WT/DS534/2  
 
16 March 2018  
(18-1647) Page: 1/2 
  Original: English  
 
UNITED STATES – ANTI -DUMPING MEASURES APP LYING DIFFERENTIAL P RICING 
METHODOLOGY TO SOFTW OOD LUMBER FROM CANA DA 
REQUEST FOR THE ESTA BLISHMENT OF A PANEL  BY CANADA  
The following communication, dated 15 March 2018, from the delegation of Canada to the 
Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.  
 
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On 28 November 2017, the Government of Canada ("Canada") requested consultations with the 
Government of the United States of America (the "United States" or "U.S.") pursuant to Articles 4 
and 10.4 of the Understanding on Rules and  Procedures Governing the Settlement of Disputes 
("DSU") , Article XXII:1 of the General  Agreement on Tariffs and Trad e 1994 ("GATT  1994") and 
Article 17 of the Agreement  on Implementation of Article VI of the General Agreement on Tariffs 
and Trade 1994 ("Anti -Dumping Agreement"), with respect to the U.S. anti -dumping measures 
applying the Differential Pricing Methodology  to softwood lumber products from Canada.  
Canada held consultations with the United States on 17 January 2018. These consultations failed 
to settle the dispute.  
I.  THE US ANTI -DUMPING MEASURES APPLYING THE DIFFERENTIAL PRICING 
METHODOLOGY TO SOFTWOOD LUMB ER PRODUCTS FROM CANADA  
The U.S. anti -dumping measures applying the Differential Pricing Methodology ( "DPM") to certain 
softwood lumber products from Canada include:  
1. Certain Softwood Lumber Products From Canada: Final Affirmative Determination of Sales 
at Less Than Fair Value and Affirmative Final Determination of Critical Circumstances, 82 
Fed. Reg. 51,806 (November 8, 2017);  
2. Certain Softwood Lumber Products From Canada: Antidumping Duty Order and Partial 
Amended Final Determination, 83 Fed. Reg. 350 (Janu ary 3, 2018);  
3. Issues and Decision Memorandum for the Final Affirmative Determination of Sales at Less 
Than Fair Value and Affirmative Final Determination of Critical Circumstances of Certain 
Softwood Lumber Products from Canada (November 1, 2017); and  
4. The Preliminary Determination, Decision Memorandum for the Preliminary Determination, 
Sales Analysis Memoranda, and other memoranda, reports, and measures related to the 
application of the DPM in the anti -dumping investigation into Certain Softwood Lumber 
Products from Canada.  
In particular, the DPM affected the margins of dumping for Resolute FP Canada Inc. ("Resolute"), 
Tolko Marketing and Sales Ltd. and Tolko Industries Ltd. ("Tolko"), and West Fraser Mills Ltd. 
("West Fraser") in the Certain Softwood Lumber  Products from Canada  investigation . WT/DS534/2  
 
- 2 - 
 
  II.  THE UNITED STATES ' APPLICATION OF THE DPM IS INCONSISTENT WITH THE 
ANTI -DUMPING AGREEMENT  
Canada considers the United States' application of the DPM  in the measures set out in Section I to 
be inconsistent with U.S. obligations under the Anti -Dumping Agreement, including:  
1. Article 2.4.2 of the Anti -Dumping Agreement as the United States, in applying the 
weighted -average -to-transaction ("W -T") calculation methodology, improperly aggregated 
random and unrelated price variations and therefore failed to identify a pattern of export 
prices as required by the second sentence of this provision; and  
2. Articles 2.4 and 2.4.2 of the Anti -Dumping Agreement  as the United States applied zeroing 
in its W -T calculation methodology when:  
a. zeroing is not permitted when applying the W -T methodology,  
b. zeroing in the W -T methodology does not account for all of the purported pattern 
transactions in calculating the margi n of dumping, and  
c. zeroing does not lead to a fair comparison of export prices.  
The inconsistencies described in paragraphs 1 and 2 also resulted in the application of anti -
dumping measures that are inconsistent with Articles 1 and 2.1 of the Anti -Dumping A greement 
and Articles VI:1 and VI:2 of the GATT 1994.  
The United States' anti -dumping measures in Certain Softwood Lumber from Canada  nullify or 
impair benefits accruing to Canada directly or indirectly under the cited agreements.  
Canada therefore respectf ully requests, pursuant to Article 4.9 and Article 6 of the DSU and 
Articles 17.4 and 17.5 of the Anti -Dumping Agreement, that the Dispute Settlement Body establish 
a panel to examine this matter on an urgent basis, with the standard terms of reference as set out 
in Article 7.1 of the DSU. In accordance with Article 10.4 of the DSU, Canada also requests this 
matter be referred to the original panel that considered the DPM in United States — Anti-Dumping 
and Countervailing Measures on Large Residential Washe rs from Korea . 
Canada asks that this request be placed on the agenda for the meeting of the Dispute Settlement 
Body to be held on 27 March 2018.  
 
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