NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

UPDATE 1-EU seeks $375 mln sanctions from US in dumping row

Published 02/03/2010, 10:08 AM
Updated 02/03/2010, 10:12 AM

* Case is further attack on U.S. "zeroing" method

* Retaliation request likely to go to arbitration

(Adds background, details)

By Jonathan Lynn

GENEVA, Feb 3 (Reuters) - The European Union is seeking around $375 million a year in sanctions from the United States in its dispute over a U.S. method for tackling unfairly priced imports.

The move by Brussels is yet another blow against the U.S. practice of "zeroing" when calculating duties on goods that have been dumped, or sold for less than they cost in the exporting country.

Every other WTO member rejects zeroing, which has been condemned repeatedly by WTO judges. On Tuesday, Vietnam launched its first WTO dispute with a complaint against the United States over zeroing on shrimp imports.

A document filed by the EU at the World Trade Organisation said the EU was seeking WTO authority to retaliate against the United States in their dispute over Washington's "zeroing" method used in anti-dumping cases, dating back nearly seven years.

The EU request, submitted to the next meeting of the WTO's dispute settlement body on Feb. 18, follows a WTO ruling last June that the United States had failed to comply with an original decision in a case launched by the EU in 2003 over anti-dumping duties on steel products and other goods.

The United States is almost certain to object to the EU's request, meaning it would go to arbitration, a process usually taking about two months.

WTO rules allow members to impose extra duties on goods that are dumped if that hurts businesses in the importing country.

Calculating these anti-dumping duties typically involves comparisons of the prices of different batches of imported goods to work out the average difference in price.

In zeroing the U.S. authorities ignore -- or treat as zero -- examples where the imported goods actually cost more than at home, which critics say unfairly inflates the duty. (Reporting by Jonathan Lynn; Editing by Robert Evans)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.