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ARTICLE · 01 MAY 2019

WTO Panel Finds "Zeroing" Permitted To Unmask Targeted Dumping

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On April 9, 2019, the Report of the World Trade Organization ("WTO") Panel ("Panel") in United States – Anti-Dumping Measures Applying Differential Pricing Methodology to Softwood Lumber from Canada1 was published.

United StatesInternational Law
Duane Layton
Duane Layton
Jing Zhang
Jing Zhang
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On April 9, 2019, the Report of the World Trade Organization ("WTO") Panel ("Panel") in United States – Anti-Dumping Measures Applying Differential Pricing Methodology to Softwood Lumber from Canada1 was published. This dispute concerned US anti-dumping measures applying the differential pricing methodology ("DPM") to softwood lumber products from Canada. The key issue in this dispute is whether Article 2.4.2 of the Anti-Dumping Agreement permits "zeroing" (i.e., no offset for non-dumped sales) in calculating dumping margins, when the DPM employs the weighted-average-to-transaction ("W-T") method to address "targeted dumping." Departing from the WTO Appellate Body's ("Appellate Body") previous decision, the Panel finds that Article 2.4.2 permits zeroing under the DPM to the extent that this methodology is limited to US sales raising targeted dumping concerns.

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