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

 

Short title:	EU — Cost Adjustment Methodologies II (Russia)
Complainant:	Russian Federation
Respondent:	European Union
Third Parties (original proceedings):	Argentina; Australia; Brazil; Canada; China; Egypt; India; Indonesia; Japan; Korea, Republic of; Mexico; Norway; Ukraine; United States; Viet Nam
Agreements cited: (as cited in request for consultations)	Art. 1, 2.1, 2.2, 2.2.1, 2.2.1.1, 2.2.2, 2.3, 2.4, 3.1, 3.2, 3.4, 3.5, 5.8, 6.8, 9.2, 9.3, 11.1, 11.2, 11.3, 11.4, 17.6, 18.1, 18.4, Annex II  Anti-dumping Art. 10, 32.1  Subsidies and Countervailing Measures (SCM) Art. I, VI:1, VI:2, VI:6, X:3(a)  GATT 1994 Art. XVI:4  Agreement Establishing the World Trade Organization
Agreements cited: (as cited in panel request)	Art. 2.2, 2.2.1.1, 2.2.1, 11.3, 1, 2.1, 2.4, 2.6, 3.1, 3.2, 3.4, 3.5, 4.1, 5.3, 6.1.2, 5.4, 9.1, 9.3, 18.1  Anti-dumping Art. I:1, II:1(a), II:1(b), VI:1, VI:2(a)  GATT 1994 Art. 11.1, 6.8, Annex II, 2.3, 6.10  Anti-dumping Art. VI:2, Annex I  GATT 1994 Art. 6.4, 11.4, 6.1.3, 6.2, 6.5, 6.5.1, 6.9, 12.2, 12.2.2  Anti-dumping
Consultations requested:	7 May 2015
Panel requested:	7 November 2016
Panel established:	16 December 2016
Panel composed:	17 December 2018
Panel report circulated:	24 July 2020

 

Consultations

 

Complaint by the Russian Federation. (See also DS474)

 

On7 May 2015, the Russian Federation requested consultations with the European Union regarding “cost adjustment” methodologies used by the European Union for the calculation of dumping margins in anti-dumping investigations and reviews. This is the second request for consultations by the Russian Federation with the European Union concerning the use of “cost adjustment” methodologies by the European Union for the calculation of dumping margins.

 

The Russian Federation claims that the measures are inconsistent with:

 

- Articles 1, 2.1, 2.2, 2.2.1, 2.2.1.1, 2.2.2, 2.3, 2.4, 3.1, 3.2, 3.4, 3.5, 5.8, 6.8, 9.2, 9.3, 11.1, 11.2, 11.3, 11.4, 17.6, 18.1 and 18.4, and Annex II, of the Anti‑Dumping Agreement;

 

- Articles 10 and 32.1 of the SCM Agreement;

 

- Articles I, VI:1, VI:2, VI:6 and X:3(a) of the GATT 1994; and

 

- Article XVI:4 of the WTO Agreement.

 

On 29 May 2015, Ukraine requested to join the consultations. Subsequently, the European Union informed the DSB that it had accepted the request of Ukraine to join the consultations.

 

Panel and Appellate Body proceedings

 

On 7 November 2016, the Russian Federation requested the establishment of a panel. At its meeting on 23 November 2016, the DSB deferred the establishment of a panel.

 

At its meeting on 16 December 2016, the DSB established a panel. Argentina, Australia, Brazil, Canada, China, Egypt, India, Indonesia, Japan, Korea, Mexico, Norway, Ukraine, the United States and Viet Nam reserved their third-party rights.

 

Following the agreement of the parties, the panel was composed on 17 December 2018. On 30 January 2020, the Chair of the panel informed the DSB that due to substantive and procedural complexities of this dispute, and in accordance with the timetable adopted by the panel in consultations with the parties, the panel expected to issue its final report to the parties in June of 2020. The Chair also informed the DSB that the report would be available to the public once it was circulated to the Members in all three official languages, and that the date of circulation depends on completion of translation.

 

On 24 July 2020, the panel report was circulated to Members.

 

On 28 August 2020, the European Union informed the DSB of its decision to appeal to the Appellate Body certain issues of law and legal interpretations in the panel report. On 2 September 2020, the Russian Federation informed the DSB of its decision to cross-appeal.