WORLD TRADE  
ORGANIZATION  WT/DS311/2/Add.1 
G/L/679/Add.2 
G/SCM/D60/2/Add.1 
9 March 2007 
 (07-0978) 
 Original:   English/ 
 French 
 
 
 
UNITED STATES – REVIEWS OF COUNTERVAILING DUTY 
ON  SOFTWOOD LUMBER FROM CANADA 
 
Notification of Mutually Agreed Solution  
 
Addendum  
   The following communication, received on 23 February 2007, from the delegation of the 
United States and the delegation of Canada to th e Chairman of the Dispute Settlement Body, is 
circulated pursuant to Article 3.6 of the DSU.  
_______________ 
 
 
United States – Preliminary Determinations with respect to  
Certain Softwood Lumber from Canada  (DS236); 
 
United States – Provisional Anti-Dumping Measure  
on Imports of Certain Softwood Lumber from Canada  (DS247); 
 
United States – Final Countervailing Duty Determination  
with respect to Certain Softwood Lumber from Canada  (DS257); 
 
United States – Final Dumping Determination on Softwood Lumber  
from Canada  (DS264); 
 
United States –  Investigation of the International Trade Commission 
in Softwood Lumber from Canada  (DS277); and 
 
United States – Reviews of Countervailing Duty on Softwood Lumber  
from Canada  (DS311). 
   On 12 October 2006, the Governments of Cana da and the United States notified the Dispute 
Settlement Body (DSB) that we had reached a mutu ally agreed solution to the matters raised by 
Canada in the above-referenced disputes in the form of a comprehensiv e agreement signed on 
12 September 2006 (the original Agreement), which we a ttached to our notification.  This letter is to 
advise the DSB that, on 12 October 2006, Canada  and the United States concluded a further 
Agreement, which amended the original Agreement to f acilitate its entry into force.  We have attached 
a copy of the amending Agreement for the information of Members.  WT/DS311/2/Add.1 
G/L/679/Add.2 G/SCM/D60/2/Add.1 
Page 2 
  
  AGREEMENT 
 
BETWEEN 
 
THE GOVERNMENT OF CANADA 
 
AND 
 
THE GOVERNMENT OF THE UNITED STATES OF AMERICA 
 
AMENDING THE SOFTWOOD LUMBER AGREEMENT 
 
BETWEEN 
 
THE GOVERNMENT OF CANADA AND 
 
THE GOVERNMENT OF THE UNITED STATES OF AMERICA 
 
DONE AT OTTAWA ON 12 SEPTEMBER 2006 
 
 
THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE UNITED STATES 
OF AMERICA ,  
 
HAVING  signed the Softwood Lumber Agreement betw een the Government of Canada and the 
Government of the United States of America, at Ottawa on 12 September 2006 ("the SLA 2006"), 
 DESIRING to amend Articles II through IV and Articl e X of the SLA 2006 Agreement, and make 
consequential changes to the Anne xes associated with these Articles, pursuant to Article XIX of the 
SLA 2006,  
 
HAVE AGREED  as follows: 
  
ARTICLE I 
 
Article II(1)(a) of the SLA 2006 shall be  deleted and replaced by the following: 
 
"(a) the Settlement of Claims Agreement in Annex 2A has been signed by counsel 
on behalf of the parties set out therein;" 
 
ARTICLE II 
 
Article II(1)(c) of the SLA 2006 shall be  deleted and replaced by the following: 
 
"(c) the United States is not enjoined by court order from revoking the AD Order 
or the CVD Order;"   
  WT/DS311/2/Add.1 
 G/L/679/Add.2 
 G/SCM/D60/2/Add.1 
 Page 3 
  
  ARTICLE III 
 
Article II(1)(e) of the SLA 2006 shall be  deleted and replaced by the following: 
 
"(e) Canada and the United States have confirmed that all those Importers of 
Record that have elected to be Escrow Im porters as of the day prior to the Effective 
Date have complied with all the require ments in paragraph 1 of Annex 2C;" 
 
ARTICLE IV 
 
The chapeau of Article III(2) of the SLA 2006 sh all be deleted and replaced by the following: 
 
"2. On the Effective Date, or no later than 3 days after the Effective Date, 
USDOC shall instruct USCBP, as set out in Annex 3A
*, to: 
* The Parties understand that, should a court of competent jurisdiction enjoin the liquidation of 
entries that would otherwise be subject to the liquidation instructions contained in Annex 3A, 
USDOC shall amend the instructions to reflect that court’s order. " 
 
ARTICLE V 
 
Article III(2)(b) of the SLA 2006 shall be  deleted and replaced by the following: 
 
"(b) except with respect to entries the li quidation of which is enjoined, liquidate 
all Covered Entries made on or afte r May 22, 2002 without regard to 
antidumping or countervailing duties a nd refund all deposits collected on 
such entries with all accrued interest pursuant to 19 U.S.C. § 1677g(b) to the 
Importers of Record or their designates.  No later than 3 days after a court of competent jurisdiction has modified any injunction against liquidation to 
permit liquidation and the return of de posits to Importers of Record or 
confirmed that liquidation is not incons istent with such injunction, USDOC 
shall instruct USCBP, as set out in Annex 3B, to liquidate the entries that were subject to that injunction in acco rdance with paragraph 8 of Annex 2C."    
 
ARTICLE VI 
 
Article III of the SLA 2006 shall be am ended by adding paragraph 3 as follows: 
 
"3. With respect to Covered Entries subj ect to an injunction against liquidation 
for antidumping purposes, after a suspension of liquidation for CVD purposes with 
respect to such entries has been removed,  the United States shall, unless otherwise 
ordered by a court of competent jurisdiction,  act in accordance with  the view that the 
6 month period specified in 19 U.S.C. § 1504(d) does not begin until USCBP receives notice of the lifting of the injunction, unless an extension request under 19 U.S.C. § 1504(b) and 19 C.F.R. § 159.12 is applicable." 
 WT/DS311/2/Add.1 
G/L/679/Add.2 G/SCM/D60/2/Add.1 
Page 4 
  
  ARTICLE VII 
 
Article IV(1) of the SLA 2006 shall be  deleted and replaced by the following: 
 
"1. Within 10 days after the Effective Date, the United States shall begin to 
liquidate all Covered Entries made on or af ter May 22, 2002, except with respect to 
entries the liquidation of which is enjoined
**, without regard to antidumping or 
countervailing duties, and with interest pur suant to 19 U.S.C. § 1677g(b).  Within 
10 days after a court of competent jurisdiction has modified any injunction against 
liquidation to permit liquidation and the return  of deposits to Importers of Record or 
confirmed that liquidation is not inconsistent  with such injunction, the United States 
shall begin to liquidate the entries that we re subject to the injunction in accordance 
with paragraph 8 of Annex 2C. 
**Liquidation of such entries is addressed in paragraph 2(b) of Article III. " 
 
ARTICLE VIII 
 
Article IV(2) of the SLA 2006 shall be  deleted and replaced by the following: 
 
"2. Except with respect to entries th e liquidation of which is enjoined,*** the 
United States shall complete the liquidation of Covered Entries and the refund of all cash deposits as soon as possible, but not late r than 6 months after the publication in 
the Federal Register  of the revocations referred to in Article III unless these entries 
are subject to an extension request under 19 U.S.C. § 1504(b) and 19 C.F.R. § 159.12. 
***Liquidation of such entries is addressed in paragraph 2(b) of Article III. " 
 
ARTICLE IX 
 
Article X(2)(a) of the SLA 2006 shall be  deleted and replaced by the following: 
 
"(a) except for 9157-9516 Québec inc. (Sci erie Nord-Sud inc.), a base average 
monthly production shall be established for each company in Annex 10 equivalent to its total production of  Softwood Lumber Products for 2004 and 
2005, divided by 24.  For 9157-9516 Québec inc. (Scierie Nord-Sud inc.), a base average monthly production shall be established that is equivalent to its 
total production of Softwood Lumber Products for 2002 and 2003, divided 
by 24;" 
 
ARTICLE X 
 
Article X(3) of the SLA 2006 shall be  deleted and replaced by the following: 
 
"3.  With respect to each company listed in Annex 10, the province in which the 
company is located shall provide Canada be fore the Effective Date with a certified 
statement attesting to the company’s tota l production of Softwood Lumber Products 
for 2004 and 2005. In the case of 9157-9516 Qu ébec inc. (Scierie Nord-Sud inc.),  WT/DS311/2/Add.1 
 G/L/679/Add.2 
 G/SCM/D60/2/Add.1 
 Page 5 
  
  Québec shall provide Canada before the E ffective Date with a certified statement 
attesting to the company’s total produc tion of Softwood Lumber Products for 2002 
and 2003. Canada shall provide these statemen ts to the United States within 10 days 
of receipt. This information shall not be tr eated as confidential under Article XVI.  If 
exclusion of a company is limited to one or more mills, "company" in this Article 
shall be limited to those one or more mills. The Parties shall cooperate with respect to 
monitoring and enforcement, as contemplated in Article XV, in respect of claims of exclusion under this Article." 
 
ARTICLE XI 
 
Annex 2A of the SLA 2006 shall be delete d and replaced by the attached Annex 2A. 
 
 
ARTICLE XII 
 
Annex 2B of the SLA 2006 shall be delete d and replaced by the attached Annex 2B. 
  
ARTICLE XIII 
 
Paragraph 2 of Annex 2C of the SLA 2006 sha ll be deleted and replaced by the following: 
 
"2. USCBP shall provide Canada with information and documentation 
demonstrating that USCBP has received  the documentation described in sub-
paragraph 1(a) for all Importers of Record that have elected to be Escrow Importers as of the Effective Date." 
 
ARTICLE XIV 
 The chapeau of Annex 2C, paragraph 4 of the SLA 2006 shall be deleted and replaced by the 
following:   
"4. By the Effective Date, the United St ates shall provide Canada or its agent 
with information identifying beneficiari es who will establish accounts with respect to 
the following:"  
 
ARTICLE XV 
 
Annex 2C, paragraph 5 of the SLA  2006 shall be amended by deleting the phrase "pursuant to the 
Irrevocable Directions to Pay". 
 
 
ARTICLE XVI 
 
Annex 2C, paragraph 6 of the SLA 2006 shall be deleted and replaced by the following: 
 WT/DS311/2/Add.1 
G/L/679/Add.2 G/SCM/D60/2/Add.1 
Page 6 
  
  "6. The United States understands that Ca nada or its agent shall purchase from 
the Escrow Importers the rights to the am ount of cash deposits stated in USCBP 
records and accrued interest for the Co vered Entries.  The purchase price
**** paid to 
an Escrow Importer shall not exceed the am ount of cash deposits and accrued interest 
on its Covered Entries on the purchase date less the amounts directed to the accounts referenced in paragraph 4.  Canada or its agent may make payments in installments in 
respect of these purchases.  Each Escrow Importer in the Agreements of Purchase and Sale shall irrevocably direct Canada or its  agent to pay a portion of each installment 
to the referenced accounts in paragraph 4 in an amount that is proportionate to 
$US 1 billion divided by the total amount of cash deposits to be refunded to all 
Importers of Record and the interest accrued as of the Effective Date.  Payment of any such portion shall be made on the same  day as the installment is paid to the 
Escrow Importer. 
In particular, Canada or its agent shall en sure that the majority of the amount owing 
to the account referenced in paragraph 4(a) is paid within 8 weeks of the Effective 
Date provided that, if a longer timeframe is necessary, payments to the account referenced in paragraph 4(a) shall be ma de as soon as possible and no later than the 
same date as payments to the Escrow Importers.  Furthermore, to the extent 
permissible under the terms of the Agreements  of Purchase and Sale and in light of 
the fact that the accounts specified in para graphs 4(b) and (c) will require additional 
time to be created, payment of all monies due to the account referenced in paragraph 4(a) shall be completed in adva nce of payments to the accounts referenced 
in paragraphs 4(b) and (c). 
If, for any reason, the 8 week timeframe needs to be extended, the Parties shall 
consult regarding the extension of the time frame required.  Such consultations shall 
take place within 8 weeks of the Effective Date.  A Party may not initiate dispute settlement proceedings under Article XIV regarding the extension of the above-
mentioned timeframes. 
Canada shall pay the difference between $US 1 billion and the aggregate amount 
directed by the Escrow Importers into th e accounts referenced in paragraph 4.  
Notwithstanding any extension of the 8 week timeframe referenced above, all 
payments to the accounts referenced in paragraph 4 shall be completed within 
6 months of the Effective Date. 
**** Canada or its agent shall assume administra tive costs associated w ith the purchase of the 
rights to the amount of cash deposits and accrued interest. " 
 
ARTICLE XVII 
 
Annex 2C, paragraph 8 of the SLA 2006 shall be deleted and replaced by the following: 
 
"8. The United States shall liquidate Covered Entries starting with entries that are 
or will become more than 4 years old dur ing the first 6 months of the liquidation 
process and followed by entries that will b ecome more than 4 years old during any 
subsequent extension under 19 U.S.C. § 1504(b) and 19 C.F. R. § 159.12.  In addition, 
the United States shall liquidate all entries for which liquidation is enjoined by the 
CIT in West Fraser v. United States  (Consol. Ct. No. 05-00079) within 6 months of  WT/DS311/2/Add.1 
 G/L/679/Add.2 
 G/SCM/D60/2/Add.1 
 Page 7 
  
  the modification or clarification of the injunctions permitting liquidation of these 
entries to proceed, unless th ese entries are subject to an extension request under 
19 U.S.C. § 1504(b) and 19 C.F.R. § 159.12.  Such liquidation shall proceed 
according to the instructions in Annex 3B." 
 
ARTICLE XVIII 
 
Annex 3 of the SLA 2006 shall be deleted and replaced by the att ached Annex 3A and Annex 3B. 
 
 
ARTICLE XIX 
 
Annex 10, item 3 of the SLA 2006 shall be ame nded by replacing "Scierie Coaticook inc." with 
"Beaubois Coaticook inc." 
  
ARTICLE XX 
 
This Agreement shall enter into fo rce on the date designated by the Parties for the entry into force of 
the SLA 2006. 
    
IN WITNESS WHEREOF , the undersigned, being duly authorized by their respective Governments, 
have signed this Agreement.   
 
DONE in duplicate at Ottawa, this 12
th day of October 2006, in the English and French languages, 
each version being equally authentic.   
 
    
 
__________________________________ 
FOR THE 
GOVERNMENT OF CANADA  __________________________________ 
FOR THE  
GOVERNMENT OF THE UNITED STATES OF AMERICA  
  WT/DS311/2/Add.1 
G/L/679/Add.2 G/SCM/D60/2/Add.1 
Page 8 
  
   
ANNEX 2A 
 
SETTLEMENT OF CLAIMS AGREEMENT 
 
 1. On the Effective Date of the Softwood Lumb er Agreement 2006, this Settlement of Claims 
Agreement (Claims Settlement Agreement) will c onstitute a full and complete settlement of the 
claims asserted in the actions referenced in this paragraph.  On the Effec tive Date, Canada and the 
United States shall file a joint stipulation of dismissal of Canada’s complaint in Canada v. United 
States (Ct. No. 05-00033 (CIT)).  Further, on the Effective Date: 
 
The United States and Tembec Inc. and its aff iliates shall file a joint stipulation of 
dismissal in Tembec et al. v. United States (Civil Action No. 05-2345 (U.S. District 
Ct. for the District of Columbia));  
the United States shall withdraw its requ est for an Extraordinary Challenge in Certain 
Softwood Lumber Products from Canada , Secretariat File No. ECC-2006-1904-
01USA; and  
Canfor Corporation shall withdraw its claim against the United States in The 
Consolidated Arbitration Pursuant to Ar ticle 1126 of the North American Free Trade 
Agreement (NAFTA) and the UNCITRAL Arbitration Rules between Canfor Corporation v. United States of America and Terminal Forest Products Ltd. v. United 
States of America.  
2. In addition, on the Effective Date, Canada a nd the United States shall seek to dismiss the 
following actions: 
 
Certain Softwood Lumber Products from  Canada (Original AD Investigation) , 
Secretariat File No. USA-CDA-2002-1904-02;  
Tembec v. United States  (Consol. Ct. No. 05-00028 (CIT)) and the cases consolidated 
therein; and 
Coalition for Fair Lumber Imports Execu tive Committee v. United States (Civil 
Action No. 05-1366 (D.C. Cir.)) . 
3. The United States shall ensure th at the following actions are taken: 
  (a) On the Effective Date, the U.S. Department of Commerce ("USDOC") shall 
retroactively revoke the Countervailing Du ty Order regarding Certain Softwood 
Lumber from Canada, 67 Fed. Reg. 36, 070 (May 22, 2002), as amended, and the 
Antidumping Duty Order regarding Certain Softwood Lumber from Canada, 67 Fed. 
Reg. 36,068 (May 22, 2002), as amended (the "Orders"), in their entirety as of May 22, 2002 without the possibility that they could be reinstated; 
 
 (b) On the Effective Date, USDOC shall term inate all USDOC proceedings related to the 
Orders; and 
  WT/DS311/2/Add.1 
 G/L/679/Add.2 
 G/SCM/D60/2/Add.1 
 Page 9 
  
   (c) No later than 3 days after the Effec tive Date, to the extent that USDOC is not 
enjoined against providing for liquidation, USDOC shall provide the instructions in 
Annex 3A of the SLA 2006 to U.S. Customs and Border Protection to cease 
collecting cash deposits and to liquidate entr ies covered by the Orders described in 
subparagraph 3(a) without regard to anti dumping or countervailing duties and to pay 
interest in accordance with section 778 of the Tariff Act of 1930, as amended.  
 4. Following the Effective Date, Canada a nd the United States shall continue to seek 
modification or clarification of the injunctions in West Fraser v. United States  (Consol. Ct. No. 05-
00079 (CIT)) such that the underlying entries may be liquidated without regard to antidumping and countervailing duties.  To the extent that USDOC is  not enjoined against providing for liquidation, 
USDOC shall provide the instructions in Annex 3B of the SLA 2006, as amended, to USCBP at such time as the U.S. Court of International Trade modifi es or clarifies the injunctions against liquidation 
issued in West Fraser v. United States  to permit the United States to liquidate entries covered by the 
first AD administrative review, the liquidation of which had been enjoined.     5. As promptly as possible after the Effective Date , Canada and the United States shall file joint 
motions to dismiss the following actions, if they have not been dismissed already, on the grounds of mootness: 
 
Certain Softwood Lumber Products from Canada (CVD 1
st Administrative Review) , 
Secretariat File No. USA-CDA-2005-1904-01; and 
West Fraser v. United States  (Consol. Ct. No. 05-00079 (CIT)). 
6. For purposes of paragraphs 7 through 10, Certain Softwood Lumber Products from Canada 
(Original CVD Investigation ), Secretariat File No. USA-CDA-2002-1904-03 shall be treated in the 
same manner as an "action referenced in  this Claims Settlement Agreement". 
 7. Canada and the United States shall request dism issal of any new lawsuits concerning the same 
subject matter as any action referenced in this Clai ms Settlement Agreement that are filed before the 
date of entry into force of the SLA 2006. 
 
8. No party to this Claims Settlement Agreement shall seek to hold any other party liable to pay 
its costs and expenses of litigation relating to any action referenced in this Claims Settlement 
Agreement.  
9. This Claims Settlement Agreement is without prejudice to the position of any party to this 
Claims Settlement Agreement on any issue in any action referenced in this Claims Settlement 
Agreement.   10. Each party to this Claims Settlement Agreemen t shall not re-file any of the actions that are 
referenced in paragraph 1 of this  Claims Settlement Agreement.  
 
11. This Claims Settlement Agreement may not be  altered, amended, m odified, or otherwise 
changed other than through the writte n agreement of all parties hereto. 
 12. This Claims Settlement Agreement shall bind th e parties, their officers, directors, employees, 
predecessors, subsidiaries, heirs, executors, administrators, agents, successors, and assigns. 
 WT/DS311/2/Add.1 
G/L/679/Add.2 G/SCM/D60/2/Add.1 
Page 10 
  
  13. As evidence of their consent to this Claims Settlement Agreement, the parties, through their 
duly authorized Representativ es, have signed below. 
 
14. This Claims Settlement Agreement may be ex ecuted in counterparts, each one of which shall 
be deemed an original and all of which together shall constitute one and the same Claims Settlement 
Agreement.   By: _________________________ Dated: ______, 2006
 
M. Jean Anderson 
Weil, Gotshal & Manges, LLP 
1300 Eye Street, NW. Suite 900 
Washington, DC 20005 
 Counsel for the Government of Canada in all the referenced proceedings other than Tembec et al. v. 
United States (Civil Action No. 05-2345 (U.S. District Ct. for the District of Columbia)) and the 
Consolidated Arbitration Pursuant to Article  1126 of the North American Free Trade Agreement 
(NAFTA) and the UNCITRAL Arbitration Rules between  Canfor Corporation v. United States of 
America and Terminal Forest Products Ltd. v. United States of America  
 
 
By: _________________________ Dated: ______, 2006 
Seth P. Waxman  
Wilmer, Cutler, Pickering, Hale & Dorr, LLP 
1875 Pennsylvania Avenue, NW. Washington, DC 20006-3642  Counsel for the Government of Canada in Coalition for Fair Lumber Imports Executive Committee v. 
United States (Civil Action No. 05-1366 (D.C. Cir.))
 
 
 
By: _________________________ Dated: ______, 2006 
Reginald T. Blades, Jr.  
U.S. Department of Justice Commercial Litigation Branch - Civil Division 
1100 L Street, NW. 8th Floor Washington, DC 20530  Counsel for the United States in W est Fraser v. United States (Consol. Ct. No. 05-00079 (CIT)) and 
the cases consolidated therein 
   WT/DS311/2/Add.1 
 G/L/679/Add.2 
 G/SCM/D60/2/Add.1 
 Page 11 
  
  By: _________________________ Dated: ______, 2006 
Stephen C. Tosini 
U.S. Department of Justice Commercial Litigation Branch - Civil Division 
1100 L Street, NW. Room 12020 Washington, DC 20530  
Counsel for the United States in Tembec v. United States (Consol. Ct. No. 05-00028 
(CIT)) and the cases consolidated therein   
By: _________________________ Dated: ______, 2006 
Alexander Kenneth Haas  
U.S. Department of Justice 
20 Massachusetts Avenue, NW Washington, D.C.  Counsel for the United States in Tembec et al. v. United States (Civil Action No. 05-2345 (U.S. 
District Ct. for the District of Columbia)) 
  
By: _________________________ Dated: ______, 2006 
Douglas N. Letter  
Litigation Counsel 
U.S. Department of Justice Civil Division, Appellate Staff 950 Pennsylvania Avenue N.W. Room 7513 Washington, D.C. 20530-0001 
 
Counsel for the United States in Coalition for Fair Lumber Imports Executive Committee v. United 
States (Civil Action No. 05-1366 (D.C. Cir.)) 
  By: _________________________ Dated: ______, 2006 John D. McInerney  
U.S. Department of Commerce 
14
th & Constitution Avenue, N.W. 
Room 3622 Washington, D.C. 20230 
 
Counsel for United States Department of Commerce in Certain Softwood Lumber 
Products from Canada (Ori ginal AD Investigation) , Secretariat File No. USA-CDA- 
2002-1904-02; Certain Softwood Lumber Products from Canada (Original CVD 
Investigation ), Secretariat File No. USA-CDA-2002-1904-03; Certain Softwood Lumber Products 
from Canada (CVD 1
st Administrative Review) , Secretariat File No. USA-CDA-2005-1904-01 
  WT/DS311/2/Add.1 
G/L/679/Add.2 G/SCM/D60/2/Add.1 
Page 12 
  
  By: _________________________ Dated: ______, 2006 
Andrea J. Menaker  
Chief, NAFTA Arbitration Division Office of the Legal Adviser 
U.S. Department of State Washington, D.C.  Counsel for the United States with respect to the Consolidated Arbitration Pursuant to Article 1126 of 
the North American Free Trade Agreement (NAFT A) and the UNCITRAL Arbitration Rules between 
Canfor Corporation v. United States of America and  Terminal Forest Products Ltd. v. United States 
of America 
 
 By: _________________________ Dated: ______, 2006 William Busis  
Office of the United States Trade Representative 
600 – 17
th Street, N.W. 
Washington, D.C. 20508  
Counsel for the United States in Certain Softwood Lumber Products from Canada , 
Secretariat File No. ECC-2006-1904-01USA
 
  
By: _________________________ Dated: ______, 2006 
Elliot J. Feldman  
Baker & Hostetler, LLP 
Washington Square, Suite 1100 1050 Connecticut Avenue, NW. Washington, DC 20036-5304  
Counsel for Tembec Inc. and its affiliates  
  
By: _________________________ Dated: ______, 2006 
P. John Landry  
DAVIS & COMPANY 
2800-666 Burrard Street Vancouver, British Columbia  V6C 2Z7  Counsel for Canfor Corporation in the Consolidated Arbitration Pursuant to Article 1126 of the North 
American Free Trade Agreement (NAFTA) and the U NCITRAL Arbitration Rules between Canfor 
Corporation v. United States of America and Term inal Forest Products Ltd. v. United States of 
America  
 
  WT/DS311/2/Add.1 
 G/L/679/Add.2 
 G/SCM/D60/2/Add.1 
 Page 13 
  
  By: _________________________ Dated: ______, 2006 
Keith E.W. Mitchell  
Harris and Company 14 Floor Bentall 5, 550 Burrard 
Vancouver, British Columbia V6C 2B5  Counsel for Canfor Corporation in the Consolidated Arbitration Pursuant to Article 1126 of the North 
American Free Trade Agreement (NAFTA) and the U NCITRAL Arbitration Rules between Canfor 
Corporation v. United States of America and Term inal Forest Products Ltd. v. United States of 
America  
 
 By: _________________________ Dated: ______, 2006 B. Thomas Peele, III  
Baker & McKenzie, LLP 
815 Connecticut Avenue, NW. Suite 900 Washington, DC 20006-4078 
 
Counsel for Canadian Forest Products Ltd ., Canfor Corporation and its affiliates , Canfor Wood 
Products Marketing Ltd.
 WT/DS311/2/Add.1 
G/L/679/Add.2 G/SCM/D60/2/Add.1 
Page 14 
  
  ANNEX 2B 
 
October 12, 2006 
 
 
H.E. Mr. Muhamad Noor Yacob 
Chairperson Dispute Settlement Body World Trade Organization Centre William Rappard 
Rue de Lausanne 154 
1211 Geneva 21   Re: United States -– Preliminary Determinations with respect to Certain Softwood 
Lumber from Canada  (DS236); 
 
  United States -– Provisional Anti-Dumping Measu re on Imports of Certain Softwood 
Lumber from Canada  (DS247); 
 
  United States -– Final Countervailing Duty Determination with respect to Certain 
Softwood Lumber from Canada  (DS257); 
 
  United States -– Final Dumping Determination on Softwood Lumber from Canada  
(DS264); 
 
  United States -– Investigation of the International Trade Commission in Softwood 
Lumber from Canada  (DS277); and 
 
  United States -– Reviews of Countervailing Duty on Softwood Lumber from Canada  
(DS311) . 
  
Notification of Mutually Agreed Solution 
  Dear Mr. Chairman:  
 The Governments of the United States of Amer ica and Canada hereby wish to notify the 
Dispute Settlement Body ("DSB") that, in accordance with Article 3.6 of the Understanding on Rules 
and Procedures Governing the Settlement of Disputes , we have reached a mutually agreed solution to 
the matters raised by Canada in th e above-referenced disputes.  This solution has taken the form of a 
comprehensive agreement between the United States  and Canada, dated 12 Se ptember 2006, resolving 
all disputes related to trade in softwood lumber  between our two countries (the "Softwood Lumber 
Agreement").  A copy of the Softwood Lumber Agreement is attached.   In light of the foregoing, Canada hereby withdraws its requests (WT/DS257/16; WT/DS264/17; WT/DS277/9) to the DSB pursuant to Article 22.2 of the DSU for authorization to suspend the application to the United States of tariff concessions or other obligations under the 
General Agreement on Tariffs and Trade 1994  ("GATT 1994").  Canada having withdrawn its 
requests under Article 22.2 of the DSU, th e United States hereby withdraws its requests  WT/DS311/2/Add.1 
 G/L/679/Add.2 
 G/SCM/D60/2/Add.1 
 Page 15 
  
  (WT/DS257/17; WT/DS264/19; WT/DS277/10) to the DSB for arbitration under Article 22.6 of the 
DSU objecting to the level of suspension of tari ff concessions or other ob ligations under the GATT 
1994 proposed by Canada. 
 
 This mutually agreed solution is without pr ejudice to the WTO rights and obligations of the 
United States and Canada except with respect to the disputes listed above. 
  We ask that you circulate this notification to the relevant Councils and Committees, as well as 
to the Dispute Settlement Body. 
 
Sincerely, 
  
 
Don Stephenson Ambassador and Permanent Representative of Canada to the World Trade Organization Peter F. Allgeier 
Ambassador and Permanent Representative of the United States to the World Trade Organization 
 
 WT/DS311/2/Add.1 
G/L/679/Add.2 G/SCM/D60/2/Add.1 
Page 16 
  
  ANNEX 3A 
 
USDOC CVD Liquidation Instructions to USCBP 
 
 RE: NOTICE OF REVOCATION OF THE COUNTERVAILING DUTY ORDER AND TERMINATION OF COUNTERVAILING DUTY REVIEWS RELATED TO CERTAIN SOFTWOOD LUMBER FROM CANADA FOR THE PERIOD 05/22/2002 THROUGH 
XX/XX/XXXX ([C-122-839])  
 1. THE DEPARTMENT OF COMMERCE HAS REVOKED THE COUNTERVAILING DUTY ORDER AND TERMINATED ALL REVIEWS, ON CERTAIN SOFTWOOD LUMBER FROM CANADA PURSUANT TO SETTLEMENT OF LITIGATION.  THE EFFECTIVE DATE 
OF REVOCATION IS 05/22/2002. 
 2. THEREFORE, CBP IS DIRECTED TO CEASE COLLECTION OF CASH DEPOSITS EFFECTIVE XX/XX/XX (THE EFFECTIVE DATE OF SETTLEMENT OF LITIGATION) AND TERMINATE IMMEDIATELY THE SUSPENSION OF LIQUIDATION FOR ALL SHIPMENTS 
OF CERTAIN SOFTWOOD LUMBER FROM CANADA ENTERED, OR WITHDRAWN FROM 
WAREHOUSE, FOR CONSUMPTION ON OR AFTER MAY 22, 2002.  ALL UNLIQUIDATED 
ENTRIES OF THE SUBJECT MERCHANDISE THAT WERE ENTERED OR WITHDRAWN FROM WAREHOUSE FOR CONSUMPTION, ON OR AFTER MAY 22, 2002, THE LIQUIDATION OF WHICH IS SUSPENDED, SHOULD BE LIQUIDATED WITHOUT REGARD TO COUNTERVAILING DUTIES (I.E., RELEASE ALL BONDS AND REFUND ALL CASH 
DEPOSITS) AND ALL DEPOSITS SHALL BE REFUNDED WITH ACCRUED INTEREST TO 
THE IMPORTERS OF RECORD OR THEIR DESIGNATES.     3. THE ASSESSMENT OF COUNTERVAILING DUTIES BY CUSTOMS AND BORDER PROTECTION ON ENTRIES OF THIS MERCHANDISE IS SUBJECT TO THE PROVISIONS OF SECTION 778 OF THE TARIFF ACT OF 1930.  SECTION 778 REQUIRES THAT CBP PAY 
INTEREST ON OVERPAYMENTS,  OR ASSESS INTEREST ON UNDERPAYMENTS, OF THE 
REQUIRED AMOUNTS DEPOSITED AS ESTIMATED COUNTERVAILING DUTIES.  INTEREST SHALL BE CALCULATED FROM THE DATE OF PAYMENT OF ESTIMATED COUNTERVAILING DUTIES THROUGH THE DATE OF LIQUIDATION.  THE RATE AT WHICH SUCH INTEREST IS PAYABLE IS THE RATE IN EFFECT UNDER SECTION 6621 OF 
THE INTERNAL REVENUE CODE OF 1954 FOR SUCH PERIOD. 
 4. IF THERE ARE ANY QUESTIONS REGARDING THIS MATTER BY CBP OFFICERS, THE IMPORTING PUBLIC OR INTERESTED PARTIES, PLEASE CONTACT DAVINA HASHMI OR RON TRENTHAM AT OFFICE OF AD/CVD OPERATIONS, IMPORT ADMINISTRATION, INTERNATIONAL TRADE ADMINISTRATION, U.S. DEPARTMENT OF 
COMMERCE, AT (202) 482-0984 OR (202) 482-3577 RESPECTIVELY (GENERATED BY 
O(Office Number):   Analyst's Initials (Example: O2:RL)).   
5. THERE ARE NO RESTRICTIONS ON THE RELEASE OF THIS INFORMATION. 
  CATHY SAUCEDA 
  WT/DS311/2/Add.1 
 G/L/679/Add.2 
 G/SCM/D60/2/Add.1 
 Page 17 
  
  USDOC AD Liquidation Instructions to USCBP  
 
 
RE: NOTICE OF REVOCATION OF THE ANTIDUMPING DUTY ORDER AND 
TERMINATION OF ANTIDUMPING DUTY REVIEWS RELATED TO CERTAIN SOFTWOOD LUMBER FROM CANADA FOR THE PERIOD 05/22/2002 THROUGH XX/XX/XXXX ([A-122-838])   
1. THE DEPARTMENT OF COMMERCE HAS REVOKED THE ANTIDUMPING DUTY 
ORDER AND TERMINATED ALL REVIEWS ON CERTAIN SOFTWOOD LUMBER FROM CANADA PURSUANT TO SETTLEMENT OF LITIGATION.  THE EFFECTIVE DATE OF REVOCATION IS 05/22/2002.  
2. THEREFORE, CBP IS DIRECTED TO CEASE COLLECTION OF CASH DEPOSITS 
EFFECTIVE XX/XX/XX (THE EFFECTIVE DATE OF SETTLEMENT OF LITIGATION) AND TERMINATE IMMEDIATELY THE SUSPENSION OF LIQUIDATION FOR ALL SHIPMENTS 
OF CERTAIN SOFTWOOD LUMBER FROM CANADA ENTERED, OR WITHDRAWN FROM WAREHOUSE, FOR CONSUMPTION ON OR AFTER 05/22/2002, EXCEPT FOR ENTRIES ENTERED OR WITHDRAWN FROM WAREH OUSE FROM 05/22/2002 THROUGH 04/30/2003 
THAT HAVE BEEN ENJOINED.  ALL UNL IQUIDATED ENTRIES OF THE SUBJECT 
MERCHANDISE THAT WERE ENTERED OR WITHDRAWN FROM WAREHOUSE FOR CONSUMPTION, ON OR AFTER 05/22/2002, THE LIQUIDATION OF WHICH IS SUSPENDED, SHOULD BE LIQUIDATED WITHOUT REGARD TO ANTIDUMPING DUTIES (I.E., RELEASE ALL BONDS AND REFUND ALL CASH DEPOSITS) AND ALL DEPOSITS SHALL BE 
REFUNDED WITH ACCRUED INTEREST TO TH E IMPORTERS OF RECORD OR THEIR 
DESIGNATES EXCEPT FOR ENTRIES DU RING THE PERIOD 05/22/2002 THROUGH 
04/30/2003 THAT HAVE BEEN ENJOINED.  CBP SHOULD CONTINUE TO SUSPEND 
LIQUIDATION OF ENJOINED ENTRIES ENTERED, OR WITHDRAWN FROM WAREHOUSE, FOR CONSUMPTION FROM 5/22/2002 TH ROUGH 4/30/2003 UNTIL LIQUIDATION 
INSTRUCTIONS ADDRESSING THESE ENTRIES ARE PROVIDED. 
 
3. THE ASSESSMENT OF ANTIDUMPING DUTIES BY CUSTOMS AND BORDER PROTECTION ON ENTRIES OF THIS MERCHANDISE IS SUBJECT TO THE PROVISIONS OF SECTION 778 OF THE TARIFF ACT OF 1930.  SECTION 778 REQUIRES THAT CBP PAY INTEREST ON OVERPAYMENTS, OR ASSESS INTEREST ON UNDERPAYMENTS, OF THE 
REQUIRED AMOUNTS DEPOSITED AS ESTIMATED ANTIDUMPING DUTIES.  INTEREST 
SHALL BE CALCULATED FROM THE DATE OF PAYMENT OF ESTIMATED ANTIDUMPING DUTIES THROUGH THE DATE OF LIQUIDATION.  THE RATE AT WHICH SUCH INTEREST IS PAYABLE IS THE RATE IN EFFECT UNDER SECTION 6621 OF THE INTERNAL REVENUE CODE OF 1954 FOR SUCH PERIOD.  
4. IF THERE ARE ANY QUESTIONS REGARDING THIS MATTER BY CBP OFFICERS, 
THE IMPORTING PUBLIC OR INTERESTED PARTIES, PLEASE CONTACT DAVINA HASHMI OR RON TRENTHAM AT OFFICE OF AD/CVD OPERATIONS, IMPORT ADMINISTRATION, INTERNATIONAL TRADE ADMINISTRATION, U.S. DEPARTMENT OF COMMERCE, AT (202) 482-0984 OR (202) 482-3577 RESPECTIVELY (GENERATED BY 
O(Office Number):  
 Analyst's Initials (Example: O2:RL)).   WT/DS311/2/Add.1 
G/L/679/Add.2 G/SCM/D60/2/Add.1 
Page 18 
  
  5. THERE ARE NO RESTRICTIONS ON THE RELEASE OF THIS INFORMATION. 
  CATHY SAUCEDA   WT/DS311/2/Add.1 
 G/L/679/Add.2 
 G/SCM/D60/2/Add.1 
 Page 19 
  
  ANNEX 3B 
 
USDOC Liquidation Instructions to USCBP 
 
 RE: LIQUIDATION INSTRUCTIONS FOR CERTAIN SOFTWOOD LUMBER FROM CANADA FOR THE PERIOD 05/22/2002 THROUGH 04/30/2003 (A-122-838)   
1. THE INJUNCTIONS IN WEST FRASER LTD. V. UNITED STATES
 (CONSOL. 
CT. 05-00079) LIFTED ON (MM/DD/YYYY).  AS A RESULT, LIQUIDATION OF PREVIOUSLY ENJOINED ENTRIES OF THE SUBJECT MERCHANDISE ENTERED, OR WITHDRAWN 
FROM WAREHOUSE, FOR CONSUMPTION DURING THE PERIOD 05/22/2002 THROUGH 04/30/2003 IS NO LONGER ENJOINED.  
 
2. ON (MM/DD/YYYY) COMMERCE REVOKED THE ANTIDUMPING DUTY ORDER ON CERTAIN SOFTWOOD LUMBER FROM  CANADA PURSUANT TO SETTLEMENT OF 
LITIGATION. THE EFFECTIVE DATE OF THAT REVOCATION WAS 05/22/2002. THEREFORE, CBP IS DIRECTED TO CEASE IMMEDIATELY ANY SUSPENSION OF LIQUIDATION FOR ALL SHIPMENTS OF CERTAIN SOFTWOOD LUMBER FROM CANADA 
ENTERED, OR WITHDRAWN FROM WAREHOU SE, FOR CONSUMPTION FROM 05/22/2002 
THROUGH 04/30/2003.  ALL UNLIQUIDATED ENTRIES OF THE SUBJECT MERCHANDISE THAT WERE ENTERED OR WITHDRAWN FROM WAREHOUSE FOR CONSUMPTION FROM 05/22/2002 THROUGH 04/30/2003, THE LIQUIDATION OF WHICH IS SUSPENDED, 
SHOULD BE LIQUIDATED WITHOUT REGARD TO ANTIDUMPING DUTIES (I.E., RELEASE 
ALL BONDS AND REFUND ALL CASH DEPOSITS) AND ALL DEPOSITS SHALL BE 
REFUNDED WITH ACCRUED INTEREST TO TH E IMPORTERS OF RECORD OR THEIR 
DESIGNATES.    3. THE ASSESSMENT OF ANTIDUMPING DUTIES BY CUSTOMS AND BORDER PROTECTION ON ENTRIES OF THIS MERCHANDISE IS SUBJECT TO THE PROVISIONS OF 
SECTION 778 OF THE TARIFF ACT OF 1930.  SECTION 778 REQUIRES THAT CBP PAY 
INTEREST ON OVERPAYMENTS, OR ASSESS INTEREST ON UNDERPAYMENTS OF THE REQUIRED AMOUNTS DEPOSITED AS ESTIMATED ANTIDUMPING DUTIES.  INTEREST SHALL BE CALCULATED FROM THE DATE OF PAYMENT OF ESTIMATED ANTIDUMPING DUTIES THROUGH THE DATE OF LIQUIDATION.  THE RATE AT WHICH 
SUCH INTEREST IS PAYABLE IS THE RATE IN EFFECT UNDER SECTION 6621 OF THE 
INTERNAL REVENUE CODE OF 1954 FOR SUCH PERIOD.  4. PREVIOUSLY ISSUED INSTRUCTIONS ADDRESSED THE LIQUIDATION OF ENTRIES OF THE SUBJECT MERCHANDISE THAT WERE ENTERED OR WITHDRAWN FROM WAREHOUSE FOR CONSUMPTION FROM 05/01/2003 THROUGH THE DATE OF 
REVOCATION OF THE ANTIDUMPING DUTY ORDER.  [REFERENCE TO PRIOR 
INSTRUCTIONS]  5. IF THERE ARE ANY QUESTIONS REGARDING THIS MATTER BY CBP OFFICERS, THE IMPORTING PUBLIC OR INTERESTED PARTIES, PLEASE CONTACT DAVINA 
HASHMI OR RON TRENTHAM AT OFFICE OF AD/CVD OPERATIONS, IMPORT 
ADMINISTRATION, INTERNATIONAL TRADE ADMINISTRATION, U.S. DEPARTMENT OF COMMERCE, AT (202) 482-0984 OR (202) 482-3577 RESPECTIVELY (GENERATED BY 
O(Office Number):   WT/DS311/2/Add.1 
G/L/679/Add.2 G/SCM/D60/2/Add.1 
Page 20 
  
  Analyst's Initials (Example: O2:RL)).  
 6. THERE ARE NO RESTRICTIONS ON THE RELEASE OF THIS INFORMATION. 
  CATHY SAUCEDA 
  
__________