Short Summaries of WTO Issues Involving the U.S. for December 2008

Disputes Involving the U.S.

U.S.-EC AD "zeroing" dispute. On December 17, 2008, a WTO compliance panel issued its report in the dispute, U.S.-Laws, Regulations and Methodology for Calculating Dumping Margins (Zeroing) (DS294). Among other things, the panel ruled againstthe U.S.' continued use of zeroing in antidumping duty assessments for hot-rolled steel from the Netherlands and stainless steel wire rod from Sweden after the end of its "reasonable period of time" to comply with the recommendations and rulings of the dispute settlement panel (DSP). The panel also found the U.S. failed to comply with the recommendations and rulings of the Dispute Settlement Body (DSB) in the original dispute by continuing to apply cash deposit rates established in the 2000-2001 administrative review of ball bearings from the United Kingdom. (See complete panel conclusions and recommendations, including findings that in certain instances the U.S. has not failed to comply, available at http://www.wto.org/english/tratop_e/dispu_e/294rw_conc_e.pdf)

U.S.-China auto-parts dispute. On December 15, 2008, the WTO Appellate Body (AB) issued its report regarding complaints by the European Communities (EC), the U.S. and Canada, respectively, against "China -Measures Affecting Imports of Automobile Parts" (DS339, 340 and 342). The AB confirmed the DSP's conclusion that certain Chinese measures imposed on U.S. and other imported motor vehicle parts, components, and accessories (auto parts) are inconsistent with China's WTO obligations. (See ITT's Online Archives or 12/29/08 news, 08122925, for BP summary of this AB ruling. AB findings and conclusions available at http://www.wto.org/english/tratop_e/dispu_e/339_340_342abr_conc_e.pdf)

U.S.-China dispute on certain duplicative AD/CV duties. On December 9, 2008, the WTO posted China's request for a DSP concerning the AD and countervailing (CV) duties imposed by the U.S. pursuant to certain final AD and CV duty determinations and orders. China states that consultations held in November 2008 clarified certain issues pertaining to this matter but failed to resolve the dispute. Among other things, China states that the U.S. has failed to provide legal authority for the Commerce Department to avoid the imposition of a double remedy when it imposes AD duties determined pursuant to the U.S. non-market economy (NME) methodology simultaneously with the imposition of CV duties on the same product.

U.S.-China financial information services dispute. On December 4, 2008, the U.S. and China issued a joint communication on the memorandum of understanding (MOU) reached in their dispute China - Measures Affecting Financial Information Services and Foreign Financial Information Suppliers (DS373). In the MOU, China agreed to eliminate certain restrictions on U.S. and other foreign suppliers of financial information services in China. (See ITT's Online Archives or 11/24/08 news, 08112435, for BP summary of the signing of the MOU.)

U.S.-EC continued existence of zeroing dispute. On December 22, 2008, the WTO AB estimated that it would issue its report regarding the EC's appeal of certain issues of law in the dispute U.S.-Continued Existence and Application of Zeroing Methodology (DS350) by February 4, 2009, instead of by January 5, 2009. (The U.S. has also appealed certain issues of law in this dispute. See ITT's Online Archives or 12/11/08 news, 08121135, for BP summary.)

EC-Ecuador/U.S. bananas dispute. On December 11, 2008, the DSB adopted the AB and panel reports in the dispute, European Communities - Regime for the Importation, Sale and Distribution of Bananas (DS27), both of which ruled against the EC banana regime. (See ITT's Online Archives or 12/11/08 and 12/02/08 news, 08121135 and 08120205, for BP summaries of these reports.) (Note that the U.S. does not export bananas to the EC itself, but three of the largest producers with plantations in Latin America are U.S.-based multinationals (Chiquita, Del Monte, and Dole).)

EC-Argentina/U.S. dispute on EC marketing of biotech products. On December 1, 2008, the WTO was informed that the EC and Argentina had agreed to modify the "reasonable period of time" for implementation of the recommendations and rulings of the DSB in the dispute on EC measures affecting the approval and marketing of biotech products to expire on March 1, 2009. (See ITT's Online Archives or 01/16/08 and 01/25/08 news, 08011625 and 08012500, for BP summaries of the U.S./EC January 2008 agreement to suspend the U.S.' request for authority to impose trade sanctions in this dispute, and the U.S. Trade Representative seeking suggestions for possible products to sanction in connection with this dispute, respectively.)

Requests for Consultations with U.S.

Canada, Nicaragua, Mexico ask for consultations on COOL. On December 1, 12, and 17, 2008, Canada, Nicaragua and Mexico requested consultations with the U.S. concerning its mandatory country of origin labeling (COOL) provisions as implemented through the interim final rule of July 28, 2008, etc. (See ITT's Online Archives or 10/01/08, 08100120, for most recent BP summary of U.S. COOL requirements which discusses certain delayed enforcement, with links to other summaries.)

Brazil, Japan ask for consultations on orange juice. On December 1, 2008, the WTO posted a request by Brazil for consultations with the U.S. regarding certain AD administrative reviews and other measures related to imports of certain orange juice from Brazil. On December 10, 2008, Japan asked to join the consultations.

Thailand asks for consultations on polyethylene bags. On December 1, 2008, the WTO posted Thailand's request for consultations with the U.S. regarding AD measures on polyethylene retail carrier bags from Thailand. Specifically, Thailand requested consultations concerning the Commerce Department's use of "zeroing" negative anti-dumping margins in calculating overall weighted-average margins of dumping in the final determination and amended final determination in the investigation of polyethylene retail carrier bags from Thailand.

Responses to U.S. Questions

On December 3, 2008, Ukraine responded to U.S. questions related to Ukraine's AD and CV duty measures. Among other things, Ukraine stated it would publish notifications related to its AD and CV duty proceedings in the official gazette of Ukraine's government "Uriadovyi kurier," and that if an international agreement sets forth rules that differ from those specified in the relevant legislative act of Ukraine, the rules of the international agreement would apply, etc.

Documents not specifically cited above are available on the WTO Web site available at http://www.wto.org/index.htm by clicking on Documents, Official Documents, and Simple Search and by typing "United States" and the above date range in the appropriate fields.