UNITED STATES – FINAL COUNTERVAILING DUTY DETERMINATION WITH .doc

World Trade Organization WT/DS257/AB/RW 5 December 2005 (05-5764) Original: English UNITED STATES – FINAL COUNTERVAILING DUTY DETERMINATION WITH RESPECT TO CERTAIN SOFTWOOD LUMBER FROM CANADA Recourse by canada to Article 21.5 of the DSU ab-2005-8 Report of the Appellate Body  I. Introduction 1 II. Arguments of the Participants and the Third Participants 6 A. Claims of Error by the United States – Appellant 6 B. Arguments of Canada – Appellee 12 C. Arguments of the Third Participants 16 1. China 16 2. European Communities 17 III. Issues Raised in this Appeal 19 IV. Scope of Article 21.5 of the DSU 20 A. Background and Procedural History 20 B. Introduction to the Principal Issue on Appeal 24 C. The Scope of Proceedings under Article 21.5 of the DSU 26 1. Text, Context, Object and Purpose 26 2. Examination of Previous Cases 30 3. Summary 32 4. Review of the Panels Approach 33 D. The Panels Application of Article 21.5 in this Case 34 E. Disposition of the Remaining Issues on Appeal 39 V. Findings and Conclusions 40 Annex I Notification of an Appeal by the United States under Article 16.4 and Article 17 of the DSU, and under Rule 20(1) of the ?Working Procedures for Appellate Review TABLE OF CASES CITED IN THIS REPORT Short Title Full Case Title and Citation Australia – Automotive Leather II (Article 21.5 – US) Panel Report, Australia – Subsidies Provided to Producers and Exporters of Automotive Leather – Recourse to Article 21.5 of the DSU by the United States, WT/DS126/RW and Corr.1, adopted 11 February 2000, DSR 2000:III, 1189 Australia – Salmon(Article 21.5 – Canada) Panel Report, Australia – Measures Affecting Importation of Salmon – Recourse to Article 21.5 of the DSU by Canada, WT/DS18/RW, adopted 20 March 2000, DSR 2000:IV, 2031 Canada – Aircraft (Article 21.5 – Brazil) Appellate Body Report, Canada – Measures Affecting the Export of Civilian Aircraft – Recourse by Brazil to Article 21.5 of the DSU, WT/DS70/AB/RW, adopted 4 August 200