According to the report, a WTO panel determined that the US Department of Commerce (USDOC) in a number of occasions acted inconsistently with provisions in the Agreement on Subsidies and Countervailing Measures (SCM).
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"The USDOC acted inconsistently with Articles 1.1(b) and 14(d) of the SCM Agreement when it determined that the provision of electricity by NSPI (Nova Scotia Power Incorporated) to PHP (Port Hawkesbury Paper) conferred a benefit," the report said.
Canada filed a complaint in March 2016 challenging the United States on countervailing duties it imposed on supercalendered paper and its investigation justifying those duties, but WTO consultations on the matter were held on May 4, 2016, failed to resolve the dispute, the report noted. Canada then immediately called for establishing a panel.
The United States initiated a countervailing duty investigation against Canadian supercalendered paper on March 26, 2015, according to the Federal Register.