. /.  WORLD TRADE  
ORGANIZATION  WT/DS217/23 
16 January 2004 
 (04-0164) 
 Original:   English 
 
 
 
 
UNITED STATES – CONTINUED DUMPING AND  
SUBSIDY OFFSET ACT OF 2000 
 
Recourse by India to Article 22.2 of the DSU  
 
 
   The following communication, dated 15 January 2004, from the delegation of India to the Chairman of the Dispute Settlement Body, is circulated pursuant to Article 22.2 of the DSU.   
 
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  India requests that a special meeting of th e Dispute Settlement Body (DSB) be held on 
26 January 2004 to consider the following agenda item: 
 
United States – Continued Dumping and Subsidy Offset Act of 2000:  Recourse by India 
to Article 22.2 of the Understanding on Rules and Procedures Governing the Settlement of Disputes 
 
 The Panel and the Appellate Body in this di spute found that the Continued Dumping and 
Subsidy Offset Act of 2000 (CDSOA) was inconsiste nt with the United States' obligations under the 
General Agreement on Tariffs and Trade 1994 ( GATT 1994), the Agreement on Implementation of 
Article VI of the General Agreement on Tariffs  and Trade 1994 (AD Agreement), the Agreement on 
Subsidies and Countervailing Measures (SCM Agreement) and the Marrakesh Agreement 
Establishing the World Trade Organisat ion (WTO Agreement), namely that: 
 
- the CDSOA is a non permissible specific action against dumping or a subsidy contrary to 
Article 18.1 of the AD Agreement, Article 32. 1 of the SCM Agreement and Articles VI:2 
and VI:3 of GATT 1994; 
 
- consequently, that the United States has failed to comply with Article 18.4 of the AD 
Agreement, 32.5 of the SCM Agreement and Article XVI:4 of the WTO Agreement; and 
 
- to the extent the CDSOA is inconsistent w ith provisions of the AD Agreement and the 
SCM Agreement, the CDSOA nullifies or impa irs benefits accruing to the Complaining 
Parties under those Agreements. 
 
 On 27 January 2003, the Dispute Settlement B ody (DSB) adopted the Appellate Body report 
and the Panel report as modified by the Appellate Body report. The United States stated that it intended to implement the recommendations and rulings of the DSB.  
 WT/DS217/23 
Page 2  
 
 An arbitration pursuant to Article 21.3(c) of the Understanding on Rules and Procedures 
Governing the Settlement of Disput es (DSU) subsequently determined  that the reasonable period of 
time for the United States to implement the recomme ndations and rulings of the DSB would expire on 
27 December 2003.   
 The United States has failed to implement the recommendations and rulings of the DSB with 
respect to the CDSOA by that date, and no mutually acceptable arrangement has yet been made. Therefore, under Article 22.2 of the DSU, India is  entitled to request authorization from the DSB to 
suspend the application to the United States of concessions or other obligations under the covered 
agreements. 
 
 Pursuant to Article 22.2 of the DSU, India re quests the authorization of the DSB to suspend 
the application to the United States of tariff c oncessions and related oblig ations under GATT 1994 in 
an amount that will be determined every year by the amount of offset payments made to affected 
domestic producers in the latest annual distribu tion of anti-dumping and countervailing duties under 
the CDSOA, as explained below. 
  India intends to impose an additional import duty above bound custom duties on a final list of products originating in the United States.  In accord ance with Article 22.4 of the DSU, every year, the 
rate of the additional duty will be set so as to co llect over one year additional duties in an amount 
equivalent to an amount established by adding (1) the offset payments attributed to duties collected on 
products from India and (ii) a pro portionate amount of the balance of total offset payments less the 
offset payments attributed to duties collected on products from other Members that are authorized by 
the DSB to suspend concessions or other obligations  in this dispute. Every year, prior to the 
adjustment of the duty, India will notify to the DSB a detailed list indicating the level of the additional 
duty on the selected products in the light of the ch anges in the level of the disbursements made under 
the CDSOA. The list of products subject to increased import duties will not be changed. 
 
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