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United States – Countervailing Measures on Supercalendered Paper from Canada, DS505
Published online by Cambridge University Press: 08 June 2020
Extract
The dispute concerns a challenge by Canada of certain countervailing duty measures imposed by the United States on supercalendered paper from Canada. Canada brought multiple claims under the WTO Subsidies and Countervailing Measures (SCM) Agreement, including a challenge of an alleged unwritten measure, pursuant to which the US Department of Commerce (USDOC) applies adverse facts available (AFA) to find countervailable subsidies in relation to unreported programs that were discovered during an investigation. In USDOC subsidy investigations, exporters are asked to report information on the use of specifically identified subsidy programs as well as whether they obtained any ‘other forms of assistance’ (OFA). It is the USDOC's conduct in applying AFA in relation to programs not reported under the OFA question that Canada challenged as an ongoing conduct (the OFA-AFA measure).
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References
1 In paper manufacturing, the term ‘calendering’ refers to the process of smoothing the surface of the paper by pressing it between hard pressure cylinders or rollers – the calendars – at the end of the papermaking process.
2 Panel Report, US–Supercalendered Paper, paras. 7.305, 7.316, 7.324, 7.328.
3 Appellate Body Report, US–Supercalendered Paper, paras. 5.21–5.24.
4 Ibid. paras. 5.27–5.34.
5 Appellate Body Report, US–Supercalendered Paper, paras. 5.44, 5.47.
6 Panel Report, US – Supercalendered Paper, para. 7.333.
7 Appellate Body Report, US – Supercalendered Paper, para. 5.81.
8 Ibid. para. 5.82.
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