We wish to refer to the communication from Chile (WT/DS207/9), dated 6 December 2002, requesting binding arbitration under Article 21.3(c) of the Understanding on Rules and Procedures for the Settlement of Disputes ("DSU") to determine the reasonable period of time for Chile to implement the recommendations and rulings of the Dispute Settlement Body ("DSB") in the matter "Chile – Price Band System and Safeguard Measures Relating to Certain Agricultural Products" (WT/DS207/R and WT/DS207/AB/R).

            The parties to the dispute, Argentina and Chile, are currently holding consultations for the appointment of an arbitrator, pursuant to footnotes 12 and 13 to Article 21.3(c) of the DSU.

            With respect to the time-period for the arbitration, Article 21.3(c) of the  DSU requires that the reasonable period of time for implementation be determined through binding arbitration within 90 days after the date of adoption of the recommendations and rulings of the DSB.  In this respect, the parties to this dispute have agreed to extend the period of time for this binding arbitration, which shall be completed no later than 90 days after the date of the appointment of the arbitrator.  The parties to this dispute have agreed that the award of the arbitrator, made within the agreed time-period, shall be deemed to be the award of the arbitrator for the purposes of Article 21.3(c) of the DSU in determining the reasonable period of time for Chile to implement the recommendations and rulings of the DSB.