WORLD TRADE  
ORGANIZATION   
WT/DS316/21 
17 January 2012 
 
 (12-0256) 
 Original:   English 
  
 
EUROPEAN COMMUNITIES AND CERTAIN MEMBER STATES –  
MEASURES AFFECTING TRADE IN LARGE CIVIL AIRCRAFT 
 
Understanding between the European Union and the United States 
Regarding Procedures under Articles 21 and 22 of the DSU 
   The following communication, dated 12 January  2012, from the delegation of the European 
Union and the delegation of the United States to th e Chairperson of the Dispute Settlement Body, is 
circulated at the request of these delegations. 
 
_______________ 
 
 
The European Union and the United States would like to inform the Dispute Settlement Body 
of the attached "Agreed Procedures under Articles 21 and 22 of the Dispute Settlement Understanding  
and Article 7 of the SCM Agreement " between the European Union and the United States with respect 
to the dispute European Communities and Certain Member St ates – Measures Affecting Trade in 
Large Civil Aircraft  (WT/DS316).  
 
We request that you please circulate the attached  agreement to the Members of the Dispute 
Settlement Body.    WT/DS316/21 
Page 2 
 
 
  European Communities and Certain Member States –  
Measures Affecting Trade in Large Civil Aircraft   
(WT/DS316)  
 
 
Agreed Procedures under Articles 21 and 22 of the Dispute Settlement Understanding   
and Article 7 of the SCM Agreement  
 
 
At its meeting on 1 June 2011, the Dis pute Settlement Body ("DSB") adopted its 
recommendations and rulings in the dispute European Communities and Certain Member States – 
Measures Affecting Trade in Large Civil Aircraft .1   
 
At the meeting of the DSB on 17 June 2011, pursuant to Article 21.3 of the Understanding on 
Rules and Procedures Governing the Settlement of Disputes ("DSU"), the European Union informed 
the DSB that it intended to implement the DSB recommendations and rulings in a manner that respected its WTO obligations within the tim e period indicated in Article 7.9 of the Agreement on 
Subsidies and Countervailing Measures  ("SCM Agreement"), that is, within six months from 
1 June 2011, expiring on 1 December 2011.
2 
 
On 9 December 2011, the United States requested  consultations with the European Union 
pursuant to Article 4 of the DSU and Articles 4, 7, and 30 of the SCM Agreement .  On the same day, 
the United States also requested that a meeting of  the DSB be held on 22 December 2011 to consider 
recourse by the United States to Article 22 of the DSU and Article 7.9 of the SCM Agreement .  
 
The United States and the European Union ("th e parties") 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 for procedural di sputes and are without prejudice to either party's 
views on the correct interpretation of the DSU and the SCM Agreement.  
1. The parties note that the United States cons iders that the situation described in 
Article 21.5 of the DSU exists and has requ ested that the Europ ean Union enter into 
consultations with the United States.  The parties agree to hold such consultations 
within 15 days from the date of receipt of the request unless the parties otherwise agree.  After this 15-day period has el apsed, the United States may request the 
establishment of a panel pursuant to Article 21.5 of the DSU at any time.  
2. At the first DSB meeting at which the US  request for the establishment of an 
Article 21.5 panel appears on the agenda, the European Union shall accept the 
establishment of that panel. 
3. The parties shall cooperate to enable 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 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.  
                                                      
1 WT/DS316/16 of 6 June 2011, Action by the Dispute Settlement Body. 
2 WT/DSB/M/298 of 29 July 2011, paras. 51 to 54.  WT/DS316/21 
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  5. In the event of an appeal of the Article 21.5  panel report, the parties shall cooperate to 
enable the Appellate Body to circulate its report to the Members within 90 days from 
the date of notification of the appeal to th e DSB.  Further, either party may request 
the DSB to adopt the report of the Article 21.5 panel and the report of the Appellate 
Body at a DSB meeting held within 20 days of the circulation of the Appellate Body 
report to the Members. 
6. The United States has requested the DSB to  authorize countermeasures pursuant to 
Article 22.2 of the DSU and Article 7.9 of  the SCM Agreement.  As the matter has 
been referred to arbitration, the United Stat es and the EU shall request the arbitrator 
to suspend that proceeding.  In the ev ent that the DSB following a proceeding under 
Article 21.5 of the DSU rules that a measure taken to comply does not exist or is 
inconsistent with a covered agreement, either party may request the Article 22.6 
arbitrator to resume its work.   
7. The parties will cooperate to enable the arbitrator under Article 22.6 of the DSU to 
circulate its decision within 60 days of the date on which the suspension of its 
proceedings ends under paragraph 6.  
8. If any of the original panelists is not available for either the Article 21.5 compliance 
panel or the Article 22.6 arbitration (o r both), or any person serving in such 
proceeding becomes unavailable to serve, the parties will promptly consult on a replacement, and either party may request  the Director-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 require d.  If an original panelist is unavailable 
to serve in either of the proceedings, or  a person serving in such proceeding becomes 
unavailable to serve, the parties will further request that, in making this appointment, 
the Director-General seek a person who will be available to act in both proceedings. 
9. The parties to this dispute  will continue to cooperate in all matters related to these 
agreed procedures  and shall not raise any procedural objection to any of the steps set 
out herein.  If, during the application of these procedures, the parties 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.  
10. On or before the date on which the Article  21.5 compliance panel or the Article 22.6 
arbitrator is composed, the parties sh all propose the adoption for purposes of each 
proceeding of procedures for the protection of confidential information based on the 
Additional Working Procedures for DS316 – Procedures for the Protection of Business Confidential Information and Hi ghly Sensitive Business Information used 
by the Panel in EC – Large Civil Aircraft , along with any modifications to those 
procedures that the parties agree to propose.
3 
                                                      
3 WT/DS316/R, Annex E. WT/DS316/21 
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Signed in Geneva, 12 January 2012 
 
For the United States 
   
 
 
Mr. David P. Shark 
Chargé d’affaires a.i. 
 For the European Union 
   
 
 
Mr. Detlev Brauns 
Chargé d’affaires a.i. 
 
 
 
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