INTRODUCTION

Background

On 12 August 1997, the European Communities requested consultations with Korea regarding a definitive safeguard measure on imports of certain dairy products (WT/DS98/1). The European Communities made their request pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (“DSU”), Article XXIII:1 of the General Agreement.

On 25 August 1997 Australia, requested to be joined in the consultations (WT/DS98/2). The request was accepted by Korea on 28 August 1997 (WT/DS98/3).

Pursuant to this request, the European Communities consulted with Korea in Geneva on 10 September 1997 and 16 October 1997. Australia participated in these consultations as a third party. No mutually satisfactory solution was reached.

On 9 January 1998, the European Communities requested the establishment of a panel with the standard terms of reference provided by Article 7 of the DSU (WT/DS98/4). The European Communities made this request pursuant to Article XXIII:2 of the General Agreement on Tariffs and Trade (“GATT”), Articles 4 and 6.1 of the DSU, and Article 14 of the Agreement on Safeguards. At the Dispute Settlement Body (“DSB”) meeting of 22 January 1998, the European Communities informed the DSB that they were for the time being not pursuing its Panel request.

On 10 June 1998, the European Communities reiterated its request for the establishment of a Panel.

Establishment and Composition of the Panel

At its meeting on 22 July 1998, the Dispute Settlement Body (“DSB”) established a panel pursuant to the EC's request (WT/DS98/5). The Panel's terms of reference are:

The United States reserved its rights as to participate in the Panel proceedings as third party.

On 20 August 1998, the Panel was constituted with the following composition:

Panel Proceedings

The Panel met with the Parties on 10/11 November 1998 and on 16/17 December 1998.