CANADA – MEASURES AFFECTING THE IMPORTATION OF MILK

AND THE EXPORTATION OF DAIRY PRODUCTS

Second Recourse by the United States to Article 21.5 of the DSU

Request for the Establishment of a Panel

            The following communication, dated 6 December 2001, from the Permanent Mission of the United States 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, pursuant to Article 21.3(b) of the Understanding on Rules and Procedures Governing the Settlement of Disputes (the DSU), Canada and the United States concluded an agreement on the reasonable period of time for implementation of the recommendations and rulings of the DSB (WT/DS103/10).  By the terms of the agreement, Canada committed to complete implementation by no later than 31 December 2000.  The reasonable period of time was later extended to 31 January 2001 by mutual agreement of the parties. (WT/DS103/13)

            On 19 January 2001, Canada circulated to the DSB its "final status report", pursuant to Article 21.6 of the DSU (WT/DS103/12/Add.6).  In that report, Canada affirmed  "that it will be in full compliance with the rulings and recommendations of the DSB by the conclusion of the implementation period" on 31 January 2001.