China Advances Case on “Zeroing”

Stephanie Henry

China Advances Case on “Zeroing”

China announced today it will advance another WTO case against the United States on its use of “zeroing” in targeted anti-dumping cases. China requested consultations at the WTO in December 2013, alleging that the United States' use of zeroing methodology in targeted dumping cases against certain Chinese exports violates the WTO Anti-dumping Agreement. Targeted dumping occurs when there are patterns of export pricing that differ significantly “among different purchasers, regions or time periods,” which indicates products may be being dumped into a market. The United States uses zeroing to determine dumping rates for products that are dumped in the United States' market. China is also challenging the United States’ application of “non-market economy” status to the exports in question.

The United States' use of zeroing has been the subject of several cases in the WTO, including those filed by China. In June 2012, the United States lost a case to China on appeal on zeroing applied to warm water shrimp and diamond sawblades imports.