UNITED STATES – CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000
Document: Recourse by Chile to Article 22.2 of the DSU
Date: 16 January 2004
Document codes: WT/DS217/21
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 Chile to Article 22.2 of the DSU
The following communication, dated 15 January 2004, from the delegation of Chile to the
Chairman of the Dispute Settlement Body, is circulated pursuant to Article 22.2 of the DSU.
In accordance with Article 22.2 of the Understanding on Rules and Procedures Governing the
Settlement of Disputes (DSU), Chile hereby requests authorization from the Dispute Settlement Body
(DSB) to suspend the application to the United Stat es of concessions or other obligations in view of
the United States' refusal to bring into conformity with the WTO agreements the measure found to be
inconsistent in the dispute .
Indeed, on 27 January 2003, the Dispute Settlement Body adopted the report of the Appellate
Body and the report of the Panel, as modified by the Appellate Body, in the said dispute. These
reports concluded, inter alia, that:
- The CDSOA is a non-permissible specific action against dumping or a subsidy
contrary to Article 18.1 of the Agreement on Implementation of Article VI of the
General Agreement on Tariffs and Trade 1994 (Anti-Dumping Agreement) and
Article 32.1 of the Agreement on Subsidies and Countervailing Measures (SCM
Agreement);
- the CDSOA is inconsistent with certain provisions of the Anti-Dumping Agreement
and the SCM Agreement, and consequently, the United States failed to comply with
Article 18.4 of the Anti-Dumping Agreement, Article 32.5 of the SCM Agreement
and Article XVI:4 of the Marrakesh Agreement Establishing the (WTO Agreement).
Since the CDSOA is inconsistent with provisions of the Anti-Dumping Agreement and the
SCM Agreement, it nullifies or impairs benefits accruing to the Complaining Parties under those
agreements.
An arbitration under Article 21.3(c) of the DSU determined that the reasonable period of time
for the United States to implement the DSB recommendations and rulings in this dispute would expire
on 27 December 2003. Although it expressed its intention to comply with these recommendations
and rulings, the United States has not brought the CDSOA into conformity with the covered
Agreements, nor has it complied in any other way with the recommendations or rulings within the
determined reasonable period of time. The status report submitted by the United States and circulated
as document WT/DS217/16 and WT/DS234/24 in fact points to the same conclusion.

In view of these considerations, and pursuant to the above-mentioned Article 22.2 of the
DSU, Chile requests the DSB for authorization to suspend the application to the United States of
concessions or other obligations under the covered Agreements by an amount to be determined each
year according to the offset payments made to the affected United States producers, in the most recent
annual distribution of anti-dumping or countervailing duties collected and assessed on products from
Chile under the CDSOA. This will be done by applying, on an annual basis, an additional tariff on
products from the United States. Thus, each year, as soon as the amount of the offset payments made
is known, Chile will notify the products subject to the additional tariff and the rate of the additional
tariff.
I would be grateful if you could include this request as an agenda item at the next DSB
meeting on 26 January 2004.