The Continued Dumping and Subsidy Offset Act of 2000 (i.e., Byrd Amendment) provides that funds resulting from the collection of anti-dumping and/or countervailing duties be distributed to those companies that initially filed or supported the complaints. As a result, the Byrd Amendment has created a strong incentive for companies to file more cases.

In January of 2003, the Byrd Amendment was found to be inconsistent with US trade obligations by the World Trade Organization (WTO). The US failed to bring its measure into compliance within a specified period. The WTO gave Canada and other co-complainants the authority to retaliate.

On March 31, 2005, the Government of Canada announced that it would retaliate against the United States by applying a 15 percent surtax on Canadian imports of US live swine, cigarettes, oysters and certain specialty fish (e.g. ornamental fish, frozen tilapia or monkfish). The surtax is scheduled to take effect on May 1, 2005. Information on the US Byrd Amendment and Canada's retaliation decision can be found by visiting the following URL:

Additionally, the Commission of the European Union has proposed the imposition of a 15 percent surtax on a range of US products which include paper, agricultural, textile and machinery products imported from the US. The additional surtax could be applied as of May 1, 2005 on US imports. Specific details of The European Commission's proposal can be found by visiting the following URL:

Other WTO member countries may also choose to exercise their retaliatory rights over the next few months.