WORLD TRADE  
ORGANIZATION  WT/DS312/7 
22 August 2006 
 (06-3965) 
 Original:   English 
  
 
KOREA – ANTI-DUMPING DUTIES ON IMPORTS 
OF CERTAIN PAPER FROM INDONESIA 
 
Understanding between Korea and Indonesia
 
Regarding Procedures under Articles 21 and 22 of the DSU  
 
  The following communication, dated 17 Augus t 2006, from the delegation of Korea and the 
delegation of Indonesia to the Chairman of the Disput e Settlement Body, is circulated at the request of 
these delegations. 
 
_______________ 
 
  The Republic of Korea and the Republic of I ndonesia would like to notify Dispute Settlement 
Body of the attached "Understanding between the Republic of Korea and the Republic of Indonesia" 
with regard to the dispute Korea – Anti-Dumping Duties on Imports of Certain Paper from Indonesia 
(WT/DS312).  
 
 WT/DS312/7 
Page 2  
 
  Understanding between the Republic of Korea and the Republic of Indonesia
 
 
  On 28 November 2005, the Dispute Settlement Body ("DSB") adopted its recommendations and rulings in the dispute Korea – Anti-Dumping Duties on Imports of Certain Paper from Indonesia 
(WT/DS312).  Korea and Indonesia informed the DSB on 10 February 2006 that, pursuant to 
Article 21.3(b) of the Understanding on Rules and Procedures Go verning the Settlement of Disputes 
("DSU"), they had agreed that the reasonable period of time for Korea to implement the recommendations and rulings of the DSB in this  dispute would be eight months, expiring on 
28 July 2006.  This notification was circulated to WTO Members on 14 February 2006 
(WT/DS312/6). 
 On 27 July 2006, the Korean Trade Commiss ion published its Implem entation Report (Public 
Notice No. 2006-105 of the Korean Ministry of Finance and Economy) in the Korean Gazette. 
 Korea considers that it has fully complied w ith the recommendations and rulings of the DSB 
within the reasonable period of time.  Indonesia is  not satisfied that Korea has fully complied and 
wishes to reserve its rights under Articles 21 and 22 of the DSU.   
 Therefore, Indonesia and Korea ("the parties to  the dispute") have agreed on the following 
procedures for the exclusive purposes of this dispute:  1. Should Indonesia decide to invoke Artic le 21.5 of the DSU, Indonesia will request 
consultations, which the parties will hold within  15 days from the date of circulation of 
Indonesia's request.  After the 15 day consultati on period has lapsed and the parties to the 
dispute have failed to reach a mutually ag reeable solution, Indonesia may request the 
establishment of a panel pursuant to Article 21.5 of the DSU. 
 2. At the first DSB meeting at which Indonesia’s request for the establishment of an Article 21.5 
panel appears on the agenda, Korea shall accept the establishment of that panel. 
 3. The parties to the dispute will cooperate to en able the Article 21.5 panel to circulate its report 
within 90 days of the panel's composition, excl uding 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 DS B 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. If a party to th e dispute has notified its decision to appeal, the 
report by the Article 21.5 panel shall not be considered for adoption by the DSB until after 
completion of the appeal.  
 
5. In the event of an appeal ag ainst the Article 21.5 panel report, the parties to the dispute will 
cooperate to enable the Appellate Body to circ ulate its report to the Members within no more 
than 60 days from the date of notification of the appeal to the DSB. 
 6. In the event of an appeal, either party to th e dispute may request the DSB to adopt the reports 
of the Appellate Body and the Article 21.5 pane l (as modified by the Appellate Body report) 
at a DSB meeting held within 30 days of the ci rculation of the Appellate Body report to the 
Members. 
 7. Indonesia shall not request authorization to suspend concessions or other obligations under 
Article 22 of the DSU until the adoption by th e DSB of the Article 21.5 panel report and, 
where relevant, the Appellate Body report.    WT/DS312/7 
 Page 3 
 
 
   
8. If the DSB adopts recommendations and rulings th at measures taken by Korea to comply with 
the prior recommendations and rulings of the DSB do not exist or are inconsistent with a covered agreement, Indonesia has the right under Article 22.2 of the DSU to request negotiations with Korea with a view to devel oping mutually acceptable compensation, and to 
request authorization from the DSB to suspend concessions or other obligations pursuant to 
Articles 22.2 and 22.6 of the DSU.   
 9. Subject to paragraphs 7 and 8, Indonesia has the right to request the DSB authorization 
referred to therein at any future date. Korea shall not assert that Indonesia is precluded from 
obtaining the DSB authorization because the request was made outside the 30-day time-
period specified in Article 22.6 of the DSU.  
 10. Korea retains the right to object to the leve l of suspension proposed, or to claim that the 
principles and procedures set forth in Article 22. 3 of the DSU have not been followed, and to 
have the matter referred to arbitr ation under Article 22.6 of the DSU. 
 11. The parties to the dispute will cooperate to en able the arbitrator under Article 22.6 of the DSU 
to circulate its decision within 60 days of the referral to arbitration.  
 12. The parties to the dispute will cooperate to fac ilitate the participation of  the original panelists 
in the Article 21.5 compliance panel and the Article 22.6 arbitration.  
 13. If any of the original panelists is not availa ble 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 panelist, and either party may request the Director-General of the WTO to 
appoint, as soon as possible, 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.  
 14. The parties to the dispute  will continue to cooperate in all matters related to this 
Understanding  and not to raise any procedural objection to  any of the steps set out herein.  If, 
during the application of these procedures, the par ties to the dispute consider that a procedural 
aspect has not been properly addressed in this  Understanding, they w ill endeavor to find a 
solution within the shortest time possible that will not affect the other aspects and steps agreed herein.  
 
15. In order to fully safeguard their respective rights under the DSU, the parties to the dispute 
agree to immediately notify this agreement to the DSB.  
  Signed in Geneva, 17 August 2006: 
 
   (signed) (signed)  H.E. Mr. CHOI Hyuck H.E. Mr. Gusmardi BUSTAMI 
 Ambassador Ambassador 
 Permanent Representative of Korea Pe rmanent Representative of Indonesia  
  to the WTO  
__________