Monday, November 17, 2014

WTO Panel Finds US Violated WTO Obligations with respect to Shrimp from Vietnam

WTOIn 2012, Viet Nam initated the dispute settlement process against the United States at the World Trade Organization (WTO) with respect to a number of US anti-dumping measures on certain  frozen warmwater shrimp from Vietnam.  Vietnam alleged that the United States violated WTO rules in two administrative reviews and the five-year “sunset  review,” as well as with respect to several US laws,  regulations, administrative proceedings and practices, including zeroing.  The WTO Dispute Settlement Body (DSB) established the panel in February 2013.  Earlier today, the WTO panel circulated its report, in which if finds that certain of the measures challenged by Vietnam are inconsistent with the GATT 1994 and the Anti-Dumping (AD) Agreement, and recommends that the United States bring the relevant measures into conformity with its obligations under these Agreements.

More specifically, and unsurprisingly in light of earlier WTO findings on this issue, the panel found that the United States had violated its WTO obligations in its use of zeroing to calcuate dumping margins for individually examined Vietnamese producers/exporters in the three administrative reviews at issue.  The panel further found that the non-market-entity or NME rate applied to the NME-wide entity was inconsistent with Article 9.4 of the AD Agreement.  Likewise, the panel found that the US had improperly used the zeroing methodology in the sunset review. Finally, the panel found that the United States had improperly rejected certain requests by Vietnamese producers/exporters for revocation in contravention of article 11.2.

On the other hand, the panel rejected Vietnam's allegation that section 129(c)(1) of the Uruguary Round Agreement Act, which implements the United States' WTO obligations in domestic law, prevents the United States from implementing its WTO obligations with respect to prior unliquidated entries.


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