INTRODUCTION

On 20 December 2002, Canada requested consultations with the United States pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (“the DSU”), Article XXII of GATT 1994, Article 17 of the Agreement on Implementation of Article VI of GATT 1994 (“the Anti-Dumping Agreement”), and Article 30 of the Agreement on Subsidies and Countervailing Measures (“SCM Agreement”) concerning, inter alia, the United States International Trade Commission's (USITC) investigation and final determination in Softwood Lumber from Canada. The United States and Canada consulted on 22 January 2003, but failed to settle the dispute.

On 3 April 2003, Canada requested the Dispute Settlement Body (“the DSB”) to establish a panel pursuant to Articles 4 and 6 of the DSU, Article XXIII of the GATT 1994, Article 17 of the Anti-Dumping Agreement and Article 30 of the SCM Agreement.

At its meeting on 7 May 2003, the DSB established a panel in accordance with Article 6 of the DSU to examine the matter referred to the DSB by Canada in document WT/DS277/2. At that meeting the parties to the dispute also agreed that the panel should have standard terms of reference. The terms of reference are, therefore, the following:

On 12 June 2003, Canada requested the Director-General to determine the composition of the panel, pursuant to paragraph 7 of Article 8 of the DSU. On 19 June 2003, the Director-General composed the Panel as follows:

The European Communities, Japan and Korea reserved their rights to participate in the panel proceedings as third parties.

The Panel met with the parties on 4-5 September 2003 and on 7 October 2003. It met with the third parties on 5 September 2003.