KOREA – ANTI-DUMPING DUTIES ON IMPORTS OF CERTAIN PAPER FROM INDONESIA
Document: Understanding between Korea and Indonesia Regarding Procedures under Articles 21 and 22 of the DSU
Date: 22 August 2006
Document codes: WT/DS312/7
Complainant: Indonesia
Respondent: South Korea
Third parties: Canada, China, EU, Japan, U.S., Taiwan
Dispute stage: Panel
Agreements cited: Art. 5.4, 2.6, 3.1, 4.1, 5.2, 5.3, 5.7, 12.1.1, 6.5, 6.7, Annex I, Annex II, 6.8, 12.2, 2.1, 2.2, 2.4, 5.8, 9.3, 3.2, 3.4, 3.5, 3.7, 6.1, 6.4, 6.9  Anti-dumpingArt. VI:1, VI:2(a), VI:2(b), VI:6  GATT 1994

KOREA – ANTI-DUMPING DUTIES ON IMPORTS
OF CERTAIN PAPER FROM INDONESIA

Understanding between Korea and Indonesia

Regarding Procedures under Articles 21 and 22 of the DSU

 The following communication, dated 17 Augus t 2006, from the delegation of Korea and the
delegation of Indonesia to the Chairman of the Dispute Settlement Body, is circulated at the request of
these delegations.

 The Republic of Korea and the Republic of I ndonesia would like to notify Dispute Settlement
Body of the attached "Understanding between the Republic of Korea and the Republic of Indonesia"
with regard to the dispute
(WT/DS312).

Understanding between the Republic of Korea and the Republic of Indonesia

 On 28 November 2005, the Dispute Settlement Body ("DSB") adopted its recommendations
and rulings in the dispute
(WT/DS312). Korea and Indonesia informed the DSB on 10 February 2006 that, pursuant to
Article 21.3(b) of the Understanding on Rules and Procedures Go verning the Settlement of Disputes
("DSU"), they had agreed that the reasonable period of time for Korea to implement the
recommendations and rulings of the DSB in this dispute would be eight months, expiring on
28 July 2006. This notification was circulated to WTO Members on 14 February 2006

 On 27 July 2006, the Korean Trade Commiss ion published its Implementation Report (Public
Notice No. 2006-105 of the Korean Ministry of Finance and Economy) in the Korean Gazette.
 Korea considers that it has fully complied w ith the recommendations and rulings of the DSB
within the reasonable period of time. Indonesia is not satisfied that Korea has fully complied and
wishes to reserve its rights under Articles 21 and 22 of the DSU.
 Therefore, Indonesia and Korea ("the parties to the dispute") have agreed on the following
procedures for the exclusive purposes of this dispute:

1. Should Indonesia decide to invoke Artic le 21.5 of the DSU, Indonesia will request
consultations, which the parties will hold within 15 days from the date of circulation of
Indonesia's request. After the 15 day consultati on period has lapsed and the parties to the
dispute have failed to reach a mutually ag reeable solution, Indonesia may request the
establishment of a panel pursuant to Article 21.5 of the DSU.

2. At the first DSB meeting at which Indonesia’s request for the establishment of an Article 21.5
panel appears on the agenda, Korea shall accept the establishment of that panel.

3. The parties to the dispute will cooperate to en able the Article 21.5 panel to circulate its report
within 90 days of the panel's composition, excl uding 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 DS B 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. If a party to th e dispute has notified its decision to appeal, the
report by the Article 21.5 panel shall not be considered for adoption by the DSB until after
completion of the appeal.

5. In the event of an appeal ag ainst the Article 21.5 panel report, the parties to the dispute will
cooperate to enable the Appellate Body to circ ulate its report to the Members within no more
than 60 days from the date of notification of the appeal to the DSB.

6. In the event of an appeal, either party to th e dispute may request the DSB to adopt the reports
of the Appellate Body and the Article 21.5 pane l (as modified by the Appellate Body report)
at a DSB meeting held within 30 days of the ci rculation of the Appellate Body report to the
Members.

7. Indonesia shall not request authorization to suspend concessions or other obligations under
Article 22 of the DSU until the adoption by th e DSB of the Article 21.5 panel report and,
where relevant, the Appellate Body report.

8. If the DSB adopts recommendations and rulings th at measures taken by Korea to comply with
the prior recommendations and rulings of the DSB do not exist or are inconsistent with a
covered agreement, Indonesia has the right under Article 22.2 of the DSU to request
negotiations with Korea with a view to devel oping mutually acceptable compensation, and to
request authorization from the DSB to suspend concessions or other obligations pursuant to
Articles 22.2 and 22.6 of the DSU.

9. Subject to paragraphs 7 and 8, Indonesia has the right to request the DSB authorization
referred to therein at any future date. Korea shall not assert that Indonesia is precluded from
obtaining the DSB authorization because the request was made outside the 30-day time-
period specified in Article 22.6 of the DSU.

10. Korea retains the right to object to the leve l of suspension proposed, or to claim that the
principles and procedures set forth in Article 22. 3 of the DSU have not been followed, and to
have the matter referred to arbitration under Article 22.6 of the DSU.

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

12. The parties to the dispute will cooperate to fac ilitate the participation of the original panelists
in the Article 21.5 compliance panel and the Article 22.6 arbitration.

13. If any of the original panelists is not availa ble 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 panelist, and either party may request the Director-General of the WTO to
appoint, as soon as possible, 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.

14. The parties to the dispute will continue to cooperate in all matters related to this
Understanding and not to raise any procedural objection 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 this Understanding, they w ill endeavor to find a
solution within the shortest time possible that will not affect the other aspects and steps
agreed herein.

15. In order to fully safeguard their respective rights under the DSU, the parties to the dispute
agree to immediately notify this agreement to the DSB.

Signed in Geneva, 17 August 2006:

 (signed) (signed)
 H.E. Mr. CHOI Hyuck H.E. Mr. Gusmardi BUSTAMI
 Ambassador Ambassador
 Permanent Representative of Korea Pe rmanent Representative of Indonesia
 to the WTO