UNITED STATES – CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000
Document: Recourse by Mexico to Article 22 of the DSU
Date: 16 January 2004
Document codes: WT/DS234/26
Complainant: Canada, Mexico
Respondent: U.S.
Third parties: Argentina, Australia, Brazil, Costa Rica, EU, Hong Kong, India, Indonesia, Israel, Japan, South Korea, Norway, Thailand
Dispute stage: Implementation & Compliance
Agreements cited: Art. 5.4  Anti-dumpingArt. 5  Subsidies and Countervailing Measures (SCM)Art. VI  GATT 1994Art. 8, 18  Anti-dumpingArt. 11.4, 18, 32  Subsidies and Countervailing Measures (SCM)Art. XVI  Agreement Establishing the World Trade OrganizationArt. 10  Subsidies and Countervailing Measures (SCM)Art. X  GATT 1994Art. 1  Anti-dumping

UNITED STATES – CONTINUED DUMPING AND
SUBSIDY OFFSET ACT OF 2000

Recourse by Mexico to Article 22 of the DSU

 The following communication, dated 15 January 2004, from the delegation of Mexico to the
Chairman of the Dispute Settlement Body, is circulated pursuant to Article 22 of the DSU.

 On 27 January 2003, the Dispute Settlement B ody (DSB) adopted the Report of the Panel and
the Report of the Appellate Body concerning the C ontinued Dumping and Subsidy Offset Act of 2000
(CDSOA). These reports contained the following rulings:

 - The CDSOA is a non-permissible specific action against dumping or subsidization
contrary to Article 18.1 of the Anti-Dumping Agreement and Article 32.1 of the SCM
Agreement.

 - The CDSOA is inconsistent with cer tain provisions of the Anti-Dumping and
SCM Agreements, and consequently, the United States 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.

 - Since the CDSOA is inconsistent with provisions of the Anti-Dumping Agreement
and the SCM Agreement, it nullifies or impairs benefits accruing to the Complaining
Parties under those agreements.

 An arbitration pursuant to Article 21.3(c) of the DSU determined that the reasonable period of
time for implementation would expire on 27 Dece mber 2003. The United States has failed to
implement the recommendations and rulings of the DSB, as can be concluded from its latest status
report on implementation of the DSB recommendations and rulings of 12 January 2004.

 Consequently, Mexico requests the DSB for aut horization to suspend the application to the
United States of obligations in the trade in goods sector, in conformity with Article 22 of the DSU.

 The amount of the suspension will be determ ined each year according to the following
calculation, based on the offset payments made to the affected United States producers under the
CDSOA during the immediately preceding year:

 (1) The offset payments attributed to anti-dumping duties collected and assessed on
products from Mexico, plus

 (2) A proportionate amount of the balance of the total offset payments minus the offset
payments on products from other Members that are authorized by the DSB to suspend
concessions or other obligations in this dispute.

 Thus, each year, as soon as the amount of the o ffset payments that have been made is known,
Mexico will notify the details concerning the corresponding suspension of obligations.

 Finally, Mexico requests that this matter be included in the agenda of the DSB meeting of
26 January 2004.