UNITED STATES – CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000
Document: Recourse by Brazil to Article 22.7 of the DSU
Date: 11 November 2004
Document codes: WT/DS217/38
Complainant: Australia, Brazil, Chile, EU, India, Indonesia, Japan, South Korea, Thailand
Respondent: U.S.
Third parties: Argentina, Canada, Costa Rica, Hong Kong, Israel, Mexico, Norway
Dispute stage: Implementation & Compliance
Agreements cited: Art. X:3  GATT 1994Art. 18.4  Anti-dumpingArt. 32.5  Subsidies and Countervailing Measures (SCM)Art. VI:3  GATT 1994Art. XVI:4  Agreement Establishing the World Trade OrganizationArt. 1, 5.4  Anti-dumpingArt. 4.10, 7.9, 10, 11.4, 18, 32.1  Subsidies and Countervailing Measures (SCM)Art. 8  Anti-dumpingArt. VI:2  GATT 1994Art. 18.1  Anti-dumping

UNITED STATES – CONTINUED DUMPING AND
SUBSIDY OFFSET ACT OF 2000

Recourse by Brazil to Article 22.7 of the DSU

 The following communication, dated 10 Novemb er 2004, from the delegation of Brazil to the
Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 22.7 of the DSU.

 Brazil requests that the Dispute Settlement Bo dy consider, at the forthcoming meeting on
24 November 2004, the following agenda item:

Recourse by Brazil to Article 22.7 of the Understanding on
Rules and Procedures Governing the Settlement of Disputes

 The Panel and the Appellate Body found that the Continued Dumping and Subsidy Offset Act
of 2000 ("CDSOA") was inconsistent with th e United States' obligations under the General
Agreement on Tariffs and Trade 1994 (‘GATT 1994’), the Agreement on Implementation of
Article VI of the General Agreement on Tariffs and Trade 1994, the Agreement on Subsidies and
Countervailing Measures and the Marrakesh Agreem ent establishing the .
On 27 January 2003, the Dispute Settlement Body ("DSB") adopted the Appellate Body report and
the Panel report as modified by the Appellate Body report. The United States stated that it intended to
implement the recommendations and rulings of the DSB but failed to do so within the reasonable
period of time, as determined by the arbitrator pur suant to Article 21.3(c) of the Understanding on
Rules and Procedures Governing the Settlement of Disputes ("DSU"), which expired on
27 December 2003.

 Consequently, on 15 January 2004
1, Brazil requested the authorization to suspend the
application to the United States of tariff concessi ons and related obligati ons under GATT 1994 in an
amount to be determined every year on the basis of the amount of offset payments made to affected
domestic producers in the latest annual distribu tion of anti-dumping and countervailing duties under
the CDSOA.

 On 23 January 2004, the United States objected to the level of suspension proposed and on
26 January 2004, pursuant to Article 22.6 of the DS U, the matter was referred to arbitration. On
31 August 2004, the arbitrator issued its decision as follows:

1 WT/DS217/20.

V. AWARD OF THE ARBITRATOR
5.1 For the reasons set out above, we determine that, in the matter (Original Complaint by Brazil),
the level of nullification or impairment suffe red by Brazil in a particular year can be
deemed to be equal to the total of disbursements made under the CDSOA for the
preceding year relating to anti-dumping or countervailing duties paid on imports from
Brazil, multiplied by the coefficient identified in Section III.D above.
5.2 Accordingly, we decide that the su spension by Brazil of concessions or other
obligations in the form of the imposition of additional import duties on a final list of
products originating in the United States covering, on a yearly basis, a total value of
trade not exceeding, in US dollars, the amount resulting from the following equation:
Amount of disbursements under CDSOA for the most recent year for which data are
available relating to anti-dumping or c ountervailing duties paid on imports from
Brazil at that time, as published by the United States' authorities.
multiplied by:
0.72
would be consistent with Article 22.4 of the DSU.
 To date, the United States has still not impl emented the recommendations and rulings of the
DSB with respect to the CDSOA, and no mutually satisfactory solution has been reached.

 Article 22.7 of the DSU provides that “the DSB shall be informed promptly of the decision of
the arbitrators and shall upon request, grant authori zation to suspend concessions or other obligations
where the request is consistent with the deci sion of the arbitrator, unless the DSB decides by
consensus to reject the request.” Therefore, Br azil hereby requests authorization from the DSB to
suspend the application to the United States of ta riff concessions and related obligations under GATT
1994 in the form of the imposition of additional impor t duties on a final list of products originating in
the United States, at a level not exceeding every year 72% of the amount of CDSOA disbursements
relating to anti-dumping or counterva iling duties paid on imports from Brazil for the most recent year
for which data are available at that time.

 In this respect, Brazil is mindful of the notification specified in paragraph 5.3 of the
arbitration award
2.