I - INTRODUCTION

Summary

Complaint of the European Communities

1.1 On 27 June 2005, the European Communities requested consultations with the United States pursuant to Articles 4.1, 7.1 and 30 of the SCM Agreement, Article XXIII:1 of the GATT 1994 and Article 4 of the DSU, with regard to measures affecting trade in large civil aircraft. Consultations were held on 3 August 2005, but the parties failed to resolve the dispute.

1.2 On 20 January 2006, the European Communities requested the establishment of a panel pursuant to Article 6 of the DSU, Article XXIII:2 of the GATT 1994, and Articles 4, 7 and 30 of the SCM Agreement (to the extent that Article 30 incorporates by reference Article XXIII of the GATT 1994).

Establishment and Composition of the Panel

1.3 At its meeting on 17 February 2006, the DSB established a Panel in accordance with Article 6 of the DSU to examine the matter referred to the DSB by the European Communities in document WT/DS353/2.

1.4 The terms of reference are the following:

“To examine, in the light of the relevant provisions of the covered agreements cited by the European Communities in document WT/DS353/2, the matter referred to the DSB by the European Communities in that document, and to make such findings as will assist the DSB in making the recommendations or in giving the rulings provided for in those agreements”.