US Blasts AB Body Ruling on 'Zeroing'

Geneva - The United States yesterday slapped down a recent ruling by the World Trade Organization Appellate Body over the US use of 'zeroing' in making antidumping judgements - declaring the implications of the ruling as well as the analytical route adopted by the appeals panel were very 'troubling' (WTD, 4/19/06).

In a 16-page critique of last month's ruling, the United States said the implications from the verdict could render ineffective important provisions of the WTO Antidumping Agreement. It went on to say that the ruling radically altered the manner in which dumping margins are calculated 'in areas having nothing to do with so-called zeroing.'

The United States also charged the AB with lack of analysis in making the determination and ignoring the implications of its reasoning for the targeted dumping provision in the agreement.

More importantly, the United States continued, the AB made its own findings and 'deviated from the role assigned to it by the DSU.' 'The perception that the dispute settlement system is operating so as to add to or diminish rights and obligations actually agreed to by members, notwithstanding DSU Articles 3.2 and 19.2, is highly corrosive to the credibility that the dispute settlement system has accumulated over the past 11 years,' the United States argued.