UNITED STATES – ANTI-DUMPING MEASURES APPLYING DIFFERENTIAL PRICING METHODOLOGY TO SOFTWOOD LUMBER FROM CANADA REQUEST FOR CONSULTATIONS BY CANADA
Document: REQUEST FOR CONSULTATIONS BY
Date: 30 November 2017
Document codes: WT/DS534/1; G/L/1206; G/ADP/D120/1
Complainant: Canada
Respondent: U.S.
Third parties: Brazil, China, EU, Japan, Kazakhstan, South Korea, Russia, Vietnam
Dispute stage: Panel
Agreements cited: Art. 2.4.2, 2.4, 1, 2.1  Anti-dumpingArt. VI:1, VI:2  GATT 1994

UNITED STATES – ANTI-DUMPING MEASURES APPLYING DIFFERENTIAL PRICING
METHODOLOGY TO SOFTWOOD LUMBER FROM CANADA
REQUEST FOR CONSULTATIONS BY CANADA
The following communication, dated 28 November 2017 , from the delegation of Canada to the
delegation of the United States and to the Chairperson of the Dispute Settlement Body, is
circulated in accordance with Article 4.4 of the DSU.

My authorities have instructed me to request consultations with the Government of the United
States pursuant to Articles 4 and 10.4 of the Understanding on Rules and Procedures Governing
the Settlement of Disputes ("DSU"), Article XXII:1 of the General Agreement on Tariffs and Trade
1994 ("GATT 1994") and Article 17 of the Agreement on Implementation of Article VI o f the
General Agreement on Tariffs and Trade 1994 ("Anti-Dumping Agreement"), with respect to the
US anti-dumping measures applying the Differential Pricing Methodology to softwood lumber
products from Canada.

I. THE US ANTI-DUMPING MEASURES APPLYING THE DIFFERENTIAL PRICING
METHODOLOGY TO SOFTWOOD LUMBER PRODUCTS FROM CANADA

The US anti-dumping measures applying the Differential Pricing Methodology (“DPM”) to certain
softwood lumber products from Canada include:

1. Certain Softwood Lumber Products From Canada: Final Affirmative Determination of Sales
at Less Than Fair Value and Affirmative Final Determination of Critical Circumstances, 82
Fed. Reg. 51,806 (November 8, 2017);
2. Issues and Decision Memorandum for the Final Affirmative Determination of Sales at Less
Than Fair Value and Affirmative Final Determination of Critical Circumstances of Certain
Softwood Lumber Products from Canada (November 1, 2017); and
3. The Preliminary Determination, Decision Memorandum for the Preliminary Determination,
Sales Analysis Memoranda, and other memoranda, reports and measures related to the
application of the DPM in the anti-dumping investigation into Certain Softwood Lumber
Products from Canada.1
In particular, the DPM affected the ma rgins of dumping for Resolute FP Canada Inc. ("Resolute"),
Tolko Marketing and Sales Ltd. and Tolko Industries Ltd. ("Tolko"), and West Fraser Mills Ltd.
("West Fraser") in the Certain Softwood Lumber Products from Canada investigation.

II. THE UNITED ST ATES’ APPLICATION OF THE DPM IS INCONSISTENT WITH THE
ANTI-DUMPING AGREEMENT

Canada considers the United States' application of the DPM in the measures set out in Section I to
be inconsistent with US obligations under the Anti-Dumping Agreement, including:

1 Canada also intends to include as a measure the U.S. Anti-Dumping Order, which is expected to follow
the issuance of any final affirmative injury or threat of injury determination concerning Softwood Lumber
Products from Canada.
WT/DS534/1 • G/L/1206 • G/ADP/D120/1

1. Article 2.4.2 of the Anti -Dumping Agreement as the United States, in applying the
weighted-average-to-transaction ("W-T") calculation methodology, improperly aggregated
random and unrelated price variations and therefore failed to identify a pattern of export
prices as required by the second sentence of this provision;
2. Article 2.4.2 of the Anti -Dumping Agreement as the United States improperly applied the
W-T calculation methodology to non-pattern transactions for Resolute and Tolko;
3. Article 2.4.2 of the Anti-Dumping Agreement as the United States impermissibly combined
the weighted-average-to-weighted-average and W-T calculation methodologies to calculate
West Fraser's margin of dumping; and
4. Articles 2.4 and 2.4.2 of the Anti-Dumping Agreement as the United States applied zeroing
in its W-T calculation methodology with respect to Resolute, Tolko, and West Fraser when:
a. zeroing is not permitted when applying the W-T methodology;
b. zeroing in the W -T methodology does not account for all of the purported patter n
transactions in calculating the margin of dumping; and
c. zeroing does not lead to a fair comparison of export prices.
The inconsistencies described in paragraphs 1 -4 also resulted in the application of anti -dumping
measures that are inconsistent with Artic les 1 and 2.1 of the Anti -Dumping Agreement and
Articles VI:1 and VI:2 of the GATT 1994.
Canada also notes that the United States is required to bring its anti -dumping measures related to
Certain Softwood Lumber Products from Canada into conformity with th e rulings and
recommendations of the Dispute Settlement Body in US – Anti-Dumping and Countervailing
Measures on Large Residential Washers from Korea by December 26, 2017. Should the United
States fail to bring these measures into conformity at that time, Canada intends to request
accelerated proceedings in this dispute pursuant to Article 4.9 of the DSU.
The United States' measures described above nullify or impair benefits accruing to Canada directly
or indirectly under the cited agreements.
Canada reser ves the right to address additional measures and claims in the course of
consultations.
Canada looks forward to receiving the United States' reply to this request and to determining a
mutually convenient date for consultations.