From January 16, complying with decision made by WTO, US Department of Commerce (DOC) will cross out zeroing used to calculate margin of dumping in trade disputes. As a WTO member, Vietnam can enjoy this good news.

However, United States also stated that this change is not applied to already-concluded cases as well as revising ones.

There are a lot of arguments over zeroing. Among products of one article, DOC will compare their price with the "standard" price. If the price is lower than standard, margin of dumping then is positive. However if the price is higher, margin of dumping is not negative but zero. As the result, an average figure between positive and zero will be applied to all products belonging to that article. Because of its privilege, this method not only harms to defendant but also motivates American enterprises to take legal actions. According to WTO's statistics, United States is the most enthusiastic country in investigating dumped imports: 352 cases in 10 years.

From June 2003, Europe Union (EU) has appealed against US's zeroing to WTO. Then, so have other WTO members, including Argentina, Brazil, China, Taiwan, Hong Kong, India, Japan, South Korea, Mexico, Norwei, Turkey, etc.

After many debates and extension of giving out conclusion, in May 2006 Dispute Settlement Body (DSB) of WTO concluded: US's zeroing calculation is against WTO's principles.

On January 9th 2007, WTO made decision after the petition from Japan: US's zeroing is against the law.

Concerning with Vietnam

In Announcement No. WT/DS294 issued October 31st 2005 on US's regulations and zeroing calculation in antidumping investigation DSB concluded the fact that US DOC did not balance positive and negative figures as using average comparison method to investigate dumped imports is not corresponding to Article 2.4.2 of WTO's Antidumping Convention.

As a new member of WTO, how can Vietnam avoid damages caused by zeroing calculation? To clear cut this issue VietNamNet has an interview with Dr. Dinh Thi My Loan, Chief of Competition Administration Department, Ministry of Trade.

- Can you explain more clearly the US's zeroing in calculating margin of dumping?

Following simple example will give you a deeper understanding of difference between the two methods.

For example, a company from EU sells 2 kinds of products, product A and product B in both  EU's and US's market.

According to WTO Antidumping Convention, investigation bodies have to calculate weighted average price of all products. Thus, if the calculating method includes negative figure, price difference equals zero. That company, then, is concluded not to dump into American market.

However, up to now United States still applies its own method called zeroing. When price difference is negative as in case of product A, United States automatically converts margin of dumping -2 into 0. It means that product A sold in US market at the same price as in EU market. United States will calculate 2 plus 0 equal 2 rather than 2 plus -2 equal 0, then conclude that total price difference is 2 and impose 10% antidumping tax (equivalent to 2 over 20).

- Which damages has Vietnam suffered from catfish and shrimp case when United States applies zeroing?

In the shrimp case, according to calculation and assessment of American lawyers, who gave advice and legal assistance to Vietnamese shrimp exporting enterprises, if DOC had balanced between positive and negative figures instead of zeroing Vietnamese enterprises would have not dumped, the margin of dumping is even -9%.

Because of zeroing, our shrimp exporting enterprises is suffering an antidumping tax from 4.13 to 25.76%. Every year these enterprises pay millions dollars of antidumping tax.

- United States gave up zeroing, which benefits can we gain when facing antidumping suits proceeded by United States?

This movement of United States is made to comply with decision of WTO Dispute Settlement Body and adjust its margin of dumping method in relevant to regulation at Article 2.4.2 of WTO Antidumping Convention.

Thus, margin of dumping investigation and calculation made by United States will be fairer and better reflect reality of production and exporting activities as well as competitiveness of Vietnamese enterprises as well as other exporting countries' ones when they face the risk of antidumping suits.

- Thank you so much.