European Communities - Regime for the Importation, Sale and Distribution of Bananas (WT/DS27): Award of the Arbitrator (under Article 22.6 DSU)

Summary

INTRODUCTION

On 14 January 1999, the United States (US), pursuant to Article 22.2 of the DSU, requested the Dispute Settlement Body (DSB) to authorize suspension of the application to the European Communities (EC) and its member States of tariff concessions and related obligations under GATT 1994 covering trade in an amount of US$520 million (WT/DS27/43). At the DSB meeting held on 25 January-1 February 1999, the European Communities objected to the level of suspension proposed by the United States on the ground that it was not equivalent to the level of nullification or impairment of benefits suffered by the United States and claimed that the principles and procedures set out in Article 22.3 of the DSU had not been followed. Pursuant to Article 22.6 of the DSU, the European Communities requested that the original panel carry out the arbitration on the foregoing matters (WT/DS27/46). In response, the DSB decided on 29 January 1999 to submit the matter to arbitration of the original panel in accordance with Article 22.6 of the DSU (WT/DSB/M/54).

The Arbitrators are:

Chairman: Mr. Stuart Harbinson

Mr. Kym Anderson

Mr. Christian Häberli

The tasks of Arbitrators under Article 22 of the DSU are described in paragraphs 6 and 7 of that Article:

“… However, if the Member concerned objects to the level of suspension proposed, or claims that the principles and procedures set forth in paragraph 3 have not been followed where a complaining party has requested authorization to suspend concessions or other obligations pursuant to paragraph 3(b) or (c), the matter shall be referred to arbitration. …”

“The arbitrator[s] … shall determine whether the level of such suspension is equivalent to the level of nullification or impairment. The arbitrator[s] may also determine if the proposed suspension of concessions or other obligations is allowed under the covered agreement. However, if the matter referred to arbitration includes a claim that the principles and procedures set forth in paragraph 3 have not been followed, the arbitrator[s] shall examine that claim. In the event that the arbitrator[s] determine that those principles and procedures have not been followed, the complaining party shall apply them consistent with paragraph 3. …”