WT/DS277/R

22 March 2004

United States – Investigation of the International Trade Commission in Softwood Lumber from Canada

   Complaint by Canada

Report of the Panel

 

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H.E. Mr. Hardeep Singh Puri (Chairperson)

Mr. Paul O'Connor

Ms. Luz Elena Reyes de la Torre

 

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$B#2!%(B$B#A#D6(Dj#3!%#1>r5Z$SJd=u6b6(Dj#1#5!%#1>r$N0cH??=N)!'!VZE*$J>Z5r!W5Z$S!V5R4QE*$J8!F$!W$K4X$9$k5AL3(B(Alleged Violations of Article 3.1 of the AD Agreement and Article 15.1 of the SCM Agreement – Obligations Regarding $B!H(BPositive Evidence$B!I(B and $B!H(BObjective Examination$B!I(B)

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$B#3!%(B$B#A#D6(Dj#3!%#8>r5Z$SJd=u6b6(Dj#1#5!%#8>r$N0cH??=N)!'!VFCJL$NCm0U!W$K4X$9$kMW7o(B(Alleged Violations of Article 3.8 of the AD Agreement and Article 15.8 of the SCM Requirements Regarding $B!H(BSpecial Care$B!I(B)

$B!!%Q%M%k$O!"r5Z$SJd=u6b6(Dj#1#5!%#8>r$K$D$$$F$OG'Dj$r9T$o$J$$$H=R$Y$?!#-!#A#D6(Dj#3!%#8>r5Z$SJd=u6b6(Dj#1#5!%#8>r$O!"B;32$N62$l$ND4::!&G'Dj$r?5=E$K9T$&(B(enhanced degree of attention)$B$3$H$r5a$a$F$$$k$,!"!VFCJL$NCm0U!W$,$I$NDxEY$N$b$N$J$N$+L@3N$G$O$J$/!"N>5,Dj$r8!F$$9$k$?$a$K$OB>$N5,Dj$H$N@09g@-$r$^$:?3::$9$kI,MW$,$"$k(B(7.33-34)$B!"-"$3$NE@%+%J%@$O#A#D6(Dj#3!%#8>r5Z$SJd=u6b6(Dj#1#5!%#8>r$K4X$9$k?=N)$N:,5r$H$J$k5DO@$rE83+$7$F$$$J$$$3$H$J$I$+$i!">e5-$G#A#D6(Dj#3!%#1>r5Z$SJd=u6b6(Dj#1#5!%#1>r$K$D$$$F=R$Y$?$N$HF1$8M}M3$G!"#A#D6(Dj#3!%#8>r5Z$SJd=u6b6(Dj#1#5!%#8>r$K$D$$$F$bG'Dj$O9T$o$J$$(B(7.35-36)$B!"-#$H$O$$$(!"$d$O$jB>$N?=N)$r8!F$$9$k:]$K#A#D6(Dj#3!%#8>r5Z$SJd=u6b6(Dj#1#5!%#8>r$K5,Dj$5$l$F$$$k5AL3$K$D$$$F==J,9MN8$KF~$l$J$1$l$P$J$i$J$$(B(7.37)$B!#(B

 

$B#4!%(B$B#A#D6(Dj#1#2>r5Z$SJd=u6b6(Dj#2#2>r$N0cH??=N)(B(Alleged Violations of Article 12 of the AD Agreement and Article 22 of the SCM Agreement)

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$B#5!%(B$B#A#D6(Dj#3!%#7>r5Z$SJd=u6b6(Dj#1#5!%#7>r0cH??=N)(B(Alleged Violations of Article 3.7 of the AD Agreement and Article 15.7 of the SCM Agreement)

$B!V>u67$NJQ2=!W(B($B!H(BChange in circumstances$B!I(B)

$B!!%Q%M%k$O!"u67$NJQ2=$rFCDj$7$J$+$C$?$3$H$O#A#D6(Dj#3!%#7>r5Z$SJd=u6b6(Dj#1#5!%#7>r$KH?$9$k$H$N%+%J%@$Nr5Z$SJd=u6b6(Dj#1#5!%#7>r$N!V>u67$NJQ2=!W$H$O!"L@$i$+$KM=8+$5$l$+$D:9$7Gw$C$?$b$N$G!"B;32$,H/@8$9$k$h$&$J;vBV$r@8$:$k$b$N$G$J$1$l$P$J$i$:(B(some $B!H(Bchange of circumstances$B!I(B must be clearly foreseen and imminent, and that it is this change of circumstances that would create a situation in which injury would occur)$B!"$^$?#A#D6(Dj#3!%#7>rCm$r$"$o$;$F9MN8$9$k$H!">u67$NJQ2=$H%@%s%T%s%0M"F~$"$k$$$OJd=u6bM"F~!JJd=u6b$N8rIU$ru67$NJQ2=$G$"$k$HF1;~$KB;32$N62$l$rG'Dj$9$k:]$K9MN8$9$Y$-MW0x$G$b$"$k(B(both the change of circumstances, and further dumped or subsidized imports, must be imminent, and the likelihood of increased imports is both a relevant change of circumstances and a factor to be considered in determining the existence of threat)(7.53-54)$B!"-"0J>e$N$h$&$K>u67$NJQ2=$OL@$i$+$KM=8+$5$l$+$D:9$7Gw$C$?$b$N$G$J$1$l$P$J$i$:!"$=$N$h$&$J>u67$NJQ2=$OB;32$N62$l$NG'Dj$K$*$$$F9MN8$9$Y$-MWAG$N$R$H$D$G$"$k$,!"Ev6I$O$R$H$D$N6qBNE*$J=PMh;v$r>u67$NJQ2=$H$7$FFCDj$9$k$3$H$O5AL3IU$1$i$l$F$$$J$$(B(7.55-58)$B!"-#K\7o$K$*$$$F#I#T#C$O!">u67$N7P2a$K$D$$$F9MN8$7$F$$$k$H$$$($k(B(7.60)$B!#(B

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$B#6!%#A(B$B#D6(Dj#3!%#2>r5Z$S#3!%#4>r$HJd=u6b6(Dj#1#5!%#2>r5Z$S#1#5!%#4>r0cH??=N)(B(Alleged Violations of Articles 3.2 and 3.4 of the AD Agreement and Articles 15.2 and 15.4 )

$B!!%Q%M%k$O!"r5Z$S#3!%#4>r!"Jd=u6b6(Dj#1#5!%#2>r5Z$S#1#5!%#4>r$K0cH?$7$F$$$J$$$H7kO@$7$?!#-!(BMexico – HFCS$B%Q%M%kJs9p$+$iL@$i$+$J$h$&$K!"#A#D6(Dj#3!%#4>r5Z$SJd=u6b6(Dj#1#5!%#4>r$KNs5s$5$l$F$$$kMW0x$K4p$E$-9qFb;:6H$N>uBV$rI>2A$7!"$3$l$rF'$^$($FB;32$N62$l$NG'Dj$r9T$o$J$1$l$P$J$i$J$$$,(B(there must, in every case in which threat of material injury is found, be an evaluation of the condition of the industry in light of the Article 3.4/15.4 factors to establish the background against which the impact of future dumped/subsidized imports must be assessed)$B!"FC$KB;32$N62$l$NG'Dj$K$*$$$F>-Mh$NM"F~$N1F6A$rM=B,$9$k:]$K:FEY$3$l$i$NMW0x$NF08~$K$D$$$FM=B,$7$J$1$l$P$J$i$J$$$H$$$&$o$1$G$O$J$$(B(once such an analysis has been carried out, we do not read the relevant provisions of the Agreements to require an assessment of the likely impact of future imports by reference to a consideration of projections regarding each of the Article 3.4/15.4 factors)(7.105)$B!"-"#I#T#C$O!"#A#D6(Dj#3!%#4>r5Z$SJd=u6b6(Dj#1#5!%#4>r$NMW0x$N8!F$$K4p$E$-B;32$N62$l$rG'Dj$7$?>e$G!"#A#D6(Dj#3!%#7>r5Z$SJd=u6b6(Dj#1#5!%#7>r$KNs5s$5$l$F$$$kMW0x$N8!F$$r9T$C$F$$$k(B(7.106)$B!"-##A#D6(Dj#3!%#2>r5Z$SJd=u6b6(Dj#1#5!%#2>r$K5,Dj$5$l$kMW0x$K$D$$$F$b!"#A#D6(Dj#3!%#4>r5Z$SJd=u6b6(Dj#1#5!%#4>r$KNs5s$5$l$F$$$kMW0x$HF1MM!"B;32$N62$l$NG'Dj$KEv$?$C$F$3$l$i$NMW0x$rD>@\9MN8$7$J$1$l$P$J$i$J$$$o$1$G$O$J$$(B(we see even less basis for concluding that they must be directly considered in a "predictive" context in making a threat of material injury determination)(7.111)$B!#(B

 

$B#7!%#A#D6(Dj#3!%#5>r5Z$S#3!%#7>r$HJd=u6b6(Dj#1#5!%#5>r5Z$S#1#5!%#7>r0cH??=N)(B(Alleged Violations of Articles 3.5 and 3.7 of the AD Agreement and Articles 15.5 and 15.7 of the SCM Agreement)

$B0x2L4X78(B(Alleged failure to demonstrate a causal relationship)

$B!!%Q%M%k$O!"M"F~$NAjEv$JA}2C$K$D$$$F$N#I#T#CG'Dj$K$D$$$F#A#D6(Dj#3!%#7>r5Z$SJd=u6b6(Dj#1#5!%#7>r0cH?$rG'Dj$7$?$3$H$+$i!"0x2L4X78$K4X$9$k#I#T#C$NG'Dj$bEvA3$K#A#D6(Dj#3!%#5>r5Z$SJd=u6b6(Dj#1#5!%#5>r$K0cH?$7$F$$$k$H7kO@$7$?(B(7.122)$B!#(B

$BHs5"@U(B(Alleged absence of the required non-attribution analysis)

$B!!%Q%M%k$O!"r5Z$SJd=u6b6(Dj#1#5!%#5>r$K@09gE*$G$J$$$H7kO@$7$?(B$B!#-!(BUS – Hot-Rolled Steel$B>e5i0QJs9p$K$h$l$P!"Ev6I$O%@%s%T%s%0M"F~$K$h$k9qFb;:6H$X$N1F6A$H$=$NB>$NMW0x$K$h$k9qFb;:6H$X$N1F6A$r6hJL(B(separating and distinguishing)$B$7$J$1$l$P$J$i$J$$$,!"$=$NJ}K!$K$D$$$F$O<+M3$KA*$V$3$H$,=PMh$k(B(7.130)$B!"-"$9$G$K0x2L4X78G'Dj$K$D$$$F6(Dj0cH?$rG'Dj$7$F$$$k$3$H$+$i!"2~$a$FHs5"@UJ,@O$N6(Dj@09g@-$K$D$$$F8!F$$9$k$3$H$O0UL#$,$J$$$+$b$7$l$J$$$,!"Hs5"@UJ,@O$N=EMW@-$J$I$KG[N8$7!"#I#T#C$NHs5"@UJ,@O$NLdBj$K$D$$$F$N%Q%M%k$N7|G0$r0J2<$K<($9$3$H$H$9$k(B(In order to elucidate our views should the Appellate Body reach the question and give some guidance should the issue arise in implementation, and in view of the fundamental significance of the non-attribution requirement, we set out our concerns below)(7.132)$B!"-#$9$J$o$A#I#T#C$O!"D4::$NBP>]$H$J$C$F$$$J$$9q$+$i$NM"F~A}(B$B2C$dJF9qFb$N2a>j@8;:$rF'$^$($F!"8=:_$O(no present material injury)$B$H$NG'Dj$r9T$C$?$K$b$+$+$o$i$:!"B;32$N62$l$NG'Dj$N:]$K$O!"D4::$NBP>]$H$J$C$F$$$J$$9q$+$i$NM"F~$dJF9qFb$N2a>j@8;:$K$D$$$FJ,@O$7$F$*$i$:!"$7$?$,$C$F9qFb;:6H$KB;32$rM?$($F$$$k$=$NB>$NMW0x$K$D$$$F8!F$$7$?$H$O$$$($J$$(B(7.132-136)$B!#(B

 

$B#8!%#A#D5Z$S#C#V#D0lBN$H$7$F$NB;32G'Dj$K$D$$$F$NJd=u6b6(Dj5Z$S#A#D6(Dj0cH??=N)(B(Alleged Violations of the SCM Agreement and the AD Agreement in the USITC$B!G(Bs Combined Injury Analysis)

$B!!%Q%M%k$O!"r!"#9!%#1>r!"#1#8!%#1>r!"Jd=u6b6(Dj#1#0>r!"#3#2!%#1>r$K0cH?$7$F$$$k$H$N%+%J%@$N?=N)$K$D$$$F$OG'Dj$r9T$o$J$$!#-!%+%J%@$O!"#A#D5Z$S#C#V#D$NB;32J,@O!&G'Dj$r0lBN$H$7$F9T$C$?$3$H<+BN$rLdBj$H$7$F$$$k$o$1$G$O$J$$$H=R$Y$F$$$k(B(7.145)$B!"-"$"$kG'Dj$,#A#D6(Dj$b$7$/$OJd=u6b6(Dj$N$$$:$l$+$K0cH?$7$F$$$k$H$N7kO@$,=P$5$l$l$P!"EvA3$K$=$NG'Dj$O$b$&0lJ}$N6(Dj$K$b0cH?$7$F$$$k$H$N%+%J%@$N(7.146)$B!"-#$7$+$7!"-"$r$b$C$F#A#D6(Dj#1>r!"#9!%#1>r!"#1#8!%#1>r!"Jd=u6b6(Dj#1#0>r!"#3#2!%#1>r0cH?$rG'Dj$G$-$k$o$1$G$O$J$/!"$^$?$3$l$i$N5,Dj$K$D$$$F%Q%M%k$,G'Dj$r9T$C$F$b$3$l$i5,Dj$NE,MQHO0O$rL@$i$+$K$7$?$j#D#S#B!JJ6Ah2r7h5!4X!K4+9p(such a finding would neither elucidate the scope of these provisions nor assist in any meaningful way in implementation of any recommendation of the DSB.  Therefore, in these circumstances, we consider that it is neither appropriate nor necessary to make findings on these claims)(7.147)$B!#(B

 

 

*$B%Q%M%k$N(B$B7kO@5Z$S4+9p(B

$B0J>e$h$j!"%Q%M%k$O

(a) $B#I#T#C$NM"F~$NAjEv$JA}2C$K4X$9$kG'Dj$O!"#A#D6(Dj#3!%#7>r5Z$SJd=u6b6(Dj#1#5!%#7>r$K0cH?$7$F$$$k!##I#T#CG'Dj$N$=$NB>$NB&LL$K$D$$$F$O!"N>5,Dj$K0cH?$7$F$$$J$$!#(B

(b) $B#I#T#C$N0x2L4X78$K4X$9$kG'Dj$O!"#A#D6(Dj#3!%#5>r5Z$SJd=u6b6(Dj#1#5!%#5>r$K0cH?$7$F$$$k!##I#T#CG'Dj$N$=$NB>$NB&LL$K$D$$$F$O!"N>5,Dj$H$N@09g@-$rG'Dj$9$k$3$H$OI,MW$G$bE,@Z$G$b$J$$!#(B

(c) $B#I#T#CG'Dj$O#A#D6(Dj#3!%#2>r5Z$S#3!%#4>r!"Jd=u6b6(Dj#1#5!%#2>r5Z$S#1#5!%#4>r$K0cH?$7$F$$$J$$!#(B

(d) $B#A#D6(Dj#1>r!"#3!%#1>r!"#3!%#8>r!"#1#2>r!"#1#8!%#1>r!"Jd=u6b6(Dj#1#0>r!"#1#5!%#1>r!"#1#5!%#8>r!"#2#2>r!"#3#2!%#1>r!"#1#9#9#4G/$N#G#A#T#T#6!%#6>r(B(a)$B$K$D$$$F$O!"$3$l$i$K$D$$$F$N%+%J%@$N?=N)$r8!F$$9$k$3$H$OI,MW$G$bE,@Z$G$b$J$$!#(B

 

$B%Q%M%k$O!"#D#S#U#3!%#8>r$K4p$E$-!"JF9q$N#A#D6(Dj5Z$SJd=u6b6(Dj0cH?$K$h$j%+%J%@$NN>6(Dj>e$NMx1W$,L58z2=!&?/32$5$l$F$$$k$H=R$Y$?!#%Q%M%k$O!"#D#S#B$,JF9q$KBP$7$FEv3:A

 

$B%+%J%@$O!"%Q%M%k$KBP$7$F#D#S#U#1#9!%#1>r$K4p$E$-4+9p$Nr$K8@5Z$7$D$D!"r$K4p$E$/Ds0F$r9T$o$J$$$H=R$Y$?(B(the choice of means of implementation is decided, in the first instance, by the Member concerned.  In this case, we see no particular need to suggest a means of implementation, and therefore decline to do so)$B!#(B

 

 

©  2004  Yuka Fukunaga  All Rights Reserved