INTRODUCTION

Canada and the United States appeal from certain issues of law and legal interpretations in the Panel Report, Canada - Certain Measures Concerning Periodicals (the “Panel Report”). The Panel was established to consider a complaint by the United States against Canada concerning three measures: Tariff Code 9958, which prohibits the importation into Canada of certain periodicals, including split-run editions; Part V.1 of the Excise Tax Act, which imposes an excise tax on split-run editions of periodicals; and the application by Canada Post Corporation (“Canada Post”) of commercial “Canadian”, commercial “international” and “funded” publications mail postal rates, the latter through the Publications Assistance Program (the “PAP”) maintained by the Department of Canadian Heritage (“Canadian Heritage”) and Canada Post.

The Panel Report was circulated to the Members of the World Trade Organization (the “WTO”) on 14 March 1997. It contains the following conclusions:

The Panel made the following recommendation:

On 29 April 1997, Canada notified the Dispute Settlement Body (the “DSB”) of its intention to appeal certain issues of law covered in the Panel Report and legal interpretations developed by the Panel, pursuant to paragraph 4 of Article 16 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (the “DSU”), and filed a Notice of Appeal with the Appellate Body, pursuant to Rule 20 of the Working Procedures for Appellate Review (the “Working Procedures”).