WORLD TRADE  
ORGANIZATION  WT/DS234/31 
11 November 2004 
 (04-4817) 
 Original:   English 
  
 
UNITED STATES – CONTINUED DUMPING AND 
SUBSIDY OFFSET ACT OF 2000 
 
Recourse by Canada to Article 22.7 of the DSU
 
 
 
 The following communication, dated 10 Nove mber 2004, from the delegation of Canada to 
the Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 22.7 of the DSU. 
 
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  Canada requests that the meeting of the Dispute Settlement Body on 24 November 2004 
consider the following agenda item:  
United States – Continued Dumping and Subsidy Offset Act of 2000  
 
Recourse by Canada to Article 22.7 of th e Understanding on Rules and Procedures 
Governing the Settlement of Disputes 
 
 The Panel and the Appellate Body found that the Continued Dumping and Subsidy Offset Act 
of 2000 ("CDSOA") was inconsistent with th e United States' obligations under the General 
Agreement on Tariffs and Trade 1994 ("GATT 1994"), the Agreement on Implementation of 
Article VI of the General Agreement on Tariffs  and Trade 1994, the Agreement on Subsidies and 
Countervailing Measures and the Marrakesh Agreemen t  establishing the World Trade Organization. 
On 27 January 2003, the Dispute Settlement Body ("DSB") adopted the Appellate Body report and 
the Panel report as modified by the Appellate Body report. The United States stated that it intended to 
implement the recommendations and rulings of the DSB but failed to do so within the reasonable 
period of time, as determined by the arbitrator pur suant to Article 21.3(c) of the Understanding on 
Rules and Procedures Governing the Settlement of Disputes ("DSU"), which expired on 27 December 2003.  
 Consequently, on 15 January 2004, Canada requested the authorization to suspend the 
application to the United States of tariff concessi ons and related obligati ons under GATT 1994 in an 
amount to be determined every year on the basis of the amount of offset payments made to affected 
domestic producers in the latest annual distribu tion of anti-dumping and countervailing duties under 
the CDSOA. 
 
 On 23 January 2004, the United States objected to the level of suspension proposed and on 26 January 2004, pursuant to Article 22.6 of the DS U, the matter was referred to arbitration. On 
31 August 2004, the arbitrator issued its decision as follows:  
 
 WT/DS234/31 
Page 2  
 
V. AWARD OF THE ARBITRATOR 
5.1 For the reasons set out above, we determine that, in the matter United States 
– Continued Dumping and Subsidy Offset Act of 2000 (Original Complaint by 
Canada) , the level of nullification or impairment  suffered by Canada in a particular 
year can be deemed to be equal to the total of disbursements made under the CDSOA 
for the preceding year relating to anti-dumping or countervailing duties paid on 
imports from Canada, multiplied by the coe fficient identified in Section III.D above. 
5.2 Accordingly, we decide that the suspension by Canada of concessions or 
other obligations in the form of: 
(a) the imposition of additional import duties above bound 
custom duties on products originating in the United States; 
and   
(b) the suspension of the application of the obligations under 
ArticleVI of GATT 1994, Articles 3, 5, 7, 8, 9, 10, 11 and 12 of the Anti-Dumping Agreement, and Articles 11, 12, 15, 17, 
18, 19, 20, 21 and 22 of the SCM Agreement to determine 
that the effect of dumping or subsidization of products from the United States is to cause or th reaten material injury to an 
established domestic injury, or is to retard materially the establishment of a domestic industry;  
covering, on a yearly basis, a total value of trade  not exceeding, in US dollars, the 
amount resulting from the following equation: 
Amount of disbursements under CDSOA for the most recent year for 
which data are available relating to anti-dumping or countervailing 
duties paid on imports from Canada at that time, as published by the United States' authorities. 
multiplied by: 
0.72  
would be consistent with Article 22.4 of the DSU. 
 To date, the United States has still not impl emented the recommendations and rulings of the 
DSB with respect to the CDSOA, and no mutu ally acceptable arrangement has been made. 
 
 Article 22.7 of the DSU provides that "the DSB shall be informed promptly of the decision of 
the arbitrators and shall upon request, grant authori zation to suspend concessions or other obligations 
where the request is consistent with the deci sion of the arbitrator, unless the DSB decides by 
consensus to reject the request." Therefore, Cana da hereby requests authorization from the DSB to 
suspend the application to the United States of ta riff concessions and relate d obligations under GATT 
1994 at a level not exceeding every year 72% of the amount of CDSOA disbursements relating to 
anti-dumping or countervailing duties paid on imports  from Canada for the most recent year for which 
data are available at that time.    Canada will annually notify the DSB of the terms of any measures it proposes to adopt in 
order to suspend its concessions or other obligations prior to bringing those measures into force.  Such  WT/DS234/31 
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notice will also identify the applicable level of su spension of concessions or other obligations for the 
following year established pursuant to the arbitrator's formula.     
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