General

ARB.3.1.1 Australia – Salmon, para. 30

(WT/DS18/9)

Taken together, these provisions clearly define the rights and obligations of the Member concerned with respect to the implementation of the recommendations and rulings of the DSB. In the absence of a mutually agreed solution, the first objective is usually the immediate withdrawal of the measure judged to be inconsistent with any of the covered agreements. Only if it is impracticable to do so, is the Member concerned entitled to a reasonable period of time for implementation. …

ARB.3.1.2 Argentina – Hides and Leather, para. 40

(WT/DS155/10)

… Implementation, in essence, consists of bringing the measure held to be inconsistent with the obligations of the WTO Member concerned under particular provisions of a particular covered agreement, into conformity with those same provisions. Article 3.7 of the DSU stresses that “ the first objective of the dispute settlement mechanism is usually to secure withdrawal of the WTO-inconsistent measure” (emphasis added). The DSU goes on to state that compensation may be resorted to only if “the immediate withdrawal of the measure is impracticable and then only as “a temporary measure pending the withdrawal of the WTO-inconsistent measure” (emphasis added). Suspension of concessions or other obligations under the covered agreements is explicitly designated as a “last resort” mode of compliance “subject to authorization by the DSB”, but it too remains a “temporary” remedy allowed under Article 22.8 of the DSU only until the non-conforming measure is “removed” or a “mutually satisfactory solution” is achieved. Moreover, and at any rate, Article 22.1 of the DSU cautions that neither compensation nor suspension of concessions or other obligations is to be “preferred to full implementation of a recommendation to bring a measure into conformity with the covered agreements”. …

ARB.3.1.3 US – Offset Act (Byrd Amendment), para. 50

(WT/DS217/14, WT/DS234/22)

Thus, in my view, the United States may choose either to withdraw or modify the CDSOA so as to bring it into conformity with its obligations under the covered agreements.