WT/DS557/R  
 
11 July 2019 
(19-4564) Page: 1/4 
  Original: English  
 
  
CANADA — ADDITIONAL DUTIES ON CERTAIN PR ODUCTS  
FROM THE UNITED STAT ES 
REPORT OF THE PANEL  
 
 WT/DS557/R  
 
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   TABLE OF CONTENTS  
1   COMPLAINT BY THE  UNITED STATES  ................................ ..............................  3 
2   PANEL ESTABLISHM ENT AND COMPOSITION  ................................ .................  3 
3   NOTIFICATION OF MUTUALLY AGREED SOLU TION  ................................ .........  4 
 
  WT/DS557/R  
 
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  1  COMPLAINT BY THE UNITED STATES  
1.1.  On 16 July 2018, the United States requested consultations with Canada pursuant to Article 4 
of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) and 
Article XXIII of the General Agreement on Tariffs and Tr ade 1994 (GATT 1994) with respect to 
Canada's imposition of increased duties on certain products originating in the United States 
(additional duties measure).1  
1.2.  The United States alleged that Canada's additional duties measure did not impose the increased 
duties on like products originating in the territory of any other WTO Member, and thus appeared to 
be inconsistent with the most -favoured nation obligation in Article I of the GATT 1994. Additionally, 
the United States alleged that the additional  duties measure resulted in rates of duty greater than 
rates of duty set out in Canada's schedule of concessions, and thus appeared to be inconsistent with 
Article II of the GATT 1994.  
1.3.  According to the United States, the additional duties measure was impos ed through the 
following legal instruments, operating separately or collectively:  
a. Customs Notice 18 -08 Surtaxes Imposed on Certain Products Originating in the United 
States, Canada Border Services Agency,  29 June 2018;  
b. Countermeasures in Response to Unjustified Tariffs on Canadian Steel and Aluminum 
Products, Department of Finance Canada Press Release,  29 June 2018;  
c. Notice of Intent to Impose Countermeasures Action against the United States in Response 
to Tariffs on Cana dian Steel and Aluminum Products, Department of Finance Canada Press 
Release, issued 31 May 2018;  
d. as well as any amendments, replacements, related measures or implementing measures.  
1.4.  Consultations were held on 3 October 2018.  
2  PANEL ESTABLISHMENT AND COMPOSI TION  
2.1.  On 18 October 2018, the United States requested the establishment of a panel pursuant to 
Article  6 of the DSU with standard terms of reference.2  
2.2.  In its panel request, the United States alleged that Canada's additional duties measure applied 
only to p roducts originating in the United States. According to the United States, the additional 
duties measure did not apply to like products originating in the territory of any other WTO Member, 
and thus appeared to be inconsistent with the most -favoured nation obligation in Article I of the 
GATT 1994. Additionally, the United States alleged that the additional duties measure resulted in 
rates of duty greater than the rates of duty set out in Canada's schedule of concessions, and thus 
appeared to be inconsistent with Article II of the GATT 1994.  
2.3.  In that same document, the United States alleged that the additional duties measure was 
imposed through the following legal instruments, operating separately or collectively:  
a. Customs Notice 18 -08 Surtaxes Imposed on Certa in Products Originating in the United 
States, Canada Border Services Agency, 29 June 2018, rev. 11 July 2018;  
b. Countermeasures in Response to Unjustified Tariffs on Canadian Steel and Aluminum 
Products, Department of Finance Canada Press Release, 29 June 20 18; 
c. Notice of Intent to Impose Countermeasures Action against the United States in Response 
to Tariffs on Canadian Steel and Aluminum Products, Department of Finance Canada Press 
Release, issued 31 May 2018;  
                                                
1 WT/DS557/1.  
2 WT/DS557/2 . WT/DS557/R  
 
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  d. United States Surtax Order (Steel and Aluminum),  SOR/2018 -152, Canada Gazette, Part 
II, Volume 152, Number 14, 11 July 2018;  
e. United States Surtax Order (Other Goods), SOR/2018 -153, Canada Gazette, Part II, 
Volume 152, Number 14, 11 July 2018;  
f. as well as any amendments, replacements, related measures or implementing measures.  
2.4.  At its meeting on 21 November 2018, the Dispute Settlement Body (DSB) established a panel 
pursuant to the United States' request in document WT/DS 557/2 , in accordance with Article  6 of the 
DSU.3 
2.5.  The Panel's terms of reference are the  following:  
To examine, in the light of the relevant provisions of the covered agreements cited by 
the parties to the dispute, the matter referred to the DSB by the United States in 
document WT/DS5 57/2 and to make such findings as will assist the DSB in ma king the 
recommendations or in giving the rulings provided for in those agreements.4 
2.6.  On 7 January 2019 , the United States requested the Director -General to determine the 
composition of the panel, pursuant to Article 8.7 of the DSU . On 25 January 2019, the Director -
General accordingly composed the Panel as follows:  
Chairperson:  Mr William Ehlers  
 
Members:   Mr Darlington Mwape  
Ms Claudia Uribe  
 
2.7.  Brazil, China, Egypt, the European Union, Guatemala, India, Indonesia, Japan, Kazakhstan, 
Mexico, New Zealand, Norway, the Russian Federation, Singapore, South Africa, Switzerland, 
Chinese Taipei, Thailand, Turkey, Ukraine, and the Bolivarian Republic of Venezuela notified their 
interest in participating in the Panel proceedings as third parties.  
3  NOTIFICAT ION OF MUTUALLY AGRE ED SOLUTION  
3.1.  By a letter dated 23 May 2019, pursuant to Article 3.6 of the DSU, the parties notified the DSB 
that they had reached a mutually agreed solution, which was circulated as document WT/DS557/4 
on 27 May 2019. Also on 27 May 201 9, the parties jointly wrote to the Panel advising it of their 
mutually agreed solution and "recall[ing] that Article 12.7 of the Understanding on Rules and 
Procedures Governing the Settlement of Disputes provides that '[w]here a settlement of the matter 
among the parties to the dispute has been found, the report of the panel shall be confined to a brief 
description of the case and to reporting that a solution has been reached. '" 
3.2.  The Panel takes note of the mutually agreed solution between the parties to th e dispute and of 
Article 3.7 of the DSU, which provides that "[t]he aim of the dispute settlement mechanism is to 
secure a positive solution to a dispute. A solution mutually acceptable to the parties to a dispute and 
consistent with the covered agreements  is clearly to be preferred ." 
3.3.  The Panel also takes note of Article 12.7 of the DSU, which provides that "[w]here a settlement 
of the matter among the parties to the dispute has been found, the report of the panel shall be 
confined to a brief description of  the case and to reporting that a solution has been reached". 
Accordingly, the Panel concludes its work by reporting that a mutually agreed solution to this dispute 
has been reached between the parties . 
 
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3 WT/DSB/M/421.  
4 WT/DS557/3.