INTRODUCTION

Complaint of Canada

On 13 September 2002, Canada requested consultations with the Government of the United States pursuant to Article 4 of the DSU, Article XXII of the GATT 1994 and Article 17 of the AD Agreement, concerning the Final Determination of sales at less than fair value with respect to certain softwood lumber products from Canada published in the Federal Register on 2 April 2002, and amended on 22 May 2002, pursuant to section 735 of the Tariff Act.

On 11 October 2002, Canada and the United States held the requested consultations, but failed to reach a mutually satisfactory resolution of the matter.

On 6 December 2002, Canada requested the establishment of a panel to examine the matter.

Establishment and Composition of the Panel

At its meeting on 8 January 2003, the DSB established a Panel in accordance with Article 6 of the DSU and pursuant to the request made by Canada in document WT/DS264/2.

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 25 February 2003, the parties agreed to the following composition of the Panel:

The Panel was formally composed on 4 March 2003.

The European Communities, India and Japan reserved their third-party rights.

Panel Proceedings

The Panel met with the parties on 17-18 June 2003 and 11-12 August 2003. The Panel met with third parties on 18 June 2003.

On 16 January 2004, the Panel provided its interim report to the parties. See Section VI, infra.

FACTUAL ASPECTS

On 2 April 2001, an anti-dumping application was filed with DOC and the ITC by the Coalition for Fair Lumber Imports Executive Committee, the United Brotherhood of Carpenters and Joiners and the Paper, Allied-Industrial, Chemical and Energy Workers International Union, with the subject merchandise certain softwood lumber products imported from Canada.