V - PROCEDURES UNDER ANNEX V TO THE SCM AGREEMENT

Summary

A. Introduction

480. On appeal, the European Union challenges a preliminary ruling made by the Panel with respect to the absence, in this dispute, of a procedure pursuant to Annex V to the SCM Agreement. Annex V, entitled “Procedures for Developing Information Concerning Serious Prejudice”, provides for an information-gathering procedure to be conducted in disputes where it is claimed that a Member has, through subsidization, caused adverse effects in the form of serious prejudice to the interests of another Member. Such process is to be initiated by the DSB and facilitated by a representative of the DSB. It is to be carried out within 60 days of establishment of the panel and is intended to facilitate the panel's subsequent review of the dispute.

481. We begin in section B by outlining the preliminary procedural issue raised by the European Communities at the outset of the Panel proceedings, and the Panel's disposition of it. We then set out in section C an overview of the claims and arguments on appeal. Our analysis is set out in section D, and is divided into two main parts: (i) the European Union's request for reversal of certain statements and findings by the Panel set forth in paragraph 7.22 of its Report; and (ii) the European Union's request for completion of the analysis, including its request that we make four specific findings, as well as two additional requests relating to the alleged withholding of information by the United States and its alleged non-cooperation in the Annex V procedure. Our conclusions are set out in section E.