ANTI-DUMPING ACTIVITY CONTINUES DECLINE: WTO SECRETARIAT

The number of anti-dumping investigations as well as that of anti-dumping measures actually imposed continued a pattern of decline over the first half of 2005, according to the WTO Secretariat. According to the 24 October report, only 96 new anti-dumping investigations were launched between January and June 2005, compared to 106 over the same period for the previous year. A similar decline was seen in the number of cases where anti-dumping measures were implemented, which fell from 58 cases to 53.

The WTO Secretariat report is the latest in a series of announcements that have shown anti-dumping activity to be decreasing since 2003 (see BRIDGES Weekly, 30 October 2003; and 22 April 2004).

Countries in Asia led the pack as the target of new anti-dumping investigations with China, Taiwan and India placed as first, second and third respectively. The developed country most often accused of dumping its exports was the US, which placed fourth on the list of countries facing anti-dumping investigations. The report cited plastics, chemicals and base metals as the most frequent subject of new investigations.

South Africa led Members by launching 17 new anti-dumping investigations -- twelve more than reported for the same period in 2004. However, an increase in the value of the country's currency may be partly responsible for this increase.

While the number of anti-dumping measures actually applied by Members during the first half of 2005 declined, the figure for both the US (13 measures) and China (10 measures) more than doubled. Out of the 53 newly initiated measures, 29 came from developing countries.

Trade analysts suggest that the decrease in anti-dumping activity -- particularly new anti-dumping investigations -- in recent years may be attributable to the fact that a round of negotiations is currently underway.

ICTSD reporting, "WTO Secretariat Reports Continuing Declines in Both New Anti-Dumping Investigations and New Final Anti-Dumping Measures," WTO PRESS RELEASE, 24 October 2005.

DSU REVIEW EFFECTIVELY ON HOLD

Negotiations to improve and clarify the WTO Dispute Settlement Understanding (DSU) are effectively on hold, according to trade diplomats who attended the 24 October session of the Dispute Settlement Body Special Session (DSB-SS).

Delegates reported that more pressing areas of the ongoing talks, such as agriculture, non-agricultural market access (NAMA) and services have drawn Members' attention away from the Doha-mandated DSU review. This was reinforced at the meeting when the sponsors of a proposal on special and differential treatment (S&D) indicated that they would be unable to initiate a discussion on it until after the WTO's December Ministerial Conference in Hong Kong, because their resources would be dedicated to other issues until then.

As in past meetings, Chair Ambassador David Spencer of Australia reiterated that delegates need to focus on a text to be submitted to ministers in Hong Kong. No such text has been drafted thus far, and any eventual report is not expected to contain substantive issues. A compilation of Members' proposals has been put together, but it is only meant for use in discussions in the DSB-SS and is not likely to be submitted to the Ministerial Conference. In the end, the report from the Chair that is eventually presented in Hong Kong may simply be a description of discussions that have taken place in the group.

The next meeting of the DSB-SS has been scheduled for 14 November. Delegates do not anticipate that it will prove to be very substantial. However, they are not ruling out the possibility that acceleration in the other negotiating areas might lead to an increased focus on the DSU review. Nevertheless, expectations for progress on the matter at Hong Kong remain very low.

ICTSD reporting.

SPS COMMITTEE LOOKS AT WAYS FORWARD ON S&D

The WTO Committee on Sanitary and Phytosanitary (SPS) held a short session on 24 October that looked at special and differential treatment (S&D), EU standards for cinnamon imports, and China's compliance with SPS commitments.

Chair Gregg Young of the US attempted to re-start work on Paragraph 43 of the committee's June report on S&D to the General Council (G/SPS/35), which identified specific ways for Members to address developing country concerns related to SPS measures (see BRIDGES Weekly, 6 July 2005). India and the African Group, sponsors of the five S&D proposals that have been referred to the SPS Committee, said the revised versions of their texts should serve as the basis for the next round of talks on the matter. However, the US and Young suggested that the course of action outlined in Paragraph 43 should form the basis of talks at the next meeting, since the SPS Committee had agreed upon the paragraph in June.

Sri Lanka, the world's biggest exporter of cinnamon, argued that the EU's ban on traces of sulphur dioxide in cinnamon was restricting imports and hurting over 200,000 producers. It requested the EU to suspend the ban, at least until a new international standard could be agreed upon. The EU responded that it was consulting with experts on the matter.

As part of the 'transitional review' of China's implementation of WTO rules, a process mandated by China's terms of accession, the EU and the US highlighted their concerns regarding the China's compliance with the SPS Agreement's demands on transparency, risk assessment and management (G/SPS/W/178). In response, China pointed out that it was working hard, had improved notification practices, and was in compliance with the commitments made under its accession protocol.

The SPS committee is scheduled to meet at the end of January 2006.

ICTSD reporting.