EU Lines Up Fresh Trade Complaint Against US Over Anti-Dumping Duties

by Ulrika Lomas, Tax-News.com, London

28 January 2004

Transatlantic trade relations could soon hit a fresh low if the European Union launches another challenge against US trade practices, this time in relation to anti-dumping duties.

The EU claims that the way in which anti-dumping duties are calculated in the United States is having a “significant economic adverse impact” on European firms. The dispute centres on a practice known as ‘zeroing’ which is loosely described as a method of calculating penalties for dumping goods on a market at below cost-price. The EU itself has been found guilty of the practice after a complaint was brought to the WTO by India.

EU Trade Commissioner Pascal Lamy observed in comments made last year that zeroing "as practised by the US is contrary to WTO rules and causes damage to many EU exporters.”

He added: “The EU has already abandoned this practice and has several times asked the US to do likewise, in order to ensure a level playing field. Unfortunately, the US refuses to move on this issue, and regrettably we are left with no choice but to refer the matter to the WTO.

According to some reports, the EU is likely to formally submit a complaint against the US in the next few weeks with sanctions a possible outcome if the WTO rules in favour of Europe.

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