UNITED STATES – CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000
Document: Recourse by the European Communities to Article 22.7 of the DSU
Date: 11 November 2004
Document codes: WT/DS217/39
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 the European Communities to Article 22.7 of the DSU

 The following communication, dated 10 November 2004, from the delegation of the
European Communities to the Chairperson of the Di spute Settlement Body, is circulated pursuant to
Article 22.7 of the DSU.

 The European Communities requests that the Dispute Settlement Body considers, at the
forthcoming meeting on 24 November 2004, the following agenda item:

•

 Recourse by the European Communities 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 Agreemen t 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, the Europ ean Communities requested the authorization to
suspend the application to the United States of ta riff concessions and related obligations 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 distribution 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:

V. AWARD OF THE ARBITRATOR
5.1 For the reasons set out above, we determine that, in the matter (Original Complaint by the
European Communities) , the level of nullification or impairment suffered by the
European Communities 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 im ports from the European Communities,
multiplied by the coefficient identified in Section III.D above.
5.2 Accordingly, we decide that the su spension by the European Communities of
concessions or other obligations in the form of the imposition of an additional import
duty above bound custom duties on a 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 countervailing
duties paid on imports from the European Communities 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 implemented 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, the European Commun ities hereby requests authorization
from the DSB to suspend the application to the United States of tariff concessions and related
obligations under GATT 1994, in the form of th e imposition of additional import duties on 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 counter vailing duties paid on imports from the European
Communities for the most recent year for which data are available at that time.

 In accordance with the arbitration award, the European Communities will notify the DSB
every year, prior to the entry into force of a leve l of suspension of concessions or other obligations,
the list of products on which the additional import duty will apply. That list will be drawn from the
indicative list attached.

ANNEX: LIST OF PRODUCTS

The products covered by the list are determined by the product description of the European
Communities’ tariff and statistical nomenclature corresponding to the eight-digit product codes
(Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on
the Common Customs Tariff as last amended by Commission Regulation (EC) No 1810/2004,
OJ L 327, 30.10.2004, p. 1). The descriptions hereunder are given for information purposes only.

CN codes Description of products
07104000 Sweetcorn, uncooked or cooked by st eaming or by boiling in water, frozen
48030031
Creped paper for household or sanitary purposes and webs of cellulose fibres 'tissues', in
rolls of a width > 36 cm or in square or r ectangular sheets with one side > 36 cm and the
other side > 15 cm in the unfolded state, weighing <= 25 g/m¦ per ply
48182010
Handkerchiefs, cleansing or facial tissues and towels, of paper pulp, paper, cellulose
wadding or webs of cellulose fibres
48183000
Tablecloths and serviettes of paper pulp, pa per, cellulose wadding or webs of cellulose
fibres
48185000
Articles of apparel and clothing accessories, of paper pulp, paper, cellulose wadding or
webs of cellulose fibres (excl. footware and parts thereof, incl. insoles, heel pieces and
similar removable products, gaiters and similar products, headgear and parts thereof)
48201050 Diaries with calendars , of paper or paperboard
48201090 Writing pads and the like, of paper or paperboard
48203000 Binders (other than book covers), folder s and file covers, of paper or paperboard
48205000 Albums for samples or collec tions, of paper or paperboard
48209000
Blotting pads and similar articles of statione ry, of paper and paper board, and book covers
of paper or paperboard (excl. registers, account books, Note books , order books, receipt
books, letter pads, memorandum pads, diaries, exercise books, binders, folders, file
covers, manifold business forms and interleav ed carbon sets, and albums for samples or
for collections)
61013010
Men's or boys' overcoats, car-coats, capes, cloaks and sim ilar articles of man-made fibres,
knitted or crocheted
61013090
Men's or boys' anoraks, incl. ski-jackets, wi nd-cheaters, wind-jackets and similar articles
of man-made fibres, knitted or crocheted (excl. suits, ensembles, jackets, blazers, bib and
brace overalls and trousers)
61023010
Women's or girls' overcoats, car-coats, capes, cloaks and similar articles of man-made
fibres, knitted or crocheted
61023090
Women's or girls' anoraks, incl. ski-jack ets, wind-cheaters, wind-jackets and similar
articles, of man-made fibres, knitted or crocheted (excl. suits, ensembles, jackets, blazers,
dresses, skirts, divided skirts, trousers, bib and brace overalls)
61034300
Men's or boys' trousers, bi b and brace overalls, breeches and shorts (other than
swimwear), knitted or crocheted, of synthetic fibres.
61044300 Women's or girls' dresses of synthetic fibres, knitted or crocheted (excl. petticoats)
61046300
Women's or girls' trousers, bib and brace overalls, breeches and shorts (other than
swimwear), knitted or crocheted, of synthetic fibres.
61051000
Men's or boys' shirts of cotton, knitted or crocheted (excl. nightshirts, T-shirts, singlets and
other vests)
61052010
Men's or boys' shirts of synthetic fibres, knitte d or crocheted (excl. nightshirts, T-shirts,
singlets and other vests)

61052090
Men's or boys' shirts of artificial fibres, kn itted or crocheted (excl. nightshirts, T-shirts,
singlets and other vests)
61061000
Women's or girls' blouses, shirts and shirt-bl ouses of cotton, knitted or crocheted (excl. T-
shirts and vests)
61101110
Jerseys and pullovers containing >= 50% by weight of wool and weighing >= 600
g/article, knitted or crocheted
61101130
Men's or boys' jerseys, pullovers, cardigans, waistcoats and similar articles, of wool,
knitted or crocheted (excl. jerseys and pullovers containing >= 50% by weight of wool and
weighing >= 600 g/article, amd wadded waistcoats)
61101190
Women's or girls' jerseys, pullovers, cardigans , waistcoats and similar articles, of wool,
knitted or crocheted (excl. jerseys and pullovers containing >= 50% by weight of wool and
weighing >= 600 g/article, and wadded waistcoats)
61101210
Jerseys, pullovers, cardigans, waistcoats and similar articles, of hair of Kashmir 'cashmere'
goats, knitted or crocheted, for men or boys (excl. quilted articles)
61101290
Jerseys, pullovers, cardigans, waistcoats and similar articles, of hair of Kashmir 'cashmere'
goats, knitted or crocheted, for women or girls (excl. quilted articles)
61101910
Jerseys, pullovers, cardigans, waistcoats and similar articles, of fine animal hair, knitted or
crocheted, for men or boys (excl. from ha ir of Kashmir 'cashmere' goats and quilted
articles)
61101990
Jerseys, pullovers, cardigans, waistcoats and similar articles, of fine animal hair, knitted or
crocheted, for women or girls (excl. from hair of Kashmir 'cashmere' goats and quilted
articles)
61102010
Lightweight fine knit roll, polo or turtle neck jumpers and pullovers of cotton, knitted or
crocheted
61102091
Men's or boys' jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton,
knitted or crocheted (excl. lightweight fine knit roll, polo or turtle neck jumpers and
pullovers and wadded waistcoats)
61102099
Women's or girls' jerseys, pullovers, cardigans , waistcoats and similar articles, of cotton,
knitted or crocheted (excl. lightweight fine knit roll, polo or turtle neck jumpers and
pullovers and wadded waistcoats)
61103010
Lightweight fine knit roll, polo or turtle neck jumpers and pullovers of man-made fibres,
knitted or crocheted
61103091
Men's or boys' jerseys, pullovers, cardigans, wa istcoats and similar articles, of man-made
fibres, knitted or crocheted (excl. lightweight fine knit roll, polo or turtle neck jumpers and
pullovers and wadded waistcoats)
61103099
Women's or girls' jerseys, pullovers, cardiga ns, waistcoats and similar articles, of man-
made fibres, knitted or crochete d (excl. lightweight fine knit roll, polo or turtle neck
jumpers and pullovers and wadded waistcoats)
61109010
Jerseys, pullovers, cardigans, waistcoats and sim ilar articles, of flax or ramie, knitted or
crocheted (excl. wadded waistcoats)
61109090
Jerseys, pullovers, cardigans, waistcoats and similar articles, of textile materials, knitted or
crocheted (excl. of man-made fibres, wool, fi ne animal hair, cotton, flax or ramie, and
wadded waistcoats)
62011210
Men's or boys' overcoats, raincoats, car-coats, cap es, cloaks and similar articles, of cotton,
of a weight per garment of <= 1 kg (excl. knitted or crocheted)
62011290
Men's or boys' overcoats, raincoats, car-coats, cap es, cloaks and similar articles, of cotton,
of a weight per garment of > 1 kg (excl. knitted or crocheted)
62011310
Men's or boys' overcoats, raincoats, car-coats, capes, cloaks and similar articles, of man-
made fibres, of a weight per garment of <= 1 kg (excl. knitted or crocheted)
62011390
Men's or boys' overcoats, raincoats, car-coats, capes, cloaks and similar articles, of man-
made fibres, of a weight per garment of > 1 kg (excl. knitted or crocheted)

62019200
Men's or boys' anoraks, incl. ski-jackets, wi nd-cheaters, wind-jackets and similar articles,
of cotton (excl. knitted or crocheted, suits, ensembles, jackets, blazers and trousers)
62019300
Men's or boys' anoraks, incl. ski-jackets, wi nd-cheaters, wind-jackets and similar articles,
of man-made fibres (excl. knitted or croche ted, suits, ensembles, jackets, blazers and
trousers)
62021100
Women's or girls' overcoats, raincoats, car-coa ts, capes, cloaks and similar articles, of
wool or fine animal hair (excl. knitted or crocheted)
62029300
Women's or girls' anoraks, incl. ski-jack ets, wind-cheaters, wind-jackets and similar
articles, of man-made fibres (excl. knitted or crocheted, suits, ensembles, jackets, blazers
and trousers)
62034231
Men's or boys' trousers and breeches of cotton denim (excl. knitted or crocheted, industrial
and occupational, bib and brace overalls and underpants)
62034311
Men's or boys' trousers and breeches of synthetic fibres, industrial and occupational (excl.
knitted or crocheted and bib and brace overalls)
62034319
Men's or boys' trousers and breeches of synt hetic fibres (excl. knitted or crocheted,
industrial and occupational, bib and brace overalls and underpants)
62034390
Men's or boys' shorts of synthetic fibres (excl. knitted or croc heted, underpants and
swimwear)
62044200 Women's or girls' dresses of cotton (excl. knitted or crocheted and petticoats)
62044300 Women's or girls' dresses of synthetic fibres (excl. knitted or crocheted and petticoats)
62044400 Women's or girls' dresses of artificial fibres (excl. knitted or crocheted and petticoats)
62044910 Women's or girls' dresses of silk or wast e silk (excl. knitted or crocheted and petticoats)
62046231
Women's or girls' cotton denim trousers and breeches (excl. industrial and occupational,
bib and brace overalls and panties)
62046311
Women's or girls' trousers and breeches, of synthetic fibres, industrial and occupational
(excl. knitted or crocheted and bib and brace overalls)
62046318
Women's or girls' trousers and breeches, of synthetic fibres (not of cut corduroy, of denim
or knitted or crocheted and excl. industri al and occupational clothing, bib and brace
overalls, briefs and track suit bottoms)
62046390
Women's or girls' shorts of synthetic fibr es (excl. knitted or crocheted, panties and
swimwear)
62046918
Women's or girls' trousers and breeches, of artif icial fibres (not of cut corduroy, of denim
or knitted or crocheted and excl. industri al and occupational clothing, bib and brace
overalls, briefs and track suit bottoms)
62046990
Women's or girls' trousers, bib and brace overa lls, breeches and shorts of textile materials
(excl. of wool, fine animal hair, cotton or ar tificial fibres, knitted or crocheted, panties and
swimwear)
62052000
Men's or boys' shirts of cotton (excl. knitted or crocheted, nightshirts, singlets and other
vests)
62053000
Men's or boys' shirts of man- made fibres (excl. knitted or crocheted, nightshirts, singlets
and other vests)
62063000
Women's or girls' blouses, shirts and shirt-blouses of cotton (excl. knitted or crocheted and
vests)
62064000
Women's or girls' blouses, shirts and shirt-blouses of man-made fibres (excl. knitted or
crocheted and vests)
63013010
Blankets and travelling rugs of cotton, knitted or crocheted (e xcl. electric, table covers,
bedspreads and articles of bedding and similar furnishing of heading 9404)
63013090
Blankets and travelling rugs of cotton (excl. knitted or crocheted, electric, table covers,
bedspreads and articles of bedding and similar furnishing of heading 9404)

63014010
Blankets and travelling rugs of synthetic fibres, knitted or crocheted (excl. electric, table
covers, bedspreads and articles of bedding and similar furnishing of heading 9404)
63014090
Blankets and travelling rugs of synthetic fibr es (excl. knitted or crocheted, electric, table
covers, bedspreads and articles of bedding and similar furnishing of heading 9404)
64021900
Sports footwear with outer soles and uppers of rubber or plastics (excl. waterproof
footwear of heading 6401, ski-boots, cro ss-country ski footwear, snowboard boots and
skating boots with ice or roller skates attached)
64031900
Sports footwear, with outer soles of rubber, plastics, leather or composition leather and
uppers of leather (excl. ski-boots, cross- country ski footwear, snowboard boots and
skating boots with ice or roller skates attached)
64041100
sports footwear, incl. tennis shoes, basketba ll shoes, gym shoes, training shoes and the
like, with outer soles of rubber or plastics and uppers of textile materials
84672199
Drills of all kinds for working in the hand, with self-contained electric motor operating
with an external source of power (excl. electropneumatic drills)
87051000 Crane lorries (excl. breakdown lorries)
90031930 Frames and mountings for spectacles, goggles or the like, of base metal
90091100
Electrostatic photocopying apparatus, operating by reproducing the original image directly
onto the copy [direct process]
90091200
Electrostatic photocopying apparatus, operating by reproducing the original image via an
intermediate onto the copy [indirect process]
94037090
Furniture of plastic (excl. for civil aircraft, medical, dental, surgical or veterinary, and
seats)
94060011 Mobile homes
94060038
Buildings, prefabricated, whether or not complete or already assembled, made entirely or
mainly of iron or steel (excl. Mobile homes and greenhouses)
96081010 Ball-point pens with liquid ink