Dispute Settlement Reports 2003

EUROPEAN COMMUNITIES -- ANTI-DUMPING DUTIES ON MALLEABLE CAST IRON TUBE OR PIPE FITTINGS FROM BRAZIL (WT/DS219) Report of the Panel 2701(7) Introduction 2708(1) Factual Aspects 2709(1) Parties' Requests for Findings and Recommendations 2710(3) Brazil 2710(2) The European Communities 2712(1) Arguments of the Parties 2713(1) Arguments of the Third Parties 2713(1) Interim Review 2713(6) Request of Brazil 2713(6) Panel's Treatment of Certain of Brazil's Arguments 2713(1) Panel's Treatment of Certain Aspects of its Findings 2714(1) Terms of Reference: Brazil's ``claims'' under Article 6.9 2714(1) Exhibits BRL-47-52 2714(1) Issue 3: Currency Devaluation 2715(1) Claims 12 and 15: Import Volume Trends and Cumulation 2715(1) Issue 13: Price Undercutting 2716(1) Issue 16: Injury 2716(2) Issue 17: Causation 2718(1) Findings 2719(120) General Issues 2719(2) Standard of Review 2719(1) Burden of Proof 2720(1) Preliminary and Procedural Issues 2721(18) Introduction 2721(1) Requests by the European Communities 2721(1) Alleged Vagueness of Brazil's Claims and Scope of the Panel's Terms of Reference 2721(1) Alleged Vagueness of Certain Claims by Brazil 2721(3) Scope of Panel's Terms of Reference 2724(1) Brazil's ``claims'' Alleged by the EC to be Outside our Terms of Reference 2724(1) Claims under Articles 6, 9, 6.13, 9.3 and 12.1 2725(3) ``Claims'' under Articles 2.2.2, 3.2, 3.4, 3.5, 6.2, 6.6, 12.2 and 12.2.2 of the Anti-Dumping Agreement 2728(2) Allegations Identified by the European Communities in its Second oral Statement as Outside the Panel's Terms of Reference 2730(2) Alleged Inadmissibility of Exhibits BRL-47 through 52 under Article 17.5(ii) of the Anti-Dumping Agreement 2732(2) Requests by Brazil 2734(1) Exhibit EC-1 2734(1) Exhibit EC-12 2735(2) Request to Append Brazil's Full Written Submissions Instead of Executive Summaries to the Panel Report 2737(2) Issues Raised in this Dispute 2739(100) Issue 1: ``constructive remedies'' 2739(1) Arguments of the Parties 2739(2) Arguments of Third Parties 2741(1) Evaluation by the Panel 2741(6) Issue 2: Application and Initiation of the Investigation (claims withdrawn) 2747(1) Issue 3: Currency Devaluation 2748(1) Arguments of the Parties 2748(1) Arguments of Third Parties 2749(1) Evaluation by the Panel 2749(1) Brazil's Claim under Article 1 of the Anti-Dumping Agreement and Article VI of the GATT 1994 2749(4) Brazil's Alternative Claims under Article 11.1 and 11.2 of the Anti-Dumping Agreement 2753(4) Issue 4: Constructed Normal Value Amounts Used for Profit and SG&A 2757(1) Arguments of the Parties 2757(1) Arguments of Third Parties 2757(1) Evaluation by the Panel 2758(3) Issue 5: Constructed Normal Value - Product Codes 2761(1) Arguments of the Parties 2761(1) Evaluation by the Panel 2761(2) Issues 6 and 10: ``fair comparison'' with Respect to Taxation 2763(1) Issue 6: IPI Premium Credit 2763(1) Arguments of the Parties 2763(1) Evaluation by the Panel 2763(4) Issue 10: PIS/COFINS 2767(1) Arguments of the Parties 2767(1) Evaluation by the Panel 2768(2) Issue 7: Advertising Expenses (claims withdrawn) 2770(1) Issue 8: Packing Costs 2770(1) Arguments of the Parties 2770(1) Evaluation by the Panel 2771(3) Issues 9 and 18: Currency Conversion and Opportunities to See Relevant Information 2774(1) Issue 9: Currency Conversion for Adjustments 2774(1) Arguments of the Parties 2774(1) Evaluation by the Panel 2775(1) Issue 18: Opportunities to See Relevant Information 2776(1) Arguments of the Parties 2776(1) Evaluation by the Panel 2777(1) Issue 11: ``Zeroing'' 2778(1) Arguments of the Parties 2778(1) Arguments of Third Parties 2779(1) Evaluation by the Panel 2779(1) Issues 12 and 15: Import Volume Trends and Cumulation 2780(1) Arguments of the Parties 2780(2) Arguments of Third Parties 2782(1) Evaluation by the Panel 2782(1) Article 3.1 2782(1) Article 3.2 2783(3) Article 3.3(b): ``appropriate'' in Light of the ``conditions of competition'' 2786(2) Like Product Definition 2788(1) Volume 2789(1) Price 2790(2) Channels of Distribution 2792(1) Conclusion Concerning Article 3.3(b) 2793(1) Issue 13: no Proper Consideration of Price Undercutting 2793(1) Arguments of the Parties 2793(1) Arguments of the Third Parties 2794(1) Evaluation by the Panel 2794(5) Issue 14: no Proper Calculation of Alleged Undercutting Margins 2799(1) Arguments of the Parties 2799(1) Arguments of the Third Parties 2799(1) Evaluation by the Panel 2799(2) Issue 16: Injury 2801(1) Arguments of the Parties 2801(1) Arguments of Third Parties 2802(1) Evaluation by the Panel 2803(1) Basis of Panel Examination 2803(1) Did the European Communities Address Each Listed Article 3.4 Factor? 2803(3) Did the European Communities Adequately Evaluate the Listed Article 3.4 Factors? 2806(1) Approach to Assessment of Adequacy of the European Communities' Evaluation 2806(1) Time Periods and ``trend'' Analysis 2807(2) Certain Data on which the European Communities Based its Injury Evaluation 2809(2) Adequacy of EC Evaluation of Injury Factors 2811(5) Factors not Listed in Article 3.4 2816(1) Claims under Articles 6.2 and 6.4 Relating to the Injury Analysis 2817(1) Issue 17 - Causation 2817(1) Arguments of the Parties 2817(1) Arguments of Third Parties 2818(1) Evaluation by the Panel 2818(5) Export Performance 2823(2) Imports from Third Countries and ``outsourcing'' 2825(5) Rationalization 2830(2) Substitution 2832(1) Conclusion on Non-Attribution to Other ``known'' Factors under Article 3.5 2833(1) Issue 19-Information on Matters of Fact and Law 2834(1) Information Relating to the Exploration of Possibilities of Constructive Remedies (relating to Issue 1) 2834(1) Arguments of the Parties 2834(1) Evaluation by the Panel 2835(1) Information Relating to Article 3.4 Injury Factors (relating to Issue 16) 2836(1) Arguments of the Parties 2836(1) Arguments of Third Parties 2837(1) Evaluation by the Panel 2837(1) Information Relating to EC Producers' Export Performance (relating to Issues 16 and 17) 2838(1) Arguments of the Parties 2838(1) Arguments of Third Parties 2838(1) Evaluation by the Panel 2838(1) Conclusions and Recommendation 2839(4) Conclusion 2839(2) Nullification and Impairment 2841(1) Recommendation 2841(2) Brazil's Panel Request 2843(281) ANNEX A: First written Submissions by the Parties and Written Submissions Relating to Parties' Requests for Preliminary Rulings Annex A-1 Executive Summary of the First Written Submission of Brazil 2854(4) Annex A-2 Executive Summary of the First Written Submission of the European Communities and request for preliminary rulings 2858(8) Annex A-3 Request of Brazil for a preliminary ruling 2866(2) Annex A-4 Reply of the European Communities to Brazil's request for a preliminary ruling 2868(2) Annex A-5 Response of Brazil to the preliminary ruling requested by the European Communities 2870(12) ANNEX B: Third Party Submissions Annex B-1 Third Party Submission of Japan 2882(10) Annex B-2 Third Party Submission of the United States 2892(225) UNITED STATES -- DEFINITIVE SAFEGUARD MEASURES ON IMPORTS OF CERTAIN STEEL PRODUCTS (WT/DS248, WT/DS249, WT/DS251, WT/DS252, WT/DS253, WT/DS254, WT/DS258 WT/DS259) Report of the Appellate Body 3117(7) Introduction 3124(3) Factual Background 3127(1) Arguments of the Participants and the Third Participants 3128(56) Claims of Error by the United States -- Appellant 3128(8) Unforeseen Developments, Article 3.1 of the Agreement on Safeguards, and Article 12.7 of the DSU 3128(2) Increased Imports 3130(2) Parallelism 3132(1) Causation 3133(3) Arguments of Brazil -- Appellee 3136(4) Article 3.1 of the Agreement on Safeguards and Article 12.7 of the DSU 3136(1) Increased Imports 3137(1) Parallelism 3138(1) Causation 3138(2) Arguments of China -- Appellee 3140(5) Unforeseen Developments, Article 3.1 of the Agreement on Safeguards, and Article 12.7 of the DSU 3140(1) Increased Imports 3141(2) Parallelism 3143(1) Causation 3144(1) Arguments of European Communities -- Appellee 3145(7) Unforeseen Developments, Article 3.1 of the Agreement on Safeguards, and Article 12.7 of the DSU 3145(2) Increased Imports 3147(2) Parallelism 3149(1) Causation 3149(3) Arguments of Japan -- Appellee 3152(4) Article 3.1 of the Agreement on Safeguards and Article 12.7 of the DSU 3152(1) Increased Imports 3152(2) Parallelism 3154(1) Causation 3155(1) Arguments of Korea -- Appellee 3156(5) Article 3.1 of the Agreement on Safeguards and Article 12.7 of the DSU 3156(1) Increased Imports 3157(1) Parallelism 3158(1) Causation 3159(2) Arguments of New Zealand -- Appellee 3161(4) Unforeseen Developments, Article 3.1 of the Agreement on Safeguards, and Article 12.7 of the DSU 3161(1) Increased Imports 3161(1) Parallelism 3162(1) Causation 3163(2) Arguments of Norway -- Appellee 3165(5) Unforeseen Developments, Article 3.1 of the Agreement on Safeguards, and Article 12.7 of the DSU 3165(1) Increased Imports 3166(3) Parallelism 3169(1) Causation 3169(1) Arguments of Switzerland -- Appellee 3170(5) Unforeseen Developments, Article 3.1 of the Agreement on Safeguards, and Article 12.7 of the DSU 3170(1) Increased Imports 3171(2) Parallelism 3173(1) Causation 3173(2) Conditional Appeals 3175(9) Arguments of Brazil, Japan, and Korea -- Joint Appellants 3175(1) Arguments of China -- Appellant 3176(1) Arguments of the European Communities -- Appellant 3177(2) Arguments of New Zealand -- Appellant 3179(1) Arguments of Norway -- Appellant 3180(1) Arguments of Switzerland -- Appellant 3181(1) Arguments of the United States -- Appellee 3182(2) Arguments of the Third Participants 3184(1) Canada 3184(1) Issues Raised in This Appeal 3184(3) Unforeseen Developments and Article 3.1 of the Agreement on Safeguards 3187(16) Appropriate Standard of Review for Claims Under Article XIX:1(a) of the GATT 1994 3188(3) Article 3.1 of the Agreement on Safeguards 3191(5) Is it Necessary to Demonstrate for Each Safeguard Measure at Issue that Unforeseen Developments Resulted in Increased Imports? 3196(5) Alleged Failure by the Panel to ``Link'' Certain Data to the USITC's Demonstration of how ``Unforeseen Developments'' Resulted in Increased Imports 3201(2) Increased Imports 3203(26) CCFRS, Hot-Rolled Bar, and Stainless Steel Rod 3204(17) Legal Standard to be Used for Determining Whether there are ``Increased Imports'' 3204(7) Panel's Findings with Respect to CCFRS, Hot-Rolled Bar, and Stainless Steel Rod 3211(10) Tin Mill Products and Stainless Steel Wire 3221(8) Tin Mill Products 3221(6) Stainless Steel Wire 3227(2) Completing the Analysis 3229(1) Parallelism 3229(15) The Need to Account for the Effects of Imports from Excluded Sources 3234(3) Conclusions with Respect to Stainless Steel Rod 3237(7) Causation 3244(5) CCFRS, Hot-Rolled Bar, Cold-Finished Bar, Rebar, Welded Pipe, FFTJ, and Stainless Steel Bar 3244(4) Tin Mill Products and Stainless Steel Wire 3248(1) Article 11 of the DSU 3249(1) Article 12.7 of the DSU 3250(2) Conditional Appeals 3252(1) Findings and Conclusions 3253(3) ANNEX 1: Notification of an Appeal by the United States under Paragraph 4 of Article 16 of the Understanding on Rules and Procedures Governing the Settlement of Disputes 3256(5) Cumulative Index of Published Disputes 3261