. /.  WORLD TRADE  
ORGANIZATION  WT/DS217/38 
11 November 2004 
 (04-4818) 
 Original:   English 
  
 
UNITED STATES – CONTINUED DUMPING AND 
SUBSIDY OFFSET ACT OF 2000 
 
Recourse by Brazil to Article 22.7 of the DSU
 
 
 
 The following communication, dated 10 Novemb er 2004, from the delegation of Brazil to the 
Chairperson of the Dispute Settlement Body, is ci rculated pursuant to Article 22.7 of the DSU. 
 
_______________ 
 
  Brazil requests that the Dispute Settlement Bo dy consider, at the forthcoming meeting on 
24 November 2004, the following agenda item:  
United States – Continued Dumping and Subsidy Offset Act of 2000 
 
Recourse by Brazil to Article 22.7 of the 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 Dispute Settlement Body ("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 pur suant 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
1, Brazil requested 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 DS U, the matter was referred to arbitration. On 
31 August 2004, the arbitrator issued its decision as follows:  
                                                     
 
1 WT/DS217/20. WT/DS217/38 
Page 2  
 
 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 Brazil) , 
the level of nullification or impairment suffe red by Brazil in a particular year can be 
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 
Brazil, multiplied by the coefficient identified in Section III.D above. 
5.2 Accordingly, we decide that the su spension by Brazil of concessions or other 
obligations in the form of the imposition of additional import 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 am ount 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 c ountervailing duties paid on imports from 
Brazil 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 impl emented the recommendations and rulings of the 
DSB with respect to the CDSOA, and no mutu ally 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, Br azil hereby requests authorization from the DSB to 
suspend the application to the United States of ta riff concessions and relate d obligations under GATT 
1994 in the form of the imposition of additional impor t duties on a final list of 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 counterva iling duties paid on imports from Brazil for the most recent year 
for which data are available at that time.   In this respect, Brazil is mindful of the notification specified in paragraph 5.3 of the arbitration award
2. 
 
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2 WT/DS217/ARB/BRA.