 
 WORLD TRADE  
ORGANIZATION   
WT/MIN(01)/W/6 
1 November 2001 
 (01-5349) 
MINISTERIAL CONFERENCE 
Fourth Session Doha, 9 - 13 November 2001 Original:   English 
 
  
AMENDMENT OF CERTAIN PROVISIONS OF  
THE UNDERSTANDING ON RULES AND PROCEDURES  
GOVERNING THE SETTLEMENT OF DISPUTES 
 
Submission by Bolivia, Canada, Chile, Colombia, Co sta Rica, Ecuador, Japan, Korea, New Zealand, 
Norway, Peru, Switzerland, Uruguay and Venezuela 
 
 The following Draft Decision regarding the Amendment of Certain Provisions of the 
Understanding on Rules and Procedures Governing the Settlement of Disputes, with the text of the 
amendment annexed to it, has been received from th e delegation of Japan, also on behalf of Bolivia, 
Canada, Chile, Colombia, Costa Rica, Ecuador, Ko rea, New Zealand, Norway, Peru, Switzerland, 
Uruguay and Venezuela, with the request that it be  submitted for decision at the Fourth Ministerial 
Conference.  
 
_______________ 
 
DRAFT DECISION 
 
The Ministerial Conference,  
Considering  that the WTO dispute settlement rules and pr ocedures have largely proved an effective 
and important instrument for ensuring stability and predictability in international trade relations; 
 Emphasizing the importance of full and timely compliance with the recommendations and rulings of 
the DSB; 
 Considering  that the dispute settlement rules and procedures could be further improved especially by 
clarifying the sequence between Articles 21.5 a nd 22 of the Annex 2 ("the DSU") to the WTO 
Agreement;  
Decides to modify the DSU in the following manner: 
 
1. The General Council, exercising the functions of the Ministerial Conference pursuant to Article IV:2 of the WTO Agre ement, shall approve the Annex to this 
Decision at its meeting in […..], 2002. 
 
2. The approval of the Annex to this D ecision shall be made pursuant to Article 
X:8 of the WTO Agreement and shall constitu te an amendment to the DSU.  This 
amendment shall take effect for all Me mbers upon approval by the General Council. WT/MIN(01)/W/6 
Page 2  
 
 ANNEX 
 
AMENDMENT OF CERTAIN PROVISIONS OF  
THE UNDERSTANDING ON RULES AND PROCEDURES  
GOVERNING THE SETTLEMENT OF DISPUTES 
 
 
1. The following footnote shall be added to the thir d sentence of paragraph 3 of Article 21 after 
the term “reasonable period of time”: 
 “For purposes of this Understanding, the 'r easonable period of time' shall include the 
time-period specified under paragraph 7 of Ar ticle 4 of the Agreement on Subsidies and 
Countervailing Measures.”  
 2. Paragraph 5 of Article 21 is amended to read as follows:  
"During the reasonable period of time, each pa rty to the dispute shall accord sympathetic 
consideration to any request from another party to  the dispute for consultations with a view to 
reaching a mutually satisfactory solution regarding the implementation of the recommendations or rulings of the DSB.  When  such consultations are entered into, each 
party to the dispute shall afford to any third pa rty, which so requests, an adequate opportunity 
to express its views.” 
3. Paragraph 6 of Article 21 is amended to read as follows: 
 "6. (a) The DSB shall keep under surv eillance the implementation of adopted 
recommendations or rulings.  The issue of impl ementation of the recommendations or rulings 
may be raised at the DSB by any Member at any time following their adoption. 
  “(b) The Member concerned shall report on the status of its implementation of the 
recommendations or rulings of the DSB at each DSB meeting,
1 where any Member may raise 
any point pertaining thereto, beginning 6 months after the date of adoption of the 
recommendations or rulings of the DSB, until the parties to the dispute have mutually agreed 
that the issue is resolved or until the DSB finds pursuant to Article 21 bis that the Member 
concerned has complied. At least 10 days pr ior to each such DSB meeting, the Member 
concerned shall provide the DSB with a detaile d written status report concerning its progress 
in the implementation of the recommendations or rulings. 
 
  "(c) (i) Upon compliance with the r ecommendations or rulings of the DSB the 
Member concerned shall submit to the DSB a written notification on compliance. 
 
   "(ii) If the Member concerned has not submitted a notification under 
subparagraph (c)(i) by the date that is 20 days before the date of expiry of the 
reasonable period of time, then not later than that date the Member concerned shall submit to the DSB a written notification on compliance including the measures that it has taken, or the measur es that it expects to have taken by the 
expiry of the reasonable period of time .  Where the notification refers to 
measures that the Member concerned expects to have taken, the Member 
concerned shall submit to the DSB a supplementary written notification no later than the expiry of the reasonable period of time, stating that it has, or has not, 
taken such measures, and indicating any changes to them. 
                                                      
1 The parties to the dispute may agree to waive this requirement for a particular DSB meeting.  WT/MIN(01)/W/6 
 Page 3 
 
 
   “(iii) Each notification under this  subparagraph shall include a detailed 
description as well as the text of the relevant measures the Member concerned has taken.  The notification requirement  of this subparagraph shall not be 
construed to reduce the reasonable period of time established pursuant to paragraph 3 of Article 21. ” 
 
4. The following new Article shall be inserted after Article 21: 
 
“Article 21bis 
Determination of Compliance 
 
“1. Where there is disagreement between the complaining party and the Member 
concerned as to the existence or consistency w ith a covered agreement of measures taken to 
comply with the recommendations or rulings of the DSB, such disagreement shall be resolved 
through recourse to the dispute settlement procedures provided for in this Article.
2 2bis 
 
“2. The complaining party may request the establishment of a Compliance Panel 
consisting of the members of the original panel at any time after:  3 
 
 “(i) the Member concerned states that it does not need a reasonable period of time 
for compliance pursuant to paragraph 3 of Article 21; 
 
“(ii) the Member concerned has submitte d a notification pursuant to paragraph 
6(c) of Article 21 that it has complied with the recommendations or rulings of the DSB; or  
 
“(iii) ten days before the date of expiry of the reasonable period of time; 
  whichever is the earlier.  Such request shall be made in writing. 
  “3.  While consultations between the Memb er concerned and the complaining party are 
desirable, they are not required prior to a request for a Compliance Panel under paragraph 2. 
 
 “4. When requesting the establishment of a Compliance Panel, the complaining party 
shall identify the specific measures at issue and provide a brief summary of the legal basis of 
the complaint, sufficient to present the problem clearly.  Unless the parties to the Compliance 
Panel proceeding agree on special terms of reference within 5 days from the establishment of 
the Compliance Panel, standard terms of refere nce in accordance with Article 7 shall apply to 
the Compliance Panel. 
  “5. The DSB shall meet 10 days after such a request unless the complaining party 
requests that the meeting be held at a later date. At that meeting,
4 the DSB shall establish a 
Compliance Panel, unless the DSB decides by c onsensus not to establish such a panel. 
                                                      
2 This is without prejudice to the right of the pa rties to have recourse to normal dispute settlement 
procedures under this Understanding or to the procedures under Article 5 or Article 25. 
2bis The procedures provided for in this Article shall apply to measures referred to in paragraph 9 (as 
amended) of Article 22. 
3 If any member of the original pa nel is not available, the Director -General shall appoint a replacement 
within 5 days after the date of establishment of the Compliance Panel, unless the Director-General has been 
requested not to do so by the parties to the Compliance Panel. 
4 In the case of a Compliance Panel established pursu ant to paragraph 9 of Article 22, the DSB shall 
establish the Compliance Panel at the meeting requested by  the Member concerned purs uant to that paragraph. WT/MIN(01)/W/6 
Page 4  
 
  
 “6. The Compliance Panel shall circulate its report to the Members within 90 days of the 
date of its establishment.   
  “7. On or after the date of circulation of the report of the Compliance Panel, any party to 
the Compliance Panel proceeding may request a m eeting of the DSB to adopt the report, and 
the DSB shall meet 10 days after such a request unless the party requesting the meeting requests that the meeting be held at a later date .  At that meeting, the Compliance Panel report 
shall be adopted by the DSB and unconditiona lly accepted by the parties to the Compliance 
Panel proceeding unless a party to the Compliance Panel proceeding formally notifies the 
DSB of its decision to appeal or the DSB decide s by consensus not to adopt the report.  This 
adoption procedure is without prejudice to th e right of Members to express their views on a 
Compliance Panel report. 
  “7bis.  In case the report of the Compliance Panel is appealed, the Appellate Body 
proceedings, as well as the adoption of the Appe llate Body report, shall be conducted in 
accordance with Article 17. 
  “8. If the Compliance Panel or the Appellate Body report finds that the Member 
concerned has failed to bring the measure found to  be inconsistent with a covered agreement 
into compliance therewith or otherwise comply with the recommendations or rulings of the 
DSB in the dispute within the reasonable period of time, the Member concerned shall not be 
entitled to any further period of time for implementation following adoption by the DSB of the report of the Compliance Panel and, where the report of the Compliance Panel has been 
appealed, the report of the Appellate Body.  
 
 “9. The Compliance Panel shall establish its own working procedures. The provisions of 
Articles 1 through 3, 8 through 14 (other than paragraph 5 of Article 8), 18, 19, 21.1, 21.2, 
21.7, 21.8, 23, 24, 26 and 27.1 of the DSU sha ll apply to the Compliance Panel proceedings 
except to the extent that (i) su ch provisions are incompatible with the time frame provided in 
this Article, or (ii) this Article provides more specific provisions.” 
 
5. Paragraph 2 of Article 22 shall be amended to read as follows: 
 “2. If: 
   “(i) the Member concerned does not in form the DSB pursuant to paragraph 3 of 
Article 21 that it intends to implement the recommendations or rulings of the DSB; 
 
  “(ii) the Member concerned does not submit within the required time period a 
notification pursuant to paragraph 6(c) of Article 21 stating that the Member 
concerned has complied; or 
   “(iii) the Compliance Panel or the Appellate Body report pursuant to Article 21 bis 
finds that the Member concerned has failed to bring the measures found to be 
inconsistent with a covere d agreement into compliance therewith or otherwise 
comply with the recommendations or rulings of the DSB; then 
  a complaining party may request authorization from the DSB
5  to suspend the application to 
the Member concerned of concessions or other obligations under the covered agreements. A 
                                                      
5 The complaining party that was a party to the Compliance Panel proceedings shall not request 
authorization from the DSB to suspend the application to the Member concerned of concessions or other obligations under the covered agreements until after the circulation of the panel or the Appellate Body report.  WT/MIN(01)/W/6 
 Page 5 
 
 
 meeting of the DSB shall be convened for th is purpose 10 days after the request, unless the 
complaining party requests that the meeting be held at a later date.6 7 The parties to the 
dispute are encouraged to consult before the meeting to discuss a mutually satisfactory solution.” 
 
6. Paragraph 6 of Article 22 shall be amended to read as follows: 
 “6.  (a) When the complaining party has ma de a request for authorization to suspend 
concessions or other obligations pursuant to para graph 2 of this Article, the DSB shall grant 
authorization to such request at the meeting requested by the complaining party unless the 
DSB decides by consensus to re ject the request.  However, if the Member concerned objects 
to the level of suspension proposed, or claims th at the principles and procedures set forth in 
paragraph 3 have not been followed where the complaining party has requested authorization 
to suspend concessions or other obligations pursuan t to paragraph 3(b) or (c), the matter shall 
be referred to arbitration.  
 
  “(b) Such arbitration shall be carried out  by the original panel, if its members are 
available.  The Director-General shall determ ine whether the members of the original panel 
are available.
8  If any members of the original panel are not available, and the parties to the 
arbitration do not agree on a replacement, at th e request of any party the Director-General 
shall appoint a replacement arbitrator9 within 5 days after the matter is referred to the 
arbitration, after consulting with the parties to the arbitration.   
 
 “(c) The arbitration shall be completed and the decision of the arbitrator shall be 
circulated to Members within 45 days after the referral of the matter.  The complaining party 
shall not suspend concessions or other obliga tions during the course of the arbitration.” 
 
7. Article 22 is amended by inserting the following paragraph after paragraph 8.  The existing 
paragraph 9 shall be re numbered as paragraph 10. 
 “9. (a) After the DSB has authorized the suspension of concessions or other 
obligations pursuant to paragraph 6 or 7 of th is Article, the Member concerned may request a 
termination of such authorization on the grounds  that it has eliminated the inconsistency or 
the nullification or impairment of benefits under the covered agreemen ts identified in the 
recommendations or rulings of the DSB.  The Me mber concerned shall include with any such 
request a written notice to the DSB describing in detail the measures it has taken, providing the text of the relevant measures, and requesting a meeting of the DSB.  The DSB shall meet 20 days after such a request unless the Member concerned requests that the meeting be held at a later date.  At such meeting the DSB shall withdraw the authorization for suspension of 
concessions and other obligations unless the DSB decides by consensus not to withdraw the 
authorization, or unless the complaining party objects to such withdrawal, in which case 
subparagraph (b) shall apply. 
   “(b) Where there is disagreement between a complaining party and the Member 
concerned as to the existence or consistency w ith a covered agreement of measures taken to 
                                                      
6 In the case of paragraph 2 (ii) above, such DSB meeting shall not be convened before the expiry of 
the reasonable period of time. 
7 The DSB shall not consider the request for the authorization to suspend the application to the Member 
concerned of concessions or other obligations until after it has adopted the report of the Compliance Panel and, 
where the report of the Compliance Panel had been appealed, the report of the Appellate Body.  
8 In order to avoid delay, the Director-General sha ll make this determination sufficiently in advance of 
the DSB meeting at which the matter is to be referred to arbitration. 
9 The expression “arbitrator” shall be interpreted as referring either to an individual or a group. WT/MIN(01)/W/6 
Page 6  
 
 comply with the recommendations or rulings of  the DSB in the dispute, such disagreement 
shall be resolved through recourse to the dis pute settlement procedures provided for in Article 
21bis.  If as a result of recourse to the dispute settlement procedures provided for in Article 
21bis, the measures taken to comply by th e Member concerned are found not to be 
inconsistent with a covered ag reement and comply with the recommendations or rulings of 
the DSB in the dispute, then on or after the date  of circulation of the report of the Compliance 
Panel or the Appellate Body, the Member con cerned may request a meeting of the DSB to 
withdraw the authorization for the suspension of concessions or other obligations.  The DSB 
shall meet 10 days
10 after such a request unless the Me mber concerned requests that the 
meeting be held at a later date.  At such mee ting the DSB shall withdraw the authorization for 
suspension of concessions and ot her obligations unless the DSB decides by consensus not to 
do so.11 
 
  “(c) The complaining party shall not maintain the suspension of concessions and 
other obligations after the DSB withdraws the authorization.” 
 8. In paragraph 7 of Article 4, the numeral “60” shall be deleted wherever it occurs and the 
numeral “30” shall be inserted in its place.  Insert at  the end of this paragraph the following footnote:  
 “Where one or more of the parties is a developing country Member, the time period 
established in paragraph 7 of Article 4 shall, if the parties agree, be extended by up to 30 
days.  Any other party to the dispute shall accord  sympathetic consideration to a request by a 
developing country Member for such an extensi on.  If the parties do not agree to such an 
extension, the developing country Member may have recourse to paragraph 10 of Article 12.”  
 
9. Paragraph 1 of Article 6 shall be amended to read as follows: 
 “1. If the complaining party so requests, the DSB shall establish a panel at the meeting at 
which the request first appears as an item  on the DSB's agenda, unless the DSB decides by 
consensus not to establish a panel.” 
 
 A new footnote shall be added to the Article 6. 1 after the word "requests", the text of which 
shall read as follows:    
 "In a case involving a complaint against a developing country Member, the complaining party shall accord sympathetic consideration to a request from that Member to postpone the 
establishment of a panel due to particular circumstances. "  
 The existing footnote to Article 6.1 shall be  retained at the end of paragraph 1. 
 
10. Paragraph 12(a) of Appendix 3 sha ll be amended to read as follows: 
 “(a) Receipt of first written submissions of the parties: 
   (1) complaining party:    ____ 3-4 weeks
12 
  (2) party complained against:   ____ 4-5 weeks” 
 
                                                      
10 In the case of an appeal, the DSB shall meet for th is purpose on or after the date of the adoption of 
the Appellate Body report pursuant to Article 17.14. 
11 The DSB shall not consider the request for the with drawal of the authorizati on for the suspension of 
concessions until after it has adopted the report of the Compliance Panel or the Appellate Body. 
12 Up to 6 weeks if the complaining party is a developing country Member.  WT/MIN(01)/W/6 
 Page 7 
 
 
 11. In Appendix 3, the following paragraph shall be inserted following paragraph 10.  Paragraphs 
11 and 12 shall be renumbered as 12 and 13 respectively. 
 “11. The descriptive part of the panel report shall include a brief summary of the facts and 
the procedural history of the case.  The documents submitted by the parties and third parties to the panel shall be attached to the panel report, except for certain factual confidential 
information designated as such by the party or the third party that submitted it.
13  " 
 12. Paragraph 1 of Article 15 shall be deleted and para graphs 2 and 3 of Article 15 shall be 
renumbered as paragraphs 1 and 2.  In the first sen tence of the present paragraph 2 of Article 15, the 
first sentence shall be amended to read as follows: 
 “2. The panel shall issue an interim repo rt to the parties, including the descriptive 
sections and the panel’s fi ndings and conclusions.” 
 13. Present paragraph 2 of Article 15 shall be ame nded by deleting therefrom the sentence “At the 
request of a party, the panel shall hold a further me eting with the parties on the issues identified in the 
written comments.” 
14. The following conforming changes on time frames  need to be made in light of the other 
changes in the text.    
 "Present paragraph 12 of Appendix 3 shall be amended as follows: 
  "(1) Items (e) and (f) shall be deleted a nd the following items re designated accordingly. 
 
 "(2) Item (g) (prior to redesignation) shall be amended by deleting “2 -4 weeks” and inserting 
"4-8 weeks". 
  "(3) Item (h)(prior to redesignation) shall be  amended by deleting “1 week” and inserting “10 
days” 
  "(4) Item (i)(prior to redesignation) shall be deleted and the following items redesignated 
accordingly.  
  "(5) Item (j) (prior to redesignation) shall be amended by deleting “2 weeks” and inserting 
“10 days” 
  "(6) Item (k) (prior to redesignation) shall be amended to be to read as follows:   “(k) Circulation of the final report to the Members: ____3 days” 
 
 Based on a total reduction of time (up to approximately 47 days), the time frames in Article 
20 (the reference to "nine months" and to "12 m onths"), the periods in 21.4 (the reference to 
"15 months" and to "18 months") shall be reduced by one month. 
 15. A new paragraph 13 will be  added to Article 3: 
 “Any time period in this Understanding may be extended by mutual agreement of the parties 
to the proceeding concerned.” 
 16. Paragraph 3 of Article 10 shall be  amended to read as follows:  
                                                      
13 Documents of an administrative or procedural nature, annexes, and exhibits need not be attached. WT/MIN(01)/W/6 
Page 8  
 
  “3. Each third party shall receive a copy of  all documents or information submitted to the 
panel, at the time of submission, except for cer tain factual confidential information designated 
as such by the disputing party that submitted it,  and except for any submission following the 
interim panel report.
14  Without prejudice to paragraph 2 of this Article, a third party may 
observe any of the substantive meetings of the panel with the parties, except for portions of 
sessions when such factual confidential information is discussed.” 
 17. The following sentence shall be added af ter current paragraph 6 of Appendix 3: 
 “In establishing the working procedures to be followed the panel may take into consideration 
any special circumstances of a third party that are closely related to the matter under dispute.” 
 
18. In paragraph 2 of Article 18 and in paragraph 3 of Appendix 3, the last sentence of each of 
these paragraphs shall be amended to read as follows: 
 “Each party and third party to a proceeding shall also, if requested by a Member, provide a 
non-confidential summary of the information c ontained in its submissions that could be 
disclosed to the public, no later than 15 days after the date of either the request or the 
submission, whichever is later, or such ot her deadline as is agreed by the party and the 
requesting Member.” 
 19. In paragraph 10 of Article 4, the word “should” shall be deleted and the word “shall” shall be 
inserted in place thereof. 
20. In paragraph 2 of Article 21, the word “should” shall be deleted and the word “shall” shall be 
inserted in place thereof. 
21. Paragraph 6 of Article 3 shall be amended by inserting the following footnote after the word 
“notified”: 
“It is the obligation of both parties to notify an y mutually agreed solution promptly and in no 
event more than two months after the solution is agreed.  The notification shall describe the 
terms of the mutually agreed solution related to the WTO obligations in sufficient detail to 
enable other Members to understand and evaluate it.” 
22. Paragraph 4 of Article 25 is amended to read as follows: 
 "Articles 21, 21 bis and 22 of this Understanding shall apply mutatis mutandis  to arbitration 
awards." 
 
23. The new footnotes shall be inserted into the text  of the DSU at the places indicated above and 
all footnotes shall be renumbered accordingly. 
24. The following transitional provisions shall apply to this amendment: 
(i) The amendments contained in paragraph 1, 2, 15 and 23 apply immediately 
from the effective date of this amendment;  
(ii) The amendment contained in paragra ph 3 shall apply to all Reasonable 
Periods of Time established after th e effective date of this amendment; 
                                                      
14 Documents of an administrative or procedural nature need not be provided.  WT/MIN(01)/W/6 
 Page 9 
 
 
 (iii) The amendments contained in paragraph 4 through 6 shall apply to any 
dispute where recommendations and rulings have been adopted by the DSB after the effective date of this amendment; 
(iv) The amendments contained in paragraph 7 shall apply to any claim of 
elimination of the inconsistency or the nullification or impairment of benefits 
under the covered agreements taking place after the effective date of this 
amendment;  
(v) The amendments contained in paragra ph 8 and 9 shall apply only to the 
dispute settlement procedures for which consultations have been requested 
after the effective date of this amendment; 
(vi) The amendments contained in paragr aph 10 through 14 and 16 through 22 
shall apply to disputes for which a panel has been composed after the effective date of this amendment. 
_______________ 
 
 