Taiwan prevails as WTO adopts Panel Report finding Canada's anti-dumping measures inconsistent with WTO rules

On 21st of December 2016, the Panel of the World Trade Organization ("WTO") issued its Report in the dispute between Taiwan and Canada concerning anti-dumping measures imposed by Canada on imports of carbon steel welded pipe from Taiwan. The Panel found that both the anti-dumping measures and certain provisions of Canada's anti-dumping legislation are contrary to key provisions of the WTO Anti-Dumping Agreement. On 25 January 2017 the WTO Dispute Settlement Body adopted the Panel Report. This makes the report final and subject to no further appeal. Canada is now obliged to make its anti-dumping measures and its legislation consistent with WTO rules and must do so within a reasonable period of time of 14 months. Taiwan prevailed on all substantial legal claims. Indeed, the Panel found that several provisions of Canada's anti-dumping legislation are "as such" inconsistent with the Anti-Dumping Agreement and the GATT 1994. As to the anti-dumping measures on carbon steel welded pipe, the Panel condemned Canada for failing to immediately terminate the investigation with regard to exporters having a de minimis margin of dumping, i.e. a margin of less than 2% of the export price. The Panel also agreed with Taiwan that imports from such exporters cannot be included in the injury and causation analyses and, as a consequence, cannot be subject to definitive anti-dumping duties. Importantly, the Panel also rejected Canada's use of the highest dumping margin found in the course of the entire investigation to establish the margin of dumping for non-cooperating exporters. Finally, it condemned Canada's use of facts available to determine the anti-dumping duties applicable on new product types that were not previously exported from Taiwan to Canada. Pursuant to the Panel's recommendations and findings Canada must in accordance with the Report bring its anti-dumping practices and law into conformity with the WTO laws.  Taiwan will closely monitor the implementation process as Canada takes all the necessary steps to comply with the Panel's rulings.