USTR Seeks Comments on Vietnam’s Request for WTO Panel in Shrimp Zeroing Dispute
The Office of the U.S. Trade Representative is seeking comments on Vietnam’s April 2010 request for a World Trade Organization dispute settlement panel to examine U.S. antidumping measures involving certain frozen warmwater shrimp from Vietnam, in particular its use of “zeroing.”
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Comments are due by July 8, 2010.
Vietnam Challenges Use of "Zeroing" in Reviews, Treatment of Respondents
Vietnam challenges the U.S.' use of "zeroing" in a number of AD administrative reviews and new shipper reviews conducted by the Commerce Department on certain frozen warmwater shrimp from Vietnam (A-552-801) from September 2007 to March 2010.
Vietnam also challenges certain U.S. laws and regulations, including; (i) the Tariff Act of 1930, as amended, sections 771(18)(C)(i), 771(35)(A), 776(a)(2), 776(b), and 777A(c)(2)(B); (ii) implementing regulations of the Department of Commerce, 19 CFR 351.204, 351.408, and 351.414; and theImport Administration Antidumping Manual, Chapter 10, “Non-Market Economies.”
In addition, Vietnam challenges the U.S.': (i) repeated and consistent failing to provide most Vietnamese respondents seeking a review an opportunity to demonstrate the absence of dumping by being permitted to participate in a review; and (ii) requiring companies to demonstrate their independence from government control and applying an adverse facts available rate to companies failing to do so in all reviews.
Vietnam Alleges U.S. Laws/Procedures Inconsistent with GATT/WTO Obligations
Vietnam alleges that these laws and procedures are inconsistent with certain articles of the General Agreement on Tariffs and Trade 1994 (GATT), the GATT Antidumping Agreement, the WTO Agreement, and Vietnam's Protocol of Accession to the WTO.
DSP Panel Would be Expected to Issue Report 9 Months After Established
According to the USTR, if a DSP is established, it would be expected to issue a report on its findings and recommendations within nine months after it is established.
(See ITT’s Online Archives or 02/23/10 news, 10022310, for BP summary of USTR seeking comments on Vietnam’s request for WTO consultations.)
USTR Contact: J. Daniel Stirk (202) 395-9617
(FR Pub 06/08/10, D/N WTO/DS404)
WTO summary of the dispute (updated 05/26/10) available here.
BP Notes
1. In cases brought by the European Union, Japan, Brazil, Thailand, Vietnam and others, the WTO has already ruled against certain U.S. “zeroing” procedures in AD: (1) investigations; (2) administrative reviews; (3) new shipper reviews; and (4) sunset reviews. There are also several ongoing “zeroing” disputes.
(See ITT’s Online Archives or 05/14/10, 03/29/10, 02/23/10, 09/11/09, 08/19/09, and 03/19/09 news, 10051425, 10032945, 10022310, 09091120, 09081925, and 09031930, for most recent BP summaries of U.S. “zeroing” disputes.
See ITT’s Online Archives or 02/04/10 news, 10020405, for BP summary of the EU’s WTO request to impose increased duty rates because the U.S. has not brought its zeroing methodology into conformity with WTO rules and findings.)
2. The U.S. took certain actions to end the use of “zeroing” in average-to-average comparisons in AD investigations in 2007. (See ITT’s Online Archives or 01/08/07 news, 07010825, for BP summary.)