Die Another Day: Zeroing in on Targeted Dumping - Did the AB Hit the Mark in US-Washing Machines?

Petros C. Mavroidis, Thomas Prusa

Research output: Contribution to journalReview article

1 Citation (Scopus)

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 languageEnglish (US)
Pages (from-to)239-264
Number of pages26
JournalWorld Trade Review
Volume17
Issue number2
DOIs
StatePublished - Apr 1 2018

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methodology
recourse
WTO
transaction
Dumping
Washing
history
Authority
Values
Group
Methodology
Dispute
Resorts
Export prices
Prohibition
Margin

All Science Journal Classification (ASJC) codes

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

Cite this

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title = "Die Another Day: Zeroing in on Targeted Dumping - Did the AB Hit the Mark in US-Washing Machines?",
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.",
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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 journalReview article

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