NEWS RELEASES
CANADA VERY PLEASED WITH WTO FINDING ON BYRD AMENDMENT
July 17, 2002 (3:20 p.m. EDT) No. 81
CANADA VERY PLEASED WITH WTO FINDING ON BYRD AMENDMENT
International Trade Minister Pierre Pettigrew welcomed the news today of the World Trade Organization (WTO)
interim decision that the U.S. Byrd Amendment violates international trade law.
"If the final report reflects the arguments brought forward by Canada, this is very good news. It will mean that
the U.S. government will have to conform to international law by eliminating this unfair practice," said Minister
Pettigrew.
The Byrd Amendment, also known as the Continued Dumping and Subsidy Offset Act of 2000, requires U.S.
customs authorities to distribute duties collected from countervailing anti-dumping orders to affected domestic
producers for qualifying expenses. Canada and several other countries challenged this U.S. law because they
believed it contravened WTO rules. This law constitutes a remedy in addition to the imposition of countervailing
or dumping duties. Such a remedy is not envisaged in the WTO agreements governing the application of those
duties.
"This legislation is potentially harmful and disruptive to the international trading environment," Minister Pettigrew
added. "It means that the Byrd Amendment gives U.S. businesses a vested interest in having their government
impose duties, because they would get a direct cut."
The WTO is expected to issue its final ruling in September.
For additional information on this trade dispute, please consult the following Web site: http://www.dfait-maeci.gc.ca/tna-nac/dispute-e.asp#13.
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A backgrounder is attached.
For further information, media representatives may contact:
Sébastien Théberge
Office of the Minister for International Trade
(613) 992-7332
Media Relations Office
Department of Foreign Affairs and International Trade
(613) 995-1874
http://www.dfait-maeci.gc.ca
Backgrounder
U.S. BYRD AMENDMENT
DISTRIBUTION OF ANTI-DUMPING AND COUNTERVAILING DUTIES
On October 28, 2000, President Bill Clinton signed the Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2001 into law. The Continued Dumping and Subsidy
Offset Act of 2000 (Byrd Amendment) was part of the Act. The legislation provides that domestic producers
supporting petitions for anti-dumping or countervailing duties may be eligible for the receipt of duties collected
as a result of the imposition of anti-dumping or countervailing duty orders.
Canada believes that the amendment is a fundamental and misguided change in U.S. policy that could have
unfortunate consequences for international trade in general and the administration of trade remedy law in
particular. The amendment could result in an increase in the number of U.S. petitions for trade remedy actions,
as well as more petitions worldwide if other users of trade remedy measures choose to emulate this approach.
Canada, along with a number of other countries, opposed the amendment when it was being considered in
Congress and urged its repeal once it was passed.
On December 21, 2000, the WTO process began when the European Commission, Australia, Brazil, Chile,
India, Indonesia, Japan, Korea and Thailand requested consultations. On May 21, 2001, Canada and Mexico
also requested consultations. On September 10, 2001, a single WTO panel was established to hear the
complaints of all 11 parties.
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