. /.  WORLD TRADE  
ORGANIZATION  WT/DS264/16 
20 May 2005 
 
 (05-2051) 
 Original:   English 
  
 
UNITED STATES – FINAL DUMPING DETERMINATION ON 
SOFTWOOD LUMBER FROM CANADA 
 
Recourse to Article 21.5 of the DSU by Canada
 
 
Request for the Establishment of a Panel  
 
  The following communication, dated 19 May 2005, from the delegation of Canada to the Chairman of the Dispute Settlement Body, is circulated pursuant to Article 21.5 of the DSU. 
 
_______________ 
 
  On 31 August 2004, the Dispute Settlement Body ("DSB") adopted the panel and Appellate 
Body Reports in United States – Final Dumping Determination on Softwood Lumber from Canada .
1  
The panel and Appellate Body found that the United States acted "inconsistently with Article 2.4.2 of 
the Anti-Dumping Agreement  in determining the existence of dumping on the basis of a methodology 
incorporating the practice of ‘zeroing'".2  The panel and the Appellate Body recommended that the 
United States bring its measure into conf ormity with its obligations under the Agreement on 
Implementation of Article VI of th e General Agreement on Tariffs and Trade  ("Anti-Dumping 
Agreement "). 
  On 6 December 2004, Canada and the Un ited States reached agreement pursuant to 
Article 21.3(b) of the Understanding on Rules and Procedures Go verning the Settlement of Disputes 
("DSU ") on a "reasonable period of time" to comply with the recommendations and rulings of the 
DSB.
3  The United States confirmed in this agreemen t that it would complete implementation no later 
than 15 April 2005.  Canada and the United Stat es subsequently agreed to extend the "reasonable 
period of time" until 2 May 2005.4 
  In November 2004 the United States commenced  implementation proceedings in accordance 
with section 129(b) of the Uruguay Round Agreements Act .
5  On 15 April 2005, the US Department of 
Commerce ("Commerce") released its final section 129 determination, which pu rported to implement 
the recommendations and rulings of the DSB.  In  the final section 129 determination, Commerce 
                                                      
1 Dispute Settlement Body, Minutes of Meeting (31 August 2004) , WT/DSB/M/175, 24 September 
2004, at para. 4.  Also see United States – Final Dumping Determination on Softwood Lumber from Canada , 
Report of the Appellate Body, WT/DS264/AB/R, adopted 31 August 2004; ["Appellate Body Report"] and United States – Final Dumping Determination on Softwood Lumber from Canada , Report of the Panel, 
WT/DS264/R, adopted 31 August 2004. ["Panel Report"] 
2 Appellate Body Report, at para. 183(a); and Panel Report, at para. 8.1(a)(i).   
3 United States – Final Dumping Determination on Softwood Lumber from Canada, Agreement under 
Article 21.3(b) of the DSU , WT/DS264/12, 8 December 2004.   
4 United States – Final Dumping Determination on Softwood Lumber from Canada, Agreement under 
Article 21.3(b) of the DSU , WT/DS264/15, 17 February 2005.   
5 19 U.S.C. § 3538(b)(2).   WT/DS264/16 
Page 2  
 
 again determined the existence of dumping on the basis of a methodology incorporating the practice 
of "zeroing".
6 
 
 Canada considers that the United States has fa iled to comply with the recommendations and 
rulings of the DSB, as the use of "zeroing" under the section 129 determination is inconsistent with 
Articles 2.4 and 2.4.2 of the Anti-Dumping Agreement .7  The following measures are at issue in these 
proceedings:   
• Notice of Determination Under Section 129 of the Uruguay Round Agreements Act; 
Antidumping Measures Concerning C ertain Softwood Lumber Products From 
Canada ; and
8 
 
• Notice of Amended Final Determination of Sales at Less Than Fair Value and 
Antidumping Duty Order:  Certai n Softwood Lumber Products from Canada .9  
  As there is a disagreement as to the existen ce or consistency with a covered agreement of 
measures taken to comply with the rulings and r ecommendations of the DSB, Canada seeks recourse 
to Article 21.5 of the DSU  in this matter.  Accordingly, Canada  requests that a special meeting of the 
DSB be held on 1 June 2005 to consider the following agenda item: 
 
 United States – Final Dumping Determination on Softwood Lumber from Canada ; 
 Recourse by Canada to Article 21.5 of the Understanding on Rules and Procedures 
Governing the Settlement of Disputes.  
 
__________ 
 
 
                                                      
6 Notice of Determination Under Section 129 of the Uruguay Round Agreements Act; Antidumping 
Measures Concerning Certain Softwood Lumber Products From Canada , 70 Fed. Reg. 22,636 (2 May 2005) 
7 Ibid. 
8 Ibid. 
9 67 Fed. Reg. 36,068 (22 May 2002).