INDONESIA – RECOURSE TO ARTICLE 22.2 OF THE DSU IN THE US – CLOVE CIGARETTES DISPUTE NOTIFICATION OF A MUTUALLY AGREED SOLUTION AND A WITHDRAWAL OF A REQUEST FOR CONSULTATIONS
Document: REQUEST FOR CONSULTATIONS
Date: 11 May 2015
Document codes: WT/DS481/5; G/L/1072/Add.1
Complainant: EU
Respondent: Indonesia
Dispute stage: Consultation

INDONESIA – RECOURSE TO ARTICLE 22.2 OF THE DSU IN THE
US – CLOVE CIGARETTES DISPUTE
NOTIFICATION OF A MUTUALLY AGREED SOLUTION AND
A WITHDRAWAL OF A REQUEST FOR CONSULTATIONS
The following communication, dated 6 May 2015, fr om the delegation of the European Union and
the delegation of Indonesia to the Chairperson of the Dispute Settlement Body, is circulated
pursuant to Articles 3.6 and 4.4 of the DSU.

By communication dated 13 June 2014 the European Union requested consultations with the
Government of the Republic of Indonesia ("Indo nesia") pursuant to Articles 1 and 4 of the
Understanding on Rules and Procedures Govern ing the Settlement of Disputes ("DSU") and
Article XXII:1 of the General Agreement on Tariffs and Trade 1994 ("GATT 1994") with particular
respect to Indonesia's recourse to Article 22.2 of the DSU in the context of the proceedings in Case
DS406 United States – Measures Affecting the Production and Sale of Clove Cigarettes , and the
exclusion of third parties from those proceeding s. The European Union considered this to be
inconsistent with Articles 21.5, 22.2, 23.1 and 23.2(a) of the DSU, as well as Articles 10.1, 10.2
and 10.3 of the DSU.
1
By communication dated 3 October 2014 from the de legation of Indonesia and the delegation of
the United States to the Chairperson of the Di spute Settlement Body Indonesia and the United
States notified the DSB that they had reached a mutually agreed solution to the matter raised by
the Government of Indonesia in United States – Measures Affecting the Production and Sale of
Clove Cigarettes (WT/DS406). In light of the mutually agreed solution, Indonesia withdrew its
request to the DSB (circulated as ) pursuant to Article 22.2 of the DSU for
authorization to suspend the application to the United States of concessions and other obligations
under the General Agreement on Tariffs and Trade 1994, the Agreement on Technical Barriers to
Trade, and the Agreement on Import Licensing Procedures. Indonesia having withdrawn its
request under Article 22.2 of the DSU, the United States withdrew its objection to that request
(circulated as WT/DS406/13).
2
By communication dated 8 October 2014 the Chairperson of the Arbitrator/Arbitration Panel in
DS406 informed the DSB that Indonesia and the United States had:
a. indicated that they have reached a mutually agreed solution in this dispute, which
they have jointly notified to the DSB;
b. informed the Arbitrator/Arbitration Panel that Indonesia has withdrawn its request
under Article 22.2 of the DSU (WT/DS406/12) and that the United States has
withdrawn its objection to that request (WT/DS406/13); and
c. jointly requested that the Arbitrator/Arbitration Panel notify the Dispute Settlement
Body that it is not necessary for the Arbitrator/Arbitration Panel to issue a decision
and that its work has been completed.

1 WT/DS481/1 of 19 June 2014.
2 WT/DS406/17, G/L/917/Add.1 of 9 October 2014.
WT/DS481/5 • G/L/1072/Add.1

In light of these circumstances, the Arbitrator/Arb itration Panel informed the DSB that it considers
that it is not necessary for it to issue a decision on the matter referred to it. The
Arbitrator/Arbitration Panel therefore considers that it has completed its work.
3
In light of these developments, the Parties wish to inform the DSB that the European Union has
withdrawn its Request for Consultations in DS481.
We would ask you to circulate this notification to the relevant Councils and Committees, as well as
to the DSB, in accordance with Articles 3.6 and 4.4 of the DSU.

(Signed)
H.E. Mr. Angelos Pangratis
Ambassador
Permanent Mission of the European Union
to the WTO

(Signed)
H.E. Mr Iman Pambagyo
Ambassador
Deputy Permanent Representative
In Charge of WTO issues
Mission of Indonesia