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Canada Requests WTO Panel on Mainland Chinese AD Measures on Pulp

Canadian Minister of Trade Ed Fast announced on 12 February that Canada has requested the WTO to establish a dispute settlement panel to examine allegations that certain mainland Chinese AD measures on Canadian dissolving pulp are unfounded and discriminatory. Canada on 15 October 2014 requested bi-lateral consultations with mainland China on this matter but the two sides were unable to reach a mutually-acceptable agreement.

Canada believes the measures at issue are inconsistent with mainland China's obligations under various provisions of the Anti-Dumping Agreement and the General Agreement on Tariffs and Trade 1994. Among other things, Canadian authorities argue that in establishing constructed normal values mainland China (1) failed to calculate costs on the basis of records kept by the producer that reasonably reflected the costs associated with the production and sale of cellulose pulp and failed to adjust costs appropriately for circumstances in which costs during the period of investigation were affected by start-up operations; and (2) failed to determine the amounts for administrative, selling and general costs on the basis of the producer's actual data pertaining to production and sales in the ordinary course of trade of cellulose pulp. Ottawa also contends that mainland China failed to make a fair comparison between the export price and normal value by, for instance, improperly deducting certain expenses from the export price and by not making due allowance for differences in physical characteristics when calculating the export price.

Another contention by Canadian authorities is that mainland China's determination of injury was not based on positive evidence and did not involve an objective examination of the volume of the dumped imports and the effect of those imports on prices in the domestic market for like products. In addition, and among other arguments, Canada states that in determining the margins of dumping mainland China failed to give Canadian producers ample opportunity to present in writing all evidence they considered relevant in respect of the investigation and to take into account all the information which was verifiable, appropriately submitted, and supplied in a timely fashion.

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