CHINA – MEASURES AFFECTING TRADING RIGHTS AND DISTRIBUTION SERVICES FOR CERTAIN PUBLICATIONS AND AUDIOVISUAL ENTERTAINMENT PRODUCTS
Document: Understanding between China and the United States Regarding Procedures under Articles 21 and 22 of the DSU
Date: 19 April 2011
Document codes: WT/DS363/18
Complainant: U.S.
Respondent: China
Third parties: Australia, EU, Japan, South Korea, Taiwan
Dispute stage: Appellate Body
Agreements cited: Part I, para. 5.2  Protocol of AccessionArt. XI:1, III:4  GATT 1994Art. XVII, XVI  Services (GATS)Part I, para. 1.2, Part I, para. 5.1  Protocol of Accession

CHINA – MEASURES AFFECTING TRADING RIGHTS AND
DISTRIBUTION SERVICES FOR CERTAIN PUBLICATIONS
AND AUDIOVISUAL ENTERTAINMENT PRODUCTS

Understanding between China and the United States

Regarding Procedures under Articles 21 and 22 of the DSU

 The following communication, dated 13 April 2011, from the delegation of China and the
delegation of the United States to the Chairperson of the Dispute Settlement Body, is circulated at the
request of these delegations.

 The United States and China would like to inform the Dispute Settlement Body of the
attached "Agreed Procedures under Articles 21 an d 22 of the Dispute Settlement Understanding"
between the United States and Chin a with respect to the dispute China – Measures Affecting Trading
Rights and Distribution Services for Certain Pub lications and Audiovisual Entertainment Products
(WT/DS363).

We request that you please circulate the attached agreement to the Members of the Dispute
Settlement Body.

Agreed Procedures under Articles 21 and 22 of the Dispute Settlement Understanding

(WT/DS363)

The Dispute Settlement Body ("DSB") adopted its recommendations and rulings in the
dispute (WT/DS363) on 19 January 2010.

Pursuant to Article 21.3(b) of the Unders tanding on Rules and Procedures Governing the
Settlement of Disputes ("DSU"), the People's Repub lic of China ("China") and the United States of
America ("United States") agreed that the reasonable period of time to implement the DSB
recommendations and rulings would be fourt een (14) months, expiring on 19 March 2011
(WT/DS363/16).

China and the United States ("the parties to the dispute") have agreed on the following
procedures for the exclusive purposes of this dispute. They are designed to facilitate the resolution of
the dispute and reduce the scope for procedural di sputes and are without prejudice to either party's
views on the correct interpretation of the DSU:

1. Should the United States consider that the situ ation described in Article 21.5 of the DSU
exists, the United States will request that Chin a enter into consultations with the United
States. The Parties agree to hold such consultati ons within 30 days from the date of receipt of
the request. After this 30-day period has elapsed, the United States may request the
establishment of a panel pursuant to DSU Article 21.5 at any time.

2. At the first DSB meeting at which the U.S. request for the establishment of an Article 21.5
panel appears on the agenda, China shall accept the establishment of that panel.

3. The parties to the dispute shall cooperate to enable the Article 21.5 panel to circulate its report
within 90 days of the panel's establishment, excluding 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 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.

5. In the event of an appeal of the Article 21.5 panel report, the parties to the dispute shall
cooperate to enable the Appellate Body to circ ulate its report to the Members within 90 days
from the date of notification of the appeal to th e DSB. Further, either party to the dispute
may request the DSB to adopt its recommendations and rulings at a DSB meeting held within
30 days of the circulation of the Appellate Body report to the Members.

6. The United States may request authorization to suspend concessions or other obligations
pursuant to DSU Article 22.2 in the event that th e DSB rules in an Article 21.5 procedure that
a measure taken to comply does not exist or is inconsistent with a covered agreement. China
shall not assert that the United States is precluded from obtaining such DSB authorization
because its request was made outside the time peri od specified in Article 22.6 of the DSU.
This is without prejudice to China's right to have the matter referred to arbitration in
accordance with Article 22.6 of the DSU.

7. If the United States requests authorization to suspend concessions or other obligations
pursuant to Article 22.2 of the DSU, China sha ll have the right to object under Article 22.6 of
the DSU to the level of suspension of concessions or other obligations and/or claim that the
principles and procedures set forth in Article 22.3 of the DSU have not been followed, and the
matter will be referred to arbitration pursuant to Article 22.6 of the DSU.

8. The parties to the dispute will cooperate to enable the arbitrator under Article 22.6 of the DSU
to circulate its decision within 60 days of the referral to arbitration.

9. If any of the original panelists is not availabl e 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, and either party may request the Director-General of the WTO to appoint, within
ten days of being so requested, 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.

10. The parties to this dispute will continue to cooperate in a ll matters related to these agreed
procedures and agree not to raise any procedural objec tion to any of the steps set out herein.
If, during the application of these procedures, the parties to the dispute consider that a
procedural aspect has not been properly addressed in these procedures, they will endeavor to
find a solution within the shortest time possible that will not affect the other aspects and steps
agreed herein.

Signed in Geneva, 8 April 2011.

Zhao Hong
Minister Counsellor
Permanent Mission of China

Juan A. Millán
Senior Legal Advisor
Permanent Mission of the United States