European Union — Cost Adjustment Methodologies and Certain Anti-Dumping Measures on Imports from Russia

 

Short title:	EU — Cost Adjustment Methodologies (Russia)
Complainant:	Russian Federation
Respondent:	European Union
Third Parties (original proceedings):	Argentina; Australia; Canada; China; Indonesia; Norway; Turkey; Ukraine; United States; Saudi Arabia, Kingdom of; Brazil; Mexico; Viet Nam
Agreements cited: (as cited in request for consultations)	Art. 2.1, 2.2, 2.2.1, 2.2.1.1, 2.2.2, 2.4, 3.1, 3.2, 3.4, 3.5, 5.8, 6.8, 9.2, 9.3, 11.1, 11.2, 11.3, 18.1, 18.4, Annex II  Anti-dumping Art. 10, 32.1  Subsidies and Countervailing Measures (SCM) Art. I, VI  GATT 1994 Art. XVI:4 Agreement Establishing the World Trade Organization
Agreements cited: (as cited in panel request)	Art. I, VI:1, VI:2  GATT 1994 Art. 2.1, 2.2, 2.2.1, 2.2.1.1, 2.2.2, 2.4  Anti-dumping Art. VI:6  GATT 1994 Art. 3.1, 3.2, 3.4, 3.5, 5.8, 8.1, 9.2, 9.3, 11.1, 11.2, 11.3, 18.1, 6.8, Annex II  Anti-dumping Art. XVI:4  Agreement Establishing the World Trade Organization Art. X:3  GATT 1994
Consultations requested:	23 December 2013
Panel requested:	4 June 2014
Panel established:	22 July 2014

 

Consultations

 

Complaint by the Russian Federation. (See also DS494)

 

On 23 December 2013, the Russian Federation requested consultations with the European Union regarding “cost adjustment” methodologies used by the EU for the calculation of dumping margins in anti-dumping investigations and reviews, including: (a) the rejection of cost and price information of producers and exporters in the country of origin, including data on energy inputs as part of the manufacturing costs; (b) the rejection of prices of sales of “like products” in the country of origin in “particular market situations”; (c) the effect of such rejection of cost and price data on the determination of dumping margins and injury caused by dumped imports, as well as on the imposition, continuation and collection of anti-dumping duties; and, (d) the use of anti‑dumping duties as a specific action against alleged governmental subsidies.

 

The Russian Federation claims that the measures are inconsistent with:

 

- Articles 2.1, 2.2, 2.2.1, 2.2.1.1, 2.2.2, 2.4, 3.1, 3.2, 3.4, 3.5, 5.8, 6.8, 9.2, 9.3, 11.1, 11.2, 11.3, 18.1 and 18.4, and Annex II, of the Anti‑Dumping Agreement;

 

- Articles 10 and 32.1 of the SCM Agreement;

 

- Articles I and VI of the GATT 1994; and

 

- Article XVI:4 of the WTO Agreement.

 

On 14 January 2014, China requested to join the consultations. On 16 January 2014, Indonesia requested to join the consultations. On 4 June 2014, the Russian Federation requested the establishment of a panel. At its meeting on 18 June 2014, the DSB deferred the establishment of a panel.

 

Panel and Appellate Body proceedings

 

At its meeting on 22 July 2014, the DSB established a panel. Argentina, Australia, Canada, China, Indonesia, Norway, Turkey, Ukraine and the United States reserved their third-party rights. Subsequently, Brazil, Mexico, Saudi Arabia and Viet Nam reserved their third-party rights.