WTO rules against US zeroing method

The World Trade Organization yesterday ruled that the US has applied unfair antidumping duties on a number of goods, including steel products. The decision was welcomed by Japan, which had challenged the US over the method – known as “zeroing”- it uses to set duties. In the subject method, the US uses a range of prices of imported goods to determine whether they are being sold at prices lower than the prices in their own country. However, the US excludes those cases in which the export price of a foreign producer is actually higher, known as "zeroing" in trade jargon. In yesterday's ruling, the WTO decided that with this method the US is violating international trade rules. The decision has been strictly criticized by the Committee to Support U.S. Trade Laws (CSUSTL). Commenting on the WTO ruling, David A. Hartquist, executive director of CSUSTL, said, "This decision is outrageous, though hardly surprising".