WORLD TRADE  
ORGANIZATION  WT/DS322/26 
12 March 2008 
 
 (08-1108) 
 Original:   English 
  
 
UNITED STATES – MEASURES RELATING TO ZEROING  
AND SUNSET REVIEWS 
 
Understanding between the United States and Japan
 
Regarding Procedures under Articles 21 and 22 of the DSU  
 
  The following communication, dated 10 Marc h 2008, from the delegation of the United States 
and the delegation of Japan to the Chairman of th e Dispute Settlement Body, is circulated at the 
request of these delegations. 
 
_______________ 
 
  Attached please find the confirmed procedur es between the United States and Japan under 
Articles 21 and 22 of the Dis pute Settlement Understanding in United States – Measures Relating to 
Zeroing and Sunset Reviews (WT/DS322). 
 
 We kindly request that you circulate this communication to the Members of the DSB.   
For the United States of America For Japan 
    
 
Peter F. Allgeier 
Ambassador  
   
 
Ichiro Fujisaki 
Ambassador 
 WT/DS322/26 
Page 2  
 
  Confirmed Procedures between the United States and Japan
 
under Articles 21 and 22 of the Dispute Settlement Understanding in the dispute  
United States – Measures Relating to  Zeroing and Sunset Reviews  
(WT/DS322)  
 
 The Dispute Settlement Body ("DSB") adopted its recommendations and rulings on 
23 January 2007.  Japan and the United States (the "Parties") reached an agreement (WT/DS322/20) that the reasonable period of time to implemen t the DSB's recommendations and rulings would be 
11 months, which expired on 24 December 2007.  On 10 January 2008, Japan requested authorization 
from the DSB to suspend the appli cation to the United States of tariff concessions or other obligations 
pursuant to Article 22.2 of the Understanding on Rules and Procedures Governing the Settlement of 
Disputes  ("DSU") as contained in documents WT/DS322/23 and WT/DS322/24. On 18 January 2008, 
the United States objected to the level of suspension of concessions or other obligations proposed by 
Japan (WT/DS322/25). As a result, the matter w as referred to arbitration in accordance with 
Article 22.6 of the DSU ("the arbitration"). 
 
 The Parties have decided on the followi ng procedures under Articles 21 and 22 of the  DSU for 
the exclusive purposes of this dispute.  They are d esigned to facilitate the resolution of the dispute and 
reduce the scope for procedural disagreements, and are without prejudice to either Party's views on 
the correct interpretation of the relevant provisions of the DSU:  
1. In light of the disagreement between the Parti es, within the meaning of Article 21.5 of the 
DSU, the following procedures will apply: 
(a) Japan need not request consultations with the United States pursuant to Article 4 of 
the DSU prior to requesting the establishment of a panel pursuant to Article 21.5 of 
the DSU ("Article 21.5 panel").  However, if Japan requests such consultations, the 
Parties will hold them within 12 days from the date of circulation of the request.  
After the consultations have been held, or upon the expiration of the 12-day period 
for consultations, should either Party so stat e, the Parties will immediately and jointly 
consider that such consultations have failed  to settle the dispute, in which case Japan 
may at any time request the establis hment of an Article 21.5 panel. 
(b) At the first DSB meeting at which Japan's  request for the establishment of an 
Article 21.5 panel appears on the age nda, the United States will accept the 
establishment of that panel. 
(c) The Parties will cooperate to enable the Article 21.5 panel to circulate its report 
within 90 days of the panel's establishment, excluding any time during which the work of the Article 21.5 panel may be su spended pursuant to Article 12.12 of the 
DSU. 
(d) 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.  
(e) In the event of an appeal of the Article 21 .5 panel report, the Parties will cooperate to 
enable the Appellate Body to circulate its report to the Members within 90 days from 
the date either Party formally notifi es its decision to appeal to the DSB. 
(f) In the event of an appeal, e ither Party may request the DSB to adopt the reports of the 
Appellate Body and of the Article 21.5 pane l (as upheld, modified or reversed by the  WT/DS322/26 
 Page 3 
 
 
  Appellate Body) at a DSB meeting held with in 30 days following the circulation of 
the Appellate Body report to the Members. 
2. Upon constitution of the arbitrator, the Parties w ill request the arbitrator to suspend its work. 
The Parties confirm that this request shall not be c onstrued as a withdrawal by Japan of its request for 
authorization as contained in docum ents WT/DS322/23 and WT/DS322/24. 
3. The arbitration will resume upon a request made by  either Party following the adoption by the 
DSB of the Article 21.5 Panel report and, if any, the Appellate Body report, if: 
(a) The DSB finds that a measure taken to comply with the DSB's 23 January 2007 
recommendations and rulings in this dispute does not exist or is inconsistent with a 
covered agreement, or 
(b) There is no disagreement between the Parties that a measure taken to comply does not 
exist with regard to certain measure s subject to the DSB's 23 January 2007 
recommendations and rulings. 
4. 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 resumption of its work. 
5. The Parties  will continue to cooperate in all matt ers related to these confirmed procedures  and 
will 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 pro cedural aspect has not been properly addressed in 
these procedures, they will endeavor to find a soluti on within the shortest time possible that will not 
affect the other aspects and steps confirmed herein. 
 
For the United States of America For Japan 
    
 
Peter F. Allgeier 
Ambassador  
   
 
Ichiro Fujisaki 
Ambassador 
   
 
  Geneva, 10 March 2008  
 
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