CANADA – MEASURES AFFECTING THE IMPORTATION OF MILK

AND THE EXPORTATION OF DAIRY PRODUCTS

Recourse by the United States to Article 22.2 of the DSU

            The following communication, dated 16 February 2001, from the Permanent Mission of the United States to the Chairman of the Dispute Settlement Body, is circulated pursuant to Article 22.2 of the DSU.

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            Pursuant to Article 22.2 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), the United States requests authorization from the Dispute Settlement Body (DSB) to suspend the application to Canada of tariff concessions and related obligations under the General Agreement on Tariffs and Trade 1994 (GATT 1994), covering trade in the amount of US$35 million on an annual basis.  This level of suspension is equivalent to the level of nullification and impairment of benefits accruing to the United States that results from Canada's failure to bring its export subsidy measures concerning dairy products into compliance, by 31 January 2001, with the Agreement on Agriculture or to otherwise comply with the recommendations and rulings of the DSB in "Canada ‑ Measures Affecting the Importation of Milk and the Exportation of Dairy Products" (WT/DS103).