BRAZIL – MEASURES AFFECTING IMPORTS OF RETREADED TYRES
Document: Understanding between Brazil and the European Communities Regarding Procedures under Article 22 of the DSU
Date: 9 January 2009
Document codes: WT/DS332/18
Complainant: EU
Respondent: Brazil
Third parties: Argentina, Australia, China, Cuba, Guatemala, Japan, South Korea, Mexico, Paraguay, Taiwan, Thailand, U.S.
Dispute stage: Appellate Body
Agreements cited: Art. I:1, III:4, XI:1, XIII:1  GATT 1994

BRAZIL – MEASURES AFFECTING IMPORTS OF RETREADED TYRES

Understanding between Brazil and the European Communities

Regarding Procedures under Article 22 of the DSU

 The following communication, dated 7 January 2009, from the delegation of the European
Communities to the Chairman of the Dispute Settlemen t Body, is circulated at the request of that
delegation.

 Please find attached a procedural agreement, concluded on 5 January 2009, between Brazil
and the European Communities in the dispute referred to above.
 We kindly request that you circulate this communication to the Members of the DSB.

Procedural Agreement between Brazil and the European Communities

regarding Article 22 of the DSU

 The Dispute Settlement Body (DSB) adopted th e Appellate Body repor t and the Panel report
as modified by the Appellate Body report on 17 December 2007. An arbitrator determined that the
reasonable period of time to implement the DSB r ecommendations and rulings would be 12 months,
expiring on 17 December 2008 ().

 The European Communities and Brazil ("the pa rties to the dispute") have agreed on the
following procedures for the exclusive purposes of this dispute:

1. In the event that the European Communities do es not request, by 16 January 2009, the DSB to
authorize the suspension of concessions or other oblig ations, Brazil shall not assert that the European
Communities is precluded from obtaining the DSB's au thorization to suspend concessions or other
obligations on the grounds that the request was made outside the 30-day time-period specified in
Article 22.6 of the DSU. This is without prejudice to Brazil's right to have the matter referred to
arbitration in accordance with Article 22.6 of the DSU.

2. This is agreed on the understanding that the right s of the parties to the dispute with respect to
the authorization to suspend concessions or other obl igations do not change, compared to the situation
in which the European Communities would request the DSB to grant authorization to suspend
concessions or other obligations within 30 days of the expiry of the reasonable period of time.

3. If the European Communiti es requests authorization to suspend concessions or other
obligations pursuant to Article 22.2 of the DSU, and if Brazil objects under Article 22.6 of the DSU to
the level of suspension of concessions or other obl igations and/or claims that the principles and
procedures set forth in DSU Article 22.3 have not been followed, the matter will be referred to
arbitration pursuant to DSU Article 22.6.

4. 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.

5. If measures taken by Brazil to fully comply w ith the relevant recommendations and rulings of
the DSB are presented to the Euro pean Communities, the European Communities agrees to initiate
proceedings under Article 21.5 of the DSU before initiating proceedings for requesting authorization
to suspend concessions or other obligations pursuant to Article 22.2 of the DSU.

6. The parties will continue to cooperate in all matters related to this procedural agreement 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 to the dispute consid er that a procedural aspect has not been properly
addressed in these procedures, they will endeavor to find a solution within the shortest time possible
that will not affect the other aspects and steps agreed herein.

 H.E. Mr. Roberto Azevedo H.E. Mr. Eckart Guth
 Ambassador Ambassador
 Permanent Representative of Brazil Permanent Representative
 for the European Communities