CHILE - TAXES ON ALCOHOLIC BEVERAGES

Communication from the Chairman of the Panel

            The following communication, dated 19 January 1999, addressed to the Dispute Settlement Body, is circulated in accordance with Article12.9 of the DSU.

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            Article 12.8 of the DSU stipulates that the period in which a panel shall conduct its examination, from the date that the composition and terms of reference of the panel have been agreed upon until the date that 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 a 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

            Panels on "Chile - Taxes on Alcoholic Beverages" were established by the DSB on 18 November 1997 and 25 March 1998 to examine two separate complaints from the European Communities.  The DSB agreed, pursuant to Article 9.1, that the two complaints be examined by one panel. 

            The Director-General composed the Panel, pursuant to Article 8.7 of the DSU, on 25 June 1998.  However, it will not be possible for the Panel to complete its work in six months due to the parties' wish to use the maximum time periods prescribed in Appendix 3 of the DSU.

            The Panel expects to circulate the final report to the parties by the end of April 1999.