WORLD TRADE  
ORGANIZATION  WT/DS217/40 
11 November 2004 
 
 (04-4819) 
 Original:   English 
  
 
UNITED STATES – CONTINUED DUMPING AND 
SUBSIDY OFFSET ACT OF 2000 
 
Recourse by India to Article 22.7 of the DSU
 
 
 
 The following communication, dated 10 November 2004, from the delegation of India to the Chairperson of the Dispute Settlement Body, is ci rculated pursuant to Article 22.7 of the DSU. 
 
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  India requests that the Dispute Settlement Body ("DSB") considers, at the forthcoming meeting on 24 November 2004, the following agenda item:  
 United States – Continued Dumping and Subsidy Offset Act of 2000  
 Recourse by India to Article 22.7 of th e Understanding on Rules and Procedures Governing 
the Settlement of Disputes 
 
 The Panel and the Appellate Body found that the Continued Dumping and Subsidy Offset Act 
of 2000 ("CDSOA") was inconsistent with th e 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, the Agreement on Subsidies and 
Countervailing Measures and the Marrakesh Agreem ent establishing the World Trade Organization. 
On 27 January 2003, the 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 but failed to do so within the reasonable period of time, as 
determined by the arbitrator pursuant to Article 21. 3(c) of the Understanding on Rules and Procedures 
Governing the Settlement of Disputes ("DSU" ), which expired on 27 December 2003. 
  Consequently, on 15 January 2004, India re quested the authorization to suspend the 
application to the United States of tariff concessi ons and related obligati ons under GATT 1994 in an 
amount to be determined every year on the basis of 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.   On 23 January 2004, the United States objected to the level of suspension proposed and on 
26 January 2004, pursuant to Article 22.6 of the DSU,  the matter was referred to arbitration.  On 
31 August 2004, the arbitrator issued its decision as follows:  
V. AWARD OF THE ARBITRATOR 
5.1 For the reasons set out above, we determine that, in the matter United States 
– Continued Dumping and Subsidy Offset Ac t of 2000 (Original Complaint by India) , 
the level of nullification or impairment suffe red by India in a particular year can be WT/DS217/40 
Page 2  
 
 deemed to be equal to the total of disbursements made under the CDSOA for the 
preceding year relating to anti-dumping or countervailing duties paid on imports from 
India, multiplied by the coefficient identified in Section III.D above. 
5.2 Accordingly, we decide that the su spension by India of concessions or other 
obligations in the form of the imposition of an additional import duty above bound 
custom duties on a final list of products originating in the United States covering, on 
a yearly basis, a total value of trade  not exceeding, in US dollars, the amount 
resulting from the following equation: 
Amount of disbursements under CDSOA for the most recent year for 
which data are available relating to anti-dumping or countervailing 
duties paid on imports from India at that time, as published by the 
United States' authorities. 
multiplied by: 
 0.72  
would be consistent with Article 22.4 of the DSU. 
To date, the United States has still not implemented the recommendations and rulings of the DSB with 
respect to the CDSOA, and no mutually satisfactory solution has been reached. 
  Article 22.7 of the DSU provides that “the DSB shall be informed promptly of the decision of the arbitrators and shall upon request, grant authori zation to suspend concessions or other obligations 
where the request is consistent with the deci sion of the arbitrator, unless the DSB decides by 
consensus to reject the request.” Therefore, I ndia hereby requests authorization from the DSB to 
suspend the application to the United States of tariff concessions and other obligations under GATT 
1994, in the form of the imposition of additional im port duties on products originating in the United 
States, at a level not exceeding  every year 72% of the amount of CDSOA disbursements relating to 
anti-dumping or countervailing duties paid on imports from India for the most recent year for which 
data are available at that time . 
  In accordance with the arbitration award, I ndia will notify the DSB every year, prior to the 
entry into force of a level of suspension of con cessions or other obligations, the list of products on 
which the additional import duty will apply. That lis t will be drawn from the indicative list attached.  WT/DS217/40 
 Page 3 
 
 
 ANNEX:  Indicative List  
 
 1. Almonds fresh or dried, in shell – 08021100 2. Pistachio – 08025000 
3. Apples fresh – 08081000 
4. Shelled Almonds fresh or dried – 080212 5. Raisin – 080620 6. Soybean Crude oil W/N degummed – 15071000 7. Other Soya-bean oil and its fractions – 150790 
8. Bulgur Wheat – 19041030 or 19043000 
9. Homogenized composite food preparation – 21042000  
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