United States-use of zeroing in anti-dumping measures involving products from Korea: It's déjà vu all over again

Thomas J. Prusa, Luca Rubini

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

This paper analyzes the dispute between Korea and the United States regarding the method of calculating anti-dumping duties. The case mirrors other recent WTO disputes involving zeroing. Even though it ceased zeroing in original investigations in December 2006, the United States implemented the policy change only prospectively. As a result, the margins applied to the products in this dispute remained unchanged because they had been calculated prior to the policy change. The United States did not contest Korea's claims. The Panel confirmed that zeroing was used and, following the long line of Panel and Appellate Body rulings, found the practice inconsistent with the Anti-Dumping Agreement. After the Panel Report was adopted, the United States recalculated the margins without zeroing. It, however, refused to refund unliquidated cash deposits that were based on zeroing, highlighting the United States's continued lukewarm compliance with WTO rulings on zeroing. This dispute offers an opportunity to ponder on weaknesses of the WTO Dispute Settlement and the ability of one Member to take advantage of it. Since the facts and their legal assessment were undisputed, why was litigation necessary? Can compliance with WTO law be improved with broader findings and more incisive remedies?.

Original languageEnglish (US)
Pages (from-to)409-425
Number of pages17
JournalWorld Trade Review
Volume12
Issue number2
DOIs
StatePublished - Apr 2013

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Law
  • Political Science and International Relations

Fingerprint

Dive into the research topics of 'United States-use of zeroing in anti-dumping measures involving products from Korea: It's déjà vu all over again'. Together they form a unique fingerprint.

Cite this