UNITED STATES – CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000
Document: Recourse by Canada to Article 22.7 of the DSU
Date: 11 November 2004
Document codes: WT/DS234/31
Complainant: Canada, Mexico
Respondent: U.S.
Third parties: Argentina, Australia, Brazil, Costa Rica, EU, Hong Kong, India, Indonesia, Israel, Japan, South Korea, Norway, Thailand
Dispute stage: Implementation & Compliance
Agreements cited: Art. 5.4  Anti-dumpingArt. 5  Subsidies and Countervailing Measures (SCM)Art. VI  GATT 1994Art. 8, 18  Anti-dumpingArt. 11.4, 18, 32  Subsidies and Countervailing Measures (SCM)Art. XVI  Agreement Establishing the World Trade OrganizationArt. 10  Subsidies and Countervailing Measures (SCM)Art. X  GATT 1994Art. 1  Anti-dumping

UNITED STATES – CONTINUED DUMPING AND
SUBSIDY OFFSET ACT OF 2000

Recourse by Canada to Article 22.7 of the DSU

 The following communication, dated 10 Nove mber 2004, from the delegation of Canada to
the Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 22.7 of the DSU.

 Canada requests that the meeting of the Dispute Settlement Body on 24 November 2004
consider the following agenda item:

Recourse by Canada to Article 22.7 of th e Understanding on Rules and Procedures
Governing the Settlement of Disputes

 The Panel and the Appellate Body found that the Continued Dumping and Subsidy Offset Act
of 2000 ("CDSOA") was inconsistent with th e United States' obligations under the General
Agreement on Tariffs and Trade 1994 ("GATT 1994"), the Agreement on Implementation of
Article VI of the General Agreement on Tariffs and Trade 1994, the Agreement on Subsidies and
Countervailing Measures and the Marrakesh Agreemen t establishing the .
On 27 January 2003, the Dispute Settlement Body ("DSB") adopted the Appellate Body report and
the Panel report as modified by the Appellate Body report. The United States stated that it intended to
implement the recommendations and rulings of the DSB but failed to do so within the reasonable
period of time, as determined by the arbitrator pur suant to Article 21.3(c) of the Understanding on
Rules and Procedures Governing the Settlement of Disputes ("DSU"), which expired on
27 December 2003.

 Consequently, on 15 January 2004, Canada requested the authorization to suspend the
application to the United States of tariff concessi ons and related obligati ons under GATT 1994 in an
amount to be determined every year on the basis of the amount of offset payments made to affected
domestic producers in the latest annual distribu tion of anti-dumping and countervailing duties under
the CDSOA.

 On 23 January 2004, the United States objected to the level of suspension proposed and on
26 January 2004, pursuant to Article 22.6 of the DS U, the matter was referred to arbitration. On
31 August 2004, the arbitrator issued its decision as follows:

V. AWARD OF THE ARBITRATOR
5.1 For the reasons set out above, we determine that, in the matter (Original Complaint by
Canada), the level of nullification or impairment suffered by Canada in a particular
year can be deemed to be equal to the total of disbursements made under the CDSOA
for the preceding year relating to anti-dumping or countervailing duties paid on
imports from Canada, multiplied by the coefficient identified in Section III.D above.
5.2 Accordingly, we decide that the suspension by Canada of concessions or
other obligations in the form of:
(a) the imposition of additional import duties above bound
custom duties on products originating in the United States;
and
(b) the suspension of the application of the obligations under
ArticleVI of GATT 1994, Articles 3, 5, 7, 8, 9, 10, 11 and 12
of the Anti-Dumping Agreement, and Articles 11, 12, 15, 17,
18, 19, 20, 21 and 22 of the SCM Agreement to determine
that the effect of dumping or subsidization of products from
the United States is to cause or th reaten material injury to an
established domestic injury, or is to retard materially the
establishment of a domestic industry;
covering, on a yearly basis, a total value of trade not exceeding, in US dollars, the
amount resulting from the following equation:
Amount of disbursements under CDSOA for the most recent year for
which data are available relating to anti-dumping or countervailing
duties paid on imports from Canada at that time, as published by the
United States' authorities.
multiplied by:
0.72
would be consistent with Article 22.4 of the DSU.
 To date, the United States has still not impl emented the recommendations and rulings of the
DSB with respect to the CDSOA, and no mutually acceptable arrangement has been made.

 Article 22.7 of the DSU provides that "the DSB shall be informed promptly of the decision of
the arbitrators and shall upon request, grant authori zation to suspend concessions or other obligations
where the request is consistent with the deci sion of the arbitrator, unless the DSB decides by
consensus to reject the request." Therefore, Cana da hereby requests authorization from the DSB to
suspend the application to the United States of ta riff concessions and related obligations under GATT
1994 at a level not exceeding every year 72% of the amount of CDSOA disbursements relating to
anti-dumping or countervailing duties paid on imports from Canada for the most recent year for which
data are available at that time.

 Canada will annually notify the DSB of the terms of any measures it proposes to adopt in
order to suspend its concessions or other obligations prior to bringing those measures into force. Such

notice will also identify the applicable level of su spension of concessions or other obligations for the
following year established pursuant to the arbitrator's formula.