UNITED STATES – FINAL DUMPING DETERMINATION ON SOFTWOOD LUMBER FROM CANADA
Document: Recourse to Article 21.5 of the DSU by Canada Notification of an Appeal by Canada under Article 16.4 and Article 17 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), and under Rule 20(1) of the Working Procedures for Appellate Review
Date: 17 May 2006
Document codes: WT/DS264/25
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

Notification of an Appeal by Canada
under Article 16.4 and Article 17 of the Understanding on Rules
and Procedures Governing the Settlement of Disputes (DSU),
and under Rule 20(1) of the Working Procedures for Appellate Review

 The following notification, dated 17 May 2006, from the Delegation of Canada, is being
circulated to Members.

Pursuant to paragraph 4 of Article 16 of the Understanding on Rules and Procedures
Governing the Settlement of Disputes (the "DSU") and Rule 20 of the Working Procedures for
Appellate Review, Canada appeals certain issues of law and certain legal in terpretations covered in
the Panel Report in
– Recourse to Article 21.5 of the DSU by Canada.
1

The Panel found that the U.S. Department of Commerce's ("USDOC") section 129 dumping
determination on softwood lumber was not inc onsistent with Articles 2.4.2 and 2.4 of the Agreement
on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 ("ADA").
2
Consequently, the Panel determined that the United States had implemented the rulings and
recommendations of the Dispute Settlement Body ("DSB"). 3 These findings are in error as they are
based on erroneous findings on issues of law and related legal interpretations.

Canada requests that the Appellate Body review , and reverse, these findings of the Panel.
Specifically, Canada asks the Appellate Body to find:

1 Report of the Panel, , circulated April 3, 2006.
2 Ibid., at paras. 5.27-5.28, 5.30, 5.65-5.66, 5.78, 6.1.
3 Ibid., at para. 6.2. See DSB, Minutes of Meeting (31 August 2004) , WT/DSB/M/175, September 24,
2004, 4(a), at para. 42.

• first, the Panel erred in interpreting Article 2.4.2 to permit the USDOC to treat
transaction-specific comparisons that result in a negative value ( i.e., non-dumped
transactions) as zero in calculating "margins of dumping" under the transaction-to-
transaction methodology. These erroneous findings appear throughout the panel
report including paragraphs 5.17-5.30, 5.65-5.66, and 6.1
4; and

• second, the Panel erred in finding that Article 2.4 permits the treatment of
transaction-specific comparisons that result in a negative value as zero in the
calculation of "margins of dumping" under the transaction-to-transaction
methodology. These findings are set out in paragraphs 5.72-5.78 and 6.1 of the panel
report.

In the light of these errors, Canada respectfully requests that the Appellate Body:

• reverse the findings of the Panel set out above;

• find that the USDOC's use of zeroing u nder the transaction-to-transaction
methodology in the section 129 determinati on, as described above, is inconsistent
with Articles 2.4.2 and 2.4 of the ADA; and

• determine that, as a consequence, the United States has failed to implement the
recommendations and rulings of the DSB.

Determination Under Section 129 of the Uruguay Round Agreements Act; Antidumping Measures Concerning
Certain Softwood Lumber Products From Canada , 70 Fed. Reg. 22,636 at 22,639 (Dep't Commerce May 2,
2005).