. /.WORLD TRADE
ORGANIZATIONWT/DS217/24
16 January 2004
(04- 0167)
Original:  English
UNITED STATES – CONTINUED DUMPING AND
SUBSIDY OFFSET ACT OF 2000
Recourse by Japan to Article 22.2 of the DSU
The following communication, dated 15 January 2004, from the delegation of Japan to the
Chairman of the Dispute Settlement Body, is circulated pursuant to Article 22.2 of the DSU.
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Japan requests that a special meeting of the 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 Japan to Article 22.2 of the Understanding on Rules and Procedures
Governing the Settlement of Disputes
The panel and the Appellate Body in this dispute found that the Continued Dumping and
Subsidy Offset Act of 2000 (CDSOA) was inconsistent with the United States’ obligations under the
Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994
(Anti-dumping Agreement), the Agreement on Subsidies and Countervailing Measures  (SCM
Agreement), the General Agreement on Tariffs and Trade 1994  (GATT 1994) and the Marrakesh
Agreement establishing the World Trade Organisation (WTO Agreement), namely that:
- the CDSOA is a non-permissible specific action against dumping or a subsidy
contrary to Article 18.1 of the Anti-dumping Agreement, Article 32.1 of the SCM
Agreement and Articles VI:2 and VI:3 of the GATT 1994;
- consequently, the United States has failed to comply with Article 18.4 of the Anti-
dumping Agreement, Article 32.5 of the SCM Agreement and Article XVI:4 of the
WTO Agreement; and
- to the extent that the CDSOA is inconsistent with provisions of the Anti-dumping
Agreement and the SCM Agreement, the CDSOA nullifies or impairs benefits
accruing to the Complaining Parties under those Agreements.
On 27 January 2003, the DSB adopted the Appellate Body report and the report of the Panel,
as modified by the Appellate Body report.  The United States stated that it intended to implement the
recommendations and rulings of the DSB.
A subsequent arbitration pursuant to Article 21.3(c) of the Understanding on Rules and
Procedures Governing the Settlement of Disputes (DSU) determined that the reasonable period ofWT/DS217/24
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time for the United States to implement the recommendations and rulings of the DSB would expire on
27 December 2003.  The United States has failed to implement those recommendations and rulings by
that date.
Therefore, pursuant to Article 22.2 of the DSU, Japan requests the authorization of the DSB
to suspend the application to the United States of its tariff concessions under the GATT 1994 in an
amount that will be determined every year by the amount of the offset payments made to affected
domestic producers in the latest annual distribution under the CDSOA.  In accordance with
Article 22.4 of the DSU, this amount will be established by adding (i) the amount of offset payments
attributed to anti-dumping and countervailing duties collected on products from Japan and (ii) a
proportionate amount of the balance of total offset payments less the offset payments attributed to
duties collected on products of other Members that are authorized by the DSB to suspend concessionsor other obligations in this dispute.
Japan intends to take measures in the form of the imposition of additional import duties above
bound custom duties on a final list of products originating in the United States.  Every year, the
applied rate of the additional duties will be set so as to collect over one year additional duties in anamount no greater than the level of suspension of concessions and other obligations authorized by the
DSB.  Prior to the adjustment of the duties, Japan will notify to the DSB a detailed list indicating the
level of the additional duties on the selected products in the light of the latest annual distribution of
offset payments under the CDSOA. It should be noted that the annual amount of those offset
payments will vary from year to year. The list of products subject to increased import duties will notbe changed.
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