UNITED STATES – USE OF ZEROING IN ANTI-DUMPING MEASURES INVOLVING PRODUCTS FROM KOREA
Document: Request for Consultations by Korea
Date: 26 November 2009
Document codes: WT/DS402/1; G/L/913; G/ADP/D80/1
Complainant: South Korea
Respondent: U.S.
Third parties: China, EU, Japan, Mexico, Thailand, Vietnam
Dispute stage: Panel
Agreements cited: Art. 2.4.2  Anti-dumping

UNITED STATES – USE OF ZEROING IN ANTI-DUMPING MEASURES
INVOLVING PRODUCTS FROM KOREA

Request for Consultations by Korea

 The following communication, dated 24 Novemb er 2009, from the delegation of Korea to the
delegation of the United States and to the Chairman of the Dispute Settlement Body, is circulated in
accordance with Article 4.4 of the DSU.

 Upon instructions from my authorities, and on be half of the Government of Korea, I hereby
request consultations with the Government of the United States of America ("United States") pursuant
to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes
("DSU"), Article XXII:1 of the General Agreement on Tariffs and Trade 1994 ("GATT 1994"), and
Article 17 of the Agreement on Implementation of Article VI of GATT 1994 ("Anti-Dumping
Agreement"), with regard to the application, co mmonly referred to as "zeroing," by which the United
States Department of Commerce ("USDOC") treats transactions with negative dumping margins as
having margins equal to zero for purposes of dete rmining the weighted-average dumping margins in
its anti-dumping investigations.

 The Government of Korea re quests consultations with the United States concerning the
USDOC's use of the practice of zeroing negativ e dumping margins in calculating overall weighted
average margins of dumping in final determina tions and amended fina l determinations in
investigations in the following three specific cases involving Korean products:

(1) Stainless Steel Plate in Coils from the Republic of Korea (Case No. A-580-831);

(2) Stainless Steel Sheet and Strip in Coils from the Republic of Korea (Case No. A-580-
834); and

(3) Diamond Sawblades and Parts Thereof from the Republic of Korea (Case No. A-580-
855).

 The effect of the USDOC's zeroing practice in th e three cases listed above has been either to
artificially create margins of dumping where none w ould otherwise have been found, or to inflate
margins of dumping.

 The zeroing methodology that the USDOC used in the anti-dumping investigations in these
cases is virtually identical to the methodology that w as held to be inconsistent with the Anti-Dumping
Agreement in European Communities – Anti-Dumping Duties on Imports of Cotton-Type Bed Linen

from India (WT/DS141/R and WT/DS141/AB/R), and also in United States – Final Dumping
Determination on Softwood Lumber from Canada (WT/DS264/R and WT/DS264/AB/R). The United
States has announced a change in the dumping margin calculation methodology employed in new
anti-dumping investigations, as a result of which th e United States will no longer utilize the practice
of zeroing in any investigations that were pending as of 22 February 2007.
1

 The Government of Korea considers the USDOC's use of its practice of zeroing in its final
determinations, amended final dete rminations, and anti-dumping duty orders in the three listed cases
to be inconsistent with the obligations of th e United States under Article VI of the GATT 1994 and
Articles 1, 2.1, 2.4, 2.4.2, and 5.8 of the Anti-Dumping Agreement.

 Korea intends to address whether the methodol ogies employed by the United States in these
cases are consistent with the aforementioned pr ovisions of the Anti-Dumping Agreement and GATT
1994. In this regard, I have attached a list of the determinations and an ti-dumping orders that the
United States has issued to date in antidumping inves tigations in the three cases that are the subject of
this request.

 The Government of Korea reserves its rights to raise additional factual and legal issues during
the course of the consultations and in any request for the establishment of a panel.

 We look forward to receiving the United States' response and scheduling a mutually
convenient date and venue for consultations.

1 See Antidumping Proceedings: Calculation of the Weighted-Average Dumping Margin During an
Antidumping Investigation; Final Modification , 71 Fed. Reg. 77722 (27 December 2006); and Antidumping
Proceedings: Calculation of the Weighted-Average Dumping Margins in Antidumping Investigations; Change
in Effective Date of Final Modification, 72 Fed. Reg. 3783 (26 January 2007).

Annex

A. S
TAINLESS STEEL PLATE IN COILS FROM THE REPUBLIC OF KOREA (CASE NO. A-580-831)
1. Notice of Final Determination of Sales at Less than Fair Value
Notice of Final Determination of Sales at Less Than Fair Value: Stainless Steel Plate in Coils
("SSPC") from the Republic of Korea, 64 Fed. Reg. 15444 (31 March 1999), as amended by Notice of
Amendment of Final Determinations of Sales at Less Than Fair Value: Stainless Steel Plate in Coils
From the Republic of Korea; and Stainless Steel Sheet and Strip in Coils From the Republic of Korea,
66 Fed. Reg. 45279 (28 August 2001)

2. Final Injury Determination
Certain Stainless Steel Plate From Belgium, Canada, Italy, Korea, South Africa, and Taiwan , 64 Fed.
Reg. 25515 (12 May 1999)

3. Antidumping Order
Antidumping Duty Orders; Certain Stainless Steel Pl ate in Coils From Belgium, Canada, Italy, the
Republic of Korea, South Africa, and Taiwan, 64 Fed. Reg. 27756 (21 May 1999), as amended by
Notice of Amended Antidumping Duty Orders; Certain Stainless Steel Plate in Coils From Belgium,
Canada, Italy, the Republic of Korea, South Africa, and Taiwan, 68 Fed. Reg. 11520 (11 March
2003), as amended by Notice of Amended Antidumping Duty Ord ers; Certain Stainless Steel Plate in
Coils From Belgium, Canada, Italy, the Republic of Korea, South Africa, and Taiwan, 68 Fed. Reg.
16117 (2 April 2003), and as amended by Notice of Correction to the Amended Antidumping Duty
Orders; Certain Stainless Steel Plate in Coils From Belgium, Canada, Italy, the Republic of Korea,
South Africa, and Taiwan, 68 Fed. Reg. 20114 (24 April 2003)

B. S
TAINLESS STEEL SHEET AND STRIP IN COILS FROM THE REPUBLIC OF KOREA (CASE NO. A-
580-834)
1. Notice of Final Determination of Sales at Less than Fair Value
Notice of Final Determination of Sales at Less Than Fair Value: Stainless Steel Sheet and Strip in
Coils From the Republic of Korea, 64 Fed. Reg. 30664 (8 June 1999), as amended by Notice of
Amendment of Final Determinations of Sales at Less Than Fair Value: Stainless Steel Plate in Coils
From the Republic of Korea; and Stainless Steel Sheet and Strip in Coils From the Republic of Korea,
66 Fed. Reg. 45279 (28 August 2001)

2. Final Injury Determination
Certain Stainless Steel Sheet and Strip From France, Germany, Italy, Japan, The Republic of Korea,
Mexico, Taiwan, and The United Kingdom, 64 Fed. Reg. 40896 (28 July 1999)

3. Antidumping Order
Notice of Antidumping Duty Order; Stainless Steel Sheet and Strip in Coils From United Kingdom,
Taiwan and South Korea, 64 Fed. Reg. 40555 (27 July 1999)

C. D
IAMOND SAWBLADES AND PARTS THEREOF FROM THE REPUBLIC OF KOREA (CASE NO. A-
580-855)
1. Notice of Final Determination of Sales at Less Than Fair Value
Notice of Final Determination of Sales at Less T han Fair Value and Final Determination of Critical
Circumstances: Diamond Sawblades and Parts Thereof from the Republic of Korea, 71 Fed. Reg.
29310 (22 May 2006); and Memorandum from Maisha Cryor, Import Administration to Thomas F.
Futtner, Import Administration, regarding Ministeria l Error Allegations in the Final Determination of
the Antidumping Duty Investigations on Diamond Sa wblades and Parts Thereof from the Republic of
Korea, United States Department of Commerce (28 June 2006)

2. Final Injury Determination
Diamond Sawblades and Parts Thereof from China and Korea , Inv. Nov. 731-TA-1092 and 1093
(Final) (Remand), USITC Pub. 4007 (May 2008), approved in Diamond Manufacturers Coalition v.
United States, CIT Court No. 06-00247, 2009 Ct. Intl. Trade LEXIS 6; Slip Op. 2009-5 (13 January
2009)

3. Antidumping Order
Diamond Sawblades and Parts Thereof from the Peopl e's Republic of China and the Republic of
Korea: Notice of Court Decision Not In Harmony Wi th Final Determination of the Antidumping Duty
Investigations, 74 Fed. Reg. 6570 (10 February 2009); Diamond Manufacturers Coalition v. United
States, CIT Court Nos. 06-00247, 09-00110, 2009 WL 3166656 (CIT); Slip Op. 09-107 (30
September 2009); Diamond Sawblades and Parts Thereof From the People's Republic of China and
the Republic of Korea: Antidumping Duty Orders, 74 Fed. Reg. 57145 (4 November 2009)