A Study On Zero-setting Under WTO Target Dumping Rules

Zeroing is a method of calculating dumping margin,which returns the negative dumping margin to zero instead of offsetting the positive dumping margin.This method of calculating dumping margin is likely to identify the goods without dumping margin as dumping.Article 2.4.2 of the Anti-Dumping Agreement stipulates three methods to calculate the dumping margin,but it does not specify whether the zeroing can be used.It is precisely because the zeroing under the target dumping in the anti-Dumping Agreement is not clear that the United States has been using zeroing in the process of anti-dumping investigation.Through the analysis of the rulings of the panel of dispute settlement body and the appellate body,it can be seen that there is no unified opinion on whether the zeroing method is in accordance with the legal provisions after comparing the normal value determined on the basis of weighted average with the price of a single export transaction(W-T).In order to safeguard the interests of domestic enterprises,the United States has been seeking the legitimacy of using zeroing method under the W-T comparison method.With the increase of international trade activities,more and more anti-dumping investigations are launched.In order to improve the possibility that the products of exporters or foreign manufacturers are recognized as dumping,the importing countries led by the United States adopt the method of target dumping in the process of anti-dumping investigations,which leads to the unfairness of international trade activities.Therefore,China should attach great importance to understanding the illegality of target dumping and zeroing,and take reasonable and effective measures to protect Chinese enterprises from unnecessary anti-dumping penalties.This paper is divided into five parts:the first part,the key concepts related to the definition,clear the concept of target dumping;A brief explanation of the definitions,types,and legality of zeroing.In the second part,the author takes the case of Korean vs.American laundry machine(DS464)as an example,and introduces the zeroing problem involved in this case.The third part,from different angles on the target of dumping under the use of zeroing the illegality of the demonstration analysis.The fourth part,through the analysis of the current international situation,put forward the strategy that our country can adopt in the international economic trade.The fifth part,as the conclusion of this article,describes the essential characteristics of the use of zeroing in the process of anti-dumping investigation and the development trend of zeroing in the future international economy and trade.