INTRODUCTION

On 28 February and on 22 July 2011, China requested consultations with the United States concerning an alleged “zeroing” practice by the United States Department of Commerce (USDOC) in its anti-dumping measures on two products from China: (i) certain frozen warmwater shrimp (hereafter “Shrimp”), and (ii) diamond sawblades and parts thereof (hereafter “Diamond Sawblades”).

On 13 October 2011, China requested the establishment of a panel pursuant to Article XXIII of the GATT 1994, Articles 4 and 6 of the DSU and Article 17.4 of the Anti-Dumping Agreement.

At its 25 October 2011 meeting, the Dispute Settlement Body (DSB) established this Panel pursuant to the request of China in document WT/DS422/3, in accordance with Article 6 of the DSU.

The Panel's terms of reference are the following:

Following the agreement of the parties, the Panel was composed on 21 December 2011 as follows:

The European Union, Honduras, Japan, Korea, Thailand and Viet Nam reserved their rights to participate in the Panel proceedings as third parties.

After consulting with the parties and seeking the views of the third parties, and in view of a joint “Agreement on Procedures” submitted by the parties, the Panel decided not to hold any substantive meetings with the parties and/or third parties.

The Panel submitted its Interim Report to the parties on 5 April 2012 and submitted its Final Report to the parties on 3 May 2012.

FACTUAL ASPECTS

USDOC Determinations in the Shrimp and Diamond Sawblades Investigation

This dispute concerns the alleged use by the USDOC of zeroing in the calculation of margins of dumping in its original investigations in the Shrimp and Diamond Sawblades anti-dumping proceedings.