CITAC APPLAUDS U.S. DECISION TO ABANDON DISCREDITED PRACTICE OF "ZEROING"
Washington, DC – The Consuming Industries Trade Action Coalition (CITAC) today applauded the Obama Administration for finally ending the use of “zeroing” in antidumping proceedings. The decision follows nine years of disputes with U.S. trading partners over a practice that artificially inflates dumping margins. The World Trade Organization has repeatedly ruled the practice illegal, and U.S. exports faced millions of dollars of retaliation from the EU and Japan as a result of its continued use. Disputes with Korea, Mexico and other countries remain unresolved.
“CITAC commends the Obama Administration and U.S. Trade Representative Kirk for finally acting to end the use of this illegal and economically costly practice,” said CITAC Counsel Lewis E. Leibowitz, a partner at the Washington-based law firm of Hogan Lovells. “This decision is in the clear interest of the vast majority of U.S. manufacturers who have ultimately been forced to pay for these inflated duties through higher prices and reduced availability of production inputs in the United States. Consuming industries need access to globally priced raw materials. Zeroing reduces that access and makes American industry less competitive.”
“The U.S. is the last major trading country to make extensive use of this internationally discredited dumping methodology,” said CITAC Executive Director Paul Nathanson. “With this decision, the administration has signaled its willingness to comply with WTO rulings, act in the interests of all U.S. manufacturers, and preserve its authority to persuade our trading partners to comply with their own trade obligations.”
Zeroing refers to the treatment of export sales to the U.S. when they are compared to “normal value” -- or the foreign value -- of similar goods in antidumping proceedings. Goods that are sold for less than their normal value have “positive” comparisons. However, when the Commerce Department finds transactions in the U.S. that occur at prices higher than normal value, it chooses to ignore those sales (“zeroing” them) rather than averaging them into the final calculations as the WTO requires. By reducing the impact of those transactions on the final calculations, the DOC’s zeroing practice leads to artificially inflated dumping margins.
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.