INDONESIA - CERTAIN MEASURES AFFECTING

THE AUTOMOBILE INDUSTRY

Communication from the Chairman of the Panel

The following communication, dated 11 December 1997, addressed to the Dispute Settlement

Body, is circulated in accordance with Article 12.9 of the DSU.

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Article 12.8 of the DSU stipulates that the period in which the panel shall conduct its

examination, from the date that the composition and terms of reference of the panel have been decided

until the date the final report is issued to the parties, shall, as a general rule, not exceed six months.

Article 12.9 of the DSU states that when the panel considers that it cannot issue its report within

six months, it shall inform the Dispute Settlement Body (DSB) in writing of the reasons for the delay

together with an estimate of the period within which it will issue its report.

The Panel "Indonesia - Certain Measures Affecting the Automobile Industry" was established

at the request of Japan and the European Communities by the DSB on 12 June 1997. On 29 July 1997,

at the joint request of Japan and the European Communities, the Director-General announced the

composition of the Panel. In its request for establishment, the European Communities invoked the

60-day information-gathering procedure provided for in Annex V to the Agreement on Subsidies and

Countervailing Measures. The 60-day period ended on 11 August 1997. On 30 July 1997, the DSB

agreed to the United States' request for establishment of a panel, and agreed in accordance with Article 9

of the DSU that the Panel established on 12 June 1997 to hear the complaints of Japan and the

European Communities also would examine the complaint of the United States. The United States

also invoked the 60-day information-gathering procedure provided for in Annex V to the Agreement

on Subsidies and Countervailing Measures. Because the 60-day period for the first phase of that

procedure, related to the European Communities' claims, had almost ended, the 60-day period related

to the United States' claims was a separate, later period, which ended 22 September 1997. All parties

agreed that first submissions by complainants should be due four weeks after the end of the second

phase of the Annex V procedure (related to the United States' claims), so that all information developed

through that procedure could be used in the preparation of the first submissions. This postponement

of the deadline for first submissions, to take account of both phases of the Annex V procedure,

necessitated an equal postponement of the rest of the Panel's timetable. As a result, the Panel will

not be able to issue its report within six months.

The Panel expects to complete its work by the end of April 1998.