INTRODUCTION

1. The European Communities and Ecuador each appeals certain issues of law and legal interpretations developed in the Panel Report, European Communities – Regime for the Importation, Sale and Distribution of Bananas – Second Recourse to Article 21.5 of the DSU by Ecuador (the “Ecuador Panel Report”). The European Communities appeals certain issues of law and legal interpretations developed in the Panel Report, European Communities – Regime for the Importation, Sale and Distribution of Bananas – Recourse to Article 21.5 of the DSU by the United States (the “US Panel Report”).

2. Two panels were established pursuant to Article 21.5 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (the “DSU”) to consider complaints by Ecuador and by the United States concerning the consistency with the General Agreement on Tariffs and Trade 1994 (the “GATT 1994”) of certain measures taken by the European Communities introducing a new regime for the importation of bananas. The Ecuador Panel was established on 20 March 2007 and the United States Panel was established on 12 July 2007. Both Ecuador and the United States requested that the matter be referred, if possible, to the original panel in EC – Bananas III, pursuant to Article 21.5 of the DSU. Two of the three panelists from the original proceedings were available to serve in the present proceedings. As the final composition of both Panels was identical, in this Report we refer to both Panels collectively as the “Panel”.