Report of the Appellate Body

Summary

INTRODUCTION

1. Mexico appeals certain issues of law and legal interpretations developed in the Panel Report, United States – Final Anti-Dumping Measures on Stainless Steel from Mexico (the “Panel Report”). The Panel was established to consider a complaint by Mexico concerning the calculation of margins of dumping by the United States Department of Commerce (the “USDOC”) based on a methodology that does not fully reflect export prices that are above normal value.

2. Before the Panel, Mexico claimed that:

(a) “model zeroing in investigations” is, as such, inconsistent with Articles VI:1 and VI:2 of the General Agreement on Tariffs and Trade 1994 (the “GATT 1994”), Articles 2.1, 2.4, 2.4.2, and 18.4 of the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (the “Anti-Dumping Agreement”), and Article XVI:4 of the Marrakesh Agreement Establishing the World Trade Organization (the “WTO Agreement”);

(b) model zeroing, as applied in the original investigation at issue in this dispute, is inconsistent with Articles VI:1 and VI:2 of the GATT 1994, Articles 2.1, 2.4, 2.4.2, and 18.4 of the Anti-Dumping Agreement, and Article XVI:4 of the WTO Agreement;

(c) “simple zeroing in periodic reviews” is, as such, inconsistent with Articles VI:1 and VI:2 of the GATT 1994, Articles 2.1, 2.4, 9.3, and 18.4 of the Anti-Dumping Agreement, and Article XVI:4 of the WTO Agreement; and

(d) simple zeroing, as applied in the five periodic reviews at issue in this dispute, is inconsistent with Articles VI:1 and VI:2 of the GATT 1994, Articles 2.1, 2.4, 9.3, and 18.4 of the Anti-Dumping Agreement, and Article XVI:4 of the WTO Agreement.