TWN Info Service on WTO and Trade Issues (Sept11/01)
DSB adopts panel ruling in US-Vietnam shrimp dispute
Geneva, 2 Sep (Kanaga Raja) -- The WTO Dispute Settlement Body (DSB) on Friday adopted the report of the panel that had found that the United States had acted inconsistently with its WTO obligations in its imposition of anti-dumping measures on imports of certain frozen warm-water shrimp from Vietnam.
In a ruling issued on 11 July, the
panel had recommended that the
In other actions,
That ruling amongst others found
The panel had acknowledged that
by this ruling,
However, based on the text of the
protocol, the panel had said that it can only assume that this was the
According to information posted
on the WTO's website, on 31 August,
As a result of its decision to appeal the panel ruling, this item, which was scheduled for adoption, was removed from the agenda of the meeting of the DSB on Friday.
The panel ruling in the US-Vietnam shrimp dispute is yet another in a long series of rulings against the US over its continued use of zeroing methodology in anti-dumping investigations, reviews and levy of duties on this basis.
The dispute concerned the imposition of anti-dumping duties in US proceedings on shrimp. The US Department of Commerce (USDOC) initiated the original investigation in January 2004, issued an anti-dumping duty order in February 2005, and has since undertaken periodic reviews and a sunset review.
The US practices challenged by Vietnam included: (a) The USDOC's use of zeroing in the calculation of dumping margins; (b) The application of a "country-wide rate" based on adverse facts available to certain Vietnamese exporters or producers that could not establish that they act independently from the Vietnamese Government in their commercial and sales operations; ( c) The USDOC's limitation of the number of exporters or producers selected for individual investigation or review.
In its statement at the DSB on Friday,
In its statement at the DSB, with
respect to the "zeroing" claims at issue in the dispute, the
According to the
In an intervention, the European Union welcomed the panel's findings that the use of zeroing by the US in administrative reviews is inconsistent with Article 2.4 of the Anti-Dumping Agreement and that the zeroing methodology of the US, which is still being applied in every case, is in breach of Article 9.3 of the Anti-Dumping Agreement and Article VI: 2 of the GATT 1994.
The EU particularly welcomed the panel's conclusion that the Appellate Body has previously found that zeroing is "inherently inconsistent" with the "fair comparison" requirement of Article 2.4 and the panel's decision to adopt this reasoning as its own.
"This is yet another demonstration
that the WTO-inconsistency of zeroing has now been definitively decided
and that the
Meanwhile, under other business,
the Chair of the DSB, Ambassador Elin Johansen of
According to trade officials, the
four candidates are: Manzoor Ahmad of
A deadline of 31 August had been set for Members to nominate candidates for the two positions.
The two Appellate Body members that
have announced their intention to step down after their terms expire
on 10 December 2011 are Jennifer Hillman of the
The DSB Chair said that the selection committee - consisting of the Director-General, the DSB Chair, and the Chairs of the General Council, the Goods Council, the Services Council and the TRIPS Council - will interview these candidates and hear comments from Members in September and October.
According to trade officials, the DSB Chair will meet with the selection committee in the week of 12 September to come up with a timetable for the interviews etc.
According to the DSB Chair, the selection committee will make a recommendation to the DSB by 10 November, in order for the DSB to make a final decision on 21 November. +