UNITED STATES – SECTION 211 OMNIBUS APPROPRIATIONS ACT OF 1998
Document: Understanding between the European Communities and the United States
Date: 1 July 2005
Document codes: WT/DS176/16
Complainant: EU
Respondent: U.S.
Third parties: Japan, Nicaragua, Canada
Dispute stage: Appellate Body
Agreements cited: Art. 2.1, 3.1, 4, 16.1, 42  Intellectual Property (TRIPS)

UNITED STATES – SECTION 211 OMNIBUS APPROPRIATIONS ACT OF 1998

Understanding between the European Communities and the United States

 The following communication, dated 30 June 2005, from the delegation of the European
Communities and the delegation of the United States to the Chairman of the Dispute Settlement Body,
is circulated at the request of those delegations.

 The European Communities and the United States would like to inform the Dispute
Settlement Body of the attached "Understanding between the European Co mmunities and the United
States" with respect to the dispute United States – Section 211 Omni bus Appropriations Act of 1998
(WT/DS176).

 We request that you please circulate this notification to the Members of the Dispute
Settlement Body.

Understanding between the European Communities and the United States of America

 Noting that the United States has informed th e Dispute Settlement Body (DSB) that it will
continue to work to bring Section 211 of the Om nibus Appropriations Act of 1998 into conformity
with its WTO obligations,

 The European Communities (EC) and the United States have reached the following
understanding with regard to the dispute US – Section 211 Appropriations Act:

1. The EC will not at this stage request author ization from the DSB to suspend concessions or
other obligations pursuant to Article 22.2 of the Understanding on Rules and Procedures
Governing the Settlement of Disputes (DSU).

2. If the EC at some future date decides to re quest DSB authorization to suspend concessions or
other obligations under Article 22.2 of the DS U, it will provide the United States advance
notice and will consult with the United States before making such a request.

3. The EC retains its right to be granted DSB authorization to suspend concessions or other
obligations pursuant to Article 22.6 of the DS U at any future date and the United States will
not seek to block the EC’s request for DSB authorization on the grounds that such DSB action
would not be within the time period set out in the first sentence of Article 22.6 of the DSU.

4. The United States retains the right to object to the level 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.

5. The EC and the United States agree to request jointly the adoption by the DSB of the draft
decision attached to this Understanding at its meeting on 20 July 2005.

 (signed) (signed)
 H.E. Mr Carlo Trojan Mr David Shark
 Ambassador Deputy Chief/Chargé d'Affaires a.i.
 Permanent Representative of the EC Permanent Mission of the United States

Draft Decision of the DSB

 The DSB takes note of the Understanding reach ed between the European Communities (EC)
and the United States and agrees that, upon a re quest by the EC, the DSB shall grant the EC
authorization to suspend concessions or other obligations unless (i) the DSB decides by consensus not
to do so or (ii) the United States objects to the le vel of suspension proposed or claims that the
principles and procedures in DSU Article 22.3 ha ve not been followed, referring the matter to
arbitration under Article 22.6 of the DSU.