uNITED STATES – COUNTERVAILING DUTY
INVESTIGATION WITH
RESPECT TO LIVE CATTLE FROM CANADA
Request for Consultations by Canada
The
following communication, dated 19 March 1999, from the Permanent Mission of
Canada to the Permanent Mission of the United States and to the Chairman of the
Dispute Settlement Body, is circulated in accordance with Article 4.4 of the
DSU.
_______________
My
authorities have requested me to request consultations with the Government of
the United States pursuant to Article 4 of the Understanding on Rules and
Procedures Governing the Settlement of Disputes (DSU), Article XXII of the
General Agreement on Tariffs and Trade 1994 (GATT 1994), Article 30 of the
Agreement on Subsidies and Countervailing Measures (to the extent that it
incorporates by reference Article XXII of GATT 1994), and Article 19 of the
Agreement on Agriculture (to the extent that it incorporates by reference
Article XXII of GATT 1994) concerning the initiation of a countervailing duty
investigation by the US Department of Commerce on 22 December 1998 with
respect to live cattle from Canada.
In
Canada's view, the initiation of this investigation is inconsistent with US
obligations under the SCM Agreement. Such inconsistencies include the fact that
the written application filed with the Department of Commerce was not made by
or on behalf of the domestic industry.
Moreover, there was not
sufficient information provided with respect to the measures or actions alleged
to be subsidies for purpose of initiating an investigation under the SCM
Agreement.
In
addition, the measures or actions alleged to be subsidies, are either not, in
law or in fact, subsidies within the meaning of the SCM Agreement, or do not
confer more than a de minimis level
of countervailable subsidy.
Canada
is also of the view that this initiation is inconsistent with US obligations
under the Agreement on Agriculture relating to "due restraint".
The
specific provisions of the Agreements with which the initiation of this
investigation is inconsistent include the following:
(i) Articles 1, 2, 10, 11.1 to 11.5 and 13.1 of the
SCM Agreement; and
(ii) Article 13 of the Agreement on
Agriculture.
We
look forward to receiving your reply to this request and to selecting a
mutually acceptable date for holding consultations within 30 days from the date
of receipt of this request. Canada
welcomes any suggestions the United States may wish to make concerning dates on
which the consultations could take place.