Members consider China’s request for panel to examine Canadian surtax measures

The DSB Chair, Ambassador Clare Kelly (New Zealand), announced at the start of the meeting that Canada's request for a panel in DS636, “China — Additional Import Duties on Certain Agricultural and Fishery Products from Canada”, had been removed from the agenda at the request of Canada.

DS627: Canada — Measures on Certain Products of Chinese Origin

China submitted its first request for the establishment of a dispute panel with respect to the surtax measures imposed by Canada on certain products of Chinese origin, including electric vehicles and steel and aluminium products. The request also cites Canada's alleged decision to impose measures on certain solar products, critical minerals, semiconductors, permanent magnets and natural graphite imported from China. China also cited in its panel request any other Canadian surtax measures on products or materials that originate in China.

China and Canada held consultations in April 2025 but failed to resolve the dispute, China said, prompting its request for the panel. China said the measures are in direct breach of Canada's WTO obligations. China said it remains open to working with Canada to resolve the dispute amicably in accordance with WTO rules.

Canada said it engaged with China in a constructive manner during the consultations. It is unfortunate that China has included in its panel request claims related to certain solar products, critical minerals, semiconductors, permanent magnets and natural graphite imported from China, Canada said, noting that there are no Canadian surtax measures on these products.

Canada said its surtax measures on electric vehicles, steel and aluminium products are justified under the General Agreement on Tariffs and Trade and that it was fully prepared to defend these measures. In light of this, Canada said it is not ready to accept the establishment of a panel. Canada remains committed to maintaining constructive dialogue with China and to the rules-based multilateral trading system, it added.

The DSB took note of the statements and agreed to revert to the matter if requested by a member.

Appellate Body appointments

Colombia, speaking on behalf of 130 members, introduced for the 87th time the group's proposal to start the selection processes for filling vacancies on the Appellate Body. The extensive number of members submitting the proposal reflects a common interest in the functioning of the Appellate Body and, more generally, in the functioning of the WTO's dispute settlement system, Colombia said.

The United States said it does not support the proposal and noted its longstanding concerns with WTO dispute settlement that have persisted across US administrations. The US cited as an example its concern over rulings containing interpretations deviating from the text of WTO agreements and creating precedents. It emphasized that the dispute settlement system was intended to resolve specific disputes rather than create new rules for members. The US reiterated that fundamental reform of WTO dispute settlement is needed and that it will reflect on the extent to which it is possible to achieve such a reformed WTO dispute settlement system.

More than 20 members took the floor to comment, one speaking on behalf of a group of members. Several members urged others to consider joining the Multi-party interim appeal arrangement (MPIA), a contingent measure to safeguard the right to appeal in the absence of a functioning Appellate Body. A number welcomed the decision of Malaysia and Paraguay to join the MPIA.

Colombia, on behalf of the 130 members, said it regretted that for the 87th occasion members have not been able to launch the selection processes. Ongoing conversations about reform of the dispute settlement system should not prevent the Appellate Body from continuing to operate fully, and members shall comply with their obligation under the Dispute Settlement Understanding to fill the vacancies as they arise, Colombia said for the group.

Dispute settlement reform

The DSB Chair said that, as members would recall from the last General Council (GC) meeting on 20-21 May, the GC Chair Ambassador Saqer Abdullah Almoqbel (Kingdom of Saudi Arabia) had informed members about his intention to consult with interested delegations on advancing work in three key areas, including dispute settlement reform. The consultations are now ongoing, the DSB Chair said.

Surveillance of implementation

The United States presented status reports with regard to DS184, “US — Anti-Dumping Measures on Certain Hot-Rolled Steel Products from Japan”,  DS160, “United States — Section 110(5) of US Copyright Act”, DS464, “United States — Anti-Dumping and Countervailing Measures on Large Residential Washers from Korea”, and DS471, “United States — Certain Methodologies and their Application to Anti-Dumping Proceedings Involving China.”

The European Union presented a status report with regard to DS291, “EC — Measures Affecting the Approval and Marketing of Biotech Products.”

Indonesia presented its status reports in DS477 and DS478, “Indonesia — Importation of Horticultural Products, Animals and Animal Products.” 

Next meeting

The next regular DSB meeting will take place on 23 June 2025.

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