CANADA – ADDITIONAL DUTIES ON CERTAIN PRODUCTS FROM THE UNITED STATES REQUEST FOR THE ESTABLISHMENT OF A PANEL BY THE UNITED STATES
Document: REQUEST FOR THE ESTABLISHMENT OF A PANEL
Date: 19 October 2018
Document codes: WT/DS557/2
Complainant: U.S.
Respondent: Canada
Third parties: Brazil, China, Egypt, EU, Guatemala, India, Indonesia, Japan, Kazakhstan, Mexico, New Zealand, Norway, Russia, Singapore, South Africa, Switzerland, Taiwan, Thailand, Turkey, Ukraine, Venezuela
Dispute stage: Mutually Agreed Solution
Agreements cited: Art. I:1, II:1(a), II:1(b)  GATT 1994

CANADA – ADDITIONAL DUTIES ON CERTAIN PRODUCTS FROM THE UNITED STATES
REQUEST FOR THE ESTABLISHMENT OF A PANEL BY THE UNITED STATES
The following communication, dated 18 October 2018, from the delegation of the United States to
the Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.

On July 16, 2018, the United States requested consultations with the Government of Canada
("Canada") pursuant to Article 4 of the Understanding on Rules and Procedures Governing the
Settlement of Disputes ("DSU") and Article XXIII of the General Agreement on Tariffs and Trade
1994 ("GATT 1994"), with respect to Canada 's imposition of additional duties on certain products
originating in the United States ("additional duties measure").1 The United States held consultations
with Canada on October 3, 2018. Unfortunately, these consultations did not resolve the dispute.
The additional duties measure applies only to pro ducts originating in the United States. The
additional duties measure does not apply to like products originating in the territory of any other
WTO Member, and thus appears inconsistent with the most -favored nation obligation in Article I of
the GATT 1994. Moreover, the additional duties measure results in rates of duty greater than the
rates of duty set out in Canada's schedule of concessions, and thus appears inconsistent with Article
II of the GATT 1994.
The legal instruments through which Canada impos es the additional duties measure include the
following, operating separately or collectively:
1. Customs Notice 18-08 Surtaxes Imposed on Certain Products Originating in the
United States, Canada Border Services Agency, June 29, 2018, rev. July 11, 2018;
2. Countermeasures in Response to Unjustified Tariffs on Canadian Steel and
Aluminum Products, Department of Finance Canada Press Release, June 29, 2018;
3. Notice of Intent to Impose Countermeasures Action against the United States in
Response to Tariffs on Canadian Steel and Aluminum Products, Department of
Finance Canada Press Release, issued May 31, 2018;
4. United States Surtax Order (Steel and Aluminum), SOR/2018-152, Canada
Gazette, Part II, Volume 152, Number 14, July 11, 2018;
5. United States Surtax Order (Other Goods), SOR/2018-153, Canada Gazette, Part
II, Volume 152, Number 14, July 11, 2018;
as well as any amendments, replacements, related measures or implementing measures.
The additional duties measure appears to be inconsistent with Canada's obligations under:
• Article I:1 of the GATT 1994 because it fails to extend to products of the United States an
advantage, favor, privilege or immunity granted by Canada with respect to customs duties

1 WT/DS557/1.

and charges of any kind imposed on or in connection with the importation of products
originating in the territory of other Members;
• Article II:1(a) of the GATT 1994 because it accords less favorable treatment to products
originating in the United States than that provided for in Canada's schedule; and
• Article II:1(b) of the GATT 1994 because it imposes duties or charges in excess of those
set forth in Canada's schedule.
The additional duties measure appears to nullify or impair the benefits accruing to the United States
directly or indirectly under the GATT 1994.
Accordingly, the United States respectfully requests pursuant to Article 6 of the DSU that the Dispute
Settlement Body establish a panel to examine this matter, with the standard terms of reference as
set out in Article 7.1 of the DSU.