Abstract
In US-Washing Machines, the WTO Appellate Body (AB) extended the prohibition of zeroing to the so-called exceptional (or W-T) methodology, where the dumping margin is established by comparing the weighted average normal value to export price of specific transactions. Given that the exceptional method was the only method under which the AB had not definitively rejected zeroing, this dispute may have hammered the last nail in the coffin of zeroing. Or, maybe not. The AB did not address a key issue, namely: What is the evidentiary standard that an investigating authority must meet in order to have legitimate recourse to W-T? In addition, the AB's suggested approach to aggregating dumping amounts across targeted and non-targeted groups may produce zeroing-like outcomes even if the authority does not resort to zeroing. It seems inevitable that future disputes will be required to address these issues, since history shows that at least some investigating authorities are gearing towards using this methodology ad nauseam. The AB has left zeroing to die another day.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 239-264 |
| Number of pages | 26 |
| Journal | World Trade Review |
| Volume | 17 |
| Issue number | 2 |
| DOIs | |
| State | Published - Apr 1 2018 |
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All Science Journal Classification (ASJC) codes
- Economics and Econometrics
- Political Science and International Relations
- Law
Cite this
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Die Another Day : Zeroing in on Targeted Dumping - Did the AB Hit the Mark in US-Washing Machines? / Mavroidis, Petros C.; Prusa, Thomas.
In: World Trade Review, Vol. 17, No. 2, 01.04.2018, p. 239-264.Research output: Contribution to journal › Review article
TY - JOUR
T1 - Die Another Day
T2 - Zeroing in on Targeted Dumping - Did the AB Hit the Mark in US-Washing Machines?
AU - Mavroidis, Petros C.
AU - Prusa, Thomas
PY - 2018/4/1
Y1 - 2018/4/1
N2 - In US-Washing Machines, the WTO Appellate Body (AB) extended the prohibition of zeroing to the so-called exceptional (or W-T) methodology, where the dumping margin is established by comparing the weighted average normal value to export price of specific transactions. Given that the exceptional method was the only method under which the AB had not definitively rejected zeroing, this dispute may have hammered the last nail in the coffin of zeroing. Or, maybe not. The AB did not address a key issue, namely: What is the evidentiary standard that an investigating authority must meet in order to have legitimate recourse to W-T? In addition, the AB's suggested approach to aggregating dumping amounts across targeted and non-targeted groups may produce zeroing-like outcomes even if the authority does not resort to zeroing. It seems inevitable that future disputes will be required to address these issues, since history shows that at least some investigating authorities are gearing towards using this methodology ad nauseam. The AB has left zeroing to die another day.
AB - In US-Washing Machines, the WTO Appellate Body (AB) extended the prohibition of zeroing to the so-called exceptional (or W-T) methodology, where the dumping margin is established by comparing the weighted average normal value to export price of specific transactions. Given that the exceptional method was the only method under which the AB had not definitively rejected zeroing, this dispute may have hammered the last nail in the coffin of zeroing. Or, maybe not. The AB did not address a key issue, namely: What is the evidentiary standard that an investigating authority must meet in order to have legitimate recourse to W-T? In addition, the AB's suggested approach to aggregating dumping amounts across targeted and non-targeted groups may produce zeroing-like outcomes even if the authority does not resort to zeroing. It seems inevitable that future disputes will be required to address these issues, since history shows that at least some investigating authorities are gearing towards using this methodology ad nauseam. The AB has left zeroing to die another day.
UR - http://www.scopus.com/inward/record.url?scp=85045838425&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85045838425&partnerID=8YFLogxK
U2 - 10.1017/S1474745617000611
DO - 10.1017/S1474745617000611
M3 - Review article
AN - SCOPUS:85045838425
VL - 17
SP - 239
EP - 264
JO - World Trade Review
JF - World Trade Review
SN - 1474-7456
IS - 2
ER -