USTR Requests Comments on WTO Dispute with Japan Over Use of "Zeroing" in AD Proceedings, Etc
The Office of the U.S. Trade Representative (USTR) has issued a notice stating that, at the request of Japan, a World Trade Organization (WTO) dispute settlement panel (DSP) is reviewing the U.S.' use of "zeroing" in antidumping (AD) proceedings and certain related matters.
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("Zeroing," which is also referred to in the U.S. as "offsets," is a practice where negative dumping margins are counted as "zero" in AD investigations and reviews.)
The USTR is requesting comments by June 27, 2005 concerning the issues raised in this dispute.
Japan Claims that "Zeroing" in Investigations, Reviews, Etc. is WTO-Inconsistent
With respect to claims of WTO-inconsistency, Japan refers to the following:
in AD original investigations, periodic reviews, new shipper reviews, sunset reviews and changed circumstances reviews where the redetermination of margins of dumping occurs, the International Trade Administration (ITA) artificially inflates the dumping margins by "zeroing;"
in AD injury investigations, International Trade Commission (ITC) determinations based on "zeroing" are WTO-inconsistent;
in AD sunset reviews, ITA and ITC determinations based on "zeroing" are WTO-inconsistent; and
in AD changed circumstances reviews, determinations based on "zeroing" are WTO-inconsistent.
Japan's Panel Request Refers to Certain AD Cases, Regulations, AD Manual, Etc.
With respect to the measures at issue, Japan's panel request refers to the following:
(See notice for applicable Federal Register publication dates, case numbers, etc.)
imposition of AD duties on the following products from Japan: Certain Cut-to-Length Carbon Quality Steel Plate Products; Tapered Roller Bearings, Four Inches or Less in Outside Diameter, and Components Thereof; Tapered Roller Bearings and Parts Thereof, Finished and Unfinished; Ball Bearings and Parts Thereof; Cylindrical Roller Bearings and Parts Thereof; and Spherical Plain Bearings and Parts Thereof
ITA's final results in the expedited sunset review of Antifriction Bearings from Japan, and the ITC's determination in Certain Bearings from China, France, Germany, Hungary, Italy, Japan, Romania, Singapore, Sweden, and the United Kingdom;
ITA's final results in the full sunset review of Corrosion-Resistant Carbon Steel Flat Products from Japan, and the ITC's determination in Certain Carbon Steel Products from Australia, Belgium, Brazil, Canada, Finland, France, Germany, Japan, Korea, Mexico, Netherlands, Poland, Romania, Spain, Sweden, Taiwan, and United Kingdom;
Tariff Act of 1930, as amended (in particular, sections 731, 751, 752, 771(7), 771(35)(A), 771(35)(B) and 777A(d));
Statement of Administrative Action that accompanied the Uruguay Round Agreements Act, H.R. Doc. No. 103-316, vol. 1 (1994);
implementing regulations of the ITA (19 CFR 351); and
Import Administration's Antidumping Manual (1997 edition), including the AD Margin Calculation computer program(s) to which it refers.
- comments should be submitted by June 27, 2005 to assure timely consideration
USTR contact - Elizabeth Baltzan (202) 395-3582
USTR notice (D/N WTO/DS-322, FR Pub 06/08/05) available at http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-11372.pdf
BP Note
On May 20, 2005, Canada issued a letter requesting a special meeting of the WTO's Dispute Settlement Body (DSB) on June 1, 2005 over the U.S.' use of "zeroing" in its Section 129 determination for certain softwood lumber products from Canada. WTO trade experts have previously found that "zeroing" results in erroneous AD calculations because the methodology ignores sales at above-market prices. (See ITT's Online Archives or 05/27/05 news, 05052799 6, for BP summary of Canada's request.)