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LCIA 111790 Request Arbitration

LCIA 111790 Request Arbitration

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Published by: iPoliticsCA on Jan 18, 2011
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12/14/2011

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In the LCIA
No. 111790
THE UNITED STATES OF AMERICA,
Claimant,
v.
CANADA,Respondent.REQUEST FOR ARBITRATIONTONY WESTAssistant Attorney GeneralJEANNE E. DAVIDSONDirector
Of Counsel:
TIMOTHY M. REIFGeneral CounselUnited States Trade Representative
600 17t
h
Street, N.W.Washington, D.C. 20508UNITED STATESMARY McLEODPrincipal Deputy Legal AdviserUnited States Department of State2201 C Street, N.W.Washington, D.C. 20520UNITED STATESJanuary 18, 2011PATRICIA M. McCARTHYREGINALD T. BLADES, JR.Assistant DirectorsCLAUDIA BURKEGREGG M. SCHWINDSTEPHEN C. TOSINISenior Trial CounselMAAME E. FRIMPONGDAVID S. SILVERBRANDANTONIA R. SOARESTrial AttorneysUnited States Department of JusticeCommercial Litigation BranchCivil Division
1100 L Street, N.W.
Washington, D.C. 20530UNITED STATESTel: +1 (202) 514-7300Fax: +1 (202) 514-7969
national.courtsa,usdoj.gov
;
Patricia.McCarthy(&,usdoj.gov
Attorneys for Claimant,The United States of America
 
TABLE OF CONTENTS
REQUEST FOR ARBITRATION
I.
NTRODUCTION
1II.
ARTIES TO THE ARBITRATION
2
A.
The Claimant
2
B.
The Respondent 3
III. THE ARBITRATION AGREEMENT
3
IV. MATTERS REGARDING THE ARBITRATION
4
A.
Selection Of The Arbitral Tribunal
4
B.
Remuneration Of The Tribunal5
C.
Hearings Of The Tribunal
5
D.
The Taking Of Evidence 5
E.
The Award Of The Tribunal
5
V.
EE
6
VI. NATURE OF THE CASE
6
A.
Nature Of Claims
6
B.
Summary Of Claims
71.
Log Grading In BC
9
2.BC's Breach
10
VII. CLAIMANT'S REQUEST FOR RELIEF
12
VIII. SERVICE OF THE REQUEST
13
 
I
INTRODUCTION
1.
The United States respectfully requests arbitration pursuant to Article XIV of the2006 Softwood Lumber Agreement between the Government of the United States of America
and the Government of Canada ("SLA" or "Agreement"). Exhibit A.2.
The SLA requires Canada to impose "Export Measures" (charges and volumelimitations as defined in the Agreement) upon shipments of softwood lumber into the UnitedStates when the United States price of lumber falls below certain levels. SLA, arts. VI-VII.Canada agreed not to circumvent commitments under the SLA by agreeing not to take any action
that would reduce or offset the Agreement's Export Measures. SLA, art. XVII, ¶ 1. This
commitment binds "any public authority of Canada," including the provincial governments.
Id.
1
11
1.
3.
The SLA establishes that "[g]rants or other benefits that a Party, including anypublic authority of a Party, provides shall be considered to reduce or offset the Export Measuresif they are provided on a
de jure
or
de facto
basis to producers or exporters of CanadianSoftwood Lumber Products."
Id. ¶
2. Accordingly, a government grant or benefit provided toproducers or exporters of Canadian softwood lumberper
se
breaches the Agreement unless theprogram meets the criteria for certain enumerated exceptions.
4.
Canada has failed to abide by its commitment not to circumvent the Export
Measures. This request for arbitration to resolve Canada's breach of the SLA concerns thepricing of timber — the raw material for softwood lumber. Canada has been underpricing timbercut from government-owned land in British Columbia and sold to Canadian producers. As a
result, not only have Canadian
softwood lumber
producers been paying close to nothing to obtain

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