Analysis Under WTO Regime: The Illegality Of Zeroing Practice

In recent years, Zeroing methodology is a controversial issue in anti-dumping proceedings, and many countries have applied it into anti-dumping proceedings, especially the United States, and has been challenged in WTO Dispute Settlement Body (DSB) for several times. While many WTO members are dissatisfaction with which has been repeatedly identified as illegal in the WTO Panel and Appellate Body reports, but because the tough stance of some powerful countries, such as the United States, it will be hard to completely abolished Zeroing. China as a country which the most anti-dumping investigations have been brought against, the in-depth study of this question will provide better countermeasures for China facing Zeroing.The issue of Zeroing is not given sufficient emphasis. Although most books about anti-dumping have involved Zeroing, the literatures just briefly introduce and comment on Zeroing with some cases, and there was no comprehensive and systematic study on Zeroing. This article attempts to provide better countermeasures for China facing Zeroing through giving introduction to various types of Zeroing methodology, in-depth studying on the illegality of anti-dumping zeroing practice under the WTO frame, and analyzing the trend of Zeroing controversy in the Doha Round. This article is divided into four parts: Part one is an introduction to Zeroing practice in antidumping investigation. This part defines relevant concepts in dumping determination firstly, then tells about dumping margin calculation. Types of Zeroing methodology, including Model Zeroing, Simple Zeroing and Stage Zeroing used in the comparison of normal value and export price are discussed endly.Part two analyzes the illegality of anti-dumping zeroing practice under the WTO frame. First, it discusses the transformation of Zeroing's legal status from legal to illegal. Then makes clear the treaty provisions under dispute, including Article 2.4.2 and Article 17.6(â…±) of Anti-dumping Agreement. Then this part tells about the illegality of each type of Zeroing methodology.Part three talks about the development and trend of Zeroing controversy in the Doha Round. This part introduces the WTO members' attitude about Zeroing in the Doha Round, and the compromise of the Chair Text. Then talks about the possible trends of Zeroing after the Doha Round.Part four introduces"Warmwater Shrimp Case"and provides some suggestions for China to deal with the issue of Zeroing. First tells about the"Warmwater Shrimp Case", which happened between China and the United States. Then provides some suggestions for China to deal with the issue of Zeroing, which include five aspects: standing firm and joining forces to promote the amendment of the Anti-dumping Agreement; prosecuting the Zeroing which aimed at China under the Disputes Settlement Mechanism of WTO; promoting the reform of the Disputes Settlement Mechanism of WTO; establishing the special apartment to handle the research and consultation of trade disputes; actively responding with the relevant lawsuit within the country.