INTRODUCTION

The United States and Canada each appeals certain issues of law and legal interpretations developed in the Panel Reports, Canada – Measures Relating to Exports of Wheat and Treatment of Imported Grain (the “Panel Report”).

On 6 March 2003, the United States requested the establishment of a panel to consider a complaint against Canada with regard to two categories of measures: one concerning the export of wheat by the Canadian Wheat Board (the “CWB”); and the other involving the treatment accorded by Canada to imports of grain. Specifically, the United States asserted that: (i) the Canadian Wheat Board Export Regime (the “CWB Export Regime”) is inconsistent with Canada's obligations under Article XVII:1 of the General Agreement on Tariffs and Trade 1994 (the “GATT 1994”); and (ii) certain measures relating to Canada's bulk grain handling system and to the transportation of grain by rail in Canada are inconsistent with Canada's obligations under Article III:4 of the GATT 1994 and Article 2 of the Agreement on Trade-Related Investment Measures (the “TRIMs Agreement ”). The Panel (the “March Panel”) was established by the DSB on 31 March 2003.

On 13 May 2003, Canada filed a preliminary submission requesting the March Panel to rule that the United States’ claim against the CWB Export Regime under Article XVII:1 of the GATT 1994 was not properly before the Panel because the United States’ panel request did not meet the requirements of Article 6.2 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (the “DSU”). On 25 June 2003, the March Panel issued a preliminary ruling finding that the United States’ request for the establishment of a panel “did not meet the requirements of Article 6.2 of the DSU because it did not adequately specify the Canadian laws and regulations addressed in the United States’ claim under Article XVII of the GATT 1994”.

The United States filed a second panel request on 30 June 2003. The second Panel (the “July Panel”) was established by the DSB on 11 July 2003 and it was agreed that the July Panel would be composed of the same panelists as the March Panel. The proceedings of the March and July Panels were harmonized pursuant to Article 9.3 of the DSU.