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DISPUTE SETTLEMENT: DISPUTE DS350

United States — Continued Existence and Application of Zeroing Methodology

This summary has been prepared by the Secretariat under its own responsibility. The summary is for general information only and is not intended to affect the rights and obligations of Members.

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Summary up-to-date at

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Complaint by the European Communities.

On 2 October 2006, the European Communities requested consultations with the United States concerning its continued application of the “zeroing” methodology. In particular, the request for consultations concerns (i) the implementing regulation (19 CFR Section 351) of the US Department of Commerce, especially section 351.414(c)(2);  and (ii) the Import Administration Antidumping Manual (1997 edition), including the computer program(s) to which it refers. The European Communities claims that, based on these regulations, the US Department of Commerce continued to apply the “zeroing” methodology in the determinations of the margin of dumping in the final results of the anti-dumping administrative reviews concerning various EC goods, and any assessment instructions issued pursuant to those final results. The European Communities considers that the relevant US regulations, zeroing methodology, practice, administrative procedures and measures for determining the dumping margin in reviews are inconsistent with:

• Articles 1, 2.1, 2.4, 2.4.2, 9.1, 9.3, 9.5, 11, including Articles 11.2 and 11.3, and 18.4 of the Anti-Dumping Agreement;
    
• Articles VI:1 and VI:2 of the GATT 1994;  and
    
• Article XVI:4 of the WTO Agreement.

On 9 October 2006, the European Communities, in a further request for consultations, identified additional administrative reviews in which the US Department of Commerce applied the “zeroing” methodology in calculating the margin of dumping, and requested that those cases be added to the list.

On 10 October 2006, Japan requested to join the consultations. On 12 October 2006, Thailand requested to join the consultations. On 13 October 2006, Brazil and India requested to join the consultations. On 10 May 2007, the European Communities requested the establishment of a panel. At its meeting on 22 May 2007, the DSB deferred the establishment of a panel. At its meeting on 4 June 2007, the DSB established a panel. Chinese Taipei, India, Japan and the United States reserved their third-party rights. Subsequently, Brazil, China, Egypt, Korea, Norway and Thailand reserved their third-party rights. On 29 June 2007, the European Communities requested the Director-General to compose the Panel. On 6 July 2007, the Director-General composed the Panel.

On 1 October 2007, the Chairman of the Panel informed the DSB that it would not be possible for the Panel to complete its work in six months in light of scheduling conflicts. The Panel expects to complete its work in June 2008.

Following the resignation on 8 November 2007 of one of the panelists, the parties agreed on the appointment of a new panelist on 27 November 2007. On 14 December 2007, the Chairman of the Panel informed the DSB that due to the resignation of one of the panelists, further delays were unavoidable and that the Panel expects to complete its work in September 2008.

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