WORLD TRADE  
ORGANIZATION   
WT/DS353/14 
27 April 2012 
 (12-2244) 
 Original:   English 
  
 
UNITED STATES – MEASURES AFFECTING TRADE  
IN LARGE CIVIL AIRCRAFT  
(SECOND COMPLAINT) 
 
Understanding between the European Union and the United States 
Regarding Procedures under Articles 21 and 22 of the DSU 
   The following communication, dated 24 April 2012, from the delegation of the European Union and the delegation of the United Stat es to the Chairperson of the Dispute Settlement 
Body, is circulated at the request of these delegations. 
 
_______________ 
 
 The United States and the European Union 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 United States – Measures Affecting Trade in Large Civil Aircraft  (WT/DS353).  
 
We request that you please circulate the attached  agreement to the Members of the Dispute 
Settlement Body.  
  WT/DS353/14 
Page 2  
 
  United States – Measures Affecting Trade in Large Civil Aircraft   
(WT/DS353)  
 
Agreed Procedures under Articles 21 and 22 of the Dispute Settlement Understanding  
and Article 7 of the SCM Agreement  
 
The European Union and the United States ("the par ties") have agreed to the following procedures in 
the event that the Dispute Settlement Bo dy ("DSB") recommends in the dispute United States – 
Measures Affecting Trade in Large Civil Aircraft  that the United States bring its measures into 
conformity with the Agreement on Subsidies and Countervailing Measures  ("SCM Agreement").  
These procedures are for the exclusive purposes of this  dispute. They are designed to facilitate the 
resolution of the dispute and reduce the scope for procedural disputes and are without prejudice to either party's views on the correct interpretation of the DSU and the SCM Agreement.  1. If the DSB recommends that the United States br ing its measures into conformity with the 
SCM Agreement and the European Union cons iders that the situ ation described in 
Article 21.5 of the Understanding on Rules and Procedures Governing the Settlement of 
Disputes  ("DSU") exists, the European Union will request that the United States enter into 
consultations with the European Union.
1  The parties shall hold such consultations within 15 
days from the date of receipt of the request .  After this 15-day period has elapsed, the 
European Union 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 EU request for the establishment of an Article 21.5 
panel appears on the agenda, the United States sh all 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 su ch 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.  
5. In the event of an appeal of the Article 21.5 pa nel 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 the 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 th e Appellate Body report to the Members. 
6. The European Union may request the DSB to authorize countermeasures pursuant to Article 
22.2 of the DSU and Article 7.9 of the SCM Agre ement if it considers that the United States 
has failed to comply with the DSB’s recomme ndations and rulings within the time period 
referred to in Article 7.9 of the SCM Agreement or if the DSB following a proceeding under Article 21.5 of the DSU rules that a measure take n to comply does not exist or is inconsistent 
with a covered agreement.  The United States shall not assert that the EU is precluded from 
obtaining such DSB authorization because its request was made outside the time period specified in the first sentence of Article 22.6 of the DSU.  This is without prejudice to the 
right of the United States to have the matt er referred to arbitration in accordance with 
Article 22.6 of the DSU. 
                                                      
1 This is without prejudice to the European Union's right to make a request under Article 22.2 of the 
DSU and Article 7.9 of the SCM Agreement as specified in paragraph 6 below.  WT/DS353/14 
 Page 3 
 
 
  7. If the European Union requests authorization to  suspend concessions or other obligations 
pursuant to Article 22.2 of the DSU, the United States shall have the right to object under 
Article 22.6 of the DSU to the level of suspen sion of concessions or other obligations and/or 
claim that the principles and procedures set fo rth in Article 22.3 of the DSU have not been 
followed.  In the event of such  objection, the matter will be referred to arbitration pursuant to 
Article 22.6 of the DSU. 
8. If the matter is referred to arbitration prior to adoption by the DSB of its rulings following an 
Article 21.5 proceeding, the United States and th e EU shall, at the earliest possible moment, 
request the arbitrator under Article 22.6 to suspe nd its work.  In the event that the DSB 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.   
9. The parties will cooperate to enable the arbitrat or under Article 22.6 of the DSU to circulate 
its decision within 60 days of the referral to arbitration.  
10. 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), or an y person serving in such proceeding becomes 
unavailable to serve, the parties will promptly c onsult 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 required.  If an original panelist is unavailable to serve in e ither 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. 
11. The parties to this dispute  will continue to cooperate in a ll 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 pa rties 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.  
12. On or before the date on which the Artic le 21.5 compliance panel or the Article 22.6 
arbitrator is composed, the parties shall propo se the adoption for purposes of each proceeding 
of procedures for the protection of confidentia l information based on the Additional Working 
Procedures for DS353 – Procedures for the Prot ection of Business Confidential Information 
and Highly Sensitive Business Information used by the Panel in US – Measures Affecting 
Trade in Large Civil Aircraft , along with any modifications to those procedures that the 
parties agree to propose.
2 
Signed in Geneva, 12 January 2012 
 
For the European Union 
 
   
Mr. Detlev Brauns 
Chargé d’affaires a.i. For the United States 
 
   
Mr. David P. Shark 
Chargé d’affaires a.i. 
 
__________ 
                                                      
2 WT/DS353/R, Annex D.