UNITED STATES – COUNTERVAILING MEASURES CONCERNING CERTAIN PRODUCTS FROM THE EUROPEAN COMMUNITIES
Document: Request to Join Consultations Communication from Brazil Addendum
Date: 19 February 2001
Document codes: WT/DS212/2/Add.1; WT/DS212/1/Add.1
Complainant: EU
Respondent: U.S.
Third parties: Brazil, China, India, South Korea, Mexico
Dispute stage: Implementation & Compliance
Agreements cited: Art. 1, 10, 14, 21.1, 32.5  Subsidies and Countervailing Measures (SCM)Art. XVI:4  Agreement Establishing the World Trade OrganizationArt. 19.1, 19.3, 19.4, 21.2, 21.3  Subsidies and Countervailing Measures (SCM)Art. VI:3  GATT 1994

UNITED STATES – COUNTERVAILING MEASURES CONCERNING
CERTAIN PRODUCTS FROM THE EUROPEAN COMMUNITIES
Request to Join Consultations
Communication from Brazil
Addendum
The following communication, dated 14 February 2001, from the Permanent Mission of
Brazil to the Permanent Mission of the United States, the Permanent Delegation of the European
Commission and to the Chairman of the Dispute Settlement Body, is circulated in accordance with
Article 4.11 of the DSU.
With reference to the European Communities request for consultations concerning
"" (, circulated on 6 February 2001), and in light of Brazil's
substantial trade interest, I hereby wish to convey the request of the Government of Brazil, pursuant to
Article 4.11 of the DSU, to join in those consultations.
In particular, Brazil's trade concerns relate to the continued imposition of an order and the
decision to continue an undertaking by the United States based on a finding that the benefits from
equity infusions provided to companies prior to their privatizations are passed through to the
companies following a change in ownership and control, as illustrated by the two measures below
1:
(1) The decision by the US to continue the countervailing duty order on certain cut-to-length
plate from Brazil, following an Article 21.3 five-year review, based on a finding that subsidization
would continue if the order were revoked2;
(2) The decision by the US to subject exports of certain hot-rolled steel from Brazil to a
suspension agreement between the US and Brazilian Governments following a continued final

1 Brazil notes that an additional measure inconsistent with the Subsidies Agreement relates to the
US Commerce Department's decision early this year that Brazilian exports of cold-rolled steel were benefiting
from subsidies bestowed to the companies prior to their privatization. However, the US imposed no order in
that proceeding due to a finding that the domestic industry was not being injured by imports from Brazil.
2 The Commerce Department's determination that subsidization is likely to continue was published at
65 Fed. Reg. 18065 (6 April 2000). This decision, combined with the decision by the ITC that injury is likely to
recur or continue if the order were revoked (65 Fed. Reg. 75301 (4 December 2000)), has resulted in the
continuation of the order on cut-to-length plate from Brazil.

affirmative countervailing duty determination. 3 In its continued final determination, the Commerce
Department found that CSN, US IMINA and COSIPA were benefiting from subsidies provided to
those companies prior to their privatizations. Based on this finding, the Commerce Department
elected to continue the undertaking negotiated with Brazil.
I would note that consultations on this same issue were held on 17 January 2001, between
Brazil and the United States, pursuant to the request for consultations circulated in document

The Brazilian Government looks forward to being informed of the date and venue of the
consultations.