WORLD TRADE  
ORGANIZATION  WT/DS268/24 
25 May 2007 
 (07-2153) 
 Original:   English 
 
  
 
UNITED STATES - SUNSET REVIEWS OF ANTI-DUMPING MEASURES 
ON OIL COUNTRY TUBULAR GOODS FROM ARGENTINA 
 
Recourse by Argentina to Article 22.2 of the DSU 
 
 
   The following communication, dated 21 May 2007, from the delegation of Argentina to the Chairman of the Dispute Settlement Body, is circulated pursuant to Article 22.2 of the DSU.   
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Argentina requests that a meeting of the Di spute Settlement Body (DSB) be held on 
4 June 2007 in order to consider the following agenda item: 
• United States – Sunset Reviews of Anti-Dumping Measures on Oil Country Tubular 
Goods from Argentina  (WT/DS268)  – Recourse by Argentina to Article 22.2 of the 
Understanding on Rules and Procedures Governing the Settlement of Disputes 
History of the Dispute
 
On 17 December 2004, the DSB adopted the original Appellate Body Report and the original 
Panel Report, as modified by the Appellate Body, in this dispute.  The resulting DSB recommendations and rulings included "as applied" violations related to the US Department of 
Commerce (USDOC) November 2000 likelihood of dum ping determination in the sunset review of 
the anti-dumping duty order on Oil Country Tubular Goods (OCTG) from Argentina. 
The original Panel found that the USDOC likelihood of dumping determination was 
inconsistent with the obligations of the Un ited States under Articles 11.3 and 6.2 of the Agreement on 
Implementation of Article VI of the Ge neral Agreement on Tariffs and Trade 1994  (the "Anti-
Dumping Agreement").
1  These findings were not appealed by the United States. 
The DSB recommended that the United States brin g its measures into conformity with US 
WTO obligations.  On 14 January 2005, the Unite d States informed the DSB that it intended to 
implement the recommendations and rulings of the DSB in a manner that respected US WTO 
obligations.2 
During the subsequent arbitration under Article 21.3(c) of the Understanding on Rules and 
Procedures Governing the Settlement of Disputes (the "DSU"), the Arbitrator determined that the 
"reasonable period of time" for the United States to implement the DSB recommendations and rulings 
                                                      
 1Panel Report, United States – Sunset Reviews of Anti-Dumping Measures on Oil Country Tubular 
Goods from Argentina , WT/DS268/R, adopted 17 December 2004, para. 8.1(d)(i) ("Panel Report"); see also 
paras.  7.219, 7.222, and 7.235. 
 2 WT/DSB/M/181, 14 January 2005, para. 10. WT/DS268/24 
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  would be 12 months from the date of adoption of  the Panel and Appellate Body Reports, i.e., by 
17 December 2005.
3 
On 2 November 2005, the USDOC initiated a proceeding under Section 129 of the US 
Uruguay Round Agreements Act in a purported atte mpt to address the Panel's findings concerning the 
USDOC's likelihood determination.  On 16 Dece mber 2005, the USDOC issued its "Section 129 
Determination," which stated in part that "we find there is likelihood of continuation or recurrence of 
dumping had the antidumping duty order on OCTG from  Argentina been revoked in 2000, i.e., at the 
end of the original sunset period."4 
On 20 December 2005, the United States asserted to the DSB that it had "implemented the 
recommendations and rulings of the DSB in [this] dispute."5  Argentina indicated at that DSB meeting 
that did not agree.6 
On 5 January  2006, Argentina and the United St ates concluded an ag reement on procedures 
under Articles 21 and 22 of the DSU that apply to this dispute:  Agreed Procedures under Articles 21 
and 22 of the Dispute Settlement Understanding A pplicable to the WTO Dispute United States – 
Sunset Reviews of Anti-Dumping Measures on Oil Country Tubular Goods from Argentina (the 
"Sequencing Agreement") .7 
Proceeding Under Article 21.5 of the DSU  
On 26 January 2006, Argentina requested c onsultations with the United States under 
Article 21.5 of the DSU.  On 6 March 2006, Argen tina requested the establishment of a Panel.  The 
Panel was established by the DSB on 17 March 2006. 
On 30 November 2006, the DSU Article 21.5 Panel issued its Report and found that the 
United States had failed to implement th e rulings and recommendations of the DSB.8  The Panel 
found, among other things, that:   
• "The USDOC acted inconsistently  with Article 11.3 of the Agreement as the Section 129 
Determination that dumping was likely to con tinue or recur lacked a sufficient factual 
basis with regard to its analysis of both (1) likely past dumping and (2) volume,"9 
• "The USDOC acted inconsistently  with Article 6.4 of the Agreement in the sunset review 
at issue by not giving the Argentine e xporters timely opportunities to see certain 
information that the USDOC used in its Section 129 Determination,"10 
                                                      
 3 Award of the Arbitrator, United States – Sunset Reviews of Anti-Dumping Measures on Oil Country 
Tubular Goods from Argentina,  Arbitration under Article 21.3(c) of  the DSU, WT/DS268/12, circulated 
7 June 2005, para. 10. 
 4 Section 129 Determination:  Final Results of Sunset Review, Oil Country Tubular Goods from 
Argentina , A-357-810 (16 Dec. 2005) ("USDOC Section 129 Determination"). 
 5 WT/DSB/M/202 , 1 February 2006  , para. 41.   
6 Id., para. 42. 
7 WT/DS268/14, 5 January 2006. 
8Panel Report, United States – Sunset Reviews of Anti-Dumping Measures on Oil Country Tubular 
Goods from Argentina – Recourse to Article 21.5 of the DSU by Argentina, , WT/DS268/RW, circulated 
30 November 2006 ("DSU 21.5 Panel Report"). 
9 DSU 21.5 Panel Report, para. 8.1(c).  Original emphasis. 
10 DSU 21.5 Panel Report, para. 8.1(e).  Original emphasis.  WT/DS268/24 
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  • "The USDOC acted inconsistently  with Article 6.5.1 of the Agreement by not requiring a 
petitioner submitting confidential informati on to submit a non-confidential summary 
thereof."11 
On 12 January 2007, the United States filed a Noti ce of Appeal with respect to certain issues 
of law covered in the DSU Article 21.5 Panel Report.12  On 24 January 2007, Argentina filed a Notice 
of Other Appeal.13 
On 12 April 2007, the Appellate Body issued its  Report.  It upheld the findings of the DSU 
Article 21.5 Panel that the United States had failed  to implement the recommendations and rulings of 
the DSB.14  Specifically, the Appellate Body upheld the Panel's finding, in para graphs 7.91 and 7.96 
of the DSU Article 21.5 Panel Report, that the USDOC's volume analysis was properly before the 
Panel.  The Appellate Body consequently found that the Panel's findings in pa ragraphs 7.101, 7.102, 
and 8.1(c) of the Panel Report also stood.15 
The United States did not appeal the rulings of  the DSU Article 21.5 Panel that the USDOC 
acted inconsistently with Articles 6.4 a nd 6.5.1 of the Anti-Dumping Agreement. 
On 11 May 2007, the DSB adopted the Appella te Body Report and the DSU Article 21.5 
Panel Report, as modified by the Appellate Body.   
Thus, the Section 129 Determination has been f ound to be inconsistent with US obligations 
under Article 11.3 of the Anti-Dumping Agreemen t because the USDOC's determination that 
dumping was likely to continue or recur was based on (1) a WTO-inconsistent finding of likely past 
dumping during the sunset review period, and (2) a WTO-inconsistent inference of likely dumping 
based on the reduction of Argentine OCTG imports into the United States following the imposition of 
the anti-dumping measure.  The Section 129 Determin ation was also inconsistent with Articles 6.4 
and 6.5.1 of the Anti-Dumping Agreement. 
Argentina's Request Pursuant to DSU Article 22.2  
The United States has failed to comply with the recommendations and rulings of the DSB 
within the reasonable period of time.  Therefore, pursuant to Article 22.2 of the DSU and paragraph 7 
of the Sequencing Agreement, Argentina request s authorization from the DSB to suspend the 
application to the United States of tariff con cessions and related obliga tions under the General 
Agreement on Tariffs and Trade (GATT) 1994. 
 The suspension of tariff concessions and relate d obligations requested by Argentina covers 
trade in an amount equivalent to the level of nu llification and impairment of benefits accruing to 
Argentina as a result of the failure of the United States to bring the above-mentioned measures into 
compliance with the Anti-Dumping Agreement or othe rwise to comply with the recommendations and 
rulings of the DSB by 17 December, 2005.   
 Argentina requests authorization from the DSB to  suspend the application to the United States 
of tariff concessions and related obligations under the GATT 1994 coveri ng trade in an annual amount 
of US$44 million dollars for the first year.  For subsequent years, the level of suspension of 
concessions and related obligations w ill be determined by applying to th is initial level a ratio of the 
                                                      
11 DSU 21.5 Panel Report, para. 8.1(f).  Original emphasis. 
12 WT/DS268/19. 
13 WT/DS268/20. 
14 WT/DS268/AB/RW. 
15 DSU Art.21.5 Appellate Body Report, para. 185 (b). WT/DS268/24 
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  size in metric tons of the OCTG market in the United States for the most recently completed calendar 
year to the size of the OCTG market in the Unite d States in 2006.  Thus, if the size of the OCTG 
market in the United States incr eases relative to 2006, then the leve l of suspension of concessions and 
related obligations would increase proportionate ly in accordance with this formula.   
 Argentina intends to implement the suspensi on of concessions and related obligations under 
the GATT 1994 by imposing duties in excess of bound rates on products originating in the 
United States.  For each year in which Argentina in tends to take such measures, Argentina will notify 
to the DSB, for transparency purposes, a final list to  be defined by Argentin a indicating the level of 
additional duties that Argentina will apply on selected products to which the suspension of 
concessions and related obl igations will apply.  
 In implementing any suspension of concessions and related obligations, Argentina will ensure 
that the suspension does not exceed th e level authorized by the DSB. 
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