UNITED STATES – CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000
Document: Recourse by Brazil to Article 22.2 of the DSU
Date: 16 January 2004
Document codes: WT/DS217/20
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 22.2 of the DSU

 The following communication, dated 15 January 2004, from the delegation of Brazil to the
Chairman of the Dispute Settlement Body, is circulated pursuant to Article 22.2 of the DSU.

 Brazil requests that a special meeting of the Dispute Settlement Body be held on
26 January 2004 in order to consider the following agenda item:

""
(WT/DS217, AB-2002-7)
Recourse by Brazil to Article 22.2 of the U nderstanding 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 the Unite d States' obligations under the General Agreement
on Tariffs and Trade 1994 (GATT 1994), the Agreemen t on Implementation of Article VI of the
General Agreement on Tariffs and Trade 1994 (A nti-Dumping Agreement), the Agreement on
Subsidies and Countervailing Measures (SCM Agreement) and the Marrakesh Agreement establishing
the (WTO Agreement), namely that:

- the CDSOA is a non permissible specific acti on against dumping or a subsidy contrary to
Article 18.1 of the Anti-Dumping Agreement, Artic le 32.1 of the SCM Agreement and Articles VI:2
and VI:3 of GATT 1994;

- consequently, that the United States has failed to comply with Article 18.4 of the Anti-Dumping
Agreement, 32.5 of the SCM Agreement and Article XVI:4 of the WTO Agreement; and

- to the extent that the CDSOA is inconsistent with provisions of the Anti-Dumping and SCM
Agreements, the CDSOA nullifies or impairs benef its accruing to Complaining Parties under those
Agreements.

 On 27 January 2003, the Dispute Settlement B ody (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.

 An arbitration under Article 21.3(c) of the Understanding on Rules and Procedures Governing
the Settlement of Disputes (DSU) subsequently dete rmined that the reasonable period of time for the
United States to implement the DSB recomm endations and rulings would expire on
27 December 2003.

 The United States has failed to implement the recommendations and rulings of the DSB with
respect to the CDSOA by that date, and no mutually acceptable arrangement has yet been made.
Therefore, under Article 22.2 of the DSU, Brazil re quests the authorization of the DSB to suspend the
application to the United States of tariff concessi ons and related obligations under GATT 1994 in an
amount that will be determined every year by th e amount of offset payments made to affected
domestic producers in the latest annual distribu tion of anti-dumping and countervailing duties under
the CDSOA, as explained below.

 Brazil intends to impose additional import duti es on a final list of goods originating in the
United States. In accordance with Article 22.4 of the DSU, every year, the rate of the additional duty
will be set so as to collect over one year additi onal duties equivalent to an amount established by
adding (i) the amount of offset payments attributed to duties collected on products from Brazil and (ii)
a share of the balance of total offset payments less the offset payments attributed to duties collected
on products from other members that are authori zed by the DSB to suspend concessions or other
obligations in this dispute. Every year, prior to the adjustment of the duty, Brazil will notify to the
DSB a list indicating the level of the additional duty on the selected goods in the light of the changes
in the level of the disbursements made under the CDSOA.