WORLD TRADE  
ORGANIZATION   
WT/DS294/44 
10 February 2012 
 
 (12-0800) 
 Original:   English 
  
 
UNITED STATES – LAWS, REGULATIONS AND METHODOLOGY FOR 
CALCULATING DUMPING MARGINS ("ZEROING") 
 
Recourse to Article 22.6 of the DSU by the United States 
 
Communication from the Arbitrator 
  
 The following communication has been receive d on 10 February 2012, from the Chairman of 
the Arbitrator, with the request that it be circulated to the Dispute Settlement Body. 
 
_______________ 
 
 
In a communication dated 6 February 2012, the European Union and the United States have 
jointly requested the Arbitrator to suspend its work  for a further period of four months and 22 days 
and informed the Arbitrator of their Memorandum  with respect to the dispute (see the request 
attached).    On the basis of this request, the Arbitrator has decided to suspend its work for a further 
period.   
   The suspension can be terminated at any time at the written request of either Party.  The 
suspension will be limited to four months and 22 days, and absent any contrary written 
communication from the European Union within that  period, the suspension will be automatically 
terminated and the work of the Arbitrator will resume on 29 June 2012. 
 
 The last date at which a "contrary written communication" from the European Union referred 
to above may be received by th e Arbitrator is 28 June 2012. 
   In the event that no such "contrary written communication" or written request for resumption 
from either party has been received by the Arbitrat or by 28 June 2012, it will resume its work on 
29 June 2012 and circulate its Decision on 12 July 2012.  WT/DS294/44 
Page 2  
 
  ATTACHMENT 
 
 Mr. Felipe Jaramillo Chairman of the Arbitration Panel/Arbitrator
1 
United States – Laws, Regulations and Methodology for Calculating Dumping Marg ins (“Zeroing”) - Recourse 
to Article 22.6 of the DSU by the United States  (DS294) 
World Trade Organization Centre William Rappard 
Rue de Lausanne 154 
1211 Geneva 21   
  6 February 2012 
 
Dear Mr. Jaramillo,   The United States and the European Union (the "Parties") wish to thank you and the other Members of the Arbitration Panel/Arbitrator for be ing available to serve in the above-referenced 
proceeding. 
 
 The United States and the European Union reca ll their joint communication to the Arbitration 
Panel/Arbitrator dated 13 January  2012, and the subsequent communication from the Arbitration 
Panel/Arbitrator dated 16 January 2012 by which th e Arbitration Panel/Arbitrator decided to extend 
the suspension of its work until 6 February 2012. 
 
 The Parties would like to inform the Arbitrator/Arbitration Panel of the attached Memorandum with respect to this dispute. In that  context, the United Stat es respectfully requests the 
Arbitrator/Arbitration Panel to suspend its work for a further period of four months and 22 days  (that 
is, until Thursday 28 June 2012) – on the same terms. In light of that, and having regard to Article 
12.12 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU) ,
2 
the European Union joins the United States in making such request, subject to the following 
conditions.   The Parties hereby agree the following matters, to be incorporated expressly or by reference 
in any decision by the Arbitration Pa nel/Arbitrator to extend suspension:  
  
 the suspension can be terminated at any tim e at the written request of either Party; 
 the extension of the suspension will be limited to four months and 22 days, and absent any 
contrary written communication from the European  Union within that period, the suspension 
will be automatically terminated and the work of the Arbitration Panel/Arbitrator will resume 
on the day following the expiry of the four months and 22 days; 
                                                      
1 The Parties recall that they have different views co ncerning what is the correct terminology to use in 
these proceedings, but are resolved that this joint letter should not imply that either Party relinquishes its position of principle with respect to that matter. 
2 The European Union recognizes that the Parties may have different views on whether Article 12.12 of 
the DSU  applies or applies by analogy in these proceedings, or whether the Arbitration Panel/Arbitrator has an 
implied or inherent power to suspend, and that the Parties are resolved that this joint letter should not imply that 
either Party relinquishes its position of principle with respect to that matter.  WT/DS294/44 
 Page 3 
 
 
   the suspension is without prejudice to any of the Parties' claims and arguments in these 
dispute settlement proceedings, including the question of whether or not nullification or 
impairment during any period of suspension is to be accounted for in the suspension of concessions or other obligations; 
 this joint request is conditional upon the Arb itration Panel/Arbitrator not deciding that its 
authority has lapsed pursuant to Article 12.12 of the DSU  or otherwise as a result of a further 
suspension. If the Arbitration Panel/Arbitrator considers that will occur then neither Party 
makes this request for further suspension; 
 neither Party will ever claim or argue that the o ccurrence of a suspension period equal to or in 
excess of 12 months in this dispute results in a lapse of the authority of the Arbitration 
Panel/Arbitrator, or otherwise extinguishes or diminishes any right enjoyed by the other Party 
pursuant to the covered agreements; and 
 suspension will not otherwise affect the rights and obligations of either Party under the  
Marrakesh Agreement Establishing the World Trade Organization  or in these dispute 
settlement proceedings.   
 
For the United States 
 
  
David P. Shark 
Chargé d'affairs a.i. For the European Union 
 
  
Detlev Brauns 
Chargé d'affairs a.i. 
 
 
Attachement   
_______________ WT/DS294/44 
Page 4  
 
  MEMORANDUM 
 
THE UNITED STATES AND THE EUROPEAN COMMISSION  
 
 
The United States and the European Commissi on envisage a roadmap addressing the disputes 
United States – Laws, Regulations and Methodology for Calculating Dumping Margins ("Zeroing")  
(WT/DS294) and United States – Continued Existence and Application of Zeroing Methodology  
(WT/DS350) which is annexed as an in tegral part to this document. 
 
This document is not an international agreemen t between the United States and the European 
Commission; it does not change the rights and oblig ations of the United States and the European 
Union under the WTO Agreement; and it does not othe rwise create any legal obligations between the 
United States and the European Union or between the signatories.   
 
 Signed at Geneva on this 6
th day of February 2012 
   
 
(signed) 
FOR THE UNITED STATES (signed) 
FOR THE EUROPEAN COMMISSION 
  WT/DS294/44 
 Page 5 
 
 
  ROADMAP 
 
 
In order for the United States and the Eur opean Commission to address the disputes 
United States – Laws, Regulations and Methodology for Calculating Dumping Margins ("Zeroing")  
(WT/DS294) and United States – Continued Existence and Application of Zeroing Methodology 
(WT/DS350), the United States and the European  Commission envisage the following roadmap. 
 
 This roadmap, or the taking of any of the st eps contemplated by this roadmap by the United 
States or the European Commission, is without prejudice to either side's position of principle regarding the remedies available under WTO dispute settlement:   The European Commission understands its position of  principle to be based on the text of the 
Dispute Settlement Understanding  (DSU), and findings and r ecommendations of the Dispute 
Settlement Body (DSB) in WT/DS294 and WT/DS 350. The European Commission considers that 
compliance with these DSB findings and recommendations  is required with effect from the end of the 
respective reasonable period of time, and that all anti-dumping duties assessed or collected with zeroing after the end of the reasonable period of tim e are subject to implementation. The European 
Commission considers that under the DSU the level of  suspension of concessions or other obligations 
shall be based on the level of nullification or im pairment suffered as from the end of the reasonable 
period of time.    The United States understands its position of princi ple to be based on the text of the DSU, 
recommendations and rulings of the DSB in numerous disputes, including WT/DS294 and 
WT/DS350, and prior awards in arbitrations held  under the DSU. The Unite d States considers that 
every WTO Member is required to comply with its  WTO obligations not just from the end of the 
reasonable period of time, but from the time it beco mes a Member of the WTO. The United States 
considers that under the DSU the level of suspension of concessions or other obligations in any period 
of time must be equivalent to the nullification or  impairment in the corresponding period of time, and 
that the level is not to include an additiona l amount based on prior or cumulative levels of 
nullification or impairment.  
 
I. OPERATIONAL ASPECTS 
 
It is envisaged that:  
 
1. By no later than 7 days after the start date of  this roadmap (defined as the signature date of the 
cover memorandum), and subject to U.S. domestic legal requirements, the United States completes 
the process under Section 123 of the Uruguay Round Agreements Act 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. 
 2. By no later than 12 days after the star t date, the United States begins the Section 129 
proceedings listed in the Annex by transmittal of a written request from the Office of the United 
States Trade Representative to the Department of Commerce. 
 
3. By no later than 4 months after the start date, the United States Department of Commerce 
issues final determinations in the Sectio n 129 proceedings listed in the Annex.  
 4. So long as no later than 12 days after the st art date the United States begins the Section 129 
procedures listed in the Annex and no later than 4 months after the start date the United States 
Department of Commerce issues final determinations  in the Section 129 proceedings listed in the WT/DS294/44 
Page 6  
 
  Annex, the European Union and the United States  continue the suspension of the work of the 
Arbitrator/Arbitration Panel until, as described belo w, the Arbitrator/Arbitration Panel notifies the 
DSB that it is not necessary for the Arbitrat or/Arbitration Panel to issue an award. 
 5. Within 15 days after the United States comp letes the Section 129 proceedings listed in the 
Annex: 
 (a) The European Union, by letter to the chai r of the Dispute Settlement Body, withdraws its 
request to the DSB made pursuant to Article 22.2 of the Understanding on Rules and Procedures 
Governing the Settlement of Disputes in document WT/DS294/35; and 
 
(b) The European Union and the United States  submit a joint letter to the Article 22.6 
Arbitrator/Arbitration Panel noting that the Europ ean Union has withdrawn its Article 22.2 request; 
informing the Arbitrator/Arbitration Panel that  the United States accordingly no longer makes 
objections under Article 22.6 of the DSU; and requ esting that the Arbitrator/Arbitration Panel notify 
the DSB that it is not necessary for the Arbitr ator/Arbitration Panel to issue an award. 
 
II. CONTINUING DISCUSSIONS 
 
Further discussions with respect to issues re lated to the disputes are envisaged, including: 
 
1. Monitoring and periodically review ing the operation of this roadmap.  
 2. Carrying out additional bilatera l consultations regarding the ope ration of this roadmap within 
15 days after the receipt of a request for consultations by either side.  
3. Consulting on any remaining issues with respect  to the disputes with a view to reaching and 
notifying to the DSB a mutually agreed solution to the disputes. 
 
III. OTHER MATTERS 
 
1. Except as specified above, the European Un ion takes no further action under the DSU with 
respect to the disputes WT/DS294 and WT/DS350.   WT/DS294/44 
 Page 7 
 
 
  ANNEX 
 
 
It is envisaged that: 
 1. The United States conducts proceedings pur suant to section 129 of the Uruguay Round 
Agreements Act to revise current cash deposit rate s established on the basis of prior administrative 
review determinations for the following exporte rs/producers covered by the associated antidumping 
duty orders. Implementation of the results of the sec tion 129 determinations is effective for subject 
merchandise entering the United States from the relevant exporter/producer  for all unliquidated 
entries that enter the United States on or after th e date the United States completes the section 129 
proceedings.  2. For the purposes of this roadmap, the section 129 proceedings are completed on the date by which 
the U.S. Trade Representative has directed the U.S.  Department of Commerce to implement each and 
every section 129 determination listed below that would result in a change in th e current cash deposit 
rate. Completion of the section 129 proceedings will occur within 7 days of the Department of 
Commerce issuing its final determina tions in the section 129 proceedings. 
 
3. No additional section 129 determinations are necessary.  
 4. The United States Department of Commerce issues final determinations in the following 
Section 129 determinations within 4 months after the start date of this roadmap. 
 
1. Stainless Steel Plate in Coils from Belgium 
 
A-423-808  ArcelorMittal Stainless Belgium N.V. 
 
2. Steel Concrete Reinforcing Bars from Latvia  
A-449-804  Joint Stock Company Liepajas Metalurgs  3. Carboxymethylcellulose from Finland 
 
A-405-803  CP Kelco   4. Pasta from Italy  
 
A-475-818  
09-10 
 Garofalo  Tomasello  
Agritalia WT/DS294/44 
Page 8  
 
   
Erasmo  Indalco  
Labor 
 PAM  P.A.P. 
 
Afeltra  Fabianelli  
Riscossa 
 Rustichella  07-08  
PAM (for non-selected rate) 
 Garofalo (for non-selected rate)  IAPC/Pasta Lensi 
 
Pagani  06-07  Divella 
 
Pasta Zara  Gaetano  
Felicetti 
 04-05  Atar  
Corticella 
 Combattenti  03-04 
 
Barilla  02-03   WT/DS294/44 
 Page 9 
 
 
  Russo 
 Di Nola 
 
98-99  LaMolisana 
 
5. Carboxymethylcellulose from the Netherlands  
A-421-811  Azko Nobel BV  
CP Kelco BV  
 
6. Stainless Steel Wire Rod from Spain 
 
A-469-807 
 
Roldan S.A. 
 
7. Granular Polytetrafluoroethylene Resin from Italy 
 
A-475-703 
 
Solvay Solexis SpA (formerly Ausimont SpA) 
 
8. Certain Cut-to-Length Carbon Quality Steel Plate from Italy* 
 A-475-826 
 Palini & Bertoli SpA  *  The United States and the European Commission e nvisage that a section 129 determination will be 
unnecessary for any administrative reviews covered by this order if there is no domestic court 
challenge to the determination of the U.S. Intern ational Trade Commission leading to the revocation 
of the order.    
__________