USTR Requests Comments on EC's Request for WTO Dispute Settlement Panel on Offsetting Instances of Non-Dumping When Calculating AD Margins
The Office of the U.S. Trade Representative (USTR) has issued a notice requesting written comments by April 16, 2004 concerning the European Communities' (EC's) request for the establishment of a World Trade Organization (WTO) dispute settlement panel (DSP) regarding offsets to calculated dumping margins for instances of non-dumping.
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According to the USTR, on February 16, 2004 the EC submitted to the WTO a corrected version of an earlier request for the establishment of a DSP.
EC Alleges Various U.S. Statutes, Regulations, Etc. Inconsistent with WTO Agreements
The USTR states that the EC alleges that various U.S. statutes, regulations, methodologies and determinations are inconsistent with the Agreement on Implementation of Article VI (AD Agreement) of the General Agreement on Tariffs and Trade 1994 (GATT 1994), the GATT 1994, and the Marrakesh Agreement Establishing the WTO (WTO Agreement).
With respect to the EC's claims of WTO-inconsistency, the USTR states that the EC's request for establishment of a DSP refers to the following (partial list):
In new investigations, with respect to both the EC's "as such" and "as applied" claims, the comparison of export prices and normal values on a weighted average to weighted average basis, without any offset for instances of non-dumping, results in the calculation of a dumping margin and amount of dumping in excess of the actual dumping practiced by the companies concerned;
Also in new investigations, with respect to the EC's "as applied" claims, the comparison described in the preceding paragraph results in the erroneous inclusion of imports from certain companies as "dumped imports" for purposes of determining injury and causation;
In reviews, with respect to both the EC's "as such" and "as applied" claims, the comparison of export prices and normal values on a weighted average to transaction basis, without any offset for instances of non-dumping, results in the calculation of a dumping margin and the collection of an amount of antidumping duties in excess of the actual dumping practiced by the companies concerned.
According to USTR sources, while the U.S. refers to the above-described calculation practices as "offsets", the European Union (EU) uses the term "zeroing." The EU has termed "zeroing" a calculation methodology which consists of ignoring negative margins of dumping and results in an increase of the dumping liability of exporters.
(See ITT's Online Archives or 02/19/04 news, 04021999 4, for BP summary of EC's earlier DSP request. See ITT's Online Archives or 07/23/03 news, 03072315, for BP summary of the EC's request for consultations with the U.S. on this issue.)
- the USTR states that although it will accept any comments received during the course of the dispute settlement proceedings, comments should be submitted electronically or via fax on or before April 16, 2004 to be assured of timely consideration.
USTR Contact - William Hunter (202) 395-3582
USTR Notice (D/N WTO/DS-294, FR Pub 03/03/04) available athttp://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/pdf/04-4657.pdf