United States—Measures Relating to Zeroing and Sunset Reviews
World Trade Organization, Appellate Body
WT/DS/322/AB/R (January 23, 2007)

- Written by Josh Lee, JD
Facts
The United States (defendant) used a methodology to calculate dumping margins that involved zeroing out the value of imports that were equal to or above the normal value of the goods. By using this method, the transactions with a higher sales price were excluded from calculating the dumping margin. Therefore, the dumping margin was determined to be higher than it would have been if the values of those transactions were factored into the calculations. The United States used this methodology in a number of calculations, including comparisons between weighted averages of export prices and normal prices (W-W), comparisons between specific transactions (T-T), and periodic reviews, among others. However, the United States included all imports, including those with a higher export price than the normal price, in the determination of whether an injury to the domestic industry has occurred. Japan (plaintiff) filed a challenge to this practice and asserted that it violated the World Trade Organization (WTO) Antidumping Agreement.
Rule of Law
Issue
Holding and Reasoning ()
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