WORLD TRADE  
ORGANIZATION  WT/DS294/21 
9 May 2007 
 
 (07-1923) 
 Original:   English 
  
 
UNITED STATES – LAWS, REGULATIONS AND METHODOLOGY FOR 
CALCULATING DUMPING MARGINS ("ZEROING") 
 
Understanding between the United States and the European Communities
 
Regarding Procedures under Articles 21 and 22 of the DSU  
 
  The following communication, dated 4 May 2007, from the delegation of the United States and the delegation of the European Communities to the Chairman of the Dispute Settlement Body, is 
circulated at the request of these delegations. 
 
_______________ 
 
  Please find attached the sequencing agreemen t, concluded on 4 May 2007, between the 
United States of America and the European Communities in the dispute referred to above. 
 
    
 
  
Peter F. Allgeier 
Ambassador 
Permanent Representative 
of the United States Eckart Guth 
Ambassador 
Permanent Representative 
of the European Communities 
 WT/DS294/21 
Page 2  
 
  Agreed Procedures under Articles 21 and 22 of the Dispute Settlement Understanding  
United States - Laws, Regulations and Methodology for Calculating Dumping Margins  
(WT/DS294) 
 
 The Dispute Settlement Body (DSB) adopted th e Appellate Body repor t and the Panel report 
as modified by the Appellate Body report on 9 May 2006.  The European Communities and the 
United States agreed that the reasonable period of time to implement the DSB recommendations and 
rulings would be 11 months, expiring on 9 April 2007 (WT/DS294/19).   The European Communities and the United States ("the parties to the dispute") have agreed 
on the following procedures for the exclusive purposes of  this dispute.  They are designed to facilitate 
the resolution of the dispute and reduce the scope fo r procedural disputes and are without prejudice to 
either party's views on the correct interpretation of the Understanding on Rules and Procedures 
Governing the Settlement of Disputes (DSU): 
 
1. Should the European Communities consider that th e situation described in Article 21.5 of the 
DSU exists, the European Communities will request consultations, which the parties to the dispute will hold within 12 days from the date of  circulation of such request.  The parties to 
the dispute agree that at the end of such period for consultations, should either party so state, 
the parties to the dispute will immediately and jo intly consider that such consultations have 
failed to settle the dispute. 
 
Consequently, the European Communities may at any time request the establishment of a 
panel pursuant to Article 21.5 of the DSU. 
 2. At the first DSB meeting at which the Europ ean Communities' request for the establishment 
of an Article 21.5 panel appears on the agenda, the United States shall accept the 
establishment of that panel. 
 3. The parties to the dispute shall cooperate to enab le the Article 21.5 panel to circulate its report 
within 90 days of the panel's establishment, excluding such time during which the panel's 
work may be suspended pursuant to Article 12.12 of the DSU. 
 
4. Either party to the dispute may request the DSB to adopt the report of the Article 21.5 panel at 
a DSB meeting held at least 20 days after the circulation of the report to the Members unless either party appeals the report.  
 
5. In the event of an appeal of the Article 21.5 panel report, the parties to the dispute shall 
cooperate to enable the Appellate Body to circ ulate its report to the Members within 60 days 
from the date of notification of the appeal to the DSB. 
 6. In the event of an appeal, eith er party to the dispute may request the DSB to adopt the reports 
of the Appellate Body and of the Article 21. 5 panel (as modified by the Appellate Body 
report) at a DSB meeting held within 30 days of the circulation of the Appellate Body report 
to the Members. 
 7. In the event that the DSB ru les that a measure taken to comply does not exist or is 
inconsistent with a covered agreement, the European Communities may request authorization 
to suspend concessions or other obligations in  accordance with Article 22 of the DSU after 
the adoption by the DSB of the Article 21.5 pa nel report and, where relevant, the Appellate 
Body report and may request negotiations with th e United States with a view to developing 
mutually acceptable compensation pursuant to Article 22.2 of the DSU. 
  WT/DS294/21 
 Page 3 
 
 
  8. The United States shall not assert that the Eur opean Communities is precluded from obtaining 
such DSB authorization on the grounds that the request was made outside the 30-day time-
period specified in Article 22.6 of the DSU.  Th is is without prejudice to the United States’ 
right to have the matter referred to arbitrati on in accordance with Article 22.6 of the DSU. 
 
9. If the European Communities re quests authorization to suspend concessions or other 
obligations pursuant to Article 22.2 of the DSU, and if the United States objects under Article 22.6 of the DSU to the level of suspen sion of concessions or other obligations 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 ar bitration pursuant to DSU Article 22.6. 
 10. The parties to the dispute will cooperate to enab le the arbitrator under Article 22.6 of the DSU 
to circulate its decision within 60 days of the referral to arbitration.  
 
11. If any of the original panelists is not availabl e for either the Article 21.5 compliance panel or 
the Article 22.6 arbitration (or both), the parties to the dispute  will promptly consult on a 
replacement, and either party may request the Di rector-General of the WTO to appoint, within 
ten days of being so requested, a replacement for the proceeding or proceedings in which a 
replacement is required.  If an original pane list is unavailable to serve in either of the 
proceedings, the parties to the dispute will further request that, in making this appointment, 
the Director-General seek a person who will be available to act in both proceedings. 
 12. The parties to this dispute  will continue to cooperate in a ll matters related to these agreed 
procedures  and not to raise any procedural objection to any of the steps set out herein.  If, 
during the application of these procedures, the par ties to the dispute consider 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.  
 Signed in Geneva, 4 May 2007: 
 
    
 
 
Peter F. Allgeier 
Ambassador 
Permanent Representative 
of the United States Eckart Guth 
Ambassador 
Permanent Representative 
of the European Communities 
 
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