CITAC APPLAUDS COMMERCE PROPOSAL TO END "ZEROING"
Washington, DC – The Consuming Industries Trade Action Coalition's (CITAC) Counsel Lewis Leibowitz, a partner in the Washington, DC office of Hogan Lovells, issued the following comment on behalf of CITAC on the U.S. Commerce Department's proposal to reform anti-dumping processes by doing away with the WTO-illegal practice of “zeroing":
“While it has taken a very long time, the Commerce Department has proposed to remove a serious distortion from antidumping calculations. In 2007, Commerce abandoned zeroing in initial antidumping investigations. It has continued to resort to zeroing in administrative reviews, in which antidumping duties are actually assessed and collected in the U.S. system. By the notice published December 28, 2010, Commerce finally proposed to end the practice, at least 'normally.'
We look forward to the day when Commerce finally abandons this erroneous methodology. CITAC believes that antidumping duties should be collected based on fair and accurate calculations. Zeroing is not accurate, and therefore should end. If zeroing is not abandoned, U.S. trading partners will have the ability to retaliate against U.S. exports, potentially hundreds of millions of dollars.
CITAC favors trade laws that work for all Americans and has been critical of the practice of zeroing since it was challenged in the WTO more than ten years ago. The practice makes antidumping duties higher than the facts of each case warrant. It stems from the treatment of selling comparisons in the U.S. market that are above the “normal value”. “Zeroing” treats those comparisons as though the U.S. sales were equal to normal value. The result is that the difference between normal value and U.S. price is understated if zeroing is used. The WTO has ruled repeatedly that zeroing is contrary to international obligations of the United States."
The Consuming Industries Trade Action Coalition (CITAC) is a Washington, DC-based trade organization with one primary objective: to ensure that consuming industries and manufacturers in the United States have access to reliable supplies of globally-priced materials necessary for those industries to produce their products. For additional information, visit www.citac.info or contact Caitlin Andrews at (202) 828-7637 or firstname.lastname@example.org.