TWN Info Service
on WTO and Trade Issues (May10/12)
27 May 2010
Third World Network
Two panels set to
examine US "zeroing" practice
Published in SUNS #6926 dated 19
Geneva, 18 May (Kanaga
Raja) -- The WTO Dispute Settlement Body (DSB) on Tuesday agreed to
establish two separate panels, one at the request of Korea and the other
by Vietnam, to rule on the controversial practice of "zeroing"
used by the United States in its determination of dumping margins in
Both requests by Korea
were second-time requests and panel establishment was automatic in each
China, the European
Japan and Vietnam reserved their third party rights in the
Korean dispute against the US.
Japan, the European
Union, Korea and
reserved their third party rights in the Vietnam-US dispute.
In other actions, the
DSB also agreed to establish a panel, at the request of China,
to rule on anti-dumping measures imposed by the European Union on certain
footwear from China.
the United States,
and Vietnam reserved
their third party rights in this dispute.
The Korea-US dispute
concerned the use by the US of the "zeroing" methodology in imposing
certain anti-dumping measures on imports of stainless steel plate in
coils, stainless steel sheet and strip in coils, and diamond saw-blades
and parts thereof from Korea.
The Vietnamese dispute
against the US concerned anti-dumping measures imposed by the
US on certain frozen
and canned warm-water shrimp from Vietnam.
Apart from challenging
the "zeroing" practice, Vietnam's
complaint also addressed two other actions employed by the US in its anti-dumping
investigations. (See SUNS #6909 dated 22 April 2010 for full details
on both the Korean and Vietnamese disputes.)
has been involved in a series of disputes over its use of the "zeroing"
methodology, with panels and the Appellate Body, in various disputes,
repeatedly ruling against the US.
In its statement at
the DSB, Korea said that the US' practice of "zeroing"
in anti-dumping investigations is a long-standing issue that has been
discussed on numerous occasions in previous DSB meetings.
considered the measures by the US to be inconsistent
with Article 2.4.2 of the Anti-dumping Agreement. It said that zeroing
in anti-dumping investigations has been found to be inconsistent with
the Anti-dumping Agreement by numerous panels whose decisions it said
were not appealed by the US.
According to Korea,
itself has announced that it will no longer utilize zeroing in investigations
that were pending as of 22 February 2007.
But this change in
US practice has not
remedied the problem with the above-mentioned measures on products from
at Korea's decision to pursue its request for a panel
in this matter, the US
nonetheless expressed hope that both it and Korea will be able to continue their
dialogue on this matter.
In respect of the Vietnam-US
dispute, in a statement at the DSB, Vietnam
believed that it is fully justified in proceeding with this second request
and pursuing the relevant issues through the panel and Appellate Body
Again voicing disappointment,
the US said that it has serious concerns about the
panel request by Vietnam.
In particular, said
the US, the panel
-- items that were
not identified in Vietnam's
request for consultations, and thus were not the subject of consultations;
-- proceedings that
were initiated pursuant to applications received prior to Vietnam's
Accession to the WTO, which are not subject to the Anti-dumping Agreement
and are not properly a subject of review by a WTO dispute settlement
-- proceedings that
have not yet been completed, and thus are not measures that a panel
can review; and
-- a measure described
by Vietnam as the "initiation" of the sunset review, though
without a summary of the legal basis of Vietnam's complaint sufficient
to present clearly the alleged problem with the initiation of the sunset
According to the US,
Vietnam has not addressed
these concerns, which the US
said it had identified at the meeting of the DSB on 20 April (when Vietnam first
tabled its panel request).
In the dispute raised
by China against anti-dumping measures imposed by
the EU on certain footwear from China,
in a statement at the DSB, China
emphasized that the EU's anti-dumping measures have a very serious impairment
on the interests of Chinese industries.
Providing one example,
China said that
it has negatively affected the jobs and livelihood of around 150,000
workers employed in the production of leather footwear.
China said that although it has repeatedly
expressed its serious concerns to the EU on several occasions, both
bilaterally and multilaterally, this matter has not been resolved thus
Expressing regret over
the step taken by China (in its second request for the establishment
of a panel), the EU recalled that the anti-dumping measures, for which
China was now seeking a panel, are not about protectionism, but about
fighting unfair trade.
The EU said that it
strictly follows the applicable WTO rules in all its anti-dumping cases,
adding that it is strongly convinced of the strength of its case. "We
stand ready to defend our measures that we consider to be fully consistent
with WTO law." +
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