19 August 2009

W.T.O. Rules Against U.S. in Dumping Case

The following is excerpted from the 18 August 2009 edition of “The New York Times”.

The World Trade Organization’s top court rejected on Tuesday an American appeal in a long-running case on antidumping measures, clearing the way for Japan to threaten trade sanctions against Washington.

The final ruling by the Appellate Body of the W.T.O. in the case, which Japan started in 2004, dealt another setback to a controversial American method of dealing with unfairly priced imports.

But it also highlighted sensitivity about antidumping measures….

”The Appellate Body has upheld our position,” said a Japanese diplomat, who asked not to be identified. “Basically, I think we won.”

Japan had previously sought permission to impose up to $248.5 million a year in trade sanctions against the United States in the case, which originally turned on American duties on Japanese ball bearings….

Tuesday’s 114-page decision, ruling against the United States on every count, upheld a judgment in April that the United States had failed to comply.

Once the W.T.O. adopts the findings and April’s ruling, which it is likely to do at a meeting on Aug. 31, the arbitration process on the size of Japan’s retaliation can resume….

The way the United States handles its antidumping measures was also at issue. Washington argued that it could continue to levy duties on goods that entered the country before a W.T.O. ruling finding such duties illegal — a stance rejected by the court.

The United States is the only one of the W.T.O.’s 153 members to back zeroing, which the Appellate Body has ruled against consistently.