dean22029/WTO_Docs huggingface dataset:
EUROPEAN COMMUNITIES - REGIME FOR THE IMPORTATION, SALE AND DISTRIBUTION OF BANANAS
Document: Request for Consultations by Panama Addendum
Date: 9 January 1998
Document codes: WT/DS105/1/Add.1; WT/DS105/1.; G/L/199/Add.1; G/LIC/D/15/Add.1; G/TRIMS/D/11/Add.1; S/L/41
Complainant: U.S.
Respondent: Brazil
Third parties: Dominican, Honduras, India, Japan
Dispute stage: Mutually Agreed Solution
Agreements cited: Art. 27.1, 28.1  Intellectual Property (TRIPS)

EUROPEAN COMMUNITIES - REGIME FOR THE IMPORTATION,
SALE AND DISTRIBUTION OF BANANAS
Request for Consultations by Panama
Addendum
The following communication, dated 24 October 1997, from the Permanent Mission of Panama
to the Permanent Delegation of the European Commission and to the Dispute Settlement Body, is
circulated in accordance with Article 4.4 of the DSU. It was inadvertently not included in document

The Permanent Mission of the Republic of Panama hereby wishes to request the initiation of
consultations with the European Communities concerning the latter's regime for the importation, sale
and distribution of bananas as established through Regulation 404/93 (OJ L 47 of 25 February 1993,
pages 1-11), as well as any subsequent legislation, regulations or administrative measures adopted by
the European Communities, including those reflecting the Framework Agreement on Bananas, which
implement, supplement, or amend that regime.
This request is made on the basis of Article 4.4 of the Understanding on Rules and Procedures
Governing the Settlement of Disputes, Article XXII of the General Agreement on Tariffs and Trade 1994,
Article 6 of the Agreement on Import Licensing Procedures, Article XXIII of the General Agreement
on Trade in Services, and Article 8 of the Agreement on Trade-Related Investment Measures.
The Government of the Republic of Panama is particularly interested in knowing how the
European Communities will be implementing the decisions contained in the Reports of the Panel and
the Appellate Body on "". On the basis of those decisions, we must inform you that Panama considers the
European Communities' regime to be inconsistent with Articles I, II and XIII of the General Agreement
on Tariffs and Trade 1994, Articles II and XVII of the General Agreement on Trade in Services, and
Articles 1 and 3 of the Agreement on Import Licensing Procedures; and it also apparently appears
to be inconsistent with the European Communities' obligations under Articles 2 and 5 of the Agreement
on Trade-Related Investment Measures.
AUSTRALIA - SUBSIDIES PROVIDED TO PRODUCERS AND EXPORTERS OF AUTOMOTIVE LEATHER
Document: Request for Consultations by the United States
Date: 17 November 1997
Document codes: WT/DS106/1; G/SCM/D17/1
Complainant: U.S.
Respondent: Australia
Dispute stage: Panel
Agreements cited: Art. 3  Subsidies and Countervailing Measures (SCM)

AUSTRALIA - SUBSIDIES PROVIDED TO PRODUCERS
AND EXPORTERS OF AUTOMOTIVE LEATHER
Request for Consultations by the United States
The following communication, dated 10 November 1997, from the Permanent Mission of the
United States to the Permanent Mission of Australia and to the Dispute Settlement Body, is circulated
in accordance with Article 4.4 of the DSU.
My authorities have instructed me to request consultations with the Government of Australia
pursuant to Articles 1 and 4 of the Understanding on Rules and Procedures Governing the Settlement
of Disputes, Article 4.1 of the Agreement on Subsidies and Countervailing Measures ("SCM
Agreement"), and Article 30 (to the extent that it incorporates by reference Article XXIII:1 of the General
Agreement on Tariffs and Trade 1994) of the SCM Agreement regarding prohibited subsidies provided
to Australian producers and exporters of automotive leather, including subsidies provided to Howe
Leather. The United States understandsthat prohibited subsidies to Howe Leather include the provision
by the Government of Australia of an $A 25 million loan on preferential and non-commercial terms
and grants amounting potentially to another $A 30 million.
The United States considers that these measures appear to violate the obligations of the
Government of Australia under Article 3 of the SCM Agreement. The United States believes that,
inlightof theirterms andthe circumstances underwhichtheyhavebeen provided,the subsidiesprovided
to Howe Leather may constitute subsidies "contingent, ..., in fact, upon export performance" within
the meaning of Article 3.1(a) and footnote 4 of the SCM Agreement. The United States considers
that benefits accruing to it directly or indirectly under the SCM Agreement are being nullified or impaired
as a result of the failure of the Government of Australia to carry out its obligations under Article 3
of the SCM Agreement. The United States reserves the right to raise additional factual and legal matters
during the course of the consultations.
We look forward to receiving your reply to this request and to fixing a mutually convenient
date for consultations.
AUSTRALIA - SUBSIDIES PROVIDED TO PRODUCERS AND EXPORTERS OF AUTOMOTIVE LEATHER
Document: Original: English AUSTRALIA - SUBSIDIES PROVIDED TO PRODUCERS AND EXPORTERS OF AUTOMOTIVE LEATHER Request for the Establishment of a Panel by the United States
Date: 12 January 1998
Document codes: WT/DS106/2
Complainant: U.S.
Respondent: Australia
Dispute stage: Panel
Agreements cited: Art. 3  Subsidies and Countervailing Measures (SCM)

AUSTRALIA - SUBSIDIES PROVIDED TO PRODUCERS
AND EXPORTERS OF AUTOMOTIVE LEATHER
Request for the Establishment of a Panel by the United States
The following communication, dated 9 January 1998, from the Permanent Mission of the
United States to the Chairman of the Dispute Settlement Body, is circulated pursuant to Article 6.2
of the DSU.
The Government of Australia has provided subsidies to Australian producers and exporters
of automotive leather, including subsidies provided to Howe Leather. The United States understands
that these subsidies include the provision by the Government of Australia to Howe Leather of an
A$25 million loan on preferential and non-commercial terms and grants amounting potentially to another
A$30 million.
The United States considers that these measures violate the obligations of the Government of
Australia under Article 3 of the Agreement on Subsidies and Countervailing Measures (SCM Agreement).
The United States believes that, in light of their terms and the circumstances under which they have
been provided, the subsidies provided to Howe Leather constitute subsidies "contingent, ... in fact,
upon export performance" within the meaning of Article 3.1(a) and footnote 4 of the SCM Agreement.
As such, these subsidies are inconsistent with Article 3.2 of the SCM Agreement.
In a communication dated 10 November 1997 (circulated as ), the Government
of the United States requested consultations with the Government of Australia pursuant to Articles 1
and 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU),
Article 4.1 of the SCM Agreement, and Article 30 of the SCM Agreement (to the extent that it
incorporates by reference Article XXIII:1 of the General Agreement on Tariffs and Trade 1994) regarding
the subsidiesprovidedbythe Government of Australiawithrespect toautomotiveleather. Consultations
were held on 16 December 1997, but did not result in a resolution of the dispute.
Accordingly, pursuant to Article 4.4 of the SCM Agreement and Article 1.2 of the DSU, the
United States respectfully requests the immediate establishment of a panel to examine the matter in
light of the SCM Agreement and to find that Australia's export subsidies on automotive leather are
inconsistent with Australia's obligations under the Agreement and nullify or impair benefits accruing
directly, or indirectly to the United States under that Agreement.
The United States asks that this request be placed on the agenda for the next meeting of the
Dispute Settlement Body, and that the panel be established with standard terms of reference as set out
in Article 7 of the DSU.
PAKISTAN - EXPORT MEASURES AFFECTING HIDES AND SKINS
Document: Original: English PAKISTAN - EXPORT MEASURES AFFECTING HIDES AND SKINS Request for Consultations by the European Communities
Date: 20 November 1997
Document codes: WT/DS107/1
Complainant: EU
Respondent: Pakistan
Dispute stage: Consultation
Agreements cited: Art. XI  GATT 1994

PAKISTAN - EXPORT MEASURES AFFECTING HIDES AND SKINS
Request for Consultations by the European Communities
The following communication, dated 7 November 1997, from the Permanent Delegation of
the European Commission to the Permanent Mission of Pakistan and to the Dispute Settlement Body,
is circulated in accordance with Article 4.4 of the DSU.
My authorities have instructed me to request consultations with Pakistan pursuant to
Article XXIII:1 of the General Agreement on Tariffs and Trade (GATT 1994) and Article 4 of the
Understanding on Rules and Procedures Governing the Settlement of Disputes with regard to the
NotificationNo.S.R.O.674(I)/96 enactedbythe MinistryofCommerce of Pakistanon13 August 1996,
other legislative provisions consolidated therein, and any implementing measures taken thereunder,
as well as subsequent measures for the modification thereof. This Notification amends the Ministry's
Notification No. S.R.O.714(I)/95, dated 20 July 1995 and stipulates a prohibition for export of, inter
alia Hides and Skins, all sorts (with exceptions) and Wet blue leather made from cow hides and cow
calf hides(covered respectively under points 11and 12 of the schedule 1 annexed to the above mentioned
Notification). There is no evidence that such restriction is temporary nor that it has the objective of
relieving a critical shortage of products essential to the exports of Pakistan.
The European Communities consider that the measure described above appears to violate the
obligations of Pakistan under GATT 1994: the European Communities are of the view that the above
legislationcouldcontravene inparticular,thoughnotnecessarilyexclusively,theprovisionof Article XI
of GATT 1994.
The EuropeanCommunities are very concerned bythismeasure as itappears tonullifyorimpair
the benefits accruing to the European Communities under GATT 1994, particularly because such a
measure limits the access of EC industry to competitive sourcing of raw and semi-finished materials.
I look forward to receiving your reply to this request and to fixing a mutually acceptable date
for consultations.
UNITED STATES - TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Request for Consultations by the European Communities
Date: 28 November 1997
Document codes: WT/DS108/1; G/SCM/D18/1; G/L/212
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES - TAX TREATMENT FOR
"FOREIGN SALES CORPORATIONS"
Request for Consultations by the European Communities
The following communication, dated 18 November 1997, from the Permanent Delegation of
the European Commission to the Permanent Mission of the United States and to the Dispute Settlement
Body, is circulated in accordance with Article 4.4 of the DSU.
The European Communities wish to convey to the United States of America a request for
consultations under Article 4 of the "Understanding on Rules and Procedures Governing the Settlement
of Disputes "(hereinafter also referred to as the "Understanding"), Article XXIII:1 GATT 1994, and
Article 4 of the Agreement on Subsidies and Countervailing Measures (ASCM) with respect to
Sections 921-927 of the Internal Revenue Code and related measures establishing special tax treatment
for "Foreign Sales Corporations" (FSC).
The European Communities wish to express their concern with the apparent lack of conformity
of the above provisions with the obligations of the United States of America under GATT 1994 and
the ASCM. In particular, the Communities' concerns relate to the following:
- the exemptions from the United States direct (income) taxes of a portion of FSC income
related to exports and of dividends distributed to United States parent companies
constitute export subsidies contrary to Article XVI GATT 1994 and Article 3.1(a) of
the ASCM;
- the requirement that the tax exemption under the FSC scheme is limited to receipts
from the export of products having at least 50% United States origin by market value
provides treatment less favourable to imported products than is accorded to like
United States products contrary to Article III:4 GATT 1994 and also constitutes a
subsidy contingent upon the use of domestic over imported goods contrary to
Article 3.1(b) of the ASCM.
- Therefore, the European Communities request consultations with the United States
to discuss the matter with a view to finding a mutually satisfactory solution in accordance
with Article 4 of the Understanding.
UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Constitution of the Panel Established at the Request of the European Communities Note by the Secretariat
Date: 11 November 1998
Document codes: WT/DS108/3; WT/DS108/2.; WT/DS108/2
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Constitution of the Panel Established at the Request of the European Communities
Note by the Secretariat
1. At its meeting on 22 September 1998 (WT/DSB/M/ 48), the Dispute Settlement Body (DSB)
established a Panel in accordance with the request made by the European Communities in document

2. At that meeting, the parties to the dispute also agreed that the Panel should have standard
terms of reference. The terms of reference are, therefore, the following:
"To examine, in the light of the relevant provisions of the covered agreements cited by the
European Communities in document , the matter referred to the DSB by the
European Communities in document , and to make such findings as will assist
the DSB in making the recommendations or in giving the rulings provided for in those
agreements".
3. On 9 November 1998, the parties to the dispute agreed on the following composition of the
Panel:
Chairman: Mr. Crawford Falconer
Members: Mr. Didier Chambovey
Mr. Seung Wha Chang
4. Barbados, Canada and Japan have reserved their rights to participate in the panel proceedings
as third parties.
UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Communication from the Chairman of the Panel
Date: 29 April 1999
Document codes: WT/DS108/4
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES – TAX TREATMENT
FOR "FOREIGN SALES CORPORATIONS"
Communication from the Chairman of the Panel
The following communication, dated 22 April 1999, addressed to the Dispute Settlement
Body (DSB), is circulated in accordance with Article 12.9 of the Dispute Settlement Understanding
(DSU).
Article 12.8 of the DSU stipulates that the period in which a panel shall conduct its
examination, from the date that the composition and terms of reference of the panel have been agreed
upon until the date that the final report is issued to the parties, shall, as a general rule, not exceed
six months.
Article 12.9 of the DSU states that when a panel considers that it cannot issue its report within
six months, it shall inform the DSB in writing of the reasons for the delay, together with an estimate
of the period within which it will issue its report.
The Panel on was
established by the DSB on 22 September 1998 and composed on 9 November 1998.
It will not, however, be possible for the Panel to complete its work in six months due to the
parties' wish to use the maximum time periods prescribed in Appendix 3 of the DSU.
The Panel expects to complete its work by mid-July 1999.
UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Withdrawal of Appeal by the United States in accordance with Rule 30(1) of the Working Procedures for Appellate Review
Date: 3 November 1999
Document codes: WT/DS108/6
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES – TAX TREATMENT FOR
"FOREIGN SALES CORPORATIONS"
Withdrawal of Appeal by the United States
in accordance with Rule 30(1) of the Working Procedures for Appellate Review
The following communication, dated 2 November 1999, from the Permanent Mission of the
United States to the Chairman of the Appellate Body and to the Chairman of the Dispute Settlement
Body, is circulated to Members.
For scheduling reasons, the United States hereby withdraws its October 28, 1999 notice of
appeal in the above-referenced case. This withdrawal is made pursuant to Rule 30 of the Working
Procedures for Appellate Review , and is conditional on the right of the United States to file a new
notice of appeal pursuant to Rule 20 of the Working Procedures.
UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Communication from the Appellate Body
Date: 24 January 2000
Document codes: WT/DS108/8
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES – TAX TREATMENT FOR
"FOREIGN SALES CORPORATIONS"
Communication from the Appellate Body
The following communication, dated 24 January 2000, from the Chairman of the
Appellate Body addressed to the Chairman of the Dispute Settlement Body, is circulated in
accordance with Article 17.5 of the Understanding on Rules and Procedures Governing the
Settlement of Disputes.
I am writing to you pursuant to Article 17.5 of the Understanding on Rules and Procedures
Governing the Settlement of Disputes, which stipulates that, as a general rule, the Appellate Body will
circulate its report no later than 60 days after the appellant has formally notified the Dispute
Settlement Body of its decision to appeal. Article 17.5 states, furthermore, that when the Appellate
Body considers that it cannot provide its report within 60 days, it shall inform the DSB in writing of
the reasons for the delay together with an estimate of the period within which it will submit its report.
The United States notified the Dispute Settlement Body of its decision to appeal certain issues
of law covered in the Panel Report and legal interpretations developed by the Panel in this case on
26 November 1999 with the result that the 60-day period will expire on Tuesday, 25 January 2000.
Due to the time required for completion and translation of the Report, the Appellate Body will not be
able to circulate its Report by 25 January 2000. We estimate that the Appellate Body Report in this
appeal will be circulated to WTO Members no later than Thursday, 24 February 2000.
UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Communication from the Appellate Body
Date: 23 February 2000
Document codes: WT/DS108/9; WT/DS108/AB/R.
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES – TAX TREATMENT FOR
"FOREIGN SALES CORPORATIONS"
Communication from the Appellate Body
The following communication, dated 23 February 2000, from Mr. Florentino Feliciano,
Chairman of the Appellate Body, addressed to the Chairman of the Dispute Settlement Body, is
circulated in accordance with Article 17.5 of the Understanding on Rules and Procedures Governing the
Settlement of Disputes.
It is my honour to transmit to you the Report of the Appellate Body in , It will be circulated tomorrow,
24 February 2000, to Members of the , in accordance with paragraph 5 of
Article 17 of the Understanding on Rules and Procedures Governing the Settlement of Disputes. The
three Members of the Appellate Body who served on this appeal were Mr. Julio Lacarte-Muró, as
Presiding Member; Mr. James Bacchus and myself, as Members.
UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Request for Modification of the Time-Period for Compliance On 29 September 2000, the Chairman of the Dispute Settlement Body received the following communication from the Permanent Mission of the United States.
Date: 2 October 2000
Document codes: WT/DS108/11
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Request for Modification of the Time-Period for Compliance
On 29 September 2000, the Chairman of the Dispute Settlement Body received the following
communication from the Permanent Mission of the United States.
Regarding the dispute ""
(WT/DS108), at the 20 March 2000 meeting of th e Dispute Settlement Body (DSB), the DSB
established the time-period within which the United States must withdraw its measure (time-period),
in accordance with the Panel's recommendation under Article 4.7 of the SCM Agreement, to end on
1 October 2000.
At the 7 April 2000 meeting of the Dispute Settlement Body (DSB), the United States advised
the DSB of its intention to implement the recommendations and rulings of the DSB in a manner
consistent with its WTO obligations.
The United States recalls that a principal aim of the dispute settlement system is to provide
mutually satisfactory solutions to disputes. The United States believes that an extension of the
time-period promotes this aim. Accordingly, the United States proposes that the DSB modify the
time-period in this dispute so as to expire on 1 November 2000.
The United States asks that the DSB approve this proposal and, to that end, requests a
meeting of the DSB on 12 October 2000 to consider this matter.
The European Communities has been consulted on this initiative.
UNITED STATES - TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Recourse by the European Communities to Article 21.5 of the DSU Corrigendum The title in WT/DS108/14 should read as follows: "UNITED STATES - TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS" Recourse by the European Communities to Article 21.5 of the DSU Request for Consultations"
Date: 14 December 2000
Document codes: WT/DS108/14/Corr.1; WT/DS108/14
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES - TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Recourse by the European Communities to Article 21.5 of the DSU
Corrigendum
The title in should read as follows:
"
Recourse by the European Communities to Article 21.5 of the DSU
Request for Consultations"
ÉTATS-UNIS – TRAITEMENT FISCAL DES "SOCIÉTÉS
DE VENTES À L'ÉTRANGER"
Corrigendum
"ÉTATS-UNIS – TRAITEMENT FISCAL DES "SOCIÉTÉS
DE VENTES À L'ÉTRANGER"
Demande de consultations"
ESTADOS UNIDOS – TRATO FISCAL APLICADO A LAS
"EMPRESAS DE VENTAS EN EL EXTRANJERO"
Corrigendum
"ESTADOS UNIDOS – TRATO FISCAL APLICADO A LAS
"EMPRESAS DE VENTAS EN EL EXTRANJERO"
Solicitud de celebración de consultas"
UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Recourse by the United States to Article 22.6 of the DSU and Article 4.11 of the SCM Agreement Constitution of the Arbitrator Note by the Secretariat
Date: 13 December 2000
Document codes: WT/DS108/17; WT/DS108/15
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES – TAX TREATMENT FOR
"FOREIGN SALES CORPORATIONS"
Recourse by the United States to Article 22.6 of the DSU
and Article 4.11 of the SCM Agreement
Constitution of the Arbitrator
Note by the Secretariat
1. At the meeting of the Dispute Settlement Body on 28 November 2000, it was agreed that the
matter raised by the United States in document is referred to arbitration as required by
Article 22.6 of the DSU and Article 4.11 of the SCM Agreement.
2. Article 22.6 of the DSU provides as follows:
"When the situation described in paragraph 2 occurs, the DSB, upon request, shall grant
authorization to suspend concessions or other obligations within 30 days of the expiry of the
reasonable period of time unless the DSB decides by consensus to reject the request.
However, if the Member concerned objects to the level of suspension proposed, or claims that
the principles and procedures set forth in paragraph 3 have not been followed where a
complaining party has requested authorization to suspend concessions or other obligations
pursuant to paragraph 3(b) or (c), the matter shall be referred to arbitration. Such arbitration
shall be carried out by the original panel, if members are available, or by an arbitrator
1
appointed by the Director-General and shall be completed within 60 days after the date of
expiry of the reasonable period of time. Concessions or other obligations shall not be
suspended during the course of the arbitration."
3. Article 4.11 of the SCM Agreement provides as follows:
"In the event a party to the dispute requests arbitration under paragraph 6 of Article 22 of the
Dispute Settlement Understanding (DSU), the arbitrator shall determine whether the
countermeasures are appropriate."
4. The original panel will carry out the Arbitration, namely:
Chairman: Mr. Crawford Falconer
Members: Mr. Didier Chambovey
Mr. Seung Wha Chang
UNITED STATES - TAX TREATMENT OF "FOREIGN SALES CORPORATIONS"
Document: Recourse by the United States to Article 22.6 of the DSU and Article 4.11 of the SCM Agreement Communication from the Panel
Date: 21 December 2000
Document codes: WT/DS108/18
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES - TAX TREATMENT OF
"FOREIGN SALES CORPORATIONS"
Recourse by the United States to Article 22.6 of the DSU
and Article 4.11 of the SCM Agreement
Communication from the Panel
The following communication, dated 21 December 2000, has been received from the
Permanent Commission of the European Communities and the Permanent Mission of the
United States addressed to Mr. C. Falconer, Chairman of the original panel, carrying out the
arbitration:
"The European Communities (EC) and the United States of America (US) wish to thank you
and the other arbitrators for accepting to serve in the above-captioned proceeding.
On 20 December 2000, at the request of the EC the DSB established a Panel under
Article 21.5 of the DSU. The EC and the US underst and that you and the other arbitrators have also
accepted to serve as panellists in that proceeding. In the light of this development and in accordance
with paragraph 11 of the 29 September 2000 Procedur es agreed between the EC and the US, the EC
and the US would request you and the other arbitrators to suspend the arbitration proceeding until
adoption of the Panel Report or, if there is an appeal, adoption of the Appellate Body Report.
As recognized in the 29 September 2000 Procedur es agreed between the EC and the US, the
above is without prejudice to the right of the EC or the US to take any action or procedural step in
order to protect its rights and interests under the WTO Agreement, including the reactivation of the
arbitration procedure."
The arbitration has accordingly been suspended pursuant to this joint request by the parties.
UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Recourse by the European Communities to Article 21.5 of the DSU Constitution of the Panel Note by the Secretariat
Date: 5 January 2001
Document codes: WT/DS108/19; WT/DS108/16.; WT/DS108/16
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Recourse by the European Communities to Article 21.5 of the DSU
Constitution of the Panel
Note by the Secretariat
1. At its meeting on 20 December 2000, the Dispute Settlement Body (DSB) decided, in
accordance with Article 21.5 of the DSU, to refer to the original panel the matter raised by the
European Communities in document
2. At that DSB meeting, it was also agreed that the Panel should have standard terms of
reference as follows:
“To examine, in the light of the relevant provisions of the covered agreements cited
by the European Communities in document , the matter referred to the
DSB by the European Communities in that document and to make such findings as
will assist the DSB in making the recommendations or in giving the rulings provided
for in those agreements.”
3. The Panel is composed as follows:
Chairman: Mr. Crawford Falconer
Members: Mr. Didier Chambovey
Mr. Seung Wha Chang
4. Australia, Canada, India, Jamaica and Japan have reserved their rights as third parties to the
dispute.
UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Recourse by the European Communities to Article 21.5 of the DSU Communication from the Chairman of the Panel
Date: 15 March 2001
Document codes: WT/DS108/20
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES – TAX TREATMENT FOR
"FOREIGN SALES CORPORATIONS"
Recourse by the European Communities to Article 21.5 of the DSU
Communication from the Chairman of the Panel
The following communication, dated 15 March 2001, addressed to the Dispute
Settlement Body, is circulated pursuant to Article 21.5 of the DSU.
Article 21.5 of the DSU stipulates that a panel shall circulate its report within 90 days after
the date of referral of the matter to it. It furt her provides that when a panel considers that it cannot
issue its report within that time, it shall inform the DSB in writing of the reasons for the delay,
together with an estimate of the period within which it will issue its report.
The matter regarding --
Recourse by the European Communities to Article 21.5 of the DSU (DS108) was referred to the
original panel on 20 December 2000.
It will not, however, be possible for the Panel to complete its work within 90 days, due
largely to the complex nature of the case, the series of procedural steps preferred by both parties and
the time needed for translation.
The Panel expects to complete its work by July 2001.
UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Recourse to Article 21.5 of the DSU by the European Communities Communication from the Appellate Body
Date: 20 November 2001
Document codes: WT/DS108/22
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Recourse to Article 21.5 of the DSU by the European Communities
Communication from the Appellate Body
The following communication, dated 20 November 2001, from the Chairman of the Appellate
Body, Mr. Claus-Dieter Ehlermann, to the Ch airman of the Dispute Settlement Body,
Mr. Roger Farrell, is circulated in accordance with Rule 15 of the Working Procedures for Appellate
Review.
The term of office of Mr. Florentino Feliciano expires on 10 December 2001. Mr. Feliciano
is a Member of the Division currently hearing the appeal in , Recourse to Article 21.5 of the DSU by the European Communities.
The Appellate Review proceedings in this appeal will not be completed by the date of expiry of
Mr. Feliciano's term on 10 December 2001, but will be completed by 14 January 2002.
Rule 15 of the Working Procedures for Appellate Review provides:
A person who ceases to be a Member of the Appellate Body may,
with the authorization of the Appellate Body and upon notification
to the DSB, complete the disposition of any appeal to which that
person was assigned while a Member and that person shall, for that
purpose only, be deemed to continue to be a Member of the
Appellate Body.
The Appellate Body has authorized Mr. Feliciano to complete the disposition of this appeal.
UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS", RECOURSE TO ARTICLE 21.5 OF THE DSU BY THE EUROPEAN COMMUNITIES
Document: Communication from the Appellate Body
Date: 14 January 2002
Document codes: WT/DS108/24; WT/DS108/AB/RW.
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS",
RECOURSE TO ARTICLE 21.5 OF THE DSU BY THE EUROPEAN COMMUNITIES
Communication from the Appellate Body
The following communication, dated 14 January 2002, from Mr. James Bacchus, Chairman of
the Appellate Body, addressed to the Chairman of the Dispute Settlement Body, is circulated in
accordance with Article 17.5 of the Understanding on Rules and Procedures Governing the
Settlement of Disputes.
It is my honour to transmit to you the Report of the Appellate Body in United States – Tax
Treatment for "Foreign Sales Corporations", Reco urse to Article 21.5 of the DSU by the European
Communities, It will be circulated to Members of the
later today, in accordance with paragraph 5 of Article 17 of the Understanding on Rules
and Procedures Governing the Settlement of Disputes . It is a confidential document until
its circulation. The three Members of the Appellate Body who served on this appeal were:
Mr. Florentino P. Feliciano as Presiding Member; Mr. Yasuhei Taniguchi and Mr. A.V. Ganesan, as
Members.
UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Second Recourse by the European Communities to Article 21.5 of the DSU Request to Join Consultations Communication from Australia
Date: 22 November 2004
Document codes: WT/DS108/28
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"

Second Recourse by the European Communities to Article 21.5 of the DSU

Request to Join Consultations

Communication from Australia

 The following communication, dated 17 Novemb er 2004, from the delegation of Australia to
the delegation of the United States, the delega tion of the European Communities and to the
Chairperson of the Dispute Settlement Body, is circulated in accordance with Article 4.11 of the DSU.

 Pursuant to paragraph 11 of Article 4 of the Understanding on Rules and Procedures
Governing the Settlement of Disputes (DSU), Australia notifies the Government of the United States
that, in light of the substantial trade interest of Au stralia, it desires to be joined in the consultations
requested by the European Communities in a communication circulated to WTO Members on
10 November 2004 ().

 As a significant global exporter – including to the United States market – of a range of
agricultural, mineral and other produc ts, Australia has a substantial trad e interest in the application to
those products of the measures cited in

 Australia looks forward to receiving your reply.
UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Second Recourse to Article 21.5 of the DSU by the European Communities Constitution of the Panel Note by the Secretariat
Date: 9 May 2005
Document codes: WT/DS108/30; WT/DS108/29.
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"

Second Recourse to Article 21.5 of the DSU by the European Communities

Constitution of the Panel

Note by the Secretariat

1. At its meeting on 17 February 2005, the Dispute Settlement Body (DSB) referred this dispute,
if possible, to the original Panel in accordan ce with Article 21.5 of the Dispute Settlement
Understanding (DSU) to examine the matter referred to the DSB by the Eu ropean Communities in
document
2. At that DSB meeting, the parties to the dispute also agreed that the Panel should have
standard terms of reference. The terms of reference are, therefore, the following:
"To examine, in the light of the relevant provisions of the covered agreements cited
by the European Communities in document , the matter referred by the
European Communities to the DSB in that document, and to make such findings as
will assist the DSB in making the recommendations or in giving the rulings provided
for in those agreements."
3. On 22 April 2005, the European Communities requ ested the Director-General to determine
the composition of the Panel in accordance with Article 8.7 of the DSU. This paragraph provides:
"If there is no agreement on the panelists within 20 days after the date of the
establishment of a panel, at the request of either party, the Director-General, in
consultation with the Chairman of the DSB and the Chairman of the relevant Council
or Committee, shall determine the com position of the panel by appointing the
panelists whom the Director-General consid ers most appropriate in accordance with
any relevant special or additional rules or procedures of the covered agreement or
covered agreements which are at issue in th e dispute after consulting with the parties
to the dispute. The Chairman of the DSB shall inform the Members of the
composition of the panel thus formed no later than 10 days after the date the
Chairman receives such a request."

4. On 2 May 2005, the Director-General determined the composition of the Panel as follows:
1
Chairman: Mr. Germain Denis
Members: Mr. Didier Chambovey
 Mr. Seung Wha Chang

5. Australia, Brazil and China reserved their rights to participate in the Panel proceedings as
third parties.
The parties agreed to his replacement.
UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Second Recourse to Article 21.5 of the DSU by the European Communities Communication from the Chairman of the Panel
Date: 3 August 2005
Document codes: WT/DS108/31
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"

Second Recourse to Article 21.5 of the DSU by the European Communities

Communication from the Chairman of the Panel

 The following communication, dated 2 August 2005, addressed to the Chairperson of the
Dispute Settlement Body (DSB), is circulated pur suant to Article 21.5 of the Dispute Settlement
Understanding (DSU).

 Article 21.5 of the DSU stipulates that a panel established under that provision shall circulate
its report within 90 days after the date of referral of the matter to it.

 Article 21.5 of the DSU further stipulates that when a panel considers that it cannot provide
its report within that time frame, it shall inform the DSB in writing of the reasons for the delay,
together with an estimate of the period within which it will issue its report.

 The DSB referred this dispute to the orig inal Panel on 17 February 2005. In light, inter alia,
of the impossibility of one of the panelists in the original panel to serve in these proceedings, this
Panel on / Second Recourse to
Article 21.5 of the DSU by the European Communities (WT/DS108) was composed on 2 May 2005.

 Given the particular circumstances of this case and the schedule agreed after consultations
with parties to this dispute, it has not been possibl e for the Panel to complete its work within the 90-
day period as foreseen in Article 21.5.

 Despite the delay in its composition, the Pane l expects to complete its work by the second
week of August.
UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Second Recourse to Article 21.5 of the DSU by the European Communities Notification of an Appeal by the United States under Article 16.4 and Article 17 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), and under Rule 20(1) of the Working Procedures for Appellate Review
Date: 16 November 2005
Document codes: WT/DS108/32
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"

Second Recourse to Article 21.5 of the DSU by the European Communities

Notification of an Appeal by the United States
under Article 16.4 and Article 17 of the Understanding on Rules
and Procedures Governing the Settlement of Disputes (DSU),
and under Rule 20(1) of the Working Procedures for Appellate Review

 The following notification, dated 14 November 2005, from the Delegation of the United
States, is being circulated to Members.

 Pursuant to Article 16 of the Understanding on Rules and Procedures Governing the
Settlement of Disputes ("DSU") and Rule 20 of the Working Procedures for Appellate Review , the
United States hereby notifies its decision to app eal to the Appellate Body certain issues of law
covered in the Report of the Panel on : Second Recourse to Article 21.5 of the DSU by the European Communities
() ("Panel Report") and certain legal in terpretations developed by the Panel in this
dispute.

1. The United States seeks review of the Panel’s conclusion that the United States continues to
fail to implement fully the operative DSB recomme ndations and rulings to withdraw the prohibited
subsidies and to bring its measures into conformity with its obligations un der the relevant covered
agreements. This conclusion is in error and is based on errone ous findings on issues of law and
related legal interpretations, including with respect to Articles 6.2 and 21.5 of the DSU and Article 4.7
of the Agreement on Subsidies and Countervailing Measures ("SCM Agreement").
1 These erroneous
findings and related legal interpretations incl ude that there was a recommendation pursuant to
Article 4.7 of the SCM Agreement with respect to the Extraterritorial Income Exclusion Act ("ETI
Act") and that a panel established under Artic le 21.5 of the DSU may make a recommendation
pursuant to Article 4.7 of the SCM Agreement.

2. The United States seeks review of the Panel’s legal conclusion that section 5 of the ETI Act is
within the Panel’s terms of reference pursuant to Articles 6.2 and 7.1 of the DSU.
2 This conclusion is
in error and is based on erroneous findings on issues of law and related legal interpretations.

1See, for example, Panel Report, paragraphs 7.39, 7.41 - 7.44, 7.51 - 7.58, 7.62 - 7.65.
2See, for example, Panel Report, paragraphs 7.61, 7.68, 7.72 - 7.73, 7.76, 7.78 - 7.87.
UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Communication from the Appellate Body
Date: 11 January 2006
Document codes: WT/DS108/34
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"

Communication from the Appellate Body

 The following communication, dated 10 January 2006, from the Chairman of the Appellate
Body addressed to the Chairman of the Dispute Settlement Body, is circulated in accordance with
Article 17.5 of the Understanding on Rules and Procedures Governing the Settlement of Disputes.

 I am writing to you pursuant to Article 17.5 of the Understanding on Rules and Procedures
Governing the Settlement of Disputes, which stipulates that, as a general rule, the Appellate Body will
circulate its Report no later than 60 days afte r the appellant has formally notified the Dispute
Settlement Body of its decision to appeal. Ar ticle 17.5 states, furthermore, that when the
Appellate Body considers that it cannot provide its Report within 60 days, it shall inform the DSB in
writing of the reasons for the delay together with an estimate of the period within which it will submit
its Report.

 The United States notified the Dispute Settleme nt Body on Monday, 14 November 2005 of its
decision to appeal certain issues of law covere d in the Panel Report and legal interpretations
developed by the Panel in this case, with th e result that the 60-day period expires on Friday,
13 January 2006. Due to the time required for completion and translation of the Report, the Appellate
Body will not be able to circulate its Report by Friday, 13 January 2006. We estimate that the
Appellate Body Report in this appeal will be ci rculated to WTO Member s no later th an Monday,
13 February 2006.
UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"
Document: Second Recourse to Article 21.5 of the DSU by the European Communities Communication from the Appellate Body
Date: 14 February 2006
Document codes: WT/DS108/35
Complainant: EU
Respondent: U.S.
Third parties: Australia, Barbados, Brazil, Canada, China, India, Jamaica, Japan
Dispute stage: Retaliation & Arbitration
Agreements cited: Art. 1, 3, 8  AgricultureArt. 3.1(a), 3.1(b)  Subsidies and Countervailing Measures (SCM)Art. 9, 10  Agriculture

UNITED STATES – TAX TREATMENT FOR "FOREIGN SALES CORPORATIONS"

Second Recourse to Article 21.5 of the DSU by the European Communities

Communication from the Appellate Body

 The following communication, dated 13 Februa ry 2006 from the Chairman of the Appellate
Body addressed to the Chairman of the Dispute Settlement Body, is circulated in accordance with
Article 17.5 of the Understanding on Rules and Procedures Governing the Settlement of Disputes.

 It is my honour to transmit to you the Report of the Appellate Body in – Seco nd Recourse to Article 21.5 of the DSU by the
European Communities , It will be circulated to Members of the at 4:00 p.m. today, in accord ance with paragraph 5 of Article 17 of the
Understanding on Rules and Procedures Governing the Settlement of Disputes . It is a confidential
document until its circulation. The three Members of the Appellate Body who served on this appeal
were: Mr. Georges Abi-Saab, as Presiding Member; Ms. Merit E. Janow and myself, as Members.