INTRODUCTION

The United States and Canada appeal certain issues of law and legal interpretations in the Panel Report United States – Final Dumping Determination on Softwood Lumber from Canada (the “Panel Report”). The Panel was established to consider a complaint by Canada concerning anti-dumping duties imposed by the United States on imports of certain softwood lumber products (“softwood lumber”) from Canada. Before the Panel, Canada challenged a number of aspects of the Final Determination by the United States Department of Commerce (“USDOC”) that led to the imposition of anti-dumping duties.

On 23 April 2001, USDOC initiated an anti-dumping investigation of imports of softwood lumber from Canada. Due to the large number of exporters of softwood lumber, USDOC limited its investigation to the six largest Canadian producers and exporters of that product, namely, Abitibi, Canfor, Slocan, Tembec, West Fraser, and Weyerhaeuser Canada. On 2 April 2002, USDOC published, in the United States Federal Register, a final anti-dumping duty order, which was subsequently amended on 22 May 2002. This order imposed antidumping duties on imports of softwood lumber from Canada, ranging from 2.18 per cent to 12.44 per cent. The final anti-dumping order contained a number of product exclusions. The factual aspects of this dispute are set out in greater detail in paragraphs 2.1 to 2.6 of the Panel Report.

The Panel considered claims by Canada that, in imposing anti-dumping duties on softwood lumber from Canada, the United States acted inconsistently with Articles 2, 2.1, 2.2, 2.2.1, 2.2.1.1, 2.2.2, 2.4, 2.4.2, 3, 5, 5.2, 5.3, 5.8, 6.10, 9, 9.3, and 18.1 of the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (the “Anti-Dumping Agreement”), as well as with Articles VI:I and VI:2 of the General Agreement on Tariffs and Trade 1994 (the “GATT 1994”). Canada asked the Panel to recommend that the Dispute Settlement Body (the “DSB”) request the United States to bring its measure into conformity with its obligations under the Marrakesh Agreement Establishing the World Trade Organization (the “WTO Agreement”), to revoke the antidumping order in respect of softwood lumber from Canada, and to return the cash deposits collected pursuant to the investigation and determination of dumping.