CANADA – MEASURES AFFECTING THE IMPORTATION OF MILK AND THE EXPORTATION OF DAIRY PRODUCTS
Document: Additional Understanding between Canada and the United States Regarding Procedures under Articles 21 and 22 of the DSU
Date: 2 January 2002
Document codes: WT/DS103/24; WT/DS103/14
Complainant: U.S.
Respondent: Canada
Third parties: Argentina, Australia, EU, Japan, Mexico
Dispute stage: Mutually Agreed Solution
Agreements cited: Art. 8, 9, 10  AgricultureArt. X, XI, XIII  GATT 1994Art. 1, 2, 3  Import LicensingArt. 3  Subsidies and Countervailing Measures (SCM)Art. 3, 4  AgricultureArt. II  GATT 1994

CANADA – MEASURES AFFECTING THE IMPORTATION OF MILK
AND THE EXPORTATION OF DAIRY PRODUCTS
Additional Understanding between Canada and the United States
Regarding Procedures under Articles 21 and 22 of the DSU
The following communication, dated 18 December 2001, from the Permanent Mission of
Canada and the Permanent Mission of the United States to the Chairman of the Dispute Settlement
Body, is circulated at the request of these delegations.
Pursuant to paragraph 14 of the Understanding of 21 December 2000 (, "the
Understanding"), Canada and the United States would like to inform the DSB that they have agreed to
the following additional procedures:
1. In view of the fact that the Appell ate Body in its report of 3 December 2001
(, ) was unable to rule on the consistency or
inconsistency of the Canadian measures with Canada's obligations under the covered
agreements as referred to in WTO/DS103/16 and in view of the United States' request for the
establishment of a second compliance panel under DSU Article 21.5 () in
relation to the Canadian measures, Canada and the United States agree to request that the
arbitration requested by Canada under Article 22.6 () remain suspended until:
(a) the DSB finds that Canada has failed to comply with the recommendations and
rulings of the DSB or that the measures taken by Canada to comply with the
recommendations and rulings of the DSB are inconsistent with the covered
agreements as referred to in the second Article 21.5 compliance panel request. In this
event, the arbitrator will automatically resume its work. The parties will cooperate to
enable the arbitrator to circulate its report within 60 days of the resumption of its
work;
or
(b) the DSB finds that Canada has complied with the recommendations and rulings of the
DSB and that the measures taken by Canada to comply with the recommendations
and rulings of the DSB are not inconsistent with the covered agreements as referred
to in the second Article 21.5 compliance panel request. In this event, the United
States will withdraw its request under Article 22.2 of the DSU, thereby terminating
the arbitration procedure.
2. Paragraphs 2-6 and 12-15 of the Understanding will continue to apply mutatis mutandis to the
further Article 21.5 panel and Article 22.6 arbitration proceedings relating to this matter,
subject to the following modification:

Following establishment of the second compliance panel in accordance with paragraph 2 of
the Understanding, the United States will request that, with the exception of all matters
relating to Panel composition, the work of the Panel be suspended pursuant to Article 12.12 of
the DSU until 18 February 2002.
(s.) H.E. Mr. Sergio Marchi (s.) H.E. Ms. Linnet F. Deily
(Permanent Representative) (Permanent Representative)
For Canada For the United States