INTRODUCTION

On 27 September 2005, the Dispute Settlement Body (the “DSB”) adopted the Appellate Body Report and the Panel Reports, as modified by the Appellate Body Report, in European Communities – Customs Classification of Frozen Boneless Chicken Cuts. At the meeting of the DSB held on 18 October 2005, the European Communities stated that it intended to comply with the recommendations and rulings of the DSB in this dispute, and that it would need a reasonable period of time in which to do so.

On 22 November 2005, Brazil informed the DSB that consultations with the European Communities had not resulted in an agreement on the reasonable period of time for implementation. Brazil therefore requested that such period be determined through binding arbitration, pursuant to Article 21.3(c) of the Understanding on Rules and Procedures Governing the Settlement of Disputes (the “DSU”). Thailand similarly informed the DSB, on 9 December 2005, that it had been unable to reach agreement with the European Communities on the reasonable period of time for implementation, and requested arbitration pursuant to Article 21.3(c) of the DSU.

By joint letter of 9 December 2005, Brazil and the European Communities requested me to act as Arbitrator, pursuant to Article 21.3(c) of the DSU, to determine the reasonable period of time for implementation of the recommendations and rulings of the DSB in this dispute. Thailand and the European Communities also requested, by joint letter of 13 December 2005, that I serve as Arbitrator. As the 90-day period following adoption of the Panel and Appellate Body Reports was to expire on 26 December 2005, the parties, in their respective letters, “confirm[ed] that the award of the arbitrator within the time period to be agreed shall be deemed to be the award of the arbitrator for the purpose of Article 21.3(c) of the DSU.” I accepted the appointments on 14 December 2005 and proposed to conduct both proceedings simultaneously, undertaking to issue the Award no later than 20 February 2006. No party objected to the proposed date for circulation of the Award.