WTO: 2005 NEWS ITEMS
Dispute Settlement Body 1 June 2005
The DSB establishes compliance panel to examine US implementation of softwood lumber case ?Canada's request for sanctions is referred to arbitration
At its meeting held on 1 June 2005, the Dispute Settlement Body established a compliance panel at the request of Canada to review the United States' implementation in the case 揢nited States ? Final dumping determination on softwood lumber from Canada?(DS264). Canada also requested the right to apply sanctions against the US but the US asked for arbitration on the amount of sanctions.
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NOTE:
This summary has been prepared by the WTO Secretariat抯 Information and
Media Relations Division to help public understanding about developments
in WTO disputes. It is not a legal interpretation of the issues, and it is
not intended as a complete account of the issues. These can be found in
the reports themselves and in the minutes of the Dispute Settlement
Body抯 meetings.
Request for compliance panel
At the end of the period given to a government to comply with a ruling, the parties to the dispute sometimes disagree on whether that government has fully complied. In such situation, the matter can be referred to the original panel who will decide whether the ruling has been applied properly.
DS264: US ?Final dumping determination on softwood lumber from Canada
Canada argued that the US had failed to comply with the recommendations
and rulings of the DSB since its new dumping determination continued to
use zeroing to determine the existence of dumping. Canada requested that
the matter be examined by a compliance panel under DSU Article 21.5.
The US responded that it had fully implemented the recommendations and
rulings within the agreed period of time. The US said that it disagreed
with Canada's assertion that the Department of Commerce's new
determination of the existence of dumping was not consistent with the WTO
Antidumping Agreement.
The DSB agreed to refer the matter to the original panel. The European
Communities, Japan, India and China reserved their third party rights.
Request for sanctions
If a government fails to comply with a ruling, the party that won the
dispute may request permission to suspend concessions ?apply sanctions ?
against the party at fault.
DS264:
US ?Final dumping determination on softwood lumber from Canada
Canada requested the authorization to suspend application to the US of its
concessions or other obligations in an amount established yearly,
equivalent to the level of nullification and impairment caused by improper
US implementation. In its request submitted to the DSB Canada indicated
that its sanctions would cover trade to the amount of C$400 million.
The US said that in a note circulated on 31 May 2005 it had objected to
the levels of suspension of concessions proposed by Canada and that the
matter had therefore been automatically referred to arbitration.
The DSB agreed that the matter was referred to arbitration.
Following an agreement before the meeting between Canada and the US, the
proceedings concerning the sanctions were suspended until the adoption of
the rulings in the Article 21.5 compliance proceedings.
Next
meeting
The next regular meeting of the DSB will take place on 20 June 2005.
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