07-1071 JOB(04)/52/Rev.1 14 March 2007 
  
 
   
SPECIAL SESSION OF THE DISPUTE SETTLEMENT BODY 
 
Revision
 
   The following communication is circulated at the request of the delegations of Argentina, 
Brazil, Canada, India, New Zealand and Norway. 
 JOB(04)/52/Rev.1 
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  Sequencing
 
 
Article 21.5  
  (a)  Where there is disagreement as to the ex istence or consistency with a covered 
agreement of any measure taken to comply with the recommendations and rulings of the 
DSB, such disagreement shall be decided through recourse to these dispute settlement 
procedures  as modified by this paragraph.  
  (b) Any party to a dispute may request th e establishment of a panel to resolve such 
disagreement.
1  This panel shall be composed of the members of  the original panel, unless one 
or more members are not available.2  
  [(c) Consultations are not required for these procedures.] 
 
 (d)  The panel shall circulate its report within 90 days after the date of its establishment.  
When the panel considers that it cannot circul ate its report within this timeframe, it shall 
inform the DSB in writing of the reasons for the delay together with an estimate of the period 
within which it will circulate its report.  
  (e) The Member concerned shall not have an additional reasonabl e period of time to 
comply with the recommendations and rulings.  
 Article 22.2
 
  If the Member concerned fails to bring the me asure found to be incons istent with a covered 
agreement into compliance therewith or otherwis e comply with the recommendations and rulings 
either immediately or within the reasonable peri od of time determined pursu ant to paragraph 3 of 
Article 21, such Member shall, if the complaining pa rty so requests, enter into negotiations within ten 
days of such request, with a view to deve loping mutually acceptable compensation.   
 Article 22.2 bis
 
 
 A complaining party may request authorizati on from the DSB to suspend the application to 
the Member concerned of concessions or other oblig ations under the covered agreements only where: 
  (a) the Member concerned does not inform th e DSB, within the timeframe of paragraph 3 
first sentence of Article 21, that it intends to comply with the recommendations and rulings of 
the DSB;  
  (b) the Member concerned informs the DSB that it does not intend to comply with the 
recommendations and rulings of the DSB; 
 
 (c) within twenty days after the end of  the reasonable period of time, the Member 
concerned does not inform the DSB that it has complied; or 
 
                                                     
 
1 The DSB shall establish a panel at the first meeting at which the request is made, unless at that 
meeting the DSB decides by consen sus not to establish a panel. 
2 If any member of the original panel is not availa ble, the Director-General shall appoint a replacement 
within 7 days after the date of establishment of th e compliance panel, after consulting with the parties.  JOB(04)/52/Rev.1 
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   (d) the DSB rules, pursuant to proceedings under paragraph 5 of Article 21 in respect of 
such complaining party, that the Member con cerned has failed to bring itself into compliance 
with the recommendations and rulings of the DSB. 
 Article 22.6
 
 
(a) When any of the situatio ns described in paragraph 2 bis occurs, the DSB, upon 
request, shall grant authorizati on to suspend concessions or ot her obligations, unless the DSB 
decides by consensus to reject the request.  Ho wever, if the Member concerned 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 comp laining party has requested authorization to 
suspend concessions or other obligations pursuant to  paragraph 3(b) or (c), the matter shall be 
referred to arbitration.    (b) Such arbitration shall be carried out by th e original panel, if members are available, 
or by an arbitrator appointed by the Director  General and shall be co mpleted within 60 days 
of the appointment of the arbitrator .  A complaining party may not suspend concessions or 
other obligations during the course of the arbitration. JOB(04)/52/Rev.1 
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  Referral procedure (Remand)
 
 
Article 17.12  
  (a) The Appellate Body shall address each of the issues raised in accordance with 
paragraph 6 during the appellate proceeding. 
  (b) Where the Appellate Body finds that th e panel report does not provide a sufficient 
factual basis to complete the analysis with r espect to certain issues, it shall in its report 
provide a detailed description of the types of findings that are required to complete the 
analysis with respect to those issues. 
  (c) In such a case, a party to the dispute ma y request that one or more of those issues be 
referred to the original panel, in acco rdance with the provisions of Article 17 bis. 
 
 (d) Nothing in this paragraph or Article 17 bis affects the adoption of panel and 
Appellate Body reports and th e implementation of the recommendations and rulings of the 
DSB. 
 Article 17 bis
 
 
Referral Procedure  
 
1. A party to the dispute may request, no later than 30 days after the adoption of the Appellate 
Body report, that the DSB establish a panel to consid er any issues with respect to which the Appellate 
Body has found that there is not a sufficient fact ual basis to complete the analysis, pursuant to 
Article 17.12.    
 
2. The party to the dispute shall make the request in writing and shall, in the request, identify the 
specific issues it seeks to have addressed by the pa nel as well as relevant para graphs in the Appellate 
Body report. 
 
3. The DSB shall establish a panel at the first meeting at which the request appears, unless it 
decides by consensus not to do so, but only af ter the Appellate Body report has been adopted.3   
 
4. Wherever possible, the panel shall be com posed of the members of the original panel.4     
 
5. The panel may examine only those issues with  respect to which the Appellate Body has 
expressly found that there is not a sufficient factual basis to complete the analysis, and that the party 
to the dispute has identified in accordance with paragraph 2.   
 
6. The panel shall make such  findings and recommendations, in accordance with the guidance 
provided by the Appellate Body pursuant to paragr aph 12 of Article 17, as will assist the DSB in 
making its rulings and recommendations.   
 
7. As a general rule, the panel shall circulate its re port within 90 days after the date of referral of 
the matter to it.  However, in recognition of the need  for flexibility in resolving issues that are referred 
                                                      
3 If the party to the dispute so requests, a meeting of the DSB shall be convened for this purpose within 
15 days of the request, provided that at least 10 days' advance notice of the meeting is given.  The request for the 
establishment of a panel may be considered at the same meeting at which the Appellate Body report is adopted. 
4 If any member of the original panel is not availa ble, the Director General shall appoint a replacement 
within 7 days after the date of the establishment of the panel, after co nsulting the parties to the dispute.  JOB(04)/52/Rev.1 
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  pursuant to Article 17 bis, the panel may modify and simplify its working procedures, after consulting 
the parties to the dispute.  
 
8. If a party appeals the report of the panel, Article 17 and Article 17 bis apply to Appellate 
Body proceedings and the adoption of the Appellate Body report. 
 JOB(04)/52/Rev.1 
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  Post-retaliation
 
 
Article 22.8  
  (a) The suspension of concessions or other ob ligations shall be temporary and shall only 
be applied until such time as the measure found to  be inconsistent with  a covered agreement 
has been removed, or the Member that must  implement recommendations or rulings provides 
a solution to the nullification or impairment of benefits, or a mutually satisfactory solution is reached.   
 
 (b) Where the DSB has author ized the suspension of concessions or other obligations 
against a Member and there is a subsequent di sagreement as to the existence or consistency 
with a covered agreement of a measure take n to comply with the recommendations and 
rulings of the DSB, the Member concerned ma y have recourse to the procedures of Article 
21.5 as modified by this paragraph.  In such a case:  
 
(i) in its request for the establishment of  a panel, the Member concerned shall set 
out the specific measures taken to comply, the text of these measures, and a factual and legal description of how these measures bring the Member into compliance with 
the recommendations and rulings of the DSB;   
(ii) where a Member that has been aut horized to suspend concessions or other 
obligations considers that a measure taken to  comply is inconsistent with any other 
provision of the covered agreements, or th at the Member concerned has otherwise not 
brought itself into compliance with the r ecommendations and rulings of the DSB, it 
may submit to the DSB, no later than [xx days] of the establishment of a panel, a 
notice setting out any additional measure taken to comply and a brief summary of the 
legal basis for its disagreement with the Member concerned; and  (iii) for the purposes of these proceedings, the word "document" in the terms of 
reference of the panel under paragraph 1 of  Article 7 comprises the request for the 
establishment of the panel and the notice submitted under this provision. 
 
(c) Where, following these proceedings, the DSB: 
 
 (i) rules that the measure taken to comply is not inconsistent with the provisions 
in question or otherwise brings the Memb er concerned into compliance with the 
recommendations and rulings of the DSB, on the request of the Member concerned, 
the DSB shall withdraw that authorization,  unless it decides by consensus not to do 
so; 
 
 (ii) does not rule that the Member concerned is in compliance with the 
recommendations and rulings of the DSB, not withstanding paragraph 7 of Article 22, 
fifth sentence, a party to the dispute may refer the matter to arbitration pursuant to 
paragraph 6 of Article 22.  The Arbitrator  may determine a new level of suspension 
or make findings, as appropria te, under paragraph 3 of Article 22.  The Arbitrator 
shall inform the DSB promptly of its decision.  Upon the request of a party to the dispute, the DSB shall modify the author ization to suspend concessions or other 
obligations consistently with the decision of the Arbitrator, unless the DSB decides 
by consensus to reject the request. 
 (d) The existing authorization to suspend c oncessions or other obligations remains in 
effect until, pursuant to paragraph (c), the DSB withdraws or modifies that authorization.  JOB(04)/52/Rev.1 
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(e) In accordance with paragraph 6 of Articl e 21, the DSB shall continue to keep under 
surveillance the implementation of adopted recommendations or rulings, including those 
cases where compensation has been provided or concessions or other obligations have been 
suspended but the recommendations to bring a measure into conformity with the covered 
agreements have not been implemented.   
 (f) Upon the request of a party to the dispute, the DSB may at any point withdraw or modify an authorization. 
 
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