WT/DS534/1  
G/L/1206  
G/ADP/D120/1  
 
30 November 2017  
(17-6600) 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 CONSULTA TIONS BY CANADA  
The following communication, dated 28 November 2017 , from the delegation of Canada  to the 
delegation of the United States  and to the Chairperson of the Dispute Settlement Body, is 
circulated in accordance with Article  4.4 of the DSU.  
 
_______________  
 
My authorities have instructed me to request consultations with the Government of the United 
States 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 Trade 
1994 ("GATT 1994") and Article 17 of the Agreement  on Implementation of Article VI o f the 
General Agreement on Tariffs and Trade 1994 ("Anti -Dumping Agreement"), with respect to the 
US anti-dumping measures applying the Differential Pricing Methodology to softwood lumber 
products from Canada.  
 
I.  THE US  ANTI -DUMPING MEASURES APPLYING THE  DIFFERENTIAL PRICING 
METHODOLOGY TO SOFTWOOD LUMBER PRODUCTS FROM CANADA  
 
The US 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. Issues and Decision Memorandum for the Fin al 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  
3. The Preliminary Determination, Decision Memorandum for the P reliminary 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.1 
In particular, the DPM affected the ma rgins 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 . 
 
II.  THE UNITED ST ATES’ 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 US obligations under the Anti -Dumping Agreement, including : 
 
                                                
1 Canada also intends to include as a measure the U.S. Anti -Dumping Order, which is expected to follow 
the issuance of any final affirmative injury or threat of injury determination concerning Softwood Lumber 
Products from Canada . WT/DS534/1 • G/L/1206  • G/ADP/D120 /1 
 
- 2 - 
 
  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;  
2. Article 2.4.2 of the Anti -Dumping Agreement as the United States improperly applied the 
W-T calculation methodology to non -pattern transactions for Resolute and Tolko;  
3. Article 2.4.2 of the  Anti-Dumping Agreement as the United States impermissibly combined 
the weighted -average -to-weighted -average and W -T calculation methodologies to calculate 
West Fraser's margin of dumping; and  
4. Articles 2.4 and 2.4.2 of the Anti -Dumping Agreement  as the Uni ted States applied zeroing 
in its W -T calculation methodology with respect to Resolute, Tolko, and West Fraser 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 patter n 
transactions in calculating the margin of dumping; and  
c. zeroing does not lead to a fair comparison of export prices.  
The inconsistencies described in paragraphs 1 -4 also resulted in the application of anti -dumping 
measures that are inconsistent with Artic les 1 and 2.1 of the Anti -Dumping Agreement and 
Articles  VI:1 and VI:2 of the GATT 1994.  
Canada also notes that the United States is required to bring its anti -dumping measures related to 
Certain Softwood Lumber Products from Canada into conformity with th e rulings and 
recommendations of the Dispute Settlement Body in US – Anti-Dumping and Countervailing 
Measures on Large Residential Washers from Korea by December 26, 2017. Should the United 
States fail to bring these measures into conformity at that time, Canada intends to request 
accelerated proceedings in this dispute pursuant to Article 4.9 of the DSU .  
The United States' measures described above nullify or impair benefits accruing to Canada directly 
or indirectly under the cited agreements.  
Canada reser ves the right to address additional measures and claims in the course of 
consultations.  
Canada looks forward to receiving the United States' reply to this request and to determining a 
mutually convenient date for consultations.  
 
 
 
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