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EU/US: EU LAUNCHES WTO ATTACK ON US DUMPING RULES.

The European Commission announced on June 13 it would launch a challenge in the World Trade Organisation against the United States' anti-dumping rules. The Commission is challenging the practice of 'zeroing', which involves disregarding the negative margins of dumping. The move comes after the EU was itself condemned by the WTO for using the zeroing practice.

Zeroing is a method of calculating dumping which consists of ignoring negative margins of dumping and therefore results in an unfair increase of the dumping liability of EU exporters, the Commission said. European Trade Commissioner Pascal Lamy said the zeroing system practised by the US damaged many EU exporters. "The EU has already abandoned this practice and has several times asked the US to do likewise, in order to ensure a level playing field", he said. "Unfortunately, the US refuses to move on this issue, and regrettably we are left with no choice but to refer the matter to the WTO."

In 2001, the WTO ruled that the EU had violated the WTO Anti-Dumping Agreement when it set duties on Indian bed-linen, by zeroing calculations (see European Report 2614). The Commission says the current US practice in anti-dumping investigations is identical to that condemned in the bed-linen case. "The incompatibility of the US practice with the Anti-Dumping Agreement is therefore unquestionable", the Commission said. It added that this was having "a significant adverse economic impact on EU exporters in various sectors including steel, chemicals and pasta". In most cases, it said, without zeroing the dumping margin would have been under the minimum requirement or even negative and so no anti-dumping duties would have been imposed. The Commission added that several hundred million Dollars of trade volume is involved.

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Title Annotation:the European Commission will challenge the United States' anti-dumping rules in the World Trade Organisation
Publication:European Report
Article Type:Brief Article
Geographic Code:4E
Date:Jun 14, 2003
Words:284
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