WORLD TRADE
ORGANIZATIONWT/DS108/17
13 December 2000
(00-5399)
UNITED STATES – TAX TREATMENT FOR
"FOREIGN SALES CORPORATIONS"
Recourse by the United States to Article 22.6 of the DSU
and Article 4.11 of the SCM Agreement
Constitution of the Arbitrator
Note by the Secretariat
1. At the  meeting of the Dispute Settlement Body  on 28 November 2000, it was  agreed that the
matter raised by the United States in document WT/DS108/15 is referred to arbitration as required by
Article 22.6 of the DSU and Article 4.11 of the SCM Agreement.
2. Article 22.6 of the DSU provides as follows:
"When the situation described in paragraph 2 occurs, the DSB, upon request, shall grant
authorization to suspend concessions or other obligations within 30 days of the expiry of the
reasonable period of time unless the DSB decides by consensus to reject the request.However, if the Member concerned objects to the level of suspension proposed, or claims that
the principles and procedures set forth in paragraph 3 have not been followed where a
complaining party has requested authorization to suspend concessions or other obligations
pursuant to paragraph 3(b) or (c), the matter shall be referred to arbitration. Such arbitration
shall be carried out by the original panel, if members are available, or by an arbitrator
1
appointed by the Director-General and shall be completed within 60 days after the date of
expiry of the reasonable period of time.  Concessions or other obligations shall not be
suspended during the course of the arbitration."
3. Article 4.11 of the SCM Agreement provides as follows:
"In the event a party to the dispute requests arbitration under paragraph 6 of Article 22 of the
Dispute Settlement Understanding (DSU), the arbitrator shall determine whether the
countermeasures are appropriate."
4. The original panel will carry out the Arbitration, namely:
Chairman: Mr. Crawford Falconer
Members: Mr. Didier Chambovey
Mr. Seung Wha Chang
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1 The expression "arbitrator" shall be interpreted as referring either to an individual or a group.