WT/DS550/11  
 
19 October 2018  
(18-6616) Page: 1/6 
  Original: English  
 
 
UNITED STATES – CERTA IN MEASURES ON STEEL  AND ALUMINIUM PRODU CTS 
REQUEST FOR THE ESTA BLISHMENT OF A PANEL  BY CANADA  
The following communication, dated 18 October 2018 , from the delegation of Canada  to the 
Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.  
 
_______________  
 
 
1. On 1 June 2018, Canada requested consultations with the United States of America pursuant 
to Articles 1 and 4 of the Understanding on R ules and Procedures Governing the Settlement of 
Disputes (DSU), Article XXII:1 of the General Agreement on Tariffs and Trade 1994 (GATT 1994) 
and Article 14 of the Agreement on Safeguards with respect to certain measures by the United States 
to adjust impo rts of steel and aluminum into the United States, including imposing additional ad 
valorem  rates of duty on imports of certain steel and aluminum products and exempting certain 
selected WTO Members from the measures.  
 
2. Canada held c onsultations with the United States on 20 July 2018, with a view to reaching a 
satisfactory resolution of the matter.  Unfortunately, these consultations failed to settle the dispute.  
Canada therefore requests that the Dispute Settlement Body establish a panel pursuant to 
Articles  4.7 and 6 of the DSU, Article XXIII of the GATT 1994 and Article 14 of the Agreement on 
Safeguards to examine this matter with standard terms of reference as set out in Article 7.1 of the 
DSU. 
 
3. The measures at issue in this reque st include:  
 
a. Section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. §1862);  
 
b. Section 705 of the Code of Federal Regulations, Effect of Imported Articles on the 
National Security (15 CFR 705)1; 
 
c. Adjusting Imports of Steel Into the United Stat es, including the Annex, To Modify 
Chapter 99 of the Harmonized Tariff Schedule of the United States (Presidential 
Proclamation 9705, issued on March 8, 2018)2; 
 
                                                
1 47 FR 14693, April 6, 1982.  
2 83 FR 11625 -11630, March 15, 2018.  WT/DS550/11  
 
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  d. Adjusting Imports of Aluminum Into the United States, including the Annex, To Modify 
Chapter 9 9 of the Harmonized Tariff Schedule of the United States (Presidential 
Proclamation 9704, issued on March 8, 2018)3; 
 
e. Adjusting Imports of Steel into the United States, including the Annex, To Modify 
Chapter 99 of the Harmonized Tariff Schedule of the United States (Presidential 
Proclamation 9711, issued on March 22, 2018)4; 
 
f. Adjusting Imports of Aluminum into the United States, including the Annex, To Modify 
Chapter 99 of the Harmonized Tariff Schedule of the United States (Presidential 
Proclamation 97 10, issued on March 22, 2018)5; 
 
g. Requirements for Submissions Requesting Exclusions From the Remedies Instituted in 
Presidential Proclamations Adjusting Imports of Steel Into the United States and 
Adjusting Imports of Aluminum Into the United States; and t he Filing of Objections to 
Submitted Exclusion Requests for Steel and Aluminum ( US Department of Commerce)6; 
 
h. Submissions of Exclusion Requests and Objections to Submitted Requests for Steel and 
Aluminum ( US Department of Commerce)7; 
 
i. The Effect of Imports  of Steel on the National Security, an Investigation Conducted 
Under Section 232 of the Trade Expansion Act of 1962, As Amended ( US Department 
of Commerce, January 11, 2018)8; 
 
j. The Effect of Imports of Aluminum on the National Security, an Investigation Co nducted 
Under Section 232 of the Trade Expansion Act of 1962, As Amended ( US Department 
of Commerce, January 17, 2018)9; 
 
k. Adjusting Imports of Steel into the United States, including the Annex, To Modify Certain 
Provisions of Chapter 99 of the Harmonized T ariff Schedule of the United States 
(Presidential Proclamation 9740, issued on April 30, 2018)10; 
 
l. Adjusting Imports of Aluminum into the United States, including the Annex, To Modify 
Certain Provisions of Chapter 99 of the Harmonized Tariff Schedule of the  United States 
(Presidential Proclamation 9739, issued on April 30, 2018)11; 
 
                                                
3 83 FR 11619 -11624, March 15, 2018.  
4 83 FR 13361 -13365, March 28, 2018.  
5 83 FR 13355 -13359, March 28, 2018.  
6 83 FR 12106 -12112, March 19, 2018.  
7 83 FR 46026 -46065, September 11, 2018.  
8 
https://www.commerce.gov/sites/commerce.gov/files/the_effect_of_imports_of_steel_on_the_national_securit
y_-_with_redactions_ -_20180111.pdf . 
9 
https://www.commerce.gov/sites/commerce.gov/files/the_effect_of_imports_of_aluminum_on_the_national_s
ecurity_ -_with_redacti ons_-_20180117.pdf   
10 83 FR 20683 -20705, May 7, 2018.  
11 83 FR 20677 -20682, May 7, 2018.  WT/DS550/11  
 
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  m. Adjusting Imports of Steel into the United States, including the Annex (Presidential 
Proclamation 9759, issued on May 31, 2018)12; 
 
n. Adjusting Imports of Aluminum into the United St ates, including the Annex, To Modify 
Certain Provisions of Chapter 99 of the Harmonized Tariff Schedule of the United States 
(Presidential Proclamation 9758, issued on May 31, 2018)13; 
 
o. Adjusting Imports of Steel into the United States, including the Annex,  To Modify Certain 
Provisions of Chapter 99 of the Harmonized Tariff Schedule of the United States 
(Presidential Proclamation 9772, issued on August 10, 2018)14; 
 
p. Adjusting Imports of Aluminum into the United States, including the Annex, To Modify 
Certain P rovisions of Chapter 99 of the Harmonized Tariff Schedule of the United States 
(Presidential Proclamation 9776, issued on August 29, 2018)15; 
 
q. Adjusting Imports of Steel into the United States, including the Annex, To Modify Certain 
Provisions of Chapter 99  of the Harmonized Tariff Schedule of the United States 
(Presidential Proclamation 9777, issued on August 29, 2018)16; 
 
r. The US policy, practice, composite measure, rule or norm, or ongoing conduct as 
described in paragraph 7 below;  
and any amendments, succ essor, replacement or implementing measures and any exemptions 
applied or other related measures.  
 
4. On 8 March 2018, the United States imposed a 25 percent additional import duty on certain 
steel products and a 10 percent additional import duty on certain a luminum products from all 
countries exempting Canada, Mexico, Australia, Argentina, South Korea, Brazil and the European 
Union, which took effect on 23 March 2018.  On 30 April 2018, a proclamation was issued by the 
President of the United States exempting  imports from South Korea, Argentina, Australia and Brazil 
from the additional import duties.  The United States also extended the exemption from the 
additional import duties for Canada, Mexico and the European Union until 31 May 2018.  The 
exemption expir ed on 31 May 2018, resulting in the imposition of the additional import duties on 
these three Members including Canada.  The measures also indicated possible further adjustments 
to the measure, in the form of additional import duties or implementation of a  quota.  
 
5. Canada considers the measures at issue, operating separately or together, to be inconsistent 
with the United States ' obligations under:  
 
a. Article I:1 of the GATT 1994, because the United States has selectively applied 
additional import duties on ce rtain steel and aluminum products originating in the 
territory of different Members, including providing exemptions to certain countries or 
applying alternative means, and has failed to extend immediately and unconditionally 
to Canada any advantage, favour , privilege or immunity granted by the United States 
with respect to customs duties and charges of any kind imposed on or in connection 
                                                
12 83 FR 25857 -25877, June 5, 2018.  
13 83 FR 25849 -25855, June 5, 2018.  
14 83 FR 40429 -40432, August 15, 2018.  
15 83 FR 45019 -45023, September 4, 2018.  
16 83 FR 45025 -45030 , September 4, 2018.  WT/DS550/11  
 
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  with the importation of products originating in the territory of other Members, as well 
as with respect to the method of  levying such duties and charges and the rules and 
formalities in connection with importation;  
  
b. Article II:1(a) and (b) of the GATT 1994, because the United States has imposed duties 
on imports of certain steel and aluminum products in excess of the dutie s set forth and 
provided in the United States' Schedule of Concessions and Commitments annexed to 
the GATT 1994, and has failed to exempt products of Canada subject to the measures 
at issue from ordinary customs duties in excess of those set forth and prov ided in the 
United States' Schedule of Concessions and Commitments annexed to the GATT 1994 
and from all other duties or charges in excess of those imposed on the date of the GATT 
1994 or those directly and mandatorily required to be imposed thereafter by legislation 
in force in the United States on that date;  
 
c. Article X:3(a) of the GATT 1994, because the United States has failed to administer its 
laws, regulations, decisions and rulings in relation to the measures at issue in a uniform, 
impartial and reaso nable manner with respect to their application on certain steel and 
aluminum products;  
 
d. Article XI:1 of the GATT 1994, because the measures operate as a quantitative 
restriction on imports of certain steel and aluminum products into the United States by 
exempting certain Members from the additional import duties on the basis of alternative 
measures, such as quotas, that restrict the quantity of imports of certain steel and 
aluminum products into the United States;  
 
e. Article XIX:1(a) of the GATT 1994, because  the United States took emergency actions 
on imports of certain steel and aluminum products that suspended tariff concessions 
where such imports were not, as a result of unforeseen developments and of the effect 
of the obligations incurred under the GATT 1 994, being imported into the United States 
in such increased quantities and under such conditions as to cause or threaten serious 
injury to domestic producers in the United States of like or directly competitive 
products;  
 
f. Article XIX:2 of the GATT 1994, because the United States took emergency actions on 
imports of certain steel and aluminum products that suspended tariff concessions 
without giving notice as far in advance as may be practicable and without giving 
Members ha ving a substantial interest as exporters of the products concerned an 
opportunity to consult with it prior to taking its actions;  
 
g. Article 2.1 of the Agreement on Safeguards, because the United States has applied 
safeguard measures on imports of certain st eel and aluminum products without having 
properly determined, pursuant to the provisions of the Agreement on Safeguards, that 
certain steel and aluminum products are being imported into its territory in such 
increased quantities, absolute or relative to do mestic production, and under such 
conditions as to cause or threaten to cause serious injury to its domestic industry that 
produces like or directly competitive products;    
 WT/DS550/11  
 
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  h. Article 2.2 of the Agreement on Safeguards, because the United States has not app lied 
its safeguard measures on imports of certain steel and aluminum products irrespective 
of their source;  
 
i. Article 3.1 of the Agreement on Safeguards, because the United States has applied 
safeguard measures on imports of certain steel and aluminum produ cts without properly 
conducting an investigation and without publishing a report properly setting forth its 
findings and reasoned conclusions reached on all pertinent issues of fact and law;  
 
j. Article 4.1 of the Agreement on Safeguards, because the United S tates did not properly 
determine the existence of serious injury or threat of serious injury to its domestic steel 
and aluminum industries;  
 
k. Article 4.2 of the Agreement on Safeguards, because the United States did not properly 
evaluate all relevant factor s of an objective and quantifiable nature having a bearing on 
the situation of the steel and aluminum industries, did not properly determine the 
existence of the causal link between increased imports of the product concerned and 
serious injury or threat th ereof on the basis of objective evidence, and did not publish 
promptly a detailed analysis of the case under investigation as well as a demonstration 
of the relevance of the factors examined;  
 
l. Article 5.1 of the Agreement on Safeguards, because the United States did not apply its 
safeguard measures on imports of certain steel and aluminum products only to the 
extent necessary to prevent or remedy serious injury and to facilitate adjustment;  
 
m. Article 7 of the Agreement on Safeguards, because the United State s did not apply its 
safeguard measures on imports of certain steel and aluminum products only for such 
period of time as may be necessary to prevent or remedy serious injury and to facilitate 
adjustment;  
 
n. Article 8.1 of the Agreement on Safeguards, because  the United States failed to 
maintain a substantially equivalent level of concessions and other obligations to that 
existing under GATT 1994 between it and the exporting Members affected by its 
measures on imports of certain steel and aluminum products;  
 
o. Article 11.1(a) of the Agreement on Safeguards, because the United States has taken 
emergency actions on imports of certain steel and aluminum products in a manner that 
does not conform with the provisions of Article XIX applied in accordance with the 
Agree ment on Safeguards;  
 
p. Article 11.1(b) of the Agreement on Safeguards because the United States has sought, 
taken or maintained voluntary export restraints, orderly marketing arrangements or 
any other similar measures on the import side with respect to certa in WTO Members;  
 
q. Articles 12.1, 12.2, and 12.5 of the Agreement on Safeguards, because the United 
States failed to provide the notifications to the Committee on Safeguards and the 
Council for Trade in Goods required by these provisions; and  WT/DS550/11  
 
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r. Article 12.3 of the Agreement on Safeguards, because the United States failed to 
provide opportunity for consultations prior to applying its measures.  
 
6. In addition, Section 232 of the Trade Expansion Act of 1962 and its associated regulations17 
are "as such" inconsistent with the obligations of the United States under the provisions of the 
covered agreements set out in paragraph 5 and with Article XXI:(b) of the GATT 1994 because they 
require the United States to account for an industry's econom ic interests, welfare or protection, or 
other factors that are not necessary for the protection of its essential security interests.  Thus, the 
United States has failed to ensure the conformity of its laws, regulations and administrative 
procedures with it s obligations under the WTO Agreement, in a manner that is inconsistent with 
Article XVI:4 of the WTO Agreement.  
 
7. In addition, the United States has applied and continues to apply Section 232 of the Trade 
Expansion Act of 1962 and its associated regulation s by imposing restrictions on imports for reasons 
related to an industry's economic interests, welfare or protection, or other factors that are not 
necessary for the protection of its essential security interests.  The measure at issue is the policy or 
practice of the United States of interpreting and applying Section 232 on the basis of such reasons, 
resulting in the imposition of additional import duties, quotas, or similar restrictions. This measure 
is attributable to the United States as it concerns the  determinations and practices of the United 
States Department of Commerce, the President of the United States, and other government 
decisions, determinations and practices.  The precise content of the measure consists of the items 
listed in paragraph 3 abo ve, as well as other Section 232 investigations, and declarations, 
statements and decisions made by the United States government and its officers in their official 
capacity related to Section 232.  This measure has been applied by the United States and it is likely 
that it will continue to be applied in the future.  In the alternative, the measure is a composite 
measure consisting of Section 232 and its associated regulations along with the policy or practice of 
the United States of applying these for econo mic reasons as described above in this paragraph. In 
the further alternative, the measure constitutes ongoing conduct or a rule or norm of general and 
prospective application.  Canada submits that the measure is inconsistent with the provisions of the 
covered agreements set out in paragraph 5  and with Article XXI:(b) of the GATT 1994.   
********  
8. The United States' measures described above nullify or impair benefits accruing to Canada 
directly or indirectly under the cited agreements.  
 
9. Canada also asks that t his request be placed on the agenda of the next meeting of the 
Dispute Settlement Body scheduled to be held on 29 October 2018.  
 
__________  
                                                
17 Including Section 705 of the Code of Federal Regulations, Effect of Imported Articles on the National 
Security (15 CFR 705) 47 FR 14693.