UNITED STATES – CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000
Document: Recourse by India to Article 22.2 of the DSU
Date: 16 January 2004
Document codes: WT/DS217/23
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 22.2 of the DSU

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

 India requests that a special meeting of th e Dispute Settlement Body (DSB) be held on
26 January 2004 to consider the following agenda item:

: Recourse by India
to Article 22.2 of the Understanding on Rules and Procedures Governing the Settlement
of Disputes

 The Panel and the Appellate Body in this di spute found that the Continued Dumping and
Subsidy Offset Act of 2000 (CDSOA) was inconsiste nt with the 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 (AD Agreement), the Agreement on
Subsidies and Countervailing Measures (SCM Agreement) and the Marrakesh Agreement
Establishing the World Trade Organisation (WTO Agreement), namely that:

- the CDSOA is a non permissible specific action against dumping or a subsidy contrary to
Article 18.1 of the AD Agreement, Article 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 AD
Agreement, 32.5 of the SCM Agreement and Article XVI:4 of the WTO Agreement; and

- to the extent the CDSOA is inconsistent w ith provisions of the AD Agreement and the
SCM Agreement, the CDSOA nullifies or impa irs benefits accruing to the 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 pursuant to Article 21.3(c) of the Understanding on Rules and Procedures
Governing the Settlement of Disput es (DSU) subsequently determined that the reasonable period of
time for the United States to implement the recommendations and rulings of the DSB 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, India is entitled to request authorization from the DSB to
suspend the application to the United States of concessions or other obligations under the covered
agreements.

 Pursuant to Article 22.2 of the DSU, India re quests the authorization of the DSB to suspend
the application to the United States of tariff c oncessions and related oblig ations under GATT 1994 in
an amount that will be determined every year by 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, as explained below.

 India intends to impose an additional import duty above bound custom duties on a final list of
products originating in the United States. In accord ance with Article 22.4 of the DSU, every year, the
rate of the additional duty will be set so as to co llect over one year additional duties in an amount
equivalent to an amount established by adding (1) the offset payments attributed to duties collected on
products from India and (ii) a pro portionate amount of the balance of total offset payments less the
offset payments attributed to duties collected on products from other Members that are authorized by
the DSB to suspend concessions or other obligations in this dispute. Every year, prior to the
adjustment of the duty, India will notify to the DSB a detailed list indicating the level of the additional
duty on the selected products in the light of the ch anges in the level of the disbursements made under
the CDSOA. The list of products subject to increased import duties will not be changed.