Question Period Note: Third Party Participation in WTO Dispute Settlement Proceedings Regarding Chinese Anti-Dumping and Countervailing Measures on Australian Barley

On January 4, 2021, Canada requested third party status in the dispute settlement consultations requested by Australia regarding Chinese anti-dumping and countervailing duties on Australian barley.

• Canada often participates in WTO dispute settlement proceedings, including the consultations phase, as a third party.
• In this case, China's trade remedy duties on Australian barley could have effects on global trade in barley more generally, including on Canadian barley
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• This is because Canada is a significant exporter of barley, and 71.7% of our barley exports in 2017-2019 were to China.

• Canada also has an interest in ensuring that WTO anti-dumping and countervailing rules are applied in accordance with the WTO agreements.

On December 16, 2020, Australia initiated WTO consultations with China concerning China's anti-dumping (AD) and countervailing duties (CVD) on imports of Australian barley. In its consultations request, Australia claims that the Chinese AD and CVD measures on barley are inconsistent with China's obligations under the General Agreement on Tariffs and Trade (GATT) 1994, the Anti-Dumping Agreement (ADA) and the Agreement on Subsidies and Countervailing measures (ASCM).

WTO Members are permitted to request third party status in WTO consultations should they have a substantial interest. However, the decision on whether to allow participation of third parties in consultations rests with the responding party - in this case, China.

Canada has a systemic interest in participating in these WTO proceedings, including the consultations phase, as a third party given that Canada is a significant exporter of barley, and China's trade remedies measures on Australian barley could have effects on global trade in barley more generally, including on Canadian barley. Canada's global annual barley exports in 2017, 2018 and 2019 were valued at CAD531 million, CAD683 million, and CAD700 million respectively, with Canada's exports to China representing 71.7% of its total barley exports over this period. Further, Canada has an interest in ensuring that WTO anti-dumping and countervailing rules are applied in accordance with the WTO agreements.

As such, on January 4, Canada sent its request for third party participation in the WTO consultations to China and Australia, and notified the Chairman of the WTO Dispute Settlement Body.

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