United States — Anti-Dumping Measure on Shrimp from Ecuador

Consultations

Complaint by Ecuador.

On 17 November 2005, Ecuador requested consultations with the United States concerning the final affirmative determination of sales at less than fair value with respect to certain frozen warmwater shrimp from Ecuador published by the United States Department of Commerce (DOC) on 23 December 2004, the amended final determination of sales at less than fair value on 1 February 2005 and the accompanying anti-dumping duty order.  According to Ecuador, it has concerns particularly about the DOC’s practice of “zeroing” negative anti-dumping margins, based on which the DOC issued the foregoing determinations and order.  Ecuador considers that the foregoing determinations and order are inconsistent with Article VI of the GATT 1994 and Articles 1, 2.1, 2.2, 2.4, 2.4.2, 5.8, 6.10, 9.2, 9.3, 9.4, and 18.1 of the Anti-Dumping Agreement.  

On 28 November 2005, India requested to be joined in the consultations. On 1 December 2005, Thailand requested to be joined in the consultations.

On 8 June 2006, Ecuador requested the establishment of panel. At its meeting on 19 June 2006, the DSB deferred the establishment of a panel.

Panel and Appellate Body proceedings

At its meeting on 19 July 2006, the DSB established a panel. Brazil, China, the European Communities, India, Japan, Korea and Thailand reserved their third-party rights. Subsequently, Chile and Mexico reserved their third-party rights. On 26 September 2006, the Panel was composed. On 20 October 2006, the parties informed the DSB of an Agreement on Procedures for this dispute.

On 20 January 2007, the panel report was circulated to Members. The Panel concluded that the US Department of Commerce acted inconsistently with Article 2.4.2 in its final and amended final affirmative determinations of sales at less than fair value (dumping) with respect to certain frozen warmwater shrimp from Ecuador, and in its final anti-dumping duty order.

The Panel recommended the DSB to request the United States to bring its measures into conformity with its obligations under the Anti-Dumping Agreement.

At its meeting on 20 February 2007, the DSB adopted the Panel report.

Implementation of adopted reports

On 26 March 2007, the parties informed the DSB that, pursuant to Article 21.3(b) of the DSU, they had agreed that the reasonable period of time for the United States to implement the DSB recommendations and rulings shall be 6 months, expiring on 20 August 2007.

At the DSB meeting on 31 August 2007, the United States was pleased to report that it had implemented the DSB's recommendations and rulings.