EUROPEAN COMMUNITIES – DEFINITIVE ANTI-DUMPING MEASURES ON CERTAIN IRON OR STEEL FASTENERS FROM CHINA
Document: Understanding between China and the European Union Regarding Procedures under Articles 21 and 22 of the DSU
Date: 29 October 2012
Document codes: WT/DS397/16
Complainant: China
Respondent: EU
Third parties: Brazil, Canada, Chile, Colombia, India, Japan, Norway, Taiwan, Thailand, Turkey, U.S.
Dispute stage: Implementation & Compliance
Agreements cited: Art. 6, 9, 5, 2, 3, 4  Anti-dumpingArt. I, X:3(a), VI:1  GATT 1994Art. XVI:4  Agreement Establishing the World Trade Organization

EUROPEAN COMMUNITIES – DEFINITIVE ANTI-DUMPING MEASURES
ON CERTAIN IRON OR STEEL FASTENERS FROM CHINA

Understanding between China and the European Union
Regarding Procedures under Articles 21 and 22 of the DSU

 The following communication, dated 25 October 2012, from the delegation of China and the
delegation of the European Union to the Chairperson of the Dispute Settlement Body, is circulated at
the request of these delegations.

 The European Union and the People's Republic of China would like to inform the Dispute
Settlement Body of the attached "Agreed Pr ocedures under Articles 21 and 22 of the Dispute
Settlement Understanding" between the European Union and the People's Republic of China with
respect to the dispute (WT/DS397).

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

 (WT/DS397)

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

The Dispute Settlement Body ("DSB") adopted its recommendations and rulings in the
dispute (WT/DS397) on 28 July 2011.
Pursuant to Article 21.3(b) of the Unders tanding on Rules and Procedures Governing the
Settlement of Disputes ("DSU") the People's Republic of China ("China") and the European Union
("EU") agreed that the reasonable period of time to implement the DSB recommendations and rulings
would be fourteen (14) months and two (2) weeks, expiring on 12 October 2012 ().
China and the EU ("the parties to the disput e") have agreed on the following procedures for
the exclusive purposes of this disput e. They are designed to facilitate the resolution of the dispute and
reduce the scope for procedural disputes and are without prejudice to either party’s views on the
correct interpretation of the DSU:
1. Should China consider that the situation descr ibed in Article 21.5 of the DSU exists, China
will request that the EU enter into consultations with China. The Parties agree to hold such
consultations within 15 days fr om the date of receipt of the request. After this 15-day period
has elapsed, China may request the establishment of a panel pur suant to Article 21.5 of the
DSU at any time.
2. At the first DSB meeting at which China’s request for the establishment of an Article 21.5
panel appears on the agenda, the EU shall accept the establishment of that panel.
3. The parties to the dispute shall cooperate to en able 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 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.
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. China may request authorization to suspe nd concessions or other obligations pursuant to
Article 22.2 of the DSU in the event that th e DSB rules as a result of a proceeding under
Article 21.5 of the DSU that a measure taken to comply does not exist or is inconsistent with
a covered agreement. The EU shall not assert that China is precluded from obtaining such
DSB authorization because its request was made outside the time period specified in the first
sentence of Article 22.6 of the DSU. This is w ithout prejudice to the EU’s right to have the
matter referred to arbitration in accordance with Article 22.6 of the DSU.
7. If China requests authorization to suspend concessions or other ob ligations pursuant to
Article 22.2 of the DSU, the EU shall have the right to object under Article 22.6 of the DSU
to the level of suspension of concessions or othe r obligations and/or claim that the principles

and procedures set forth in Article 22.3 of the DSU have not been followed. In the event of
such objection, the matter will be referred to arbitration pursuant to Article 22.6 of the DSU.
8. 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.
9. If any of the original panellists is not availa ble for either the Article 21.5 compliance panel or
the Article 22.6 arbitration (or both), or an y person serving in such proceeding becomes
unavailable to serve, 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 panellist is unavailable to serve in either of the proceedings, or a
person serving in such proceeding becomes unavailable to serve, the parties to the dispute will
further request that, in making this appointmen t, 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 endeavour to
find a solution within the shortest time possible that will not affect the other aspects and steps
agreed herein.

Signed in Geneva, 25 October 2012

For the People's Republic of China

(Signed)
H.E. Mr. YI Xiaozhun
Ambassador, Permanent Representative to
 the WTO
For the European Union

(Signed)
H.E. Mr. Angelos Pangratis
Ambassador, Permanent Representative to
 the WTO