PERU – ADDITIONAL DUTY ON IMPORTS OF CERTAIN AGRICULTURAL PRODUCTS UNDERSTANDING BETWEEN GUATEMALA AND PERU REGARDING PROCEDURES UNDER ARTICLES 21 AND 22 OF THE DSU
Document: UNDERSTANDING BETWEEN
Date: 12 April 2016
Document codes: WT/DS457/18
Complainant: Guatemala
Respondent: Peru
Third parties: Argentina, China, El Salvador, EU, India, U.S., Brazil, Ecuador, South Korea, Honduras, Colombia
Dispute stage: Appellate Body
Agreements cited: Art. 4.2  AgricultureArt. II:1, XI:1, X:1, X:3(a)  GATT 1994Art. 1, 2, 3, 5, 6, 7  Customs valuationArt. 3.8  Dispute Settlement Understanding (DSU)

PERU – ADDITIONAL DUTY ON IMPORTS OF
CERTAIN AGRICULTURAL PRODUCTS
UNDERSTANDING BETWEEN GUATEMALA AND PERU REGARDING PROCEDURES
UNDER ARTICLES 21 AND 22 OF THE DSU
The following communication, dated 11 April 2016, from the delegation of Guatemala and the
delegation of Peru to the Chairperson of the Disp ute Settlement Body, is circulated at the request
of these delegations.

Understanding between Guatemala and Peru regarding procedures
under Articles 21 and 22 of the DSU

The Dispute Settlement Body ("DSB") adopted it s recommendations and rulings in the dispute
Peru — Additional Duty on Imports of Certain Agricultural Products (WT/DS457) at its meeting
of 31 July 2015.

Subsequently, pursuant to Article 21.3(c) of the Understanding on Rules and Procedures Governing
the Settlement of Disputes ("DSU"), the arbitrator determined that the reasonable period of time
for implementing the recommendations and rulings of the DSB should be seven months and
29 days, a period that expired on 29 March 2016.
1

Guatemala and Peru have therefore agreed on th e following procedures for the exclusive purpose
of sequencing proceedings under Articles 21.5 and 22.6 of the DSU regarding the compliance
measures, if any, taken by Peru to implement the recommendations and rulings of the Panel and
the Appellate Body:

1. Should Guatemala consider that the situation described in Article 21.5 of the DSU exists, it
will, at a time it deems appropriate, request consultations. The Parties to the dispute agree
to hold those consultations within 15 days from the date of circulation of the request. After
this 15-day period has elapsed, Guatemala may, at any time, request the establishment of a
panel pursuant to Article 21.5 of the DSU.

2. Should Guatemala request the establishment of a panel under Article 21.5, Peru will not
object to the panel being established at the first meeting of the DSB at which it appears as
an item on the agenda.

3. The Parties to the dispute will cooperate to enable the DSU 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 DSU Article 12.12.

1 Award of the Arbitrator under Article 21.3(c) of the DSU, Peru - Additional Duty on Imports of Certain
Agricultural Products – Arbitration under Article 21.3(c) of the Understanding on Rules and Procedures
Governing the Settlement of Disputes, WT/DS457/15, para. 4.1.

4. Either Party to the dispute may request the DSB to adopt the report of the DSU Article 21.5
panel at a DSB meeting held at least 30 days after the circulation of the report to Members,
unless either Party appeals the report to the Appellate Body.

5. In the event of an appeal of the DSU Article 21.5 panel report, the Parties to the dispute will
cooperate to enable the Appellate Body to circulate its report to the Members within 90 days
from the date of notification of the appeal to the DSB.

6. In the event of an appeal, either Party to the dispute may request the DSB to adopt the
reports of the Appellate Body and of the DSU Article 21.5 panel (as modified or upheld by
the Appellate Body report) at a DSB meeting he ld within 30 days of the circulation of the
Appellate Body report to Members.

7. In the event that the DSB, following a proceedi ng under Article 21.5 of the DSU, rules that a
measure taken to comply does not exist or is inconsistent with a covered agreement,
Guatemala may request authorization to suspend the application to Peru of concessions or
other obligations under the covered agreements pursuant to Article 22.2 of the DSU. Peru
will not assert that Guatemala is precluded from obtaining such DSB authorization on the
grounds that the request was made outside the 30-day time-period specified in DSU
Article 22.6. This is without prejudice to Peru's right to refer the matter to arbitration under
Article 22.6 of the DSU.

8. Should Guatemala request authorization to suspend the application to Peru of concessions or
other obligations pursuant to Article 22 of the DSU, Peru may 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. Where
such an objection is made, the matter will be referred to arbitration pursuant to Article 22.6
of the DSU.

9. The Parties will cooperate to enable the DSU Article 22.6 arbitrator to circulate its decision
within 60 days of the referral to arbitration.

10. If any of the original panelist is not availa ble for either the DSU Article 21.5 panel or the
DSU 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 designate,
within ten days of being so requested, a replacement for the proceeding or proceedings in
which a replacement is required. If an original panelist is unavailable to serve in either of the
proceedings, or becomes unavailable to serve, 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.

11. The Parties to the dispute will continue to cooperate in all matters related to these agreed
procedures and agree not to raise any procedural objection to any of the steps set out
herein. If, during the application of these procedures, the Parties 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.

12. The Parties to the dispute agree that this Un derstanding applies exclusively to this dispute
and affects only the sequencing of proceedings under Articles 21.5 and 22.6 of the DSU, and
that it in no way affects other rights of either Party under Articles 21 and 22 of the DSU.

Signed in Geneva, 8 April 2016.

For Guatemala

(Signed)
Eduardo Sperisen-Yurt
Ambassador
Permanent Representative of Guatemala
For Peru

(Signed)
Luis Enrique Chávez Basagoitia
Ambassador
Permanent Representative of Peru