World Trade Organization

• Author: International Law Group

A Dispute Settlement Panel of the World Trade Organization (WTO) had issued a report in March 2000 in the U.S.-EU dispute regarding the U.S. Anti-Dumping Act of 1916 [39 Stat. 756, 15 U.S.C. Sections 71-74] (hereinafter "Act"). The Panel had found that the Act not only violated GATT 1994 and the WTO Anti-Dumping Agreement, but also nullified and impaired benefits to the EU. On May 29, 2000, a WTO Panel circulated a Report in a similar case, the U.S.-Japan challenge of the Anti-Dumping Act of 1916. Although Japan had brought this complaint, the EU and India had taken part as third parties and had submitted arguments to the Panel.

The 1916 Act bans international price discrimination where (a) an importer sells a foreign-made product within the U.S. at a price that is "substantially less" than the price at which the same product sells in the country of the foreign producer, and (b) the importer carries on this price discrimination "commonly and systematically."

In the Panel's view, the Act fails to comply with WTO trading rules in several ways. By providing for treble damages, fines or imprisonment - instead of anti-dumping duties - the Act violates Article VI:2 of GATT 1994 and Article 18.1 of the...