CHILE – PRICE BAND SYSTEM AND SAFEGUARD MEASURES RELATING TO CERTAIN AGRICULTURAL PRODUCTS
Document: Understanding Between Argentina and Chile Regarding Procedures Under Articles 21 and 22 of the DSU
Date: 7 January 2004
Document codes: WT/DS207/16
Complainant: Argentina
Respondent: Chile
Third parties: Australia, Brazil, Canada, China, Colombia, Costa Rica, EU, Ecuador, El Salvador, Guatemala, Honduras, Japan, Nicaragua, Paraguay, Peru, Thailand, Venezuela, U.S.
Dispute stage: Implementation & Compliance
Agreements cited: Art. XIX:1, II  GATT 1994Art. 4  AgricultureArt. 2, 3, 4, 5, 6, 12  Safeguards

CHILE – PRICE BAND SYSTEM AND SAFEGUARD MEASURES
RELATING TO CERTAIN AGRICULTURAL PRODUCTS

Understanding Between Argentina and Chile Regarding Procedures

Under Articles 21 and 22 of the DSU

 The following communication, dated 24 December 2003, from the delegation of Argentina
and the delegation of Chile to the Chairman of the Dispute Settlement Body, is circulated at the
request of these delegations.

 The Argentine Republic and the Republic of Chile would like to inform the Dispute
Settlement Body that they have concluded th e attached "Understanding between the Argentine
Republic and the Republic of Chile Regarding Proc edures Under Articles 21 and 22 of the DSU with
Respect to the Dispute (WT/DS207)".

 (signed) (signed)
 Alicia de Hoz Alejandro Jara Puga
 Minister Ambassador
 Chargé d'Affaires a.i. Permanent Representative of Chile
Permanent Mission of the Argentine Republic to the WTO
 to the United Nations Office at Geneva

Understanding Between the Argentine Republic and the Republic of Chile Regarding
Procedures Under Articles 21 and 22 of the DSU with Respect to the Dispute
 (WTO/DS207)

 Considering that on 23 October 2002 the Disput e Settlement Body (DSB) adopted the Report
of the Appellate Body
1 and the Report of the Panel 2 as modified by the Appellate Body in the dispute

 Recalling that on 6 December 2002, Chile communicated a request to the DSB "that the
determination of a reasonable period be the subj ect of binding arbitration, in accordance with
Article 21.3(c) of the Understanding on Rul es and Procedures Governing the Settlement of
Disputes."
3

 Given that on 17 March 2003, the award of the arbitrator determined that the reasonable
period of time for Chile to implement the recomme ndations and rulings of the DSB was 14 months
from the date of adoption of the above-mentioned re ports, and that this reasonable period of time
expired on 23 December 2003;

 Considering that Argentina and Chile disagree, within the meaning of Article 21.5 of the
DSU, as to the consistency of the measures taken by Chile with the recommendations and rulings of
the DSB, and that it is therefore necessary to agree on the rules of procedure applicable to Article 21.5
and 22.6 of the DSU for the exclusive purposes of the dispute referred to as WT/DS207;

 The Argentine Republic and the Republic of Chile hereby agree as follows:

1. If it so deems appropriate, Argentina shall request consultations, which the parties shall agree
to hold within 15 days from the date of circulation of the request. Argentina and Chile agree that at
the end of such consultations, should either party so state, the parties shall jointly consider that the
consultations have failed to settle the dispute.
2. Consequently, as from the date of the said statement, Argentina shall be entitled to request the
establishment of a panel pursuant to Article 21.5 of the DSU.
3. At the first DSB meeting in which Argentina's request for the establishment of an Article 21.5
panel appears on the agenda, Chile shall accept the establishment of that panel.
4. Argentina and Chile shall cooperate to enable the Article 21.5 panel to circulate its report
within 90 days of the panel's establishment, ex cluding such time during which the panel's work may
be suspended pursuant to Article 12.12 of the DSU.
5. In case there is an appeal against the Article 21.5 panel report, Argentina and Chile shall
cooperate to enable the Appellate Body to circulate its report within no more than 90 days from the
date of notification of the appeal to the DSB.
6. With respect to the adoption of the panel a nd Appellate Body reports in the Article 21.5
proceedings, the time-frames of Articles 16 and 17.14 of the DSU shall apply.

1 WT/DS207/AB/R.
2 WT/DS207/R.
3 WT/DS207/9.

7. Argentina shall not request authorization to suspend concessions or other obligations under
Article 22 of the DSU until the adoption by the DSB of the Article 21.5 reports. If on the basis of the
results of these reports, Argentina should decide to initiate proceedings under Article 22 of the DSU,
Chile shall not assert that Argentina is precl uded from obtaining DSB authorization because its
request was made outside the 30-day time-period sp ecified in Article 22.6 of the DSU. This is
without prejudice to Chile's right to have the ma tter referred to arbitration in accordance with
Article 22.6.
8. If Argentina requests authorization to suspend concessions or other obligations pursuant to
Article 22.2 of the DSU, and if Chile objects under Ar ticle 22.6 of the DSU to the level of suspension
of concessions or other obligations and/or makes a claim under DSU Article 22.3, the matter shall be
referred to arbitration pursuant to DSU Article 22. 6. Argentina shall not pose any objection to the
referral of the matter to such arbitration.
9. If any of the original panellists were not availa ble either for the Article 21.5 panel or for the
Article 22.6 arbitration, or both, Argentina and Ch ile agree to request the Director-General of the
WTO to appoint, as soon as possible, a replacement for the proceeding or proceedings in which such a
replacement is required.
10. Argentina and Chile agree to continue to co operate in all matters referred to in this
Understanding and not to raise any procedural objections to any of the steps set out therein. If, during
the application of these procedures, Argentina and Chile consider that a procedural aspect has not
been properly addressed they shall endeavour to find a solution within the shor test time possible that
will not affect the other aspects and steps herein agreed.

Agreed in Geneva on 24 December 2003

 (signed) (signed)
 Alicia de Hoz Alejandro Jara Puga
 Minister Ambassador
 Chargé d'Affaires a.i. Permanent Representative of Chile
Permanent Mission of the Argentine Republic to the WTO
 to the United Nations Office at Geneva