. /.  WORLD TRADE  
ORGANIZATION  WT/DS324/1 
G/L/726 
G/ADP/D59/1 
14 December 2004 
 (04-5491) 
 Original:   English 
 
  
UNITED STATES – PROVISIONAL ANTI-DUMPING MEASURES 
ON SHRIMP FROM THAILAND 
 
Request for Consultations by Thailand
 
 
 
 The following communication, dated 9 December 2004, from the delegation of Thailand to 
the delegation of the United States and to th e Chairperson of the Dispute Settlement Body, is 
circulated in accordance with Article 4.4 of the DSU. 
 
_______________ 
 
 
 My authorities have instructed me to request c onsultations with the Unite d States pursuant to 
Article 4 of the Understanding on Rules and Proc edures Governing the Settlement of Disputes 
("DSU"), Article XXII:1 of the General Agreement on Tariffs and Trade 1994 ("GATT") and Articles 17.3 and 17.4 of the Agreement on Implem entation of Article VI of  the General Agreement 
on Tariffs and Trade 1994 ("AD Agreement") with re spect to the provisional anti-dumping measures 
imposed by the United States on certain frozen  and canned warmwater shrimp from Thailand. 
 
 On 27 January 2004, pursuant to section 732 of the Tariff Act of 1930, as amended (the 
"Act"), the United States initiated an anti-dumping investigation in respect of certain frozen and 
canned warmwater shrimp imported from  Thailand and several other countries.
1  On 28 July 2004, 
pursuant to section 733 of the Act,  the United States preliminarily determined that certain frozen and 
canned warmwater shrimp from Thailand are being sold, or are likely to be sold, in the United States 
at less than fair value (the "Preliminary Determination").2  The estimated margins of dumping ranged 
from 5.56 per cent to 10.25 per cent.  Pursuant to the Preliminary Determinati on and section 733(d) of 
the Act, the United States suspended the liquidati on of all entries of cer tain frozen and canned 
warmwater shrimp from Thailand and required cash deposits or the posting of bonds equal to the 
estimated margins of dumping established in the Preliminary Determination. 
 
 Thailand requests consultations on the follo wing aspects of the Prel iminary Determination 
and consequent imposition of provisional anti-dump ing measures on imports of certain frozen and 
canned warmwater shrimp from Thailand: 
 
                                                      
1 Initiation of Antidumping Duty Investigations: Certain Frozen and Canned Warmwater Shrimp from 
Brazil, Ecuador, India, Thailand, the People's Republic of China and the Socialist Republic of Vietnam , 
69 Fed. Reg. 3876 (27 January 2004).  
2 Notice of Preliminary Determination of Sales at Less Than Fair Value, Postponement of Final 
Determination, and Negative Critical Circumstances Determination:  Certain Frozen and Canned Warmwater 
Shrimp from Thailand , 69 Fed. Reg. 47100 (4 August 2004). WT/DS324/1 
G/L/726 G/ADP/D59/1 
Page 2 
 
 
  (a) The United States' application in the Preliminary Determination of the practice known 
as "zeroing" negative dumping margins, the effect of which was to create margins of 
dumping where none would otherwise have been found or, at a minimum, to inflate 
margins of dumping.  The United States' pract ice of "zeroing" has, in the rulings of 
the Dispute Settlement Body in United States – Final Dumping Determination on 
Softwood Lumber from Canada
3, previously been found to be inconsistent with the 
AD Agreement.  Through its use of "zeroing",  the United States failed to make a fair 
comparison between the export price and the normal value and calculated distorted margins of dumping, and therefore violated Articles 2.4 and 2.4.2 of the AD Agreement.   
 
 (b) The United States' resort in the Prelim inary Determination to the use of so-called 
"adverse facts available" to determine normal values for one Thai exporter, the effect 
of which was to inflate the margins of dump ing for this exporter.  The United States' 
resort to so-called "adverse facts availabl e" was inconsistent with Article 6.8;  
paragraphs 3, 5, 6 and 7 of Annex II;  and Article 6.13 of the AD Agreement. 
 
 (c) The United States' failure to make due allowances in the Preliminary Determination 
for differences that affected price comp arability between export prices and normal 
values for the Thai exporters, including diffe rences relating to levels of trade and duty 
drawback payments.  The United States' failure to make due allowances for these 
factors is inconsistent with Article 2.4 of the AD Agreemen t and resulted in an unfair 
comparison between export price and normal value, also contrary to Article 2.4. 
 
 Thailand considers that the foregoing me thodologies, calculations, comparisons and 
determinations made by the United States cannot  be reconciled with Ar ticle VI of the GATT, 
Articles 1 and 7.1 of the AD Agreement, and the specific provisions of the AD Agreement cited 
above.  Thailand reserves the right to raise issu es relating to other aspects of the Preliminary 
Determination during the cour se of the consultations. 
 
 Thailand looks forward to receiving your reply to this request at your earliest convenience.  I 
propose that the date and venue of these consultations be agreed between our two missions. 
 
__________ 
 
 
                                                     
 
3 Appellate Body Report, United States – Final Dumping Determination on Softwood Lumber from 
Canada , WT/DS264/AB/R (adopted 31 August 2004).