ANNEX B* UNITED STATES - MEASURES AFFECTING TRADE IN LARGE CIVIL AIRCRAFT

Summary

Request for the Establishment of a Panel by the European Communities

The following communication, dated 20 January 2006, from the delegation of the European Communities to the Chairman of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.

On 6 October 2004 the European Communities ("EC") requested consultations in the above matter with the United States ("US") pursuant to Articles 4.1, 7.1, and 30 of the Agreement on Subsidies and Countervailing Measures ("SCM Agreement"), Article XXIII:1 of the General Agreement on Tariffs and Trade 1994 ("GATT 1994"), and Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes ("DSU"). Consultations were held on 5 November 2004 but failed to resolve the dispute.

At the meeting of the Dispute Settlement Body ("DSB") on 13 June concerning the request for establishment of the panel in the above case the US asserted without any explanation that 13 of the 28 subsidy programs referenced in the panel request were not listed in the consultation request of 6 October 2004 and could not be the subject of panel proceedings. The EC did not agree with this unfounded contention but expressed its readiness to continue consultations in order to clarify and resolve the issues, it being understood that this was without prejudice to the EC's legal position and rights. Accordingly, the EC on 27 June 2005 requested a continuation of the consultations held on 5 November 2004.