INTRODUCTION

On 24 February 1997, Brazil requested consultations with the European Communities (“the Community” or the “EC”) pursuant to Article 4 of the Understanding on Rules and Procedures governing the Settlement of Disputes (“DSU”), Article XXIII of the General Agreement on Tariffs and Trade 1994 (“GATT”) and Article 6 of the Agreement on Import Licensing Procedures (“Licensing Agreement”), regarding the EC regime for the importation of certain poultry products (CN codes 0207 41 10, 0207 41 41 and 0207 41 71) and the implementation by the EC of the tariff rate quota in these products agreed in negotiations between Brazil and the EC under Article XXVIII of GATT (WT/DS69/1).

Consultations were held on 11 April and 21 May 1997. As they did not result in a mutually satisfactory solution of the matter, Brazil, in a communication dated 12 June 1997, requested the establishment of a panel to examine this matter in light of the GATT, the Licensing Agreement and the Agreement on Agriculture (WT/DS69/2).

The Dispute Settlement Body (“DSB”), at its meeting on 30 July 1997, established a panel with standard terms of reference in accordance with Article 6 of the DSU (WT/DS69/3). Thailand and the United States reserved their third party rights to make a submission and to be heard by the Panel in accordance with Article 10 of the DSU.

Terms of Reference

The following standard terms of reference applied to the work of the Panel:

Panel Composition

The parties to the dispute agreed on 11 August 1997 to the following composition of the Panel:

The Panel met with the parties on 29-30 October and on 18 November 1997 and with third parties on 30 October 1997.