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Decisions of the Appellate Body of the World Trade Organization

United States-Countervailing Duties on Certain Corrosion-Resistant Carbon Steel Flat Products from Germany

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WTO Appellate Body Report: United States-Countervailing Duties on Certain Corrosion-Resistant Carbon Steel Flat Products from Germany, WT/DS213/AB/R, adopted 19 December, 2002. United States, Appellant/Appellee; European Communities, Appellant/Appellee; Japan and Norway, Third Participants. Division: Taniguchi, Ganesan, Sacerdoti. Major Topics Addressed by the Appellate Body: De minimis standard with respect to sunset reviews under Art. 21.3 of the Agreement on Subsidies and Countervailing Measures; evidentiary standard and determination of likelihood of continuation or recurrence of subsidization under Article 21.3 of the Agreement on Subsidies and Countervailing Measures; Panel terms of reference under Article 6.2 of the Dispute Settlement Understanding.

1. Abstract

The majority of the Panel inferred that the 1 percent de minimis standard applicable to countervailing duty determinations under Article 11.9 of the SCM Agreement is also applicable under Article 21.3, relating to sunset reviews, despite the fact that it is not stated explicitly in the text of Article 21.3. The Appellate Body reversed this finding, holding that nothing in the plain language of either Article 21.3 or Article 11.9 provided for the extension of the de minimis standard to Article 21.3 sunset reviews. The Appellate Body agreed with the panel to the effect that Article 21.3 does not include the threshold evidentiary standard of initial investigations, and therefore "does not prohibit the automatic self-initiation of sunset reviews by investigating authorities."

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