United States – Certain Methodologies and Their Application to Anti-Dumping Proceedings Involving China: Hitting Nails in the Coffin of Unfair Dumping Margin Calculation Methodologies

27 Pages Posted: 19 Dec 2018

See all articles by Thomas J. Prusa

Thomas J. Prusa

Rutgers University; National Bureau of Economic Research (NBER)

Edwin A. Vermulst

VVGB Advocaten/Avocats, Brussels

Date Written: November 2018

Abstract

The WTO Appellate Body report United States – Certain Methodologies and Their Application to Anti-Dumping Proceedings Involving China is yet another in a long line of disputes involving U.S. Department of Commerce’s dumping margin calculation methodologies. The AB ruled against the United States on three important aspects: (1) the use of the Nails test to rationalize the exceptional method in Article 2.4.2 of the Anti-Dumping Agreement so as to justify using the weighted average-to-transaction methodology in dumping margin calculations; (2) the treatment of multiple companies in a non-market economy as a single NME-wide entity; and (3) the USDOC’s policy of using adverse facts available for such an entity. Yet, some aspects of the AB’s decision – most notably affirming the use of average prices – significantly weaken Article 2.4.2’s pattern requirement and potentially open the door to greater use of the exceptional method.

Keywords: dumping; zeroing; targeted dumping; single rate dumping duty; non-market economy dumping

Suggested Citation

Prusa, Thomas J. and Vermulst, Edwin A., United States – Certain Methodologies and Their Application to Anti-Dumping Proceedings Involving China: Hitting Nails in the Coffin of Unfair Dumping Margin Calculation Methodologies (November 2018). Robert Schuman Centre for Advanced Studies Research Paper No. RSCAS 2018/61, Available at SSRN: https://ssrn.com/abstract=3293721 or http://dx.doi.org/10.2139/ssrn.3293721

Thomas J. Prusa (Contact Author)

Rutgers University ( email )

Dept of Economics
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National Bureau of Economic Research (NBER)

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Edwin A. Vermulst

VVGB Advocaten/Avocats, Brussels ( email )

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Brussels, 1000
Belgium

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