China – anti-dumping measures on imports of
cellulose pulp from Canada

Report of the Panel

BCI deleted, as indicated [***]

TABLE OF CONTENTS

1   Introduction.. 9

1.1   Complaint by Canada. 9

1.2   Panel establishment and composition. 9

1.3   Panel proceedings. 9

1.3.1   General 9

1.3.2   Additional working procedures concerning business confidential information (BCI) 10

2   Factual aspects. 10

3   Parties' requests for findings and recommendations. 11

4   Arguments of the parties. 11

5   Arguments of the thiRd parties. 11

6   Interim review... 11

7   Findings. 11

7.1   Introduction. 11

7.2   General principles regarding treaty interpretation, the applicable standard of review, and burden of proof 12

7.2.1   Treaty interpretation. 12

7.2.2   Standard of review.. 12

7.2.3   Burden of proof 13

7.3   The legal framework for injury determination. 13

7.4   Whether MOFCOM's consideration of the volume of dumped imports was consistent with Articles 3.1 and 3.2 of the Anti‑Dumping Agreement 18

7.4.1   Introduction. 18

7.4.2   Legal standard under Articles 3.1 and 3.2, first sentence. 19

7.4.3   MOFCOM's consideration of the volume of dumped imports. 22

7.5   Whether MOFCOM's consideration of price effects was consistent with Articles 3.1 and 3.2 of the Anti‑Dumping Agreement 25

7.5.1   Introduction. 25

7.5.2   Legal standard under Article 3.2, second sentence. 26

7.5.3   MOFCOM's consideration of parallel price trends. 27

7.5.4   MOFCOM's consideration of the fact that dumped imports were sold at higher prices than the domestic like product 31

7.5.5   MOFCOM's consideration of changes in the dumped imports' market share. 33

7.5.6   MOFCOM's consideration of certain business information. 36

7.5.7   MOFCOM's consideration of evidence and factors collectively. 38

7.6   Whether MOFCOM's examination of the impact of dumped imports was consistent with Articles 3.1 and 3.4 of the Anti‑Dumping Agreement 39

7.6.1   Introduction. 39

7.6.2   Legal standard under Articles 3.1 and 3.4. 39

7.6.3   MOFCOM's evaluation of market share. 40

7.6.4   MOFCOM's evaluation of injury factors showing positive trends. 42

7.7   Whether MOFCOM's demonstration of causation and examination of other factors causing injury were consistent with Articles 3.1 and 3.5 of the Anti-Dumping Agreement 44

7.7.1   Introduction. 44

7.7.2   Legal standard under Articles 3.1 and 3.5. 45

7.7.3   MOFCOM's demonstration of causation. 45

7.7.4   MOFCOM's examination of other known factors allegedly causing injury and non‑attribution  48

7.7.4.1   Cotton and VSF prices. 48

7.7.4.1.1   Introduction. 48

7.7.4.1.2   Cotton prices. 49

7.7.4.1.3   VSF prices. 52

7.7.4.2   Domestic industry overexpansion, overproduction, and inventory build-up. 53

7.7.4.3   Impact of non-dumped imports. 58

7.7.4.4   Shortage of cotton linter 61

7.8   Consequential claims. 63

8   Conclusions and Recommendation.. 63