WTO Arbitrators Rule that EU Could Retaliate if U.S. Applies 1916 Antidumping Act
On February 24, 2004, World Trade Organization (WTO) arbitrators decided that the European Union (EU) has no current right to retaliate against the U.S.' Antidumping Act of 1916 (1916 Act). However, the arbitrators did allow for the EU to retaliate if final judgments or settlements are made under the 1916 Act in the future.
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(The U.S. Trade Representative (USTR) has previously stated that the 1916 Act permits private lawsuits for treble damages and criminal penalties against imports of products sold below market value, but requires proof of specific intent to injure a U.S. industry for such claims to be successful.)
WTO Rejects EU's Argument for Application of Retaliatory Measures to Unlimited Amount of U.S. Products
The USTR explains that the WTO arbitrators rejected the EU's argument that it could apply a regulation resembling the 1916 Act to an unlimited amount of imports from the U.S.
The arbitrators stated that any retaliatory measures taken by the EU in response to final judgments or settlements under the 1916 Act would have to be equivalent to the economic harm to the EU that results from the 1916 Act.
The USTR stated that while the WTO's award leaves open the possibility that the EU could retaliate in the future if there are quantifiable 1916 Act judgments or settlements against EU companies, the USTR does not believe this will pose a problem if Congress continues to make progress and repeals the 1916 Act.
(See ITT's Online Archives or 01/30/04 news, 04013099 7, for BP summary of Congressional progress on repealing the 1916 Act.)
USTR Press Release (dated 02/24/04) available at http://www.ustr.gov/releases/2004/02/2004-02-24-mills-1916act.pdf
WTO Arbitrators' Decision (dated 02/24/04) available athttp://www.wto.org/english/tratop_e/dispu_e/136_arb_e.doc