18 January 2001

Canada Announces WTO Consultations with the US

On 17 January Canada announced that it has requested consultations with the United States on legislation that prohibits the US from fully implementing WTO rulings in trade remedy cases. Section 129(c)(1) of the Uruguay Round Agreements Act provides that where, in response to an adverse WTO ruling, the US Trade Representative (USTR) directs the US Department of Commerce to revoke an anti- dumping or countervailing duty order, the new WTO-consistent determination and the revocation apply only to imports after the date on which the USTR directs compliance.

The measures require US authorities to disregard a WTO ruling in making an anti-dumping or countervailing duty determination for imports that occurred prior to the date on which the USTR directs compliance with the WTO ruling. The actual amount of duty liability for any given shipment normally is decided in the administrative review, and the Department of Commerce's final determination in the proceeding. This determination would occur after the compliance date. As such, the measures bar the refunding of certain anti-dumping/countervailing duty deposits which are required under US law, where the WTO has ruled the levying of such duties to be inconsistent with the WTO Agreement.