Report of the Panel

Summary

INTRODUCTION

1.1 On 6 March 2007, the United States requested consultations with the Government of India pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (“DSU”) and Article XXII of the General Agreement on Tariffs and Trade 1994 (“GATT 1994”), with respect to two duties that India applies to imports of certain goods in addition to its basic customs duty. The request was circulated on 12 March 2007.

1.2 On 16 March and 21 March 2007, the European Communities and Australia, respectively, requested to join in the consultations requested by the United States. India accepted the European Communities' request. Consultations were held on 13 April 2007. Those consultations did not resolve the dispute.

1.3 On 24 May 2007, the United States requested that the Dispute Settlement Body (“DSB”) establish a panel to examine this matter, pursuant to Article 6 of the DSU, with the standard terms of reference as set out in Article 7.1 of the DSU. At its meeting of 20 June 2007, the DSB established a Panel with the following terms of reference:

“To examine, in the light of the relevant provisions of the covered agreements cited by the United States in document WT/DS360/5, the matter referred to the DSB by the United States in that document, and to make such findings as will assist the DSB in making the recommendations or in giving the rulings provided for in those agreements.”