INTRODUCTION

On 6 November 1998, the Dispute Settlement Body (DSB) adopted the Appellate Body Report on United States - Import Prohibition of Certain Shrimp and Shrimp Products (WT/DS58/AB/R) and the Panel Report (WT/DS58/R), as modified by the Appellate Body Report, requesting that the United States bring its measure found to be inconsistent with Article XI of the GATT 1994, and not justified under Article XX of the GATT 1994 into conformity with the obligations of the United States under that Agreement.

On 21 January 1999, the United States and the other parties to the dispute agreed to a 13-month reasonable period of time for the United States to comply with the recommendations and rulings of the DSB.

In a communication dated 12 January 2000, Malaysia and the United States informed the DSB of the understanding reached between Malaysia and the United States regarding possible proceedings pursuant to Articles 21 and 22 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) concerning the implementation of the DSB recommendations and rulings in this case. This communication confirms the understanding reached between Malaysia and the United States, pursuant to an exchange of letters dated 22 December 1999, whereby they agreed that if Malaysia at some future date decided that it may wish to initiate proceedings under Article 21.5 and Article 22 of the DSU, Malaysia would initiate proceedings under Article 21.5 prior to any proceedings under Article 22; for this purpose Malaysia would provide the United States advance notice of any proposal to initiate proceedings under Article 21.5 and hold consultations with the United States before requesting the establishment of a panel under Article 21.5.

On 12 October 2000, Malaysia requested the DSB, pursuant to Article 21.5 of the DSU, to establish a Panel to “find that by not lifting the import prohibition and not taking the necessary measures to allow the importation of certain shrimp and shrimp products in an unrestrictive manner, the United States has failed to comply with the 6 November 1998 recommendations and rulings of the Dispute Settlement Body.” Malaysia further requested that “the Panel suggest that the United States should lift the import prohibition immediately and allow the importation of certain shrimp and shrimp products in an unrestrictive manner in order to comply with the said recommendations and rulings of the Dispute Settlement Body.”