USTR Seeks Comments on WTO Dispute Regarding the Use of Antidumping "Zeroing" for Certain Products from EC
The Office of the U.S. Trade Representative has issued a notice announcing the European Communities' request for the establishment of a World Trade Organization dispute settlement panel (DSP) on various U.S. measures related to "zeroing" and certain antidumping (AD) investigations, administrative reviews, and sunset reviews involving EC products.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
The USTR invites written comments from the public concerning the issues raised in this dispute and states that comments should be submitted on or before October 26, 2007 to be assured timely consideration.
In connection with the issues raised in the panel request, USTR notes that the public should be aware that the Department of Commerce has announced that it will no longer use ''zeroing'' when making average-to-average comparisons in AD investigations. (See BP Notes.)
EC Panel Request Referred to Continued Application of Specific AD Duties, Etc.
Among other things, the panel request referred to the continued application of, or the application of the specific AD duties resulting from certain AD orders specified in the EC request as calculated or maintained in place pursuant to the most recent administrative review or, as the case may be, original proceeding or changed circumstances or sunset review proceeding at a level in excess of the anti-dumping margin which would result from the correct application of the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (AD Agreement) (whether duties or cash deposit rates or other forms of measure).
The orders, administrative reviews, etc. specified by the EC relate mostly to steel and ball bearing products, as well as certain pasta, brass sheet and strip, purified carboxymethylcellulose, and chlorinated isocyanurates.
EC Alleges AD Duty Rules, Actions Using "Zeroing" are WTO-Inconsistent
The EC alleges that various measures relating to "zeroing" and AD duty orders on certain products from the EC, and certain related matters, are inconsistent with certain Articles of the AD Agreement, Article VI of the General Agreement on Tariffs and Trade 1994(GATT 1994), and Article XVI:4 of the WTO Agreement.
- comments should be submitted on or before October 26, 2007
(See ITT's Online Archives or 11/14/06 news, 06111420, for BP summary of the USTR seeking comment on EC's request for WTO consultations related to "zeroing.")
USTR Contact - Ronald Baumgarten (202) 395-9622
USTR Notice (D/N WTO/DS350, FR Pub 09/06/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-17563.pdf
WTO Summary of DS322, updated 08/20/07, available at http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds322_e.htm
BP Notes
In September 2006, the USTR issued a press release which explained that the AD Agreement contemplates three methodologies for calculating an AD margin in investigations: average-to-average, transaction-to-transaction, and average-to-transaction. In addition to the question of the use of "zeroing" (denial of off-sets) for each methodology, there is the question as to whether "zeroing" can be used in different types of AD proceedings (i.e, investigations, administrative reviews, etc.)
In January 2007, the WTO Appellate Body issued a report to WTO Members stating that "zeroing" procedures are inconsistent with the AD Agreement in (1) transaction-to-transaction and average-to-transaction comparisons in AD investigations; (2) administrative reviews; (3) new shipper reviews; and (4) certain sunset reviews when relying on previous proceedings where dumping margins were calculated through the use of "zeroing." (See ITT's Online Archives or 02/01/07 news, 07020125, for BP summary.)
Later in January 2007, the International Trade Administration announced the ending of its practice of "zeroing" in average-to-average comparisons in AD investigations, and later issued another notice extending the effective date to February 22, 2007. (See ITT's Online Archives or 01/08/07 and 01/29/07 news, 07010825 and 07012930, for BP summaries of the ITA's ending of "zeroing" in average-to-average comparisons and the ITA's extension of the effective date, respectively.)
(See ITT's Online Archives or 03/02/07 news, 07030220, for BP summary of the USTR's draft results of its initiation of Section 129 proceedings for 12 EC AD investigations in order to implement the WTO panel report finding that the U.S. use of "zeroing" in AD duty investigations is inconsistent with its WTO obligations.)