Each country must now decide whether to seek the WTO's permission to go forward with retaliatory measures against the other for non-compliance. Equal retaliation between the two sides could effectively shut down bilateral trade for several years. The second panel ruled that the Canadian government failed to amend its Canada Account Program in a way to eliminate the potential of future SCM Agreement violations. The right to impose sanctions under Article 22.6 of the Dispute Settlement Understanding must be requested by Canada by May 12. Brazil can challenge the figure imposed for retaliation to a WTO arbitrator.
Negotiations continue between the two countries in an effort to possibly reach a compromise.
The White House has also received backing from former presidents Ford, Carter and Bush and current Federal Reserve Chairman Alan Greenspan. The framework creates aid in strengthening China's courts and labor markets, enforcement of internationally recognized labor rights in China and other foreign countries by a joint congressional- executive monitoring commission, and includes a resolution that Taiwan should become a WTO member at the same time as China. The investigation has been expanded to six executive agency departments and an update is expected soon. Meanwhile, the EU and China have agreed to resume negotiations next week aimed at finalizing a bilateral deal reflecting some specific EU demands for Chinese concessions. Malaysia is the latest country to sign an agreement on China's WTO entry, leaving just seven members for approval.