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United States – Certain Methodologies and Their Application to Anti-Dumping Proceedings Involving China: Re-Litigating through the Backdoor?

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  • McDaniel, Christine
  • Vermulst, Edwin

Abstract

This paper presents a legal-economic analysis of the World Trade Organization's Article 22.6 arbitration report on the dispute over certain United States’ antidumping methodologies. The Arbitrator sought to quantify the damages suffered by China due to US non-compliance with an earlier ruling. The case covered 25 antidumping duty determinations for which at least one of three methodologies (weighted average-to-transaction; single rate presumption; and zeroing) was incorrectly applied. Damage calculations rely heavily on how the counterfactual is defined – what would have been the duty had it not been for the inconsistent measures? The Arbitrator deemed a zero-duty counterfactual to be appropriate, but the justifications were in our view weak and illustrate the danger of an Arbitrator essentially performing re-litigation of violations that may or may not have occurred in the administrative investigations. We conclude that the Arbitrator may have gone above and beyond its mandate in this determination.

Suggested Citation

  • 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.
  • Handle: RePEc:cup:wotrrv:v:20:y:2021:i:4:p:546-555_13
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    References listed on IDEAS

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    1. 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.
    2. Prusa, Thomas J. & Vermulst, Edwin, 2011. "United States – Continued Existence and Application of Zeroing Methodology: the end of Zeroing?," World Trade Review, Cambridge University Press, vol. 10(1), pages 45-61, January.
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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions

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