agreement. The last resort which this Understanding provides to the Member invoking the dispute settlement procedures is the possibility of suspending the application of concessions or other obligations under the covered agreements on a discriminatory basis vis-à-vis the other Member, subject to authorization by the DSB of such measures. 8. In cases where there is an infringement of the obligations
assumed under a covered agreement, the action is considered prima facie to constitute a case of nullification or impairment. This means that there is normally a presumption that a breach of the rules has an
adverse impact on other Members parties to that covered agreement, and in such cases, it shall be up to the Member against whom the complaint has been brought to rebut the charge.
9. The provisions of this Understanding are without prejudice to the rights of Members to seek authoritative interpretation of provisions of a covered agreement through decision-making under the WTO Agreement or a
covered agreement which is a Plurilateral Trade Agreement.
10. It is understood that requests for conciliation and the use of the dispute settlement procedures should not be intended or considered as contentious acts and that, if a dispute arises, all Members will engage in these procedures in good faith in an effort to resolve the dispute. It is also understood that complaints and counter-complaints in regard to distinct matters should not be linked.
11. This Understanding shall be applied only with respect to new requests for consultations under the consultation provisions of the covered agreements made on or after the date of entry into force of the WTO Agreement. With respect to disputes for which the request for
consultations was made under GATT 1947 or under any other predecessor agreement to the covered agreements before the date of entry into force of the WTO Agreement, the relevant dispute settlement rules and
procedures in effect immediately prior to the date of entry into force of the WTO Agreement shall continue to apply. (notes 2)
Notes 2: This paragraph shall also be applied to disputes on which panel reports have not been adopted or fully implemented.
12. Notwithstanding paragraph 11, if a complaint based on any of the covered agreements is brought by a developing country Member against a developed country Member, the complaining party shall have the right to invoke, as an alternative to the provisions contained in Articles 4, 5, 6 and 12 of this Understanding, the corresponding provisions of the Decision of 5 April 1966 (BISD 14S/18), except that where the Panel considers that the time-frame provided for in paragraph 7 of that
Decision is insufficient to provide its report and with the agreement of the complaining party, that time-frame may be extended. To the extent that there is a difference between the rules and procedures of Articles
4, 5, 6 and 12 and the corresponding rules and procedures of the Decision, the latter shall prevail. Article 4 Consultations
1. Members affirm their resolve to strengthen and improve the effectiveness of the consultation procedures employed by Members.
2. Each Member undertakes to accord sympathetic consideration to and afford adequate opportunity for consultation regarding any
representations made by another Member concerning measures affecting the operation of any covered agreement taken within the territory of the former. (notes 3)
Notes 3: Where the provisions of any other covered agreement concerning measures taken by regional or local governments or authorities within the territory of a Member contain provisions
different from the provisions of this paragraph, the provisions of such other covered agreement shall prevail.
3. If a request for consultations is made pursuant to a covered agreement, the Member to which the request is made shall, unless
otherwise mutually agreed, reply to the request within 10 days after the date of its receipt and shall enter into consultations in good faith within a period of no more than 30 days after the date of receipt of the request, with a view to reaching a mutually satisfactory solution. If the Member does not respond within 10 days after the date of receipt of the request, or does not enter into consultations within a period of no more than 30 days, or a period otherwise mutually agreed, after the date of receipt of the request, then the Member that requested the holding of consultations may proceed directly to request the establishment of a panel.
4. All such requests for consultations shall be notified to the DSB and the relevant Councils and Committees by the Member which requests consultations. Any request for consultations shall be submitted in writing and shall give the reasons for the request, including
identification of the measures at issue and an indication of the legal basis for the complaint.
5. In the course of consultations in accordance with the provisions of a covered agreement, before resorting to further action under this Understanding, Members should attempt to obtain satisfactory adjustment of the matter.
6. Consultations shall be confidential, and without prejudice to the rights of any Member in any further proceedings.
7. If the consultations fail to settle a dispute within 60 days after the date of receipt of the request for consultations, the complaining party may request the establishment of a panel. The
complaining party may request a panel during the 60-day period if the consulting parties jointly consider that consultations have failed to
settle the dispute.
8. In cases of urgency, including those which concern perishable goods, Members shall enter into consultations within a period of no more than 10 days after the date of receipt of the request. If the
consultations have failed to settle the dispute within a period of 20days after the date of receipt of the request, the complaining party may request the establishment of a panel.
9. In cases of urgency, including those which concern perishable goods, the parties to the dispute, panels and the Appellate Body shall make every effort to accelerate the proceedings to the greatest extent possible.
10. During consultations Members should give special attention to the particular problems and interests of developing country Members. 11. Whenever a Member other than the consulting Members considers that it has a substantial trade interest in consultations being held pursuant to paragraph 1 of Article XXII of GATT 1994, paragraph 1 of Article XXII of GATS, or the corresponding provisions in other covered agreements (notes 4), such Member may notify the consulting Members and the DSB, within 10 days after the date of the circulation of the request for consultations under said Article, of its desire to be joined in the consultations. Such Member shall be joined in the consultations, provided that the Member to which the request for consultations was addressed agrees that the claim of substantial interest is well-founded. In that event they shall so inform the DSB. If the request to be joined in the consultations is not accepted, the applicant Member shall be free to request consultations under paragraph 1 of Article XXII or paragraph 1 of Article XXIII of GATT 1994, paragraph 1 of Article XXII or
paragraph 1 of Article XXIII of GATS, or the corresponding provisions in other covered agreements.
Notes 4: The corresponding consultation provisions in the covered agreements are listed hereunder: Agreement on Agriculture, Article 19: Agreement on the Application of Sanitary and Phytosanitary Measures, paragraph 1 of Article 11: Agreement on Textiles and Clothing, paragraph 4 of Article 8: Agreement on Technical Barriers to Trade, paragraph 1 of Article 14: Agreement on Trade-Related Investment Measures, Article 8: Agreement on Implementation of Article VI of GATT 1994, paragraph 2 of Article 17: Agreement on Implementation of Article VII of GATT 1994, paragraph 2 of Article 19: Agreement on Reshipment Inspection, Article 7: Agreement on Rules of Origin, Article 7: Agreement on Import Licensing Procedures, Article 6: Agreement on Subsidies and
Countervailing Measures, Article 30: Agreement on Safeguards, Article 14: Agreement on Trade-Related Aspects of Intellectual Property Rights, Article 64.1; and any corresponding consultation provisions in
Plurilateral Trade Agreements as determined by the competent bodies of
each Agreement and as notified to the DSB.
Article 5 Good Offices, Conciliation and Mediation
1. Good offices, conciliation and mediation are procedures that are undertaken voluntarily if the parties to the dispute so agree.
2. Proceedings involving good offices, conciliation and mediation, and in particular positions taken by the parties to the dispute during these proceedings, shall be confidential, and without prejudice to the rights of either party in any further proceedings under these procedures.
3. Good offices, conciliation or mediation may be requested at any time by any party to a dispute. They may begin at any time and be
terminated at any time. Once procedures for good offices, conciliation or mediation are terminated, a complaining party may then proceed with a
request for the establishment of a panel.
4. When good offices, conciliation or mediation are entered into within 60 days after the date of receipt of a request for consultations, the complaining party must allow a period of 60 days after the date of receipt of the request for consultations before requesting the establishment of a panel. The complaining party may request the
establishment of a panel during the 60-day period if the parties to the dispute jointly consider that the good offices, conciliation or mediation process has failed to settle the dispute.
5. If the parties to a dispute agree, procedures for good offices, conciliation or mediation may continue while the panel process proceeds. 6. The Director-General may, acting in an ex officio capacity, offer good offices, conciliation or mediation with the view to assisting Members to settle a dispute.
Article 6 Establishment of Panels
1. If the complaining party so requests, a panel shall be
established at the latest at the DSB meeting following that at which the request first appears as an item on the DSB's agenda, unless at that meeting the DSB decides by consensus not to establish a panel. (notes 5) Notes 5: If the complaining party so requests, a meeting of the DSB shall be convened for this purpose within 15 days of the request,
provided that at least 10day's advance notice of the meeting is given. 2. The request for the establishment of a panel shall be made in writing. It shall indicate whether consultations were held, identify the specific measures at issue and provide a brief summary of the legal basis of the complaint sufficient to present the problem clearly. In case the applicant requests the establishment of a panel with other than standard terms of reference, the written request shall include the proposed text of special terms of reference. Article 7 Terms of Reference of Panels