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US Compliance with WTO Rulings on Zeroing in Anti-Dumping

United States–Zeroing (EC); United States–Zeroing (Japan)

Published online by Cambridge University Press:  05 December 2011

Bernard Hoekman
Affiliation:
World Bank and CEPR
Henrik Horn
Affiliation:
Research Institute of Industrial Economics, Stockholm
Petros C. Mavroidis
Affiliation:
Columbia Law School, New York
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Summary

Abstract: This paper reviews the WTO Appellate Body Reports on United States–Zeroing (EC) (Article 21.5 DSU – EC) (WT/DS294/AB/RW, 14 May 2009) and United States–Zeroing (Japan) (Article 21.5 DSU – Japan) (WT/DS322/AB/RW, 18 August 2009). The Appellate Body found that the United States had not brought its anti-dumping measures into compliance with the WTO Anti-Dumping Agreement as it continued to use zeroing in annual reviews of anti-dumping orders. We argue that this conclusion – based on a complicated discussion of what constitutes a ‘measure taken to comply’ – could have been reached through a much simpler and direct argument. Continued noncompliance by the United States generates costs to traders targeting the United States and the trading system more generally. We argue that from a broader WTO compliance perspective consideration should be given to stronger multilateral surveillance of anti-dumping practice by all WTO members and to more analysis and effective communication by economists regarding the costs of zeroing and anti-dumping practices more generally.

Introduction

This paper reviews the WTO Appellate Body (AB) Reports on United States–Zeroing (EC) (Article 21.5 DSU – EC) (WT/DS294/AB/RW, 14 May 2009) and United States–Zeroing (Japan) (Article 21.5 DSU – Japan) (WT/DS322/AB/RW, 18 August 2009). These disputes concerned the manner in which the United States implemented – or failed to implement – the WTO rulings relating to the prohibition of zeroing in anti-dumping investigations and reviews. The main legal issue dealt with in these compliance cases was what prospective implementation means in the context of a retrospective system of administering anti-dumping measures.

Type
Chapter
Information
The WTO Case Law of 2009
Legal and Economic Analysis
, pp. 5 - 44
Publisher: Cambridge University Press
Print publication year: 2011

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