INTRODUCTION

On 13 February 1998, the Dispute Settlement Body (the “DSB”) adopted the Appellate Body Report and the Panel Reports, as modified by the Appellate Body Report, in EC Measures Concerning Meat and Meat Products (Hormones). On 13 March 1998, the European Communities informed the DSB, pursuant to Article 21.3 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (the “DSU”), that it intended to fulfil its obligations under the Marrakesh Agreement Establishing the World Trade Organization (the “WTO Agreement”) in respect of this matter, and that it had initiated the process to examine the options for compliance with a view to implementation in as short a period of time as possible, and that it would require a reasonable period of time for this process.

On 26 March 1998, consultations were held between the European Communities and the United States and Canada in order to reach agreement on a “reasonable period of time” for the implementation of the recommendations and rulings of the DSB adopted on 13 February 1998. These consultations, and further written communications between the parties, did not lead to an agreement. There-fore, the European Communities requested, on 8 April 1998, that the “reasonable period of time” be determined by binding arbitration pursuant to Article 21.3(c) of the DSU.

In the absence of an agreement between the parties on the appointment of an arbitrator within 10 days after referring the matter to arbitration, the European Communities requested, in a letter dated 18 April 1998 and received on 20 April 1998, and the United States and Canada requested, on 20 April 1998, the Director- General of the World Trade Organization (“WTO”) to appoint the arbitrator, as provided for in footnote 12 to Article 21.3(c) of the DSU. After consultations with the parties, the Director-General decided, on 30 April 1998, to appoint H.E. Mr. Celso Lafer and myself as the arbitrators in this matter. Subsequently, Ambassador Lafer informed the Director-General that he was unable to accept the nomination. The Director-General informed the parties on 7 May 1998 that, given the very strict timeframe within which this arbitration must be conducted, he believed that the best course of action was to continue this arbitration with me acting as the sole arbitrator.