Representative of the EC Permanent Mission of the United States 
  WT/DS176/16 
 Page 3 
 
 
 Draft Decision of the DSB  
   The DSB takes note of the Understanding reach ed between the European Communities (EC) 
and the United States and agrees that, upon a re quest by the EC, the DSB shall grant the EC 
authorization to suspend concessions or other oblig ations unless (i) the DSB decides by consensus not 
to do so or (ii) the United States objects to the le vel of suspension proposed or claims that the 
principles and procedures in DSU Article 22.3 ha ve not been followed, referring the matter to 
arbitration under Article 22.6 of the DSU.  
 
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