RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/DSB/M/197 
10 October 2005 
 (05-4588) 
Dispute Settlement Body 
23 September 2005  
 
 
 
MINUTES OF MEETING 
 
Held in the Centre William Rappard  
on 23 September 2005  
 
Chairman:  Mr. Eirik Glenne (Norway) 
 
 Subjects discussed
: Page  
 
1. European Communities and certain member States – Measures affecting trade 
in large civil aircraft ........................................................................................................ .........1  
(a) Initiation of the procedures for developing information concerning serious prejudice 
under Annex V of the SCM Agreement and designation of the representative referred 
to in paragraph 4 of that Annex ................................................................................................ ..1 
2. United  States – Measures affectin g trade in large civil aircraft ..........................................3  
(a) Initiation of the procedures for developing information concerning serious prejudice 
under Annex V of the SCM Agreement and designation of the representative referred 
to in paragraph 4 of that Annex ................................................................................................ ..3 
 
 
1. European Communities and certain member States – Measures affecting trade in large 
civil aircraft 
(a) Initiation of the procedures for developing in formation concerning serious prejudice under 
Annex V of the SCM Agreement and designa tion of the representative referred to in 
paragraph 4 of that Annex (WT/DS316/2)   
1. The Chairman  said that the above-mentioned item was on the agenda of the present meeting 
at the request of the United States.  He then drew attention to the communication from the United States contained in document WT/DS316/2, a nd invited the representative of the United States 
to speak. 
2. The representative of the United States
 said that his country had been seeking for over two 
months to have the DSB initiate the procedures pr ovided for in Annex V of the SCM Agreement in 
this dispute, which was the US challenge to th e EC's subsidies to Airbus.  The United States 
understood that the EC was finally in a position to  allow the Annex V process to move forward.  
Accordingly, at the present meeting the United States  was renewing its request that the DSB initiate 
the procedures provided for in Annex V,  pursuant to paragraph 2 of that Annex.  The United States 
looked forward to beginning the process of developing information under that Annex.  In addition, the 
United States also requested that the DSB designa te Mr. Mateo Diego-Fernández as the representative 
that would facilitate the information-gathering pr ocess, pursuant to paragraph 4 of Annex V.  The 
United States would also like to take this opportuni ty to thank the DSB Chairman for his assistance in WT/DSB/M/197 
Page 2  
 
helping the parties to reach agreement on th e representative.  The United States very much 
appreciated the time and the effort that th e Chairman had devoted to this matter. 
3. The representative of the European Communities
 said that, first, his delegation wished to 
make a more general point related to the request for the initiation of the Annex V procedures in both 
DS316 and DS317 disputes.  He recalled that at prev ious DSB meetings, the EC had not been in a 
position to agree to the initiation of the Annex V pro cedures.  As had been pointed out then, this was 
not due to any unwillingness to see these procedures st arted, but rather due to a firm commitment to 
ensure that the basis of the procedures was the appr opriate one.  At the present meeting, his delegation 
was pleased to confirm that the EC had now reached  that stage in close cooperation with the United 
States.  The parties had been able to elaborate tailor-made Annex V proce dures, which duly took into 
account the complex nature of both disputes and th e factual documentation likely to be associated 
with it.  The EC was confident that the procedur es, which were to be agreed upon, would allow both 
the EC and the United States to prepare properly in each dispute towards a resolution of both disputes 
within the spirit and the letter of the DSU.  He sai d that the parties had jointly approached, with the 
assistance of the DSB Chairman, Mr. Mateo Diego-Fernández, who had accepted the task of serving 
as a facilitator in both disputes (DS316 and DS317).  Th e EC was grateful that he had offered to make 
himself available for these tasks.  In addition to this, the parties to these two disputes continued to 
work towards an agreement on the treatment and ha ndling of sensitive information, including business 
confidential information as well as government documents and had made further progress towards 
actual agreement on this.  Therefore, in the light of  the above, the EC could agree to the initiation of 
the Annex V procedure in the DS316 dispute. 
4. The representative of Japan  said that he wished to place on the record Japan's understanding 
regarding the initiation of the Annex V procedure.  Japan understood that the time-period of 60 days, 
specified in paragraph 5 of Annex V, would start now;  i.e. after the DSB's decision to initiate the procedures. 
5. The representative of Brazil
 said that her country regretted the unnecessary length of the 
proceeding under consideration.  Had the par ties properly interpreted Annex V of the SCM 
Agreement, the fact-finding procedure and the facilita tor would have already been in place when the 
request had first been made.  She noted that the pr ovisos of Annex V were clear and unconditional.  
Paragraphs 2 and 5 set out no additional require ment for the establishment of the fact-finding 
procedure, but the request itself and the "referra l of the matter to the DSB under paragraph 4 of 
Article 7 of the SCM Agreement".  As to the desi gnation of the facilitator, paragraph 4 of Annex V 
was even more straightforward: "The DSB shall designate a representative to serve the function of 
facilitating the information-gathering process". These paragraphs included no reference whatsoever to 
a consensus rule.  Nowhere in Annex V was there a need for mutual agreement between the parties to 
a dispute as a pre-condition for establishing the fact-finding procedure and for designating the facilitator for the information-gathering process. 
6. The Chairman
 proposed that the DSB take note of the statements made and agree, as 
requested by the United States in document WT/DS 316/2, to initiate the procedures for developing 
information concerning serious prejudice under A nnex V of the SCM Agreement, pursuant to 
paragraph 2 of Annex V of the SCM Agreement. 
7. The DSB took note  of the statements and so agreed . 
8. The Chairman  said that, with regard to the second issue,  namely the US request to designate a 
DSB facilitator pursuant to paragraph 4 of Annex V,  he wished to recall that on 22 September 2005, a 
fax had been sent to delegations.  In that fax, he  had informed Members that he had identified, and 
that the parties to the dispute had agreed to, a representative whom he had proposed that the DSB 
designate to serve the function of facilitating th e information-gathering process, pursuant to 
paragraph 4 of Annex V of the SC M Agreement.  He had invited an y delegation that desired further  WT/DSB/M/197 
 Page 3 
 
 
information to contact him.  At the present meeti ng, he wished to propose that the DSB designate 
Mr. Mateo Diego-Fernández as a representative to serve the function of facilitating the information-
gathering process, pursuant to paragraph 4 of Annex V of the SCM Agreement.  
9. The DSB so agreed . 
10. On behalf of the DSB, the Chairman  thanked Mr. Mateo Diego-Fernández for his willingness 
to undertake this task.  
2. United  States – Measures affecting trade in large civil aircraft 
(a) Initiation of the procedures for developing in formation concerning serious prejudice under 
Annex V of the SCM Agreement and designa tion of the representative referred to in 
paragraph 4 of that Annex (WT/DS317/2)   
11. The Chairman  said that that the above-mentioned ite m was on the agenda of the present 
meeting at the request of the European Communities.   He then drew atten tion to the communication 
from the European Communities contained in docum ent WT/DS317/2, and invited the representative 
of the European Communities to speak. 
12. The representative of th e European Communities  said that, under the previous agenda item, 
his delegation had already stated the fact that th e EC and the United States, as a result of close co-
operation, had reached agreement on the initia tion of Annex V procedures in DS316 and DS317 
disputes.  Once again, the EC wished to thank the DSB Chairman for his assistance regarding this 
matter. At the present meeting, the EC, therefore, re quested the initiation of the Annex V procedure in 
the DS317 dispute. 
13. The representative of the United States  said that, as mentioned with respect to the previous 
agenda item, the United States was pleased that th e EC was finally willing to allow the Annex V 
process to go forward pertaining to the dispute DS31 6.  The United States agreed to the initiation of 
Annex V proceedings in this dispute, and to th e designation of Mr. Diego-Fernández as the DSB's 
representative, and looked forward to beginning the process of developing information under that 
Annex.  Of course, the US joining the consensu s to commence Annex V proceedings in the DS317 
dispute extended only to the programs and measures that were properly included in the EC's panel 
request, namely, those consulted upon pursuant to th eir inclusion in the EC's consultation request.  
The United States would also like to thank the Chairman , once again, for his efforts to help the parties 
reach agreement on the representative.   In addition, the United States wished to take this opportunity 
to express its gratitude to Mr. Diego-Fernández for his willingness to serve as the representative of the 
DSB in both disputes. 
14. The representative of Japan  said that he wished to place on the record that Japan's 
understanding regarding the time-period of 60 days  for the information-gathering process was the 
same as indicated under the previous agenda item. 
15. The representative of Brazil  said that she wished to place on the record that the statement 
made by Brazil under the previous agenda item was also valid under the present item. 
16. The Chairman  proposed that the DSB take note of the statements made and agree, as 
requested by the European Communities in documen t WT/DS317/2, to initiate the procedures for 
developing information concerning serious pr ejudice under Annex V of the SCM Agreement, 
pursuant to paragraph 2 of Annex V of the SCM Agreement. 
17. The DSB took note  of the statements and so agreed . WT/DSB/M/197 
Page 4  
 
18. The Chairman
 said that, with regard to the second issue, namely, the EC request to designate 
a DSB facilitator, pursuant to paragraph 4 of Annex V, he wished to recall that on 22 September 2005, 
a fax had been sent to delegations.  In that fax, he  had informed Members that he had identified, and 
that the parties to the dispute had agreed to, a representative whom he had proposed that the DSB 
designate to serve the function of facilitating th e information-gathering process, pursuant to 
paragraph 4 of Annex V of the SC M Agreement.  He had invited an y delegation that desired further 
information to contact him.  At the present meeti ng, he wished to propose that the DSB designate 
Mr. Mateo Diego-Fernández as a representative to serve the function of facilitating the information-
gathering process, pursuant to paragraph 4 of Annex V of the SCM Agreement. 
19. The DSB so agreed . 
20. On behalf of the DSB, the Chairman  thanked, once again, Mr. Mateo Diego-Fernández for his 
willingness to undertake this task.  
 
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