United States – Sunset Reviews of Anti-Dumping Measures on Oil Country Tubular Goods from Argentina – Recourse by Argentina to Article 21.5 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (WT/DS268): Report of the Panel

Summary

INTRODUCTION

On 26 January 2006, Argentina requested the establishment of a panel pursuant to Article 21.5 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (“DSU”) concerning the United States’ (“US”) alleged failure to implement the recommendations and rulings of the Dispute Settlement Body (“DSB”) in the dispute US – Oil Country Tubular Goods Sunset Reviews. At its meeting on 17 March 2006, the DSB referred this dispute to the original panel, if possible, in accordance with Article 21.5 of the DSU, to examine the matter referred to by Argentina in document WT/DS268/16. At that meeting, the parties to the dispute also agreed that the Panel should have standard terms of reference. The terms of reference are, therefore, the following:

To examine, in the light of the relevant provisions of the covered agreements cited by Argentina in document WT/DS268/16, the matter referred to the DSB by Argentina in that document and to make such findings as will assist the DSB in making the recommendations or in giving the rulings provided for in those agreements.

On 20 March 2006, the Panel was composed as follows:

Chairman: Mr. Paul O'Connor

Members: Mr. Bruce Cullen

Dr. Faizullah Khilji

China, the European Communities, Japan, Korea, and Mexico reserved their third-party rights.

The Panel met with the parties on 12 July 2006. It met with the third parties on 13 July 2006. The Panel issued its interim report to the parties on 13 October 2006.

FACTUAL ASPECTS

This dispute concerns the implementation by the United States of the DSB recommendations and rulings in US – Oil Country Tubular Goods Sunset Reviews.

The original anti-dumping investigation on OCTG from Argentina was completed by the United States in 1995, with the imposition of an anti-dumping duty. The only exporter from Argentina that participated in the original investigation was Siderca. The dumping margin calculated for Siderca was 1.36 per cent, which was also the rate of the anti-dumping duty imposed with respect to Siderca. The United States Department of Commerce (“USDOC”) calculated a residual duty at the same rate, i.e. 1.36 per cent, for other Argentine exporters. During the five-years after 1995, four administrative reviews were initiated by the USDOC at the request of the domestic producers of OCTG in the United States.