United States – Measures Relating to Zeroing and Sunset Reviews (WT/DS322): Report of the Panel

Summary

INTRODUCTION

Complaint of Japan

On 24 November 2004, the Government of Japan (“Japan”) requested consultations with the Government of the United States of America (“United States”) pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (“DSU”), Article XXII:1 of the General Agreement on Tariffs and Trade 1994 (“GATT 1994”), and Article 17.2 of the Agreement on Implementation of Article VI of GATT 1994 (the “AD Agreement”), regarding certain laws, methodologies, and/or measures, including socalled zeroing. Consultations were held on 20 December 2004, which allowed a better understanding of the positions of the parties, but failed to achieve a mutually agreed solution of the dispute

On 4 February 2005, Japan requested the establishment of a Panel to examine this matter.

Establishment and Composition of the Panel

At its 28 February 2005 meeting, the Dispute Settlement Body (“DSB”) established a Panel pursuant to the request by Japan in document WT/DS322/8, in accordance with Article 6 of the DSU.

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 Japan in document WT/DS322/8, the matter referred to the DSB by Japan 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 7 April 2005, Japan requested the Director-General to determine the composition of the Panel, pursuant to paragraph 7 of Article 8 of the DSU. This paragraph provides:

“If there is no agreement on the panellists within 20 days after the date of the establishment of a panel, at the request of either party, the Director-General, in consultation with the Chairman of the DSB and the Chairman of the relevant Council or Committee, shall determine the composition of the panel by appointing the panellists whom the Director-General considers most appropriate in accordance with any relevant special or additional rules or procedures of the covered agreement or covered agreements which are at issue in the dispute after consulting with the parties to the dispute.