WORLD TRADE  
ORGANIZATION   
WT/DS322/46 
7 August 2012  
 
(12-4346) 
 Original:   English 
 
UNITED STATES – MEASURES RELATING TO ZEROING 
AND SUNSET REVIEWS 
 
Recourse to Article 22.2 of the DSU by Japan 
 
Withdrawal of the Request pursuant to Article 22.2 by Japan 
 
 
 The following communication, dated 3 Augus t 2012 from the delegation of Japan, to the 
Chairperson of the Dispute Settlement Body, is circulated to Members for their information. 
 
_______________ 
 
 
This is in reference to the requests of Japan  for authorization from the Dispute Settlement 
Body ("DSB") to suspend the app lication to the United States of concessions and other obligations 
pursuant to Article 22.2 of the Understanding on Rules and Procedures Governing the Settlement of 
Disputes  ("DSU") in documents WT/DS322/23 and WT/DS322/24. 
As you recall, on 10 January 2008, Japan made these requests1 in the dispute United States – 
Measures relating to Zeroing and Sunset Reviews  (WT/DS322).  On 18 January 2008, the United 
States objected to the level of suspension of c oncessions or other obligations proposed by Japan2.  As 
a result, the matter was referred to arbitrati on pursuant to Article 22.6 of the DSU.  
On 7 April 2008, Japan initiated compliance pro ceedings under Article 21.5 of the DSU by 
filing a request for the establishment of a panel3.  On 18 April 2008, the DSB referred the matter to 
the compliance panel pursuant to Article 21. 5 of the DSU ("Article 21.5 Panel").  
On 6 June 2008, in accordance with the Understanding between the United States and Japan 
Regarding Procedures under Articles 21 and 22 of the DSU ("Confirmed Procedures")4, Japan and the 
United States (the "Parties") requested the Arbitr ator to suspend its work.  On 9 June 2008, in 
accordance with this joint request, the Arbitrator  decided to suspend the arbitration proceeding 
effective as from that date until either party requests the resumption of the proceedings under the 
certain circumstances described in the Confirmed Procedures. 
On 31 August 2009, by adopting the Article  21.5 Panel report (WT/DS322/RW) and the 
Appellate Body report (WT/DS322/AB/RW)5, the DSB found that the measu res taken to comply with 
the DSB's 23 January 2007 recommendations and rulin gs in this dispute did not exist or were 
inconsistent with a covered agreement. 
                                                      
1 WT/DS322/23 and WT/DS322/24. 
2 WT/DS322/25. 
3 WT/DS322/27. 
4 WT/DS322/26. 
5 WT/DS322/35. WT/DS322/46 
Page 2  
 
  On 23 April 2010, Japan requested the Arbitrat or to resume the arbitration proceeding
6 in 
accordance with the Confirmed Procedures. 
On 13 December 2010, upon request by the Parties, the Arbitrator suspended its work7. Upon 
request by the Parties, the Arbitrator decided to continue the suspension of its work on 12 September 2011
8, 7 November 20119, 30 November 201110, 9 January 201211 and 1 February 201212.  
On 6 February 2012, the Parties signed a Me morandum of Understandi ng regarding this 
dispute ("Understanding")13.  The operative part of the Understanding reads as follows: 
"1. As a measure taken to comply with  the DSB recommendations and ruling in 
the dispute, by no later than 7 days after the start date of this Understanding (defined 
as the signature date of this Understandi ng), and subject to U.S. domestic legal 
requirements, the United States will complete the process under Section 123 of the 
Uruguay Round Agreements Act (URAA) to  modify its methodologies, as described 
in the notice Antidumping Proceedings: Calculation of the Weighted Average Dumping Margin and Assessment Rate in Certain Antidumping Duty Proceedings, 75 
FR 81533 (Dec. 28, 2010), by signing the final modification and submitting it 
promptly for publication.  
2. As specified in Annex II, the Un ited States will conduct proceedings under 
Section 129 of the URAA.    
3. By no later than 12 days after the start date, the United States will begin the 
Section 129 proceeding listed in Annex II, paragraph 2, by transmittal of a written 
request from the Office of the United St ates Trade Representative ("United States 
Trade Representative") to the United States Department of Commerce ("Department 
of Commerce"). 
4. By no later than 4 months after the start date, the Department of Commerce 
will issue a final determination in the Section 129 proceeding listed in Annex II, 
paragraph 2.   
5. The United States and Japan will conti nue the suspension of the work of the 
Arbitrator until, as described in paragraph 6,  the Arbitrator notifies the DSB that it is 
not necessary for the Arbitrator to issue an award, on the conditions that:  (i) the United States begins the Section 129 proce dure listed in Annex II, paragraph 2, no 
later than 12 days after the start date; ( ii) the Department of Commerce issues a final 
determination in the Section 129 proceeding listed in Annex II, pa ragraph 2, no later 
than 4 months after the start date; and (iii) the United States completes the section 
129 proceeding in Annex II, paragraph 2. 
6. By no later than six months after the start date: 
(a) Japan will, by letter to the chair of the DSB, withdraw its 
requests to the DSB made pursuant to Article 22.2 of the Understanding on Rules and Procedures Governing the Settlement of 
                                                      
6 WT/DS322/37. 
7 WT/DS322/38. 
8 WT/DS322/39. 
9 WT/DS322/40. 
10 WT/DS322/41. 
11 WT/DS322/42. 
12 WT/DS322/43. 
13 WT/DS322/44.  WT/DS322/46 
 Page 3 
 
 
  Disputes ("DSU") in documents WT/DS322/23 and WT/DS322/24; 
and 
(b) Japan and the United States w ill submit a joint letter to the 
Arbitrator noting that Japan has w ithdrawn its Article 22.2 requests; 
informing the Arbitrator that the United States accordingly no longer 
makes objections under Article 22.6 of  the DSU; and requesting that 
the Arbitrator notify the DSB that it is not necessary for the Arbitrator to issue an award." 
On 7 February 2012, upon request by the Parties, the Arbitrator decided to continue the 
suspension of its work until 20 August 2012.  
As foreseen in the above quoted paragraphs of the Understanding, the United States has taken 
the following actions: 
 On 7 February 2012, the United States signe d the final modification under Section 123 of 
the Uruguay Round Agreements Act ("UR AA") and submitted it for publication
14; 
 On 13 February 2012, the United States in itiated the Section 129 proceeding of the 
URAA listed in Annex II, para graph 2 of the Understanding15; 
 On 6 June 2012, the United States Department of Commerce issued its final 
determination in the Section 129 proceeding16; and 
 On 8 June 2012, the United States Trade Re presentative directed the Department of 
Commerce to implement the Section 129 determination17.   
Accordingly, following these actions taken by the United States, Japan hereby withdraws its 
requests for authorization from the DSB to suspend the application to the United States of concessions 
and other obligations made pursuant to Article  22.2 of the DSU in documents WT/DS322/23 and 
WT/DS322/24.  
I would be grateful if this communication could be circulated to the WTO members. 
 
__________  
                                                      
14 The final modification was published on 14 February 2012. See Antidumping Proceedings: 
Calculation of the Weighted-Average Dumping Margin and Assessment Rate in Certain Antidumping Duty 
Proceedings; Final Modification, 77 FR 8101 , dated 14 February 2012. 
15 Letter of 13 February 2012 from Mr. Ron Kirk, United States Trade Representative, to Mr. John 
Bryson, United States S ecretary of Commerce. 
16 Memorandum of 6 June 2012 from Mr. Christian Marsh, Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations, to Mr. Paul Piquado, Assistant Secretary for Import Administration, Final Results of Proceedings Under Sec tion 129: Stainless Steel Pl ate in Coils from Belgium, 
Steel Concrete Reinforcing Bars from Latvia, Purified Carboxymethylcellulose from Finland, Certain Pasta 
from Italy, Purified Carboxymethylcellulose from Nether lands, Stainless Steel Wire Rod from Spain, Granular 
Polytetrafluoroethylene Resin from Italy, Stainl ess Steel Sheet and Strip in Coils from Japan. 
17 Letter of 8 June 2012 from Mr. Ron Kirk, United States Trade Representative, to Mr. John Bryson, 
United States Secretary of Commerce, directing the latter to implement the final determination in the Section 
129 proceeding; See also  Notice of Implementation of Determination Under Section 129 of the Uruguay Round 
Agreements Act: Stainless Steel Plate in Coils from Be lgium, Steel Concrete Reinforcing Bars from Latvia, 
Purified Carboxymethylcellulose from Finland, Certain Pasta from Italy, Pu rified Carboxymethylcellulose from 
Netherlands, Stainless Steel Wire Rod from Spain, Granul ar Polytetrafluoroethylene Re sin from Italy, Stainless 
Steel Sheet and Strip in Coils from Japan, 77 FR 36257 , dated 18 June 2012.