The Appellate Body of World Trade Organisation (WTO) has decided to have an open hearing session at its headquarters in Geneva on December 11 and 12 on the issue of zeroing of anti-dumping duty. The session will be convened at the request of the European Union, the complainant against USA, which is the respondent in the anti-dumping case.

The session is crucial to India as the anti-dumping duty imposed by the US and the method of calculation of zeroing of the duty have hit India’s exports to US, especially for items like warm water shrimp. The appellate body has also decided to have an open hearing.

Countries like Brazil, China, Egypt, Japan, Korea, Mexico, Norway and Thailand had also lodged complaints against the calculation of anti-dumping duty by the US as this had affected their exports of various commodities to the US market. By implementing such a system of calculating the duty and method of zeroing the US administration adhered to a type of protectionism of their local manufacturers, disregarding various articles of anti-dumping agreement, GATT and WTO Agreement.

Countries like India and Thailand had lodged complaints against the US during June, 2006, still Washington is continuing with the same zeroing principles which is against global standards and international laws.

The Dispute Settlement Body (DSB) of the WTO had said the stipulation of customs bond by the US Department of Commerce was against WTO principles and laws, in June this year. But Washington has so far not implemented the decision and has sought more time for implementing it, in September.

EU had asked for consultations with the US concerning the continued application of zeroing methodology in October, 2006.