It’s baaaack— zeroing, the US Department of Commerce, and US — Shrimp II (Viet Nam)

15/12/2015 12:00 - 1687 Views

It’s baaaack— zeroing, the US Department of Commerce, and US — Shrimp II (Viet Nam) written by James C. Hartigan is published by European University Institute, Robet Schuman Centre for Advanced Studies.
EUI Working Paper RSCAS 2015/67 
Abstract

In its Final Modification for Reviews the U.S. DOC announced on February 14, 2012 that it would cease the use of zeroing in the calculation of anti-dumping (AD) margins in all reviews as of April 16, 2012. However, it did not pertain to targeted dumping. In its Final Rule of April 22, 2014, it codified substantial discretion in calculating AD duties, including the use of zeroing, in targeted dumping. Thus the panel in Shrimp II erred in not finding “as such” inconsistency by the U.S. with the AD Agreement, despite this not being a targeted dumping complaint. Given the record of the U.S. in complying with zeroing petitions, it should have incurred the burden of proof, which is not satisfied by these pronouncements. Market structure should be used by panels in “as applied” inconsistency determinations. Viet Nam should have included an Art. 3 violation in its complaint.
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