United States – Preliminary Determinations with Respect to Certain Softwood Lumber from Canada (WT/DS236/R): Report of the Panel

Summary

INTRODUCTION

Complaint of Canada

On 21 August 2001, 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” or “the Agreement”), with regard to the preliminary countervailing duty determination and the preliminary critical circumstances determination made by the US Department of Commerce (“USDOC”) on 9 August 2001, with respect to certain softwood lumber from Canada, and with regard to US measures on company-specific expedited reviews and administrative reviews.

On 17 September 2001, Canada and the United States held the requested consultations, but failed to reach a mutually satisfactory resolution of the matter.

On 25 October 2001, Canada requested the establishment of a panel to examine the matter.

Establishment and Composition of the Panel

At its meeting of 5 December 2001, the Dispute Settlement Body (“the DSB”) established a Panel in accordance with Article 6 of the DSU and pursuant to the request made by Canada in document WT/DS236/2.

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

“To examine, in the light of the relevant provisions of the covered agreements cited by Canada in document WT/DS236/2 the matter referred to the DSB by Canada 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 22 January 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:

“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.