UNITED STATES – MEASURES RELATING TO ZEROING AND SUNSET REVIEWS
Document: Understanding between the United States and Japan Regarding Procedures under Articles 21 and 22 of the DSU
Date: 12 March 2008
Document codes: WT/DS322/26
Complainant: Japan
Respondent: U.S.
Third parties: Argentina, China, EU, Hong Kong, India, South Korea, Mexico, New Zealand, Norway, Taiwan, Thailand
Dispute stage: Implementation & Compliance
Agreements cited: Art. 2.1, 2.4, 2.4.2, 9.1, 9.2, 9.3, 5.8, 3, 9.5, 11.1, 11.2, 11.3, 1  Anti-dumpingArt. VI  GATT 1994Art. 18.4  Anti-dumpingArt. XVI:4  Agreement Establishing the World Trade Organization

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 (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

Confirmed Procedures between the United States and Japan

under Articles 21 and 22 of the Dispute Settlement Understanding in the dispute

(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 ()
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 application 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 and 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 designed 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 establishment 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 notifies its decision to appeal to the DSB.
(f) In the event of an appeal, either 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

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 documents 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 matters 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