WASHINGTON (AFP) - The United States on Monday said it has bowed to demands from the European Union and Japan to end its controversial 'zeroing' antidumping practice.
US Trade Representative Ron Kirk said in a statement that Washington had signed agreements in Geneva with the EU and Japan 'that will bring to an end longstanding disputes with these important trade partners over 'zeroing.'' So-called 'zeroing' is a practice of calculating the price of imports compared to the normal value in the United States to determine predatory pricing.
When the US price is above the value of the import, Washington treats the dumping amount as zero, rather than a negative margin, inflating dumping margins. The trade dispute began nearly nine years ago.
The World Trade Organization ruled against the United States in favour of the EU for the first time in 2006, and for Japan in 2007.
Source: Straits Times February 6, 2012
