. /.  WORLD TRADE  
ORGANIZATION   
WT/DS316/20 
13 January 2012 
 (12-0187) 
  
  
 
EUROPEAN COMMUNITIES AND CERTAIN MEMBER STATES –  
MEASURES AFFECTING TRADE IN LARGE CIVIL AIRCRAFT 
 
Recourse to Article 22.6 of the DSU by the European Union 
 
Constitution of the Arbitrator 
 
Note by the Secretariat 
 
 
1. At the meeting of the Dispute Settlement Body (DSB) on 22 December 2011, the 
United States stated that the European Union a nd certain member States had not brought measures 
found to result in adverse effects into complian ce with their obligations under the Agreement on 
Subsidies and Countervailing Measures (SCM Agreemen t) and that it had requested authorization to 
take countermeasures.1   
2. The European Union at the same  meeting objected to the level of suspension of concessions 
or other obligations contained in the United States' request and claimed that the principles and 
procedures set forth in Article 22.3 of the DSU ha d not been followed.  The European Union also 
stated that the United States' proposal is not  allowed under the covered agreements.  The 
European Union requested the matter be referred to arbitration under Article 22.6 of the DSU.  The 
DSB agreed that the matter raised by the European Union in its statement was referred to arbitration 
as required by Article 22.6 of the DSU. 
3. Article 22.6 of the DSU provides as follows: 
"When the situation described in paragraph 2 occurs, the DSB, upon request, shall 
grant authorization to suspend concessions or other obligations within 30 days of the 
expiry of the reasonable period of time unl ess the DSB decides by consensus to reject 
the request.  However, if the Member con cerned objects to the level of suspension 
proposed, or claims that the principles and procedures set forth in paragraph 3 have 
not been followed where a complaining part y has requested authorization to suspend 
concessions or other obligations pursuant to pa ragraph 3(b) or (c), the matter shall be 
referred to arbitration. Such arbitration sha ll be carried out by the original panel, if 
members are available, or by an arbitrator15 appointed by the Director-General and 
shall be completed within 60 days after the date of expiry of the reasonable period of 
time.  Concessions or other obligations sh all not be suspended during the course of 
the arbitration." 
(original footnote) 15  The expression "arbitrator" shall be interpreted as referring either to an 
individual or a group. 
                                                      
1 See WT/DS316/18. WT/DS316/20 
Page 2  
 
  4. Article 7.9 of the SCM Agreement provides as follows: 
"In the event the Member has not taken a ppropriate steps to remove the adverse 
effects of the subsidy or withdraw the subs idy within six months from the date when 
the DSB adopts the panel report or the Appellate Body report, and in the absence of agreement on compensation, the DSB shall grant authorization to the complaining 
Member to take countermeasures, commensur ate with the degree and nature of the 
adverse effects determined to exist, unless th e DSB decides by consensus to reject the 
request." 
5. Article 7.10 of the SCM Agreement provides as follows: 
"In the event that a party to the dispute requests arbitration under paragraph 6 of 
Article 22 of the DSU, the arbitrator sha ll determine whether the countermeasures are 
commensurate with the degree and nature of the adverse effects determined to exist." 
6. The Arbitration will be carried out by the original panel, namely: 
 Chairman: Mr Carlos Pérez del Castillo 
 
 Members: Mr John Adank 
   Mr Thinus Jacobsz   
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