CANADA – CONTINUED SUSPENSION OF OBLIGATIONS IN THE EC – HORMONES DISPUTE
Document: Notification of an Other 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 23(1) of the Working Procedures for Appellate Review
Date: 16 June 2008
Document codes: WT/DS321/13
Complainant: EU
Respondent: Canada
Third parties: Australia, Brazil, China, Taiwan, India, Mexico, New Zealand, Norway, U.S.
Dispute stage: Appellate Body
Agreements cited: Art. I, II  GATT 1994Art. 3.7, 22, 23.1, 23.2, 21.5  Dispute Settlement Understanding (DSU)

CANADA – CONTINUED SUSPENSION OF OBLIGATIONS IN THE
EC – HORMONES DISPUTE

Notification of an Other 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 23(1) of the Working Procedures for Appellate Review

 The following notification, dated 10 June 2008, 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 paragra ph 1 of Rule 23 of the Working
Procedures for Appellate Review , the Government of Canada here by submits its Notice of Other
Appeal concerning certain other issues of law covered in the Panel Report on () and certain legal
interpretations developed by the Panel.

 In the view of the Government of Canada, th e Panel erred in interpreting Article 23 of the
DSU in isolation from Article 22.8 of the DSU a nd committed an error in law by applying, in
particular, Article 23.1 and 23.2(a) of the DSU to th e situation of post-retaliation in this case. These
errors are contained in paragraphs 7.162 to 7.164, 7.189 to 7.244 and 7.841 of the Panel Report.

 The Government of Canada is also of the vi ew that the Panel erred in finding that by
continuing to suspend concessions vis-à-vis the European Communities following its notification to
the Dispute Settlement Body of Directive 2003/74/ EC Canada was: (i) seeking the redress of a
violation of obligations under a covered agreement without having recourse to, and abiding by, the
rules and procedures of the DSU in violation of Article 23.1 of the DSU; and (ii) making a
determination to the effect that a violation had occurred without having recourse to dispute settlement
in accordance with the rules and procedures of the DS U, in violation of Article 23.2(a) of the DSU.
These errors are due to the Panel’s misinterpretati on of the legal basis for Canada’s suspension of
concessions. The Panel’s findings and corresponding reasoning are contained in paragraphs 7.841
and 7.189 to 7.244 of its report.

 In the alternative, should the Appellate Body confirm the findings of the Panel in respect of
DSU Article 23.1 and 23.2(a) in relation to Canada, the Government of Canada submits that the Panel
erred in stating that it did not have jurisdiction to determine the compatibility of Directive 2003/74/EC
with the covered agreements and by making the sugg estion that Canada should have recourse to the
rules and procedures of the DSU without delay in order to implement its fi ndings under Article 23 of
the DSU. These statements are contained in paragr aph 8.3 of the Panel Report and are contrary to
Articles 3.3, 3.7, 19.2 and 22.8 of the DSU.

 The Government of Canada respectfully request s the Appellate Body to reverse the findings
and conclusions of the Panel referred to above a nd to modify accordingly the recommendations of the
Panel.