. /.WORLD TRADE
ORGANIZATIONTN/DS/4
28 November 2002
(02-6565)
Dispute Settlement Body
Special Session
SPECIAL SESSION OF THE DISPUTE SETTLEMENT BODY
Report by the Chairman, Ambassador Péter Balás,
to the Trade Negotiations Committee
I. STATUS OF WORK
1. Since the Chairman's last report to the TNC on 2 October 2002, the Special Session of the
DSB held its fifth and sixth formal meetings, on 14 October and on 13-15 November respectively.
2. At the fifth formal meeting held on 14 October, discussions centred on new proposals
submitted by the African Group (TN/DS/W/15), Paraguay (TN/DS/W/16), the LDC group(TN/DS/W/17) and Jamaica (TN/DS/W/21), as well as two joint proposals by India and other
developing country Members (TN/DS/W/18 and TN/D S/W/19).  The formal meeting was followed by
an informal examination of specific negotiating issues on the basis of an updated version of the
Checklist of Issues circulated by the Chairman.  Following on the previous such discussion at the
fourth meeting of the Special Session, discussions focussed on panel proceedings.  These discussionsare reflected in a Chairman's Summary (circulated as Job(02)130/Add.1).
3. At the sixth formal meeting on 13 Novemb er, two further new proposals by Japan
(TN/DS/W/22) and Mexico (TN/DS/W/23) were formally discussed for the first time.  The
examination of these new proposals was followed again by a continuation of the informal discussion
on an issue-by-issue basis.  In this context, participants exchanged views on panel working
procedures, the Appellate Body and Appellate review, as well as the surveillance of implementationof DSB recommendations.  An informal summary of these discussions will be circulated by the
Chairman (as Job(02)130/Add.2).
4. The proposals circulated to date are reflected in the latest updates of the informal Compilation
of Proposals (Job(02)42/Rev.6) and Checklist of  Issues (Job(02)86/Rev.5) circulated by the
Chairman.
II. OUTSTANDING ISSUES
5. A total of 16 proposals for clarifications and improvements to the DSU have now been
submitted, and another contribution, by Chinese Taipei, is to be circulated soon.  These proposalscover a broad range of issues relating to all stages of the dispute settlement procedures and reflect a
wide range of perspectives.  The Chairman has welcomed the engagement of participants, including
developing country Members, reflected in these proposals.
6. As noted above, the details of these proposals are being examined sequentially in the context
of an "issue-by-issue" discussion.  Discussions so far have focussed on consultations, panel
proceedings (including the establishment and composition of panels, as well as specific aspects of
panel procedures, such as third party rights, opening access to submissions or meetings, or the
definition of panels' mandate), appellate proceedings (including the issue of the number of AppellateTN/DS/4
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Body members and the possibility of remand authority) and issues relating to implementation and the
surveillance of implementation.  Various proposals relating to special and differential treatment are
being considered in the course of these discussions, as an integral part of this process.  These
discussions been very helpful in clarifying the scope and implications of various aspects of the
proposals.  They have not yet, however, led to th e clear identification of possible consensus areas.
7. The Chairman has indicated his intention to continue this "issue-by-issue" discussion with a
view to completing as soon as possible a full initial exploration of all negotiating issues, which would
contribute to a further clarification of the areas in which consensus might be achieved.
8. In light of the short time-frame foreseen for the completion of the negotiations and the large
number of issues now before the Special Session, participants will need to continue to engage veryactively in order to reach agreement by May next year on clarifications or improvements to the DSU,
on the basis of the highest common denominator.
III. FUTURE WORK
9. The next meeting of the Dispute Settlement Body in Special Session will be held from
16-18 December, and it is expected that the informal "issue-by-issue" discussion will be continued
and hopefully completed at that stage.  Subsequently, the work of the Special Session will focus on a
further exploration of the scope for consensus on an agreed text by the mandated deadline of
May 2003.
10. For this purpose, meetings have been scheduled at the following dates for next year:
– 28, 29 and 30 January
– 17 and 18 February
– 10 and 11 March– 10 and 11 April
– 19, 21 and 22 May.
The Chairman will also continue to consult informally with interested delegations and groups of
delegations to supplement this process.
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