United States – Final Countervailing Duty Determination With Respect to Certain Softwood Lumber from Canada (WT/DS257): Report of the Panel

Summary

INTRODUCTION

Complaint of Canada

On 3 May 2002, Canada requested consultations with the United States pursuant to Article 4 of the Dispute Settlement Understanding (“the DSU”), Article XXII of the General Agreement on Tariffs and Trade 1994 (“GATT 1994”), and Article 30 of the Agreement on Subsidies and Countervailing Measures (“the SCM Agreement”), concerning the final affirmative countervailing duty determination by the US Department of Commerce (“USDOC”) (File No. C-122839) issued on 25 March 2002, with respect to certain softwood lumber from Canada.

On 18 June 2002, Canada and the United States (“the US”) held the requested consultations, but failed to reach a mutually satisfactory resolution of the matter.

On 18 July 2002, Canada requested the establishment of a panel to examine the matter. Canada subsequently withdrew that request, and on 19 August 2002 made a new request for establishment of a panel to examine the matter.

Establishment and Composition of the Panel

At its meeting of 1 October 2002, the DSB established a panel in accordance with Article 6 of the DSU and pursuant to the request made by Canada in document WT/DS257/3.

At that meeting, the parties to the dispute also agreed that the Panel should have standard terms of reference. The terms of reference are, therefore, the following:

“To examine, in the light of the relevant provisions of the covered agreements cited by Canada in document WT/DS257/3, the matter referred by Canada to the DSB in that document, and to make such findings as will assist the DSB in making the recommendations or in giving the rulings provided for in those agreements”.

On 4 November 2002, Canada requested the Director-General to determine the composition of the Panel, pursuant to paragraph 7 of Article 8 of the DSU. This paragraph provides:

#x201C;If there is no agreement on the panelists within 20 days after the date of the establishment of a Panel, at the request of either party, the Director-General, in consultation with the Chairman of the DSB and the Chairman of the relevant Council or Committee, shall determine the composition of the panel by appointing the panelists whom the Director-General considers most appropriate in accordance with any relevant special or additional rules or procedures of the covered agreement or covered agreements which are at issue in the dispute, after consulting with the parties to the dispute.