UNITED STATES – LAWS, REGULATIONS AND METHODOLOGY FOR CALCULATING DUMPING MARGINS ("ZEROING")
Document: Understanding between the United States and the European Communities Regarding Procedures under Articles 21 and 22 of the DSU
Date: 9 May 2007
Document codes: WT/DS294/21
Complainant: EU
Respondent: U.S.
Third parties: Argentina, Brazil, China, Taiwan, Hong Kong, India, Japan, South Korea, Mexico, Norway, Thailand, Turkey
Dispute stage: Implementation & Compliance
Agreements cited: Art. 1, 2.1, 2.4, 5.8, 9.1, 9.3, 9.5, 11  Anti-dumpingArt. VI  GATT 1994Art. 18.4  Anti-dumpingArt. XVI:4  Agreement Establishing the World Trade OrganizationArt. 3  Anti-dumping

UNITED STATES – LAWS, REGULATIONS AND METHODOLOGY FOR
CALCULATING DUMPING MARGINS ("ZEROING")

Understanding between the United States and the European Communities

Regarding Procedures under Articles 21 and 22 of the DSU

 The following communication, dated 4 May 2007, from the delegation of the United States
and the delegation of the European Communities to the Chairman of the Dispute Settlement Body, is
circulated at the request of these delegations.

 Please find attached the sequencing agreemen t, concluded on 4 May 2007, between the
United States of America and the European Communities in the dispute referred to above.

Peter F. Allgeier
Ambassador
Permanent Representative
of the United States
Eckart Guth
Ambassador
Permanent Representative
of the European Communities

Agreed Procedures under Articles 21 and 22 of the Dispute Settlement Understanding
United States - Laws, Regulations and Methodology for Calculating Dumping Margins
(WT/DS294)

 The Dispute Settlement Body (DSB) adopted th e Appellate Body repor t and the Panel report
as modified by the Appellate Body report on 9 May 2006. The European Communities and the
United States agreed that the reasonable period of time to implement the DSB recommendations and
rulings would be 11 months, expiring on 9 April 2007 ().

 The European Communities and the United States ("the parties to the dispute") have agreed
on the following procedures for the exclusive purposes of this dispute. They are designed to facilitate
the resolution of the dispute and reduce the scope fo r procedural disputes and are without prejudice to
either party's views on the correct interpretation of the Understanding on Rules and Procedures
Governing the Settlement of Disputes (DSU):

1. Should the European Communities consider that th e situation described in Article 21.5 of the
DSU exists, the European Communities will request consultations, which the parties to the
dispute will hold within 12 days from the date of circulation of such request. The parties to
the dispute agree that at the end of such period for consultations, should either party so state,
the parties to the dispute will immediately and jo intly consider that such consultations have
failed to settle the dispute.

Consequently, the European Communities may at any time request the establishment of a
panel pursuant to Article 21.5 of the DSU.

2. At the first DSB meeting at which the Europ ean Communities' request for the establishment
of an Article 21.5 panel appears on the agenda, the United States shall accept the
establishment of that panel.

3. The parties to the dispute shall cooperate to enable the Article 21.5 panel to circulate its report
within 90 days of the panel's establishment, excluding such time during which the panel's
work may be suspended pursuant to Article 12.12 of the DSU.

4. Either party to the dispute may request the DSB to adopt the report of the Article 21.5 panel at
a DSB meeting held at least 20 days after the circulation of the report to the Members unless
either party appeals the report.

5. In the event of an appeal of the Article 21.5 panel report, the parties to the dispute shall
cooperate to enable the Appellate Body to circ ulate its report to the Members within 60 days
from the date of notification of the appeal to the DSB.

6. In the event of an appeal, eith er party to the dispute may request the DSB to adopt the reports
of the Appellate Body and of the Article 21. 5 panel (as modified by the Appellate Body
report) at a DSB meeting held within 30 days of the circulation of the Appellate Body report
to the Members.

7. In the event that the DSB ru les that a measure taken to comply does not exist or is
inconsistent with a covered agreement, the European Communities may request authorization
to suspend concessions or other obligations in accordance with Article 22 of the DSU after
the adoption by the DSB of the Article 21.5 pa nel report and, where relevant, the Appellate
Body report and may request negotiations with th e United States with a view to developing
mutually acceptable compensation pursuant to Article 22.2 of the DSU.

8. The United States shall not assert that the European Communities is precluded from obtaining
such DSB authorization on the grounds that the request was made outside the 30-day time-
period specified in Article 22.6 of the DSU. Th is is without prejudice to the United States’
right to have the matter referred to arbitration in accordance with Article 22.6 of the DSU.

9. If the European Communities re quests authorization to suspend concessions or other
obligations pursuant to Article 22.2 of the DSU, and if the United States objects under
Article 22.6 of the DSU to the level of suspen sion of concessions or other obligations and/or
claims that the principles and procedures set forth in DSU Article 22.3 have not been
followed, the matter will be referred to arbitration pursuant to DSU Article 22.6.

10. The parties to the dispute will cooperate to enable the arbitrator under Article 22.6 of the DSU
to circulate its decision within 60 days of the referral to arbitration.

11. If any of the original panelists is not availabl e for either the Article 21.5 compliance panel or
the Article 22.6 arbitration (or both), the parties to the dispute will promptly consult on a
replacement, and either party may request the Director-General of the WTO to appoint, within
ten days of being so requested, a replacement for the proceeding or proceedings in which a
replacement is required. If an original pane list is unavailable to serve in either of the
proceedings, the parties to the dispute will further request that, in making this appointment,
the Director-General seek a person who will be available to act in both proceedings.

12. The parties to this dispute will continue to cooperate in a ll matters related to these agreed
procedures and not to raise any procedural objection to any of the steps set out herein. If,
during the application of these procedures, the parties to the dispute consider that a procedural
aspect has not been properly addressed in these procedures, they will endeavor to find a
solution within the shortest time possible that will not affect the other aspects and steps
agreed herein.

Signed in Geneva, 4 May 2007:

Peter F. Allgeier
Ambassador
Permanent Representative
of the United States
Eckart Guth
Ambassador
Permanent Representative
of the European Communities