INTRODUCTION

On 17 March 2004, the European Communities requested consultations with the United States pursuant to Articles 4 and 21.5 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) and Article 30 of the Agreement on Subsidies and Countervailing Measures (SCM Agreement) with respect to the United States’ new privatization methodology, its application to the determinations set out in the request and the findings in the sunset reviews of: Certain Corrosion-Resistant Carbon Steel Flat Products from France (C-427-810) (Case No. 9); Cut-to-Length Carbon Steel Plate from United Kingdom (C–412–815) (Case No. 8); and, Cut-to-Length Carbon Steel Plate from Spain (C–469–804) (Case No. 11)

The request was circulated in document WT/DS212/14 of 19 March 2004. Consultations were held on 24 May 2004 and, although they allowed a better understanding of respective positions, they failed to settle the dispute.

On 16 September 2004, the European Communities requested the Dispute Settlement Body (DSB) to establish a panel pursuant to Articles 6 and 21.5 of the DSU, Article 30 of the SCM Agreement, and Article XXIII of the General Agreement on Tariffs and Trade 1994 (GATT 1994). The request did not include the United States’ new privatization methodology.

At its meeting on 27 September 2004, the DSB decided, in accordance with Article 21.5 of the DSU, to refer to the original panel the matter raised by the European Communities in document WT/DS212/15.

At that meeting, the parties to the dispute agreed that the Panel should have standard terms of reference. The Panel's terms of reference are, therefore, the following:

The Panel was composed of the original members:

Brazil, China and Korea reserved their rights to participate in the Panel's proceedings as third parties.