U.S. appeals WTO panel report regarding duties on Canadian softwood lumber

The Appellate Body cannot hear appeals as the U.S. refuses the appointment of new judges

The United States notified the World Trade Organization’s (WTO) Dispute Settlement Body of its decision to appeal the report of the panel that found that the American duties on Canadian softwood lumber were illegal.

The WTO’s Appellate Body, which would normally hear such an appeal, has essentially stopped functioning in December 2019 as it is no longer able to take on any new appeals because of a lack of appointed judges. Interestingly, it is the United States which has been blocking the process to appoint new judges to the Appellate Body.

Under current WTO rules, once an appeal has been signaled against a Dispute Settlement Body decision, the decision is suspended and not applied pending the decision of the Appellate Body.

In the appeal notification to the WTO, the United States says it “will confer with Canada so the parties may determine the way forward in this dispute.”