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USTR Seeks Comments on WTO Dispute Over AD/CV Injury Investigations of Certain Softwood Lumber Products from Canada

The Office of the U.S. Trade Representative (USTR) has issued a notice stating that a World Trade Organization (WTO) dispute settlement panel (DSP) has been established at the request of Canada to examine whether the U.S. has implemented the recommendations and rulings of the WTO's Dispute Settlement Body (DSB) in a dispute involving the International Trade Commission's (ITC's) antidumping (AD) and countervailing (CV) injury investigations of certain softwood lumber products from Canada.

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Although the USTR's notice states that comments should be submitted on or before June 27, 2005, USTR sources state that it is currently still accepting comments.

(The USTR notes that the European Communities (EC) and China have indicated their interest to participate in this dispute as third parties.)

Canada Alleges ITC Failed to Make Injury Determinations Based on Facts, Etc.

According to the USTR, Canada alleges that the ITC failed to implement the recommendations and rulings of the DSB by (1) failing to make a determination of threat of material injury based on facts; (2) failing to demonstrate a causal relationship between allegedly dumped and subsidized imports of softwood lumber from Canada and threatened injury to the domestic industry; and (3) failing to examine in an unbiased and objective manner any and all known factors other than the allegedly dumped and subsidized imports that were injuring or threatening to injure the domestic industry.

Specifically, Canada alleges that the ITC's November 24, 2004 Section 129 determination and the International Trade Administration's (ITA's) December 20, 2004 notice of amended AD/CV duty orders are inconsistent with the U.S.' WTO obligations under certain agreements.

(See ITT's Online Archives or 12/06/04 news, 04120640, for BP summary of the ITC's Section 129 determination, etc. See ITT's Online Archives or 12/28/04 news, 04122899 6, for BP summary of ITA's notice of amended AD/CV duty orders.)

USTR contact - Theodore Posner (202) 395-3150

USTR notice (D/N WTO/DS-277, FR Pub 06/24/05) available at http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-12484.pdf