. /.   WORLD TRADE  
ORGANIZATION  WT/DS332/18 
9 January 2009 
 
 (09-0043) 
 Original:   English 
  
 
BRAZIL – MEASURES AFFECTING IMPORTS OF RETREADED TYRES 
 
Understanding between Brazil and the European Communities
 
Regarding Procedures under Article 22 of the DSU  
 
 
 The following communication, dated 7 January 2009, from the delegation of the European Communities to the Chairman of the Dispute Settlemen t Body, is circulated at the request of that 
delegation.  
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  Please find attached a procedural agreement, concluded on 5 January 2009, between Brazil and the European Communities in the dispute referred to above. 
 We kindly request that you circulate this communication to the Members of the DSB. 
 WT/DS332/18 
Page 2  
 
  Procedural Agreement between Brazil and the European Communities
 
regarding Article 22 of the DSU  
 
 
 The Dispute Settlement Body (DSB) adopted th e Appellate Body repor t and the Panel report 
as modified by the Appellate Body report on 17 December 2007.  An arbitrator determined that the 
reasonable period of time to implement the DSB r ecommendations and rulings would be 12 months, 
expiring on 17 December 2008 (WT/DS332/16).   The European Communities and Brazil ("the pa rties to the dispute") have agreed on the 
following procedures for the exclusive purposes of this dispute: 
 1. In the event that the European Communities do es not request, by 16 January 2009, the DSB to 
authorize the suspension of concessions or other oblig ations, Brazil shall not assert that the European 
Communities is precluded from obtaining the DSB's au thorization to suspend concessions or other 
obligations 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 Brazil's right to have the matter referred to 
arbitration in accordance with Article 22.6 of the DSU.    2. This is agreed on the understanding that the right s of the parties to the dispute with respect to 
the authorization to suspend concessions or other obl igations do not change, compared to the situation 
in which the European Communities would request  the DSB to grant authorization to suspend 
concessions or other obligations within 30 days of the expiry of the reasonable period of time.    3. If the European Communiti es requests authorization to suspend concessions or other 
obligations pursuant to Article 22.2 of the DSU, a nd if Brazil objects under Article 22.6 of the DSU to 
the level of suspension of concessions or other obl igations and/or claims that the principles and 
procedures set forth in DSU Article 22.3 have not  been followed, the matter will be referred to 
arbitration pursuant to DSU Article 22.6.  4. The parties to the dispute will cooperate to en able the arbitrator under Article 22.6 of the DSU 
to circulate its decision within 60 days of the referral to arbitration. 
 
5. If measures taken by Brazil to fully comply w ith the relevant recomme ndations and rulings of 
the DSB are presented to the Euro pean Communities, the European  Communities agrees to initiate 
proceedings under Article 21.5 of the DSU before initiating proceedings for requesting authorization 
to suspend concessions or other obligations  pursuant to Article 22.2 of the DSU. 
 
6. The parties will continue to cooperate in all matters related to this procedural  agreement 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 to the dispute consid er 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.  
 
   H.E. Mr. Roberto Azevedo H.E. Mr. Eckart Guth  Ambassador Ambassador 
 Permanent Representative of Brazil Permanent Representative  
  for the European Communities  
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