USTR Seeks Comment on WTO Compliance Panel on U.S. Implementation of Measures Related to Antidumping Zeroing
The Office of the U.S. Trade Representative has issued a notice announcing that pursuant to a request of the European Communities, the Dispute Settlement Body (DSB) of the World Trade Organization has established a compliance panel concerning the U.S. implementation of a 2005 WTO panel finding that the following were inconsistent with U.S. WTO obligations:
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(1) the U.S. "zeroing" methodology in AD investigations in which the weighted-average-to-weighted-average comparison method is used; and
(2) 15 AD investigations and 16 AD administrative reviews in which "zeroing" was used, including each of the assessment instructions issued pursuant to any of one of these measures.
("Zeroing" is the AD margin calculation methodology of not offsetting non-dumped sales against dumped sales.)
In January 2007, the International Trade Administration announced that it would no longer use "zeroing" in average-to-average comparisons in AD investigations, and in May 2007, issued a notice changing its AD duty rates and implementing findings under Section 1291 in 11 EC antidumping investigations, effective April 23, 2007 in order to implement certain of the WTO panel's findings. (See ITT's Online Archives or 01/08/07 and 05/08/07 news, 07010825 and 07050820, for BP summaries.)
EU Alleges U.S. Failure to Eliminate Zeroing in AD Administrative Reviews, Etc.
The USTR states that in its request for the establishment of a compliance panel, the EC challenges the following (partial list):
the alleged U.S. failure to eliminate ''zeroing'' in the 16 AD administrative reviews found by the WTO panel to be inconsistent with U.S. WTO obligations;
the dates of entry into force of the Section 129 determinations issued by the ITA to comply with the recommendations and rulings of the WTO panel;
(See ITT's Online Archives or 01/18/07 and 01/29/07 news, 07011825 and 07012930, for BP summaries of the ITA's two extensions of the effective date for ending certain "zeroing" practices in AD duty investigations, respectively.)
With respect to investigations in which the recalculation of dumping margins led to the conclusion that some exporters were not dumping or had de minimis margins, the failure to establish whether the remaining amount of dumped imports was causing injury to the domestic industry and whether the volume of dumped imports was not negligible; and
The continued use of zeroing in the reviews related to the measures in question.
USTR Seeks Comment on Issues in this Dispute by December 21, 2007
The USTR invites written comments from the public concerning the issues raised in this dispute and states that comments should by submitted on or before December 21, 2007.
1Section 129 of the Uruguay Round Agreements Act (URAA) provides the basic legal provisions through which the U.S. would make and implement new AD or countervailing (CV) duty determinations consistent with an adverse WTO report.
USTR contact - Elizabeth Baltzan (202) 395-3582
(See ITT's Online Archives or 09/12/07 news, 07091220, for BP summary of the USTR seeking comment on a similar WTO dispute regarding the use of "zeroing" in AD investigations, administrative reviews, and sunset reviews involving EU products. See ITT's Online Archives or 10/31/07 news, 07103125, for BP summary on closed circuit TV viewing of Nov 07 and Feb 08 WTO panel sessions on this dispute. )
USTR notice (FR Pub 11/16/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-22451.pdf
EU Request for the Establishment of a Panel (WT/DS294/25, dated 09/14/07) available at http://docsonline.wto.org/DDFDocuments/t/WT/DS/294-25.doc
WTO Summary of the dispute (DS294, updated 08/20/07) available at http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds294_e.htm
BP Note
In another dispute on "zeroing" with Japan, in January 2007, the WTO Appellate Body further expanded upon the findings in the U.S.-EU dispute by finding that U.S. "zeroing" procedures are inconsistent with the Antidumping 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 of the WTO Appellate Body's findings with respect to the "zeroing" dispute with Japan.)