DOMINICAN REPUBLIC – MEASURES AFFECTING THE IMPORTATION AND INTERNAL SALE OF CIGARETTES
Document: Arbitration under Article 21.3(c) of the Understanding on Rules and Procedures Governing the Settlement of Disputes
Date: 29 August 2005
Document codes: WT/DS302/17
Complainant: Honduras
Respondent: Dominican
Third parties: Chile, China, EU, El Salvador, Guatemala, Nicaragua, U.S.
Dispute stage: Appellate Body
Agreements cited: Art. III:2, III:4, X:3(a), X:1, II:1, XI:1, XV  GATT 1994

DOMINICAN REPUBLIC – MEASURES AFFECTING THE IMPORTATION
AND INTERNAL SALE OF CIGARETTES

Arbitration
under Article 21.3(c) of the
Understanding on Rules and Procedures
Governing the Settlement of Disputes

Report of the Arbitrator
John Lockhart

1. On 19 May 2005, the Dispute Settlement Body (the "DSB") adopted the Appellate Body
Report1 and the Panel Report 2, as modified by the Appellat e Body Report, in .3 At the DSB meeting of
13 June 2005, the Dominican Republic confirmed its intention to implement the recommendations
and rulings of the DSB in this dispute and stated that it would require a "reasonable period of time" in
which to do so, pursuant to Article 21.3 of the Understanding on Rules and Procedures Governing the
Settlement of Disputes (the "DSU").4
2. On 12 July 2005, Honduras informed the DSB th at consultations with the Dominican
Republic had not resulted in agreement on the reasonable period of time for implementation.
Honduras, therefore, requested that such period be determined by binding arbitration, in accordance
with Article 21.3(c) of the DSU.5
3. In a joint letter dated 14 July 2005, Honduras and the Dominican Republic communicated to
the Chair man of the DSB their agreement that, notwithstanding the 90 -day period for arbitration
described in Article 21.3(c) of the DSU (which would expire on 17 August 2005), an arbitration
completed within 60 days after the date of the appointment of the arbitrator would be deemed by the
parties to be the award of the arbitrator under Article 21.3(c) of the DSU.6
4. On 21 July 2005, the parties requested me to ac t as Arbitrator, pursuant to Article 21.3(c) of
the DSU, to determine the reasonable period of time for implementation of the recommendations and
rulings of the DSB in respect of this matter. I accepted the appointment on 22 July 2005 7, and
undertook to issue my award no later than 20 September 2005.
5. By joint letter to me dated 29 July 2005, Honduras and the Dominican Republic
communicated their agreement to suspend the arbitration proceedings, pending agreement on a
reasonable period of time for implementation. By letter dated 4 August 2005, I acknowledged receipt
of the joint letter and agreed to treat the matter as suspended until further notice.8

1Appellate Body Report, WT/DS302/AB/R.
2Panel Report, WT/DS302/R.
3WT/DS302/12.
4WT/DSB/M191, para. 27.
5WT/DS302/13.
6WT/DS302/14.
7WT/DS302/15.
8WT/DS302/16.

6. By joint letter to me dated 16 August 2005 , the parties informed me that they had reached
agreement on the reasonable period of time for compliance in this matter , and requested that I "issue
such rulings reflecting this agreement as [I] may deem appropriate in the circumstances". The parties'
agreement is set out in the joint letter dated 16 August 2005, atta ched as Annex 1 to this Report.
Under the circumstances, it will not be necessary for me to issue an award in this arbitration.

Signed in the original at Sydney this 25th day of August 2005 by:

John Lockhart
Arbitrator

PP 3 – 4 Annex I attached in pdf