| WORLD                     TRADE ORGANIZATION WT/DS193                    6 April 2001                    (01-1770) CHILE                     - MEASURES AFFECTING THE TRANSIT AND IMPORTATION OF SWORDFISH Arrangement                     between the European Communities and Chile                    Communication from the European Communities The following                     communication, dated 23 March 2001, from the Permanent                    Delegation of the European Commission to the Director-General,                     the                    Chairman of the Dispute Settlement Body and the Permanent                     Mission of                    Chile, is circulated at the request of that delegation. The European                     Communities hereby would like to inform you that it has                    come to a provisional arrangement with Chile concerning the                     dispute                    regarding "Measures Affecting the Transit and Importation                     of                    Swordfish" (WT/DS193), which is attached hereto. In accordance                     with this arrangement, the European Communities and                    Chile have agreed to suspend the process for the constitution                     of the                    Panel. In line                     with the arrangement between the parties, the European                    Communities maintains the right to revive the proceedings                     at any time. ARRANGEMENT (relating                     to WTO case WT/DS193 and ITLOS case no. 7) The purpose                     of this document is to contribute to an amicable                    settlement of the disputes concerning "Measures Affecting                     the Transit                    and Importation of Swordfish" and the "Conservation                     and Sustainable                    Exploitation of Swordfish Stocks in the South-eastern Pacific                     Ocean"                    between the EC and Chile in the WTO and before the International                    Tribunal for Law of the Sea (ITLOS). This document provides                     the basic                    framework for, and commitment to, a gradual process leading                     to a                    final agreement. It puts into place a provisional arrangement                     of a                    practical nature. The present arrangement is without prejudice                     to the                    legal position of the EC and Chile. In order                     to foster bilateral cooperation between the Community and                    Chile on the swordfish stocks in the South East Pacific, in                    accordance with UNCLOS, the EC/Chile Bilateral Scientific                     and                    Technical Commission (BSTC) will resume its work in April                     2001 in                    Chile. The BSTC                     will remain the necessary point of contact in matters of                    common interest regarding conservation of swordfish and address                     the                    following objectives, inter alia:                      To                       serve as a forum for the exchange of information on the                      swordfish stocks and fishing activities of the Parties;                                                                    To                         evaluate the state of the stocks and monitor the fishing                         trends;                        To                         identify research priorities and draw-up the necessary                        programmes, including on data collection;                        To                         exchange information on environmentally-safe and                        cost-effective fishing gear;                        To                         advise on possible conservation measures, including                        by-catch regulations;                        To                         consider further means of cooperation in the scientific,                        technical or administrative fields. In order                     to promote this scientific/technical cooperation, catch and                    effort data covering all segments of their respective fleets                     in the                    South East Pacific will be exchanged in advance of the BSTC                     meeting. To ensure                     the promotion of multilateral cooperation this issue will                    be considered at the next meeting of the BSTC, and other Fishing                    Parties targeting the same species in the South East Pacific                     may be                    invited to participate in the discussions of this agenda item. Four Chilean                     and four Community vessels will participate, on a                    voluntary basis, in a joint research fisheries programme on                     swordfish                    in international waters in the South East Pacific. For each                     fishing season, the Community and Chile shall designate the                    vessels participating in the fishery. This programme will                     be                    operational from 1 March 2001. Vessels                     participating in the programme will be equipped with an                    operational VMS and shall have a scientific observer on board. The catch                     allowed for each group of four Chilean and Community                    vessels will not exceed one thousand metric tonnes (1,000)                     per year. The Community                     vessels participating in the above-mentioned programme                    will have access to the ports of Arica, Iquique and Punta                     Arenas for                    landing or transshipment purposes. Such operations shall be                     carried                    out in line with the conditions in Annex I. This programme,                     carried out over a two year period, shall involve the                    collection of data on length, weight, sex characteristics                     of the                    catch, as well as location of fisheries and fishing effort.                     These                    parameters will be refined pursuant to the deliberations of                     the BSTC                    to include further methodologies and protocols for the exchange,                    processing, analysing and evaluating the data. In order                     to ensure the needs of this programme, the requirement of                    minimum length of species exceptionally will not apply to                     the catches                    of these vessels. All other conservation measures applicable                     to the                    vessels by the Flag States remain in force. The continuation                     of this programme shall be reviewed before the end                    of a two year period. Bearing                     in mind their responsibility as significant participants in                    the harvest of the swordfish stocks in the South East Pacific                     and in                    the absence of a multilateral organization or arrangement                     presently                    regulating the swordfish stocks in this area, Chile and the                     EC shall                    launch a joint initiative through an International Consultation                     in                    Chile in Autumn 2001, to which all Parties having an interest                     in this                    fishery will be invited, in order to promote multilateral                     cooperation                    for the conservation and management of these stocks throughout                     their                    migratory range. This cooperation shall take the form of either                     the                    establishment of a new multilateral organization or arrangement,                     or                    working through the established regional fisheries organization. Both Parties                     signalled their intention to participate in the next                    meeting of the IATTC Convention Working Group foreseen in                     April next,                    considering that it may provide the opportunity to harmonize                     in a                    constructive manner, through enhanced cooperation, the interests                     of                    Coastal States and Fishing States. The objective                     of the Parties will be to finalize the new forms of                    multilateral cooperation through a Diplomatic Conference in                     2002. In the                     context of furthering the process of multilateral cooperation,                    scientific observers of one Party will be placed on the vessels                     of                    the other Party during the execution of the research programme                     on                    swordfish stocks outlined above. The Parties                     will proceed to the parallel suspension of the dispute                    settlement procedures that have been instituted in the International                    Tribunal for the Law of the Sea (ITLOS) and in the WTO referred                     to                    above. To this end, the Parties will address the necessary                    notifications to the WTO and ITLOS in line with the document                     annexed.                    The Parties have the right to revive these procedures if this                    arrangement has not been developed or fulfilled. In this case,                     any                    procedural delays presently running shall begin anew on the                     date on                    which the request for the lifting of the suspension has been                     received                    by the other Party. ANNEX                     I (i)                     The captain, or his representative, of a Community vessel,                    which wishes to enter to a designated Chilean port, shall                     notify the                    competent Chilean authorities of the port and date of landing                     or                    transshipment at least 72 hours in advance of the expected                     arrival in                    the port. This notification shall include the following information:                      the                       hour of arrival to the port of landing or of transshipment,the catches on board. (ii)                     The competent Chilean authorities shall confirm by the same                    means, within 24 hours, that the landing or transshipment                     operation                    may take place. The landing or transshipment operation may                     not be                    initiated without the Chilean authorities' confirmation. (iii)                     Vessels, notified as engaged in the joint fisheries                    programme, may not receive transshipments of swordfish catches                     from,                    nor tranship to, other fishing or reefer vessels. Vessels                     infringing                    this provision, except in case of force majeure, shall be                     excluded                    from the programme. (iv)                     Within 48 hours of the completion of the landing or                    transshipment operation, the captain of the fishing vessel,                     or his                    representative, shall submit, to the competent Chilean authorities                     a                    statement declaring the quantities landed or transshipped. (v)                     The Chilean competent authorities may inspect documents,                    logbook, fishing gear and catch on board during landing or                    transshipment operations. Such inspection shall be carried                     out in                    such a manner as not to unduly delay the landing or transshipment                    operations, which themselves should be carried out in the                     24 hours                    following arrival in the port. (vi)                     The captains of the vessels shall be free to decide how their                    vessel's catches will be disposed of.                   |