Claims the methodology strengthens protectionism.
India, along with a majority of World Trade Organisation members, has called for the complete prohibition of zeroing methodology in calculating anti-dumping margins as demanded by the United States in the stalled Doha Rules negotiations, according to trade diplomats.
Zeroing is a method of calculating dumping margins, in which negative dumping is counted as zero and not taken into consideration while finalising dumping margins. The United States uses this controversial zeroing methodology in anti-dumping cases, which has become a mainstay for its protective industry and farm lobbies to unjustifiably punish competitive producers from around the world. The WTO’s highest legal court, the Appellate Body, issued a string of rulings against Washington’s use of zeroing methodology.
During a Doha Rules negotiating body meeting that concluded Wednesday, India said zeroing influences the dumping margins, and should not be allowed under any phase of the anti-dumping investigation.
Japan, which is leading the friends of anti-dumping coalition, called for a complete ban of zeroing methodology. The friends coalition includes Japan, Korea, Mexico, Brazil, Chile, Colombia, Costa Rica, Hong Kong, Israel, Norway, Singapore, Switzerland, Taipei, Thailand and Turkey.
In addition, India and China also joined forces with the friends coalition to drive home the message that zeroing methodology strengthens protectionism in countries where it is currently used. Japan said that “keeping high the overall level of ambition of the anti-dumping negotiation will depend on positive progress on the bracketed issues (which include the elimination of zeroing methodology”.” Tokyo said the pace of anti-dumping negotiations needs to be accelerated in tandem with market access for farms, industrial goods and services negotiations. The European Union, Australia, and Canada also called for prohibiting zeroing methodology.
But the US continued to remain defiant by striking a discordant note. Washington insisted that it wanted to continue with zeroing at all stages, including the investigation stage. The US official criticised the Appellate Body for issuing rulings against zeroing beyond what is contained in the antidumping agreement.
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