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

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  • MAVROIDIS, PETROS C.
  • PRUSA, THOMAS J.

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.

Suggested Citation

  • Mavroidis, Petros C. & Prusa, Thomas J., 2018. "Die Another Day: Zeroing in on Targeted Dumping – Did the AB Hit the Mark in US–Washing Machines?," World Trade Review, Cambridge University Press, vol. 17(2), pages 239-264, April.
  • Handle: RePEc:cup:wotrrv:v:17:y:2018:i:02:p:239-264_00
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    Cited by:

    1. McDaniel, Christine & Vermulst, Edwin, 2021. "United States – Certain Methodologies and Their Application to Anti-Dumping Proceedings Involving China: Re-Litigating through the Backdoor?," World Trade Review, Cambridge University Press, vol. 20(4), pages 546-555, October.
    2. Balistreri, Edward J. & Mavroidis, Petros C. & Prusa, Thomas J., 2021. "What If? Tinkering with the Counterfactual: A Comment on US–Washing Machines (Article 22.6-US)," World Trade Review, Cambridge University Press, vol. 20(4), pages 421-435, October.
    3. Thomas J. Prusa & Edwin A. Vermulst, 2018. "United States – Certain Methodologies and Their Application to Anti-Dumping Proceedings Involving China: Hitting Nails in the Coffin of Unfair Dumping Margin Calculation Methodologies," RSCAS Working Papers 2018/61, European University Institute.

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