Canada Seeking Right to Retaliate on Future AD/CVD Cases Using 'Adverse Facts' Standard

Canada complained at the World Trade Organization that the U.S. has neither proposed a period of time to comply with the ruling on supercalendered paper, nor said whether it will comply with the Dispute Settlement Body ruling at all (see 2002060059). So, as it did in April, Canada is asking for the right to retaliate for the damage done. The complaint was part of the regular Dispute Settlement Body meeting in Geneva on June 29.

The U.S. argues that the ruling was illegitimate for various reasons, but an arbitrator will decide on the appropriate level of retaliation. Because the countervailing duties were withdrawn in July 2018, Canada is arguing that it should be allowed to retaliate at the amount of damage from future countervailing duty cases against any Canadian good when the Commerce Department uses an “adverse facts available” standard.

The European Union, Japan, Australia, Japan, China, Mexico and Canada all said they disagree that the ruling was illegitimate, according to a Geneva trade official.