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House Ways and Means Committee Requests Comments on End of "Zeroing" in Certain AD Investigations

The House Ways and Means Committee (the Committee) has issued an advisory requesting comments by February 7, 2007 on what action, if any, the Committee should take with respect to the International Trade Administration's (ITA's) end of "zeroing" when using the average-to-average comparison methodology (the modification) in antidumping (AD) investigations.

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(The current effective date for the end of "zeroing" in average-to-average comparison AD investigations is February 22, 2007. (See ITT's Online Archives or 01/29/07 news, 07012930, for BP summary of the ITA's recent extension of the effective date.

See ITT's Online Archives or 01/08/07 news, 07010825, for BP summary of the ITA's end of "zeroing" in average-to-average comparisons in AD investigations.))

Committees Have Requested Effective Date Extension to March 31, 2007, WTO Requires Compliance by April 9, 2007

On January 19, 2007, the chairmen of the Senate Finance Committee and the House Ways and Means Committee sent a letter to the Department of Commerce and the U.S. Trade Representative, in which they requested that the ITA postpone the effective date to March 31, 2007 in order to give their Committees more time to consider the issue. The ITA then postponed the effective date to February 22, 2007 (from January 23, 2007).

The advisory states that the ITA's proposed modification would implement the rulings and recommendations of the World Trade Organization (WTO) Dispute Settlement Body. Under WTO rules, the U.S. has until April 9, 2007, to comply with those rulings and recommendations. If compliance is not achieved by that date, additional proceedings in the WTO could follow.

Committee Requests Comments on Possible Action by February 7, 2007

The Committee is requesting written comments from the public on what action, if any, it should take regarding the proposed modification of the ITA, by February 7, 2007. The Committee states that the short period in which to submit comments is necessary for members to consider this determination, and any response to it, before the current February 22, 2007 effective date.

(See Committee advisory for details on the submission of comments.)

(See ITT's Online Archives or 02/01/07 news, 07020125, for BP summary of a recent WTO Appellate Body report finding the U.S. use of "zeroing" impermissible in additional AD proceedings.

See ITT's Online Archives or 01/31/07 news, 07013199 2, for BP summary of a recent WTO finding against U.S. "zeroing" in an Ecuador shrimp dispute.)

Committee advisory information contact - (202) 225-1721

Ways and Means Committee Advisory No. FC-7, dated 01/31/07, available at http://waysandmeans.house.gov/hearings.asp?formmode=printfriendly&id=5419