The World Trade Organisation’s top court backed the European Union on Wednesday in its challenge of a U.S. method for dealing with unfairly priced imports, confirming a series of previous rulings.
The European Union launched the appeal even though it won the original case in October, because the original panel refused to rule on some instances challenged by Brussels. The United States subsequently also appealed.
The case had attracted attention as an example of a growing rift between the WTO’s dispute panels and its Appellate Body over the extent to which zeroing can be permitted under international trade rules.
And with the economic crisis fuelling fears of protectionism which could deepen the world’s recession, trade remedies such as anti-dumping measures to tackle cheap imports are coming under added scrutiny by both governments and trade lawyers.
In a 166-page report, the Appellate Body overturned many reservations of the original dispute panel, and recommended that the United States bring the measures into line with trade law. Read more here.