Skip to main content
×
×
Home

The Zeroing Issue: a critical analysis of Softwood V

  • CHAD P. BOWN (a1) and ALAN O. SYKES (a2)
Abstract

This paper addresses the issues that came before the Appellate Body in the Softwood V dispute, concerning an affirmative antidumping determination by the US Department of Commerce. The paper addresses both the original Appellate Body opinion in the dispute, and the later opinion reviewing the compliance panel findings. We focus primarily on the ‘zeroing’ issue in ‘transaction-to-transaction (T–T)’ calculations of dumping, and briefly on two other cost-allocation issues. In general, we are ambivalent about the Appellate Body's approach to the zeroing issue. On the one hand, zeroing inflates dumping margins without any sound economic rationale for doing so. On the other hand, zeroing has been a standard administrative practice for many years and the ADA does not clearly prohibit it. The Appellate Body's legal analysis of the matter in T–T cases, in particular, rests on shaky premises. We also consider the wisdom of addressing the zeroing issue in piecemeal fashion through what has proven to be a lengthy sequence of narrow decisions.

    • Send article to Kindle

      To send this article to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about sending to your Kindle. Find out more about sending to your Kindle.

      Note you can select to send to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be sent to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

      Find out more about the Kindle Personal Document Service.

      The Zeroing Issue: a critical analysis of Softwood V
      Available formats
      ×
      Send article to Dropbox

      To send this article to your Dropbox account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your <service> account. Find out more about sending content to Dropbox.

      The Zeroing Issue: a critical analysis of Softwood V
      Available formats
      ×
      Send article to Google Drive

      To send this article to your Google Drive account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your <service> account. Find out more about sending content to Google Drive.

      The Zeroing Issue: a critical analysis of Softwood V
      Available formats
      ×
Copyright
References
Hide All
Boltuck, Richard and Robert, Litan (eds.) (1991), Down in the Dumps, Washington, DC: The Brookings Institution Press.
Bown, Chad P. (2005a), ‘Trade Remedies and World Trade Organization Dispute Settlement: Why Are So Few Challenged?’, Journal of Legal Studies, 34: 515555.
Bown, Chad P. (2005b), ‘Participation in WTO Dispute Settlement: Complainants, Interested Parties and Free Riders’, World Bank Economic Review, 19: 287310.
Bown, Chad P. and Bernard, M. Hoekman (2005), ‘WTO Dispute Settlement and the Missing Developing Country Cases: Engaging the Private Sector’, Journal of International Economic Law, 8: 861890.
Bown, Chad P. and Rachel, McCulloch (2005), ‘US Trade Policy and the Adjustment Process’, IMF Staff Papers, 52: 107128.
Dam, Kenneth W. (1970), The GATT: Law and International Economic Organization, Chicago, IL: University of Chicago Press.
Gennaioli, Nicola and Andrei, Shleifer (2007a), ‘The Evolution of Common Law’, Journal of Political Economy, 115: 4368.
Gennaioli, Nicola and Andrei, Shleifer (2007b), ‘Overruling and the Instability of Law’, Journal of Comparative Economics, 35: 309328.
Grossman, Gene M. and Alan, O. Sykes (2006), ‘European Communities – Anti-Dumping Duties on Imports of Cotton-Type Bed Linen from India: Recourse to Article 21.5 of the DSU by India’, in Petros, Mavroidis and Henrik, Horn (eds), The WTO Case Law of 2003, Cambridge: Cambridge University Press.
Janow, Merit E. and Robert, W. Staiger (2003), ‘European Communities – Anti-Dumping Duties on Imports of Cotton-Type Bed Linen from India’, in Petros, Mavroidis and Henrik, Horn (eds), The WTO Case Law of 2001, Cambridge: Cambridge University Press.
Levinsohn, James and Wendy, Petropoulos (2001), ‘Creative Destruction or Just Plain Destruction?: The US Textile and Apparel Industries Since 1972’, NBER Working Paper 8348.
Shaffer, Gregory C. (2003), Defending Interests: Public–Private Partnerships in WTO Litigation, Washington, DC: The Brookings Institution Press.
Sykes, Alan O. 1998. Antidumping and Antitrust: What Problems Does Each Address?, in Robert, Lawrence (ed.), Brookings Trade Forum 1998, Washington, DC: The Brookings Institution Press.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

World Trade Review
  • ISSN: 1474-7456
  • EISSN: 1475-3138
  • URL: /core/journals/world-trade-review
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Metrics