INTRODUCTION

On 22 December 2006, Indonesia requested the establishment of a panel pursuant to Article 21.5 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (“DSU”) concerning Korea's alleged failure to implement the recommendations and rulings of the Dispute Settlement Body (“DSB”) in the dispute Korea – Anti-Dumping Duties on Imports of Certain Paper from Indonesia. At its meeting on 23 January 2007, the DSB referred this dispute to the original panel, if possible, in accordance with Article 21.5 of the DSU, to examine the matter referred to the DSB by Indonesia in document WT/DS312/9. The terms of reference are the following:

On 5 February 2007, the Panel was composed as follows:

China, the European Communities, Japan, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (“TPKM”), and the United States reserved their third party rights.

The Panel met with the Parties on 24-25 April 2007. It met with the Third Parties on 25 April 2007.

FACTUAL ASPECTS

This dispute concerns the implementation by Korea of the DSB recommendations and rulings in Korea – Anti-Dumping Duties on Imports of Certain Paper from Indonesia.

The original anti-dumping investigation on “business information paper and wood-free printing paper” from Indonesia was initiated on 14 November 2002 and completed on 24 September 2003 with the imposition of anti-dumping duties of 8.22 per cent for Indah Kiat, Pindo Deli and Tjiwi Kimia, three paper producers in the Sinar Mas Group from Indonesia, and 2.80 per cent for another Indonesian exporter, April Fine. The Korean Trade Commission (“KTC”) also imposed an “all others” rate of 2.80 per cent.