CANADA – MEASURES AFFECTING THE IMPORTATION OF MILK

AND THE EXPORTATION OF DAIRY PRODUCTS

Recourse by the United States to Article 21.5 of the DSU

Request for the Establishment of a Panel

            The following communication, dated 16 February 2001, from the Permanent Mission of the United States to the Permanent Mission of Canada and to the Chairman of the Dispute Settlement Body, is circulated pursuant to Article 21.5 of the DSU.

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            On 27 October 1999, the Dispute Settlement Body (the DSB) adopted its recommendations and rulings in the dispute "Canada ‑ Measures Affecting the Importation of Milk and the Exportation of Dairy Products". (WT/DS103).  The DSB found that Canada was exporting subsidized dairy products in breach of its export subsidy reduction commitments under the Agreement on Agriculture and recommended that Canada bring its measures into conformity with the Agreement.

            On 23 December 1999, Canada and the United States concluded an agreement pursuant to Article 21.3 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (the DSU) (WT/DS/103/10) on the reasonable period of time available to Canada to implement the DSB's recommendations.  By the terms of that agreement, Canada committed to complete the implementation process by no later than 31 December 2000.  The reasonable period of time later was extended to 31 January 2001 by the mutual agreement of the parties to the dispute (WT/DS103/13).