INTRODUCTION

On 25 September 1997, the Dispute Settlement Body (the “DSB“) adopted the Appellate Body Report and the Panel Reports, as modified, in European Communities - Regime for the Importation, Sale and Distribution of Bananas, complaint by Ecuador, Guatemala, Honduras, Mexico and the United States (the “Complaining Parties“). On 16 October 1997, the European Communities informed the DSB, pursuant to Article 21.3 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (the “DSU“), that it would fully respect its international obligations with regard to this matter. At the same meeting, the European Communities stated that - while intending to act expeditiously - it would, in view of the complexity of the matter at issue, require a reasonable period of time in which to examine all the options to meet its international obligations.

On 24 October 1997, the European Communities requested consultations with the Complaining Parties in order to reach agreement on a “reasonable period of time” for the implementation of the recommendations and rulings of the DSB adopted on 25 September 1997. These consultations, however, did not lead to an agreement. The Complaining Parties therefore requested, on 17 November 1997, that the “reasonable period of time” be determined by binding arbitration pursuant to Article 21.3(c) of the DSU.

In the absence of an agreement between the parties on the appointment of an arbitrator within 10 days after referring the matter to arbitration, the Complaining Parties requested, on 1 December 1997, the Director-General of the World Trade Organization (“WTO“) to appoint the arbitrator, as provided for in footnote 12 to Article 21.3(c) of the DSU. After consultation with the parties, the Director-General decided, on 8 December 1997, to appoint me as the Arbitrator. He indicated to the parties that, as a Member of the Appellate Body, I would consult with the other Members of the Appellate Body in accordance with its practice of collegiality.

Written submissions were received from the European Communities and the Complaining Parties on 15 December 1997, and an oral hearing was held on 17 December 1997. Consultations with the other Members of the Appellate Body took place on 19 December 1997.