Facts of the Case

This dispute concerns the imposition of a definitive safeguard measure by the United States on imports of circular welded carbon quality line pipe (“line pipe”) from Korea (WTO DOC. WTO/DS 202/AB/R). The measure was imposed following an investigation conducted by the US International Trade Commission (USITC). The USITC determined in a safeguard investigation initiated on 29 July 1999 that “circular welded carbon quality line pipe … is being imported into the United States in such increased quantities as to be a substantial cause of serious injury or the threat of serious injury.” In its investigation, the USITC identified a number of factors apart from increased imports that might have caused serious injury or threat of serious injury to the domestic line pipe industry. The Commission concluded that increased imports were “a cause which is important and not less than any other cause” and that, therefore, the statutory requirement of “substantial cause” had been met.

By Proclamation of the President of the United States dated 11 February 2000, the United States imposed a definitive safeguard measure on imports of line pipe in the form of a duty increase for three years applicable to imports above 9,000 short tons from each source country, effective 1 March 2000. The applicable duty was increased by 19 percent ad valorem in the first year, 15 percent in the second year, and 11 percent in the third year.