UNITED STATES – ANTI-DUMPING MEASURES APPLYING DIFFERENTIAL PRICING METHODOLOGY TO SOFTWOOD LUMBER FROM CANADA REQUEST FOR THE ESTABLISHMENT OF A PANEL BY CANADA
Document: REQUEST FOR THE ESTABLISHMENT OF A PANEL
Date: 16 March 2018
Document codes: WT/DS534/2
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 THE ESTABLISHMENT OF A PANEL BY CANADA
The following communication, dated 15 March 2018, from the delegation of Canada to the
Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.

On 28 November 2017, the Government of Canada ("Canada") requested consultations with the
Government of the United States of America (the "United States" or "U.S.") 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 Trad e 1994 ("GATT 1994") and
Article 17 of the Agreement on Implementation of Article VI of the General Agreement on Tariffs
and Trade 1994 ("Anti-Dumping Agreement"), with respect to the U.S. anti -dumping measures
applying the Differential Pricing Methodology to softwood lumber products from Canada.
Canada held consultations with the United States on 17 January 2018. These consultations failed
to settle the dispute.
I. THE US ANTI -DUMPING MEASURES APPLYING THE DIFFERENTIAL PRICING
METHODOLOGY TO SOFTWOOD LUMBER PRODUCTS FROM CANADA
The U.S. 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. Certain Softwood Lumber Products From Canada: Antidumping Duty Order and Partial
Amended Final Determination, 83 Fed. Reg. 350 (January 3, 2018);
3. 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
4. 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.
In particular, the DPM affected the margins 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 STATES ' 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 U.S. obligations under the Anti-Dumping Agreement, including:
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; and
2. Articles 2.4 and 2.4.2 of the Anti-Dumping Agreement as the United States applied zeroing
in its W-T calculation methodology 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 pattern
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 and 2 also resulted in the application of anti -
dumping measures that are inconsistent with Articles 1 and 2.1 of the Anti -Dumping Agreement
and Articles VI:1 and VI:2 of the GATT 1994.
The United States' anti -dumping measures in Certain Softwood Lumber from Canada nullify or
impair benefits accruing to Canada directly or indirectly under the cited agreements.
Canada therefore respectf ully requests, pursuant to Article 4.9 and Article 6 of the DSU and
Articles 17.4 and 17.5 of the Anti-Dumping Agreement, that the Dispute Settlement Body establish
a panel to examine this matter on an urgent basis, with the standard terms of reference as set out
in Article 7.1 of the DSU. In accordance with Article 10.4 of the DSU, Canada also requests this
matter be referred to the original panel that considered the DPM in United States — Anti-Dumping
and Countervailing Measures on Large Residential Washers from Korea.
Canada asks that this request be placed on the agenda for the meeting of the Dispute Settlement
Body to be held on 27 March 2018.