WORLD TRADE  
ORGANIZATION  WT/DS363/18 
19 April 2011 
 
 (11-2029) 
 Original:   English 
  
 
CHINA – MEASURES AFFECTING TRADING RIGHTS AND 
DISTRIBUTION SERVICES FOR CERTAIN PUBLICATIONS 
AND AUDIOVISUAL ENTERTAINMENT PRODUCTS 
 
Understanding between China and the United States 
 
Regarding Procedures under Articles 21 and 22 of the DSU  
   The following communication, dated 13 April 2011, from the delegation of China and the 
delegation of the United States to the Chairperson of the Dispute Settlement Body, is circulated at the 
request of these delegations.  
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 The United States and China would like to inform the Dispute Settlement Body of the 
attached "Agreed Procedures under Articles 21 an d 22 of the Dispute Settlement Understanding" 
between the United States and Chin a with respect to the dispute China – Measures Affecting Trading 
Rights and Distribution Services for Certain Pub lications and Audiovisual  Entertainment Products  
(WT/DS363).  
We request that you please circulate the attached  agreement to the Members of the Dispute 
Settlement Body.     
 WT/DS363/18 
Page 2 
 
 
  Agreed Procedures under Articles 21 and 22 of the Dispute Settlement Understanding 
 
China – Measures Affecting Trading Rights and Distribution Services  
for Certain Publications and Audiovisual Entertainment Products   
(WT/DS363) 
 
The Dispute Settlement Body ("DSB") adopted  its recommendations and rulings in the 
dispute China – Measures Affecting Trading Rights a nd Distribution Services for Certain Publications 
and Audiovisual Entertainment Produc ts (WT/DS363) on 19 January 2010. 
 
Pursuant to Article 21.3(b) of the Unders tanding on Rules and Procedures Governing the 
Settlement of Disputes ("DSU"), the People's Repub lic of China ("China") and the United States of 
America ("United States") agreed that the reasonable period of time to implement the DSB recommendations and rulings would be fourt een (14) months, expiring on 19 March 2011 
(WT/DS363/16). 
 China 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 for procedural di sputes and are without prejudice to either party's 
views on the correct interpretation of the DSU: 
 1. Should the United States consider that the situ ation described in Article 21.5 of the DSU 
exists, the United States will request that Chin a enter into consultations with the United 
States. The Parties agree to hold such consultati ons within 30 days from the date of receipt of 
the request. After this 30-day period has elapsed, the United States may request the 
establishment of a panel pursuant to DSU Article 21.5 at any time.  
 2. At the first DSB meeting at which the U.S. request for the establishment of an Article 21.5 
panel appears on the agenda, China 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 90 days 
from the date of notification of the appeal to th e DSB.  Further, either party to the dispute 
may request the DSB to adopt its recommendations  and rulings at a DSB meeting held within 
30 days of the circulation of the Appellate Body report to the Members. 
 6. The United States may request authorization to  suspend concessions or other obligations 
pursuant to DSU Article 22.2 in the event that th e DSB rules in an Article 21.5 procedure that 
a measure taken to comply does not exist or is inconsistent with a covered agreement.  China 
shall not assert that the United States is precluded from obtaining such DSB authorization because its request was made outside the time peri od specified in Article 22.6 of the DSU.  
This is without prejudice to China's right to have the matter referred to arbitration in 
accordance with Article 22.6 of the DSU. 
  WT/DS363/18 
 Page 3 
 
 
  7. If the United States requests authorization to  suspend concessions or other obligations 
pursuant to Article 22.2 of the DSU, China sha ll have the right to object under Article 22.6 of 
the DSU to the level of suspension of concessions or other obligations and/or claim that the 
principles and procedures set forth in Article 22. 3 of the DSU have not been followed, and the 
matter will be referred to arbitration pu rsuant to Article 22.6 of the DSU. 
 8. 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.  
 
9. 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. 
 
10. The parties to this dispute  will continue to cooperate in a ll matters related to these agreed 
procedures  and agree not to raise any procedural objec tion to any of the steps set out herein.  
If, during the application of these procedures, the parties 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, 8 April 2011. 
 
    
Zhao Hong 
Minister Counsellor 
Permanent Mission of China  
   
Juan A. Millán 
Senior Legal Advisor 
Permanent Mission of the United States 
  
 
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