UNITED STATES – CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000
Document: Recourse by India to Article 22.7 of the DSU
Date: 11 November 2004
Document codes: WT/DS217/40
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 India to Article 22.7 of the DSU

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

 India requests that the Dispute Settlement Body ("DSB") considers, at the forthcoming
meeting on 24 November 2004, the following agenda item:

 Recourse by India to Article 22.7 of th e 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 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 pursuant 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, India re quested 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 DSU, 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 United States
– Continued Dumping and Subsidy Offset Ac t of 2000 (Original Complaint by India) ,
the level of nullification or impairment suffe red by India 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
India, multiplied by the coefficient identified in Section III.D above.
5.2 Accordingly, we decide that the su spension by India of concessions or other
obligations in the form of the imposition of an additional import duty above bound
custom 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 countervailing
duties paid on imports from India 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, I ndia hereby requests authorization from the DSB to
suspend the application to the United States of tariff concessions and other obligations under GATT
1994, in the form of the imposition of additional im port 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 countervailing duties paid on imports from India for the most recent year for which
data are available at that time.

 In accordance with the arbitration award, I ndia will notify the DSB every year, prior to the
entry into force of a level of suspension of con cessions 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: Indicative List

1. Almonds fresh or dried, in shell – 08021100
2. Pistachio – 08025000
3. Apples fresh – 08081000
4. Shelled Almonds fresh or dried – 080212
5. Raisin – 080620
6. Soybean Crude oil W/N degummed – 15071000
7. Other Soya-bean oil and its fractions – 150790
8. Bulgur Wheat – 19041030 or 19043000
9. Homogenized composite food preparation – 21042000