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Decisions of the Appellate Body of the World Trade Organization

United States – Final Dumping Determination on Softwood Lumber from Canada

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United States – Final Dumping Determination on Softwood Lumber from Canada, WT/DS264/AB/R, adopted August 31, 2004 . United Status, Appellant/Appellee; Canada, Appellant/Appellee; European Communities, India and Japan, Third Participants. Division: Ganesan, Baptista, and Janow. Major Topics Addressed by the Appellate Body: (i)Calculation of Dumping Margins under Article 2.4.2 of the Anti-Dumping Agreement; (ii) Requirement to consider all available evidence under Article 2.2.1.1 of the Anti-Dumping Agreement.

1. Abstract

This case related to the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (the “Anti-Dumping Agreement”). It raised issues similar to those raised in the EC—Bed Linen decision. The U.S. sought to defend its practice of “zeroing”—calculating average dumping margins by including negative dumping margins at zero, instead of at actual negative amounts, as applied in this particular case in connection with a weighted average to weighted average price comparison. This practice results in artificially high dumping margins. The Appellate Body found that zeroing in this case is inconsistent with Article 2.4.2 of the Anti-Dumping Agreement.

Appellate Body Report, European Communities – Anti-Dumping Duties on Imports

of Cotton-Type Bed Linen from India, WT/DS141/AB/R, adopted 12 March 2001,

DSR 2001:V, 2049.

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