UNITED STATES – FINAL DUMPING DETERMINATION ON SOFTWOOD LUMBER FROM CANADA
Document: Recourse to Article 21.5 of the DSU by Canada Request for the Establishment of a Panel
Date: 20 May 2005
Document codes: WT/DS264/16
Complainant: Canada
Respondent: U.S.
Third parties: China, EU, India, Japan, New Zealand, Thailand
Dispute stage: Mutually Agreed Solution
Agreements cited: Art. 1, 2, 4, 5, 9  Anti-dumpingArt. VI  GATT 1994Art. 18  Anti-dumping

UNITED STATES – FINAL DUMPING DETERMINATION ON
SOFTWOOD LUMBER FROM CANADA

Recourse to Article 21.5 of the DSU by Canada

Request for the Establishment of a Panel

 The following communication, dated 19 May 2005, from the delegation of Canada to the
Chairman of the Dispute Settlement Body, is circulated pursuant to Article 21.5 of the DSU.

 On 31 August 2004, the Dispute Settlement Body ("DSB") adopted the panel and Appellate
Body Reports in .
1
The panel and Appellate Body found that the United States acted "inconsistently with Article 2.4.2 of
the Anti-Dumping Agreement in determining the existence of dumping on the basis of a methodology
incorporating the practice of ‘zeroing'". 2 The panel and the Appellate Body recommended that the
United States bring its measure into conf ormity with its obligations under the Agreement on
Implementation of Article VI of th e General Agreement on Tariffs and Trade (" Anti-Dumping
Agreement").

 On 6 December 2004, Canada and the Un ited States reached agreement pursuant to
Article 21.3(b) of the Understanding on Rules and Procedures Go verning the Settlement of Disputes
("DSU") on a "reasonable period of time" to comply with the recommendations and rulings of the
DSB.
3 The United States confirmed in this agreemen t that it would complete implementation no later
than 15 April 2005. Canada and the United Stat es subsequently agreed to extend the "reasonable
period of time" until 2 May 2005.4

 In November 2004 the United States commenced implementation proceedings in accordance
with section 129(b) of the Uruguay Round Agreements Act.
5 On 15 April 2005, the US Department of
Commerce ("Commerce") released its final section 129 determination, which purported to implement
the recommendations and rulings of the DSB. In the final section 129 determination, Commerce

1 Dispute Settlement Body, Minutes of Meeting (31 August 2004) , WT/DSB/M/175, 24 September
2004, at para. 4. Also see ,
Report of the Appellate Body, WT/DS264/AB/R, adopted 31 August 2004; ["Appellate Body Report"] and
 , Report of the Panel,
WT/DS264/R, adopted 31 August 2004. ["Panel Report"]
2 Appellate Body Report, at para. 183(a); and Panel Report, at para. 8.1(a)(i).
3 , Agreement under
Article 21.3(b) of the DSU, WT/DS264/12, 8 December 2004.
4 , Agreement under
Article 21.3(b) of the DSU, WT/DS264/15, 17 February 2005.
5 19 U.S.C. § 3538(b)(2).

again determined the existence of dumping on the basis of a methodology incorporating the practice
of "zeroing".
6

 Canada considers that the United States has fa iled to comply with the recommendations and
rulings of the DSB, as the use of "zeroing" under the section 129 determination is inconsistent with
Articles 2.4 and 2.4.2 of the Anti-Dumping Agreement.7 The following measures are at issue in these
proceedings:

• Notice of Determination Under Section 129 of the Uruguay Round Agreements Act;
Antidumping Measures Concerning C ertain Softwood Lumber Products From
Canada; and
8

• Notice of Amended Final Determination of Sales at Less Than Fair Value and
Antidumping Duty Order: Certain Softwood Lumber Products from Canada.9

 As there is a disagreement as to the existen ce or consistency with a covered agreement of
measures taken to comply with the rulings and r ecommendations of the DSB, Canada seeks recourse
to Article 21.5 of the DSU in this matter. Accordingly, Canada requests that a special meeting of the
DSB be held on 1 June 2005 to consider the following agenda item:

 Recourse by Canada to Article 21.5 of the Understanding on Rules and Procedures
Governing the Settlement of Disputes.

Measures Concerning Certain Softwood Lumber Products From Canada, 70 Fed. Reg. 22,636 (2 May 2005)
7 Ibid.
8 Ibid.
9 67 Fed. Reg. 36,068 (22 May 2002).