INTRODUCTION

On 6 November 1998, the Dispute Settlement Body (DSB) adopted the Appellate Body report on Australia - Measures Affecting Importation of Salmon (WT/DS18/AB/R) and the panel report (WT/DS18/R), as modified by the Appellate Body report, requesting that Australia bring its measures into conformity with the Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement). On 23 February 1999, the Arbitrator, appointed in accordance with Article 21.3(c) of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), decided that the reasonable period of time to implement the rulings and recommendations of the DSB in this case would expire on 6 July 1999.

On 15 July 1999, Canada announced its intention to request authorization from the DSB to suspend the application to Australia of tariff concessions and related obligations under the General Agreement on Tariffs and Trade 1994, pursuant to Article 22.2 of the DSU (WT/DS18/12).

At the meeting of the DSB held on 27 and 28 July 1999, Australia informed the DSB that it had fully implemented the DSB's recommendations through an Australian Quarantine and Inspection Service (AQIS) decision of 19 July 1999. At the same meeting, Canada requested the establishment of a panel pursuant to Article 21.5 of the DSU. The DSB agreed that the Article 21.5 request be referred to the original Panel. The DSB also agreed, at the request of Australia, that the matter would be referred to arbitration to determine the level of suspension of concessions, pursuant to Article 22.6 of the DSU. Canada and Australia agreed that the arbitration proceedings would be held in abeyance until after the circulation of the panel report under Article 21.5. If the Article 21.5 Panel found that Australia had acted inconsistently with its WTO obligations, then Australia and Canada would request the immediate resumption of the Article 22.6 arbitration, regardless of whether either party appealed the Article 21.5 panel report.

The European Communities, Norway and the United States reserved their third-party rights in the 21.5 panel proceedings.