CHILE – TAXES ON ALCOHOLIC BEVERAGES

Surveillance of Implementation of Recommendations and Rulings

Appointment of Arbitrator under Article 21.3(c) of the

Understanding on Rules and Procedures Governing the Settlement of Disputes

            The following communication, dated 27 March 2000, from the Permanent Mission of Chile and the Permanent Delegation of the European Commission, to the Director-General, is circulated pursuant to Article 21.3(c) of the Understanding on Rules and Procedures Governing the Settlement of Disputes.

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            We refer you to the communication from Chile, dated 15 March 2000, requesting binding arbitration under Article 21.3(c) of the  Understanding on Rules and Procedures Governing the Settlement of Disputes (the "DSU") to determine the reasonable period of time for Chile to implement the recommendations and rulings of the Dispute Settlement Body (the "DSB") in the matter,  Chile – Taxes on Alcoholic Beverages, adopted 12 January 2000.

            The Parties to the dispute, Chile and the European Communities, have agreed on an arbitrator, pursuant to footnote 12 to Article 21.3(c) of the DSU:  Mr. Florentino Feliciano.  We are writing to request you to officially convey to Mr. Feliciano our agreement that he act as arbitrator in this matter.  We would also appreciate that he be assisted in his functions, as arbitrator under Article 21.3(c) of the DSU, by the staff of the Appellate Body Secretariat.