WORLD TRADE  
ORGANIZATION  WT/DS234/31/Add.1 
2 December 2004 
 
 (04-5220) 
 Original:   English/ 
 French 
 
 
 
UNITED STATES – CONTINUED DUMPING AND 
SUBSIDY OFFSET ACT OF 2000 
 
Recourse by Canada to Article 22.7 of the DSU  
 
Addendum  
   The following document, which was submitted at the DSB meeting on 26 November 2004, is 
being circulated at the request of Canada. 
 
_______________ 
 
 EXTRA Vol. 138, No. 19 
 
 
CANADA GAZETTE 
 
Part I  
 
OTTAWA, TUESDAY, NOVEMBER 23, 2004 
  
DEPARTMENT OF FINANCE 
 
DEPARTMENT OF INTERNATIONAL TRADE 
 
NOTICE SEEKING COMMENTS ON POSSIBLE TRADE RETALIATION AGAINST THE 
UNITED STATES IN RESPONSE TO THAT COUNTRY'S FAILURE TO REPEAL THE CONTINUED DUMPING AND SU BSIDY OFFSET ACT OF 2000 (commonly referred to as the Byrd 
Amendment) 
 
Background 
 
 On August 31, 2004, the World Trade Organisati on (WTO) Arbitrator ruled that Canada and 
seven other WTO members (Brazil, Chile, the Eur opean Union, India, Japan, Mexico, and South 
Korea) could retaliate against the United States fo r its failure to repeal the WTO-inconsistent 
Continued Dumping and Subsidy Offset Act of 2000 (more commonly referred to as the Byrd 
Amendment). Under the Byrd Amendment, anti-dumpi ng and countervailing duties are given to U.S. 
producers who supported those trad e remedy actions. These duties were previously deposited in the 
U.S. Treasury. In this context, the WTO Arbitrator authorized Canada to retaliate up to 72 percent of 
the annual level of U.S. anti-dumping and count ervailing duties collected on Canadian goods WT/DS234/31/Add.1 
Page 2  
 
 disbursed to U.S. producers under the Byrd Amendm ent. This level is based on an economic model 
developed by the WTO to measure the trade effect of the Byrd Amendment on U.S. trading partners. 
  The collected duties are dis bursed under the Byrd Amendment only after the corresponding 
entries have been "liquidated" by U.S. Customs. In  some cases, particularly when the anti-dumping or 
countervailing duties themselves are subject to litiga tion, disbursements may not occur until several 
years after the monies have been paid on these entries.  The effect of the Byrd Amendment is that U.S. 
companies that bring trade remedy cases stand to be nefit not only from the imposition of antidumping 
and countervailing duties on competing imports, but  also from direct payments from the U.S. 
government when those duties are disbursed. The Byrd Amendment, therefore, provides a double 
remedy that creates a trade distorting advantage to U.S. companies that compete against Canadian and 
other exporters.   For this reason, Canada and 10 other WTO members challenged the measure at the WTO. On January 27, 2003, the World Trade Organization (W TO) Dispute Settlement Body (DSB) ruled that 
the Byrd Amendment is inconsistent with th e WTO agreements on Anti-dumping and on Subsidies 
and countervailing measures. For details on the Byrd  Amendment dispute, please visit International 
Trade Canada's Web site at www.byrdconsultations.gc.ca.   The United States had until December 27, 2003,  to bring its inconsistent measure into 
compliance with its WTO obligations but failed to do so. Consequently, on January 26, 2004, Canada, 
along with Brazil, Chile, the European Union, I ndia, Japan, Mexico, and South Korea, requested 
authorization from the WTO to retaliate by suspen ding tariff concessions and ot her obligations to the 
United States under the WTO Agreement. Canada's preferred option is to see the Byrd Amendment repealed. However, until the United States does so, Cana da must consider all its options available to it 
under WTO rules. 
 
 Canada's retaliation authorization request was me ant to ensure that the level of retaliation is 
linked to annual disbursements of duties under th e Byrd Amendment, now and in the future. 
Disbursements related to duties collected on Ca nadian products have so far been modest 
(approximately US$17 million between 2001 and 2003) a nd are expected to rema in at similar levels 
for the next three years. However, over US$1 billion of U.S. anti-dumping and countervailing duties 
on Canadian softwood lumber exports could be di sbursed annually to the U.S. softwood lumber 
industry starting in late 2007.   The intent of these consultations is to ensure that Canada is prepared to respond with a range 
of options depending on a number of factors that ar e not known at this time, including developments 
related to ongoing litigation and any action by the United States to bring itself into compliance with 
its obligations.   The Government of Canada will consider its options regarding retaliation once it has 
completed its consultations with Canadians. Speci fically, Canada will consider the following actions: 
 
1. The application of a 100 percent surtax on imports of selected products from the United States 
– A list of proposed products is included in Table 1.  Please note that the product list should be read in 
conjunction with the Schedule to the Customs Tariff , which can be accessed by visiting the following 
Web site: http://www.cbsa-asfe.gc.ca/general/ publications/customs-tariff-e.html
. 
 
2. The suspension of the injury requirement fo r the application of border measures on dumped 
and subsidized goods originating in  or exported from the United States – In this regard, the Special 
Import Measures Act, in accordance with th e WTO Anti-dumping and Subsidies agreements, 
stipulates that anti-dumping and countervailing duties can be imposed only following determinations 
that the subject dumped or subsidized imports are causing or threatening to cause material injury to  WT/DS234/31/Add.1 
 Page 3 
 
 
 the Canadian domestic industry producing like go ods. Under this option, an anti-dumping and/or 
countervailing investigation invo lving imports from the United States which concludes with a 
negative final injury determination could result in the application of duties under the Customs Tariff, 
equivalent to the dumping and/or subsidization ma rgins found during the investigation. For more 
information on Canada's antidumping and countervailing laws, refer to  the Canada Border Services 
Agency (CBSA) Web site at www.cbsa-asfc.gc.ca/ sima/menu-e.html . 
 
Invitation to submit views 
 
 Interested parties are invited to submit comments on the following list of products proposed 
for possible tariff measures as well as the proposal to suspend the injury te st in anti-dumping and 
countervailing investigations involving U.S. expo rters. Comments should be submitted in writing to 
the following address by December 20, 2004: Intern ational Trade Policy Division, Department of 
Finance, L'Esplanade Laurier, East Tower, 14th Floor, 140 O'Connor Street, Ottawa, Ontario KlA OG5, (613) 995-3843 (facsimile), byrd-consultations@intemational.ge.ca
 (electronic mail). 
Please note that all submissions sh ould indicate "Byrd Amendment." 
 
Enquiries 
 
 Additional information concerning the Byrd Amendment can be found on the Internet at www.byrd-consultations.gc.ca
 or by calling 1-800-769-0674, Monday to Friday, from 8 a.m. to 
8 p.m. EST. 
 WT/DS234/31/Add.1 
Page 4  
 
 TABLE 1  
 
Tariff Heading, 
Sub-Heading 
or Item Product Description 
01.03 Live Swine 
0301.10.00 Ornamental fish 
0303.79.00 Fish, frozen, excluding fish fillets and other fish meat of heading 03.04, and the goods of 
tariff items 0303.11.00 to 0303.78.00 inclusive 
0303.80.00 Fish livers and roes 
0304.90.00 Fish fillets and other fish meat, excluding fresh or chilled and frozen fillets 
0306.13.00 Shrimps and Prawns, frozen 
0307.10 Oysters 
0307.49.00 Squid, excluding live, fresh or chilled 
0713.10.90 Dried peas (Pisum sativum) excluding seed, in packages of  a weight not exceeding 500 g 
each 
0713.20.00 Dried chickpeas (garbanzos) 
0713.31.10 Dried beans of the species Vigna radiata (L.) Wilczek, in bulk or in packages or a weight 
exceeding 500 g each 
0713.31.90 Dried beans of the species Vigna mango (L) Hepper or Vigna radiata (L) Wilczek in 
packages of a weight exceeding 500 g each 
0713.32.00 Dried small red (Adzuki) beans (Phaseolus or Vigna angularis) 
0713.33.91 Dried red kidney beans 
0713.33.99 Dried kidney beans, including white pea beans (Phaseolus vulgaris), Other 
0713.39.10 Dried lima and Madagascar beans 
0713.39.90 Dried beans, excluding those of tariff items 0713.31.10 to 0713.39.10 inclusive 
0713.40.00 Dried lentils 
0713.50.90 Dried broad beans shelled, whether or not skinned or split (Vicia faba var. major) and 
horse beans (Vicia faba var. equina, Vicia faba var. minor), excluding seed in bulk or in 
packages of a weight exceeding 500 g each 
0713.90.90 Other dried leguminous vegetables, shelled, whether or not skinned or split, classified 
under tariff item 0713.90.90. 
0805.20.00 Mandarins (including tangerines and satsumas); clementines, wilkings and similar citrus 
hybrids 
0807.20.00 Papaws (papayas) 
1604.11.00 Prepared  or preserved salmon, whole or in pieces but not minced 
1702.20.00 Maple sugar and Maple syrup 
1905.90.51 Pizza and Quiche 
2001.10.00 Cucumbers and gherkins prepared or preserved by vinegar or acetic acid 
20.04 Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, 
other than products of headings 20.02, 20.03 and 20.06 
2005.10.00 Homogenized vegetables, prepared or preserved otherwise than by vinegar or acetic acid, 
not frozen, other than products of heading 20.06 
2005.40.00 Peas (Pisum sativum) 
2005.51.10 Red bean (Vigna spp., Phaseolus spp.) paste for use in the manufacture of food products 
2005.51.90 Beans (Vigna spp., Phaseolus spp.), shelled, other than red bean paste for use in the 
manufacture of food products 
2005.59.00 Beans (Vigna spp., Phaseolus spp.), other than shelled 
2005.60.00 Asparagus 
2005.70.10 Olives sulphured or in brine bu t not in glass jars; Ripe olives in brine 
2005.70.90 Olives prepared or preserved otherwise than by vinegar or acetic acid classified under tariff 
item 2005.70.90 
2005.80.00 Sweet corn (Zea mays var. saccharata) 
2005.90.11 Baby carro ts (of a length not exceeding 11 cm), in cans or glass jars  WT/DS234/31/Add.1 
 Page 5 
 
 
 Tariff Heading, 
Sub-Heading 
or Item Product Description 
2005.90.19 Carrots excluding those of tariff item 2005.90.11, prepared or preserved otherwise than by 
vinegar or acetic acid, not frozen 
2005.90.20 Artichokes (globe or Chinese), bamboo sh oots, cactus leaves ( nopales), cardoons, 
chickpeas (garbanzos), cilantro (Chinese or Mexican parsley or Yen Sai), jicama, leaf chervils, malanga, okra, peas (Angola, catjang , no-eye, pigeon), spinach, tamarillos (tree 
tomatoes), tarragons, tomatillos, topedos, verdolagas and water chestnuts prepared or 
preserved otherwise than by vinegar or acetic acid, not frozen 
2005.90.90 Other vegetables and mixtures of vegetables, excluding carrots, prepared or preserved 
otherwise than by vinegar or acetic acid, not frozen 
2007.91.00 Jams, fruit jellies, marmalades, fruit puree and fruit pastes of citrus fruit excluding 
homogenized preparations 
2007.99 Jams, fruit jellies, marmalades, fruit or nut puree and fruit or nut pastes, excluding 
homogenized preparations and similar preparations of citrus fruit 
2008.11.10 Peanut butter 
2103.30.20 Prepared mustard 
2103.90.10 Mayonnaise and salad dressing 
2103.90.20 Mixed condiments and mixed seasonings 
22.01 Waters, including natural or artificial mineral waters and aerated waters, not containing 
added sugar or other sweetening matter nor flavoured; ice and snow 
2202.10.00 Waters, including mineral waters and aerated waters, containing added sugar or other 
sweetening matter or flavoured 
2203.00.00 Beer made from malt 
22.04 
 Wine of fresh grapes, including fortified wines; grape must other than that of heading 
20.09 
2208.30.00 Whiskies 
2208.40.00 Rum and tafia 
2208.60.00 Vodka 
24.01 Unmanufactur ed tobacco;  tobacco refuse 
2402.20.00 Cigarettes containing tobacco 
2403.99 Other [Other manufactured tobacco and manu factured tobacco substitutes; "homogenized" 
or "reconstituted" tobacco; tobacco extracts and essences] excluding smoking tobacco, 
"homogenized" or "reconstituted" tobacco 
3303.00.00 Perfumes and toilet waters 
3304.30.00 Manicure and pedicure preparations 
33.05 Preparations for use on the hair 
42.02 Trunks, suit-cases, vanity-cas es, executive-cases, school satchels and similar containers 
(leather products) 
42.03 Articles of apparel and clothing accesso ries, of leather or of composition leather 
4407.10.00 Coniferous wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, 
sanded or end jointed, of a thickness exceeding 6 mm 
4408.10 Coniferous sheets for veneering (including those obtained by slicing laminated wood), for 
plywood or for other similar laminated wood and other wood, sawn lengthwise, sliced or 
peeled, whether or not planed, sanded, spliced or end jointe d, of a thickness not exceeding 
6 mm 
4410.21.00 Oriented strand board and waferboard, of wood. Unworked or not further worked than 
sanded 
4410.29.00 Other oriented strand board and waferboard, of wood. Other than unworked or not further 
worked than sanded 
4410.31.00 Particle board and similar board other than oriented strand board and waferboard, of wood. 
Unworked or not further worked than sanded WT/DS234/31/Add.1 
Page 6  
 
 Tariff Heading, 
Sub-Heading 
or Item Product Description 
4410.32.00 Particle board and similar board other than oriented strand board and waferboard, of wood. 
Surface covered with melanine-impregnated paper 
4410.39 Particle board and similar board other than oriented strand board and waferboard, of wood, 
whether or not painted 
44.11 Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other 
organic substances 
4412.14 Plywood, veneered panels and similar laminate d wood consisting solely of sheets of wood, 
each ply not exceeding 6 mm thickness, with at least one outer ply of non-coniferous wood 
4412.19 Other plywood, veneered panels and similar laminated wood consisting solely of sheets of 
wood, each ply not exceeding 6 mm thickness 
4412.23.00 Plywood, veneered panels and similar laminated wood with at least one outer ply of non-
coniferous wood, containing at least one layer of particle board 
4412.29.00 Other plywood, veneered panels and similar laminated wood with at least one outer ply of 
non-coniferous wood 
4412.93.00 Other plywood, veneered panels and similar laminated wood, containing at least one layer 
of particle board 
4412.99.00 Other plywood, veneered panels and similar laminated wood 
4418.90.00 Other builders' joinery and carpentry of wood including cellular wood panels, laminated 
beams and arches, prefabricated partitions and panels for buildings, and other fabricated 
structural members 
4701.00.00 Mechanical wood pulp 
4703.11.00 Chemical wood pulp - soda or sulphate - coniferous, unbleached 
4703.19.00 Chemical wood pulp - soda or sulphate - non-coniferous, unbleached 
4703.21.00 Chemical wood pulp - soda or sulphate - coniferous, bleached 
4703.29.00 Chemical wood pulp - soda or  sulphate - non-coniferous,  bleached 
4704.21.00 Chemical wood pulp - sulphite - coniferous, bleached 
4704.29.00 Chemical wood pulp - su lphite - non-coniferous, bleached 
4705.00.00 Wood pulp obtained by a combination of mechanical and chemical pulping processes 
4801.00.00 Newsprint, in rolls or sheets 
4802.20.00 Photo/Heat/Electro-Sensitive Paper and Paperboard – for writing/printing - uncoated 
4802.40.00 Wallpaper base paper - for writing/printing – uncoated 
4802.54.00 Fine writing/printing paper - not containing fibres obtained by a mechanical or chemi-
mechanical process - <40 g/m2 
4802.55.00 Fine writing/printing paper - not containing fibres obtained by a mechanical or chemi-
mechanical process - 40-150 g/m2 - in rolls 
4802.56.00 Fine writing/printing paper - not containing fibres obtained by a mechanical or chemi-
mechanical process - 40-150 g/m2 - in sheets (not exceeding 435 x 297 mm) 
4802.57.00 Fine writing/printing paper - not containing fibres obtained by a mechanical or chemi-
mechanical process - 40-150 g/m2 - other nes 
4802.61.00 Fine writing/printing paper - >10% fibres obta ined by a mechanical or chemi-mechanical 
process - in rolls 
4802.62.00 Fine writing/printing paper - >I 0% fibres obta ined by a mechanical or chemi-mechanical 
process - in sheets (not exceeding 435 x 297 mm) 
4802.69.00 Fine writing/printing paper - >I0% fibres obtained by a mechanical or chemi-mechanical 
process - other nes 
4804.19.00 Uncoated  Kraftliner paper - in rolls/s heets - other than unbleached 
4804.21.00 Uncoated sack kraft paper - in rolls/sheets - unbleached  WT/DS234/31/Add.1 
 Page 7 
 
 
 Tariff Heading, 
Sub-Heading 
or Item Product Description 
4804.29.00 Uncoated sack kraft paper - in rolls/sheets - other than unbleached 
4804.31.00 Kraft paper nes - in rolls/sheets <150 g/m' - unbleached 
4804.39.00 Other uncoated kraft paper nes - in rolls/sheets <150 g/m' - unbleached 
4805.11.00 Other uncoated semi-chemical fluting paper - in rolls/sheets 
4810.22.00 Lightweight paper - >I 0% fibres obtained by a mechanical or chemi-mechanical process - 
coated with inorganic substances - for writing/printing 
4810.92 Multi-ply paper - coated with inorganic subs tances - not used for writing/printing, or kraft 
4814.20 Wallpaper - coated or covered with plastic 
4814.90 Other wallpaper and similar wall coverings nes 
5703.90 Carpets and other textile floor coverings, tufted , whether or not made up, of other textile 
materials, other than wool or fine animal hair, nylon, and man-made textile materials 
6116.10 Gloves, mittens and mitts, knitted or crocheted which are impregnated, coated or covered 
with plastics or rubber 
64.02 Other footwear with outer soles and uppers of rubber or plastics, including sports footwear 
70.13 Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar 
purposes (other than that of heading 70.10 or 70.18) 
71.01 Pearls, natural or cultured, whether or not worked or graded but not strung, mounted or set; 
pearls, natural or cultured, temporarily  strung for conven ience of transport 
7118.10 Coin (other than gold coin), not being legal tender 
8415.10 Air conditioning machines; window or wall types, self contained or "split-system" 
84.72 Other office machines (for example, hectograph or stencil duplicating machines, 
addressing machines, automatic banknote disp ensers, coin-sorting machines, coin-counting 
or wrapping machines, pencil sharpening machines, perforating or stapling machines) 
8476.21 Automatic beverage vending machines incorporating heating or refrigerating devices 
85.19 Turntables (record-deck), record-players, cassette-players and other sound reproducing 
apparatus, not incorporating a sound recording device 
85.20 Magnetic tape recorders and other sound recording apparatus, whether or not incorporating 
a sound reproducing device 
85.21 Video recording or reproducing apparatus, whether or not incorporating a video tuner 
8528.12 Colour television whether or not incorporatin g radio broadcast receivers or sound or video 
recording or reproducing apparatus 
87.12 Bicycles and other cycles (including delivery tricycles), not motorized 
89.03 Yachts and other vessels for pleasure or sports; rowing boats and canoes 
90.06 Photographic (other than cinematographic) cameras; photographic flashlight apparatus and 
flashbulbs other than discharge lamps of heading 85.39 
9403.60 Other wooden furniture 
9403.80 Furniture of other materials, including cane, osier, bamboo, or similar materials 
9405.10.00 Chandeliers and other electric ceiling or wall lighting fittings, excluding those of a kind 
used for lighting public op en spaces or thoroughfares 
95.04 Articles for funfair, table or parlour games, including pintables, billiards, special tables for 
casino games, and automatic bowling alley equipment 
9506.11 Skis (including downhill, cross country and snowboards) 
9506.31.00 Golf Clubs, complete (including individual golf clubs and sets of golf clubs) 
9506.91 Articles and equipment for general physical exercise, gymnastics or athletics WT/DS234/31/Add.1 
Page 8  
 
 Tariff Heading, 
Sub-Heading 
or Item Product Description 
96.13 Cigarette lighters and other lighters, whether or not mechanical, or electrical, and parts 
thereof other than flints and wicks 
 
__________