The European Union (EU) has called for a dispute panel to be formed at the World Trade Organization (WTO) to hear its challenge of a US practice called "Zeroing" which inflates US antidumping margins to the disadvantage of consuming industries and other users of the affected products. When the US calculates antidumping margins, the Commerce Department compares normal value (usually either the home market price or the cost of production) with the US price of the product under investigation. In many investigations, the Department compares groups of products which have special or individual characteristics, and it then adds the results of the comparisons of these various groups to reach a weighted average dumping margin. If the results of one or more of these comparisons are negative - the normal value is lower than the US price which is just the opposite of dumping - the Department does not include the negative figure in its calculation. Instead, it uses a zero margin. This has the effect of artificially inflating the dumping margin. The EU had also incorporated "zeroing" in its antidumping practices until it was challenged at the WTO and the practice ruled a violation of the Antidumping Agreement. The US is alleging, however, that the EU practice found illegal by the WTO differs form the US practice, and the US "zeroing" practice is not illegal. The challenge included specific cases and examples, including stainless steel wire rod from Sweden, Italy and Spain. With respect to Sweden, it was cited that the Commerce Department calculated a dumping margin of 5.71% for Fagersta Stainless AB while without the zeroing methodology (i.e. with the negative unit margins included), the dumping margin would have been negative and the case would have been terminated with respect to this exporter. In the case against Spain, Commerce calculated a dumping margin of 4.73% for Roldan SA Without the zeroing methodology, the dumping margin would have been lower. Finally, the case against Italy resulted in antidumping duties on stainless steel wire rod from Italy of 12.72% for Cogne Acciai Speciali. Without zeroing methodology, the dumping margin would also have been lower.
 American Wire Producers Association |
