WTO Panel Upholds Use of Zeroing in Some Circumstances, Rules Against US Softwood Lumber Duties
A World Trade Organization dispute settlement panel ruled against some aspects of recently imposed antidumping duties on softwood lumber from Canada, though it upheld the Commerce Department’s use of “zeroing” in situations in which it finds targeted dumping. The WTO…
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panel took issue with how Commerce arrived at its decision that Canadian companies were engaging in dumping targeted at particular purchasers, regions or time periods. But it found Commerce’s subsequent application of an alternative calculation method -- which included the use of zeroing -- did not violate WTO rules. The trade body has previously ruled against U.S. use of zeroing under normal circumstances, where no targeted dumping is alleged. Zeroing generally results in higher AD duty rates because instances in which goods were sold at above-average prices are ignored. The panel’s decision is subject to appeal.