No more U.S. “zeroing” on EU exporters

The European Commission and the U.S. have settled a long-standing dispute concerning a practice called ‘zeroing’ that the U.S. uses to calculate duty rates for products that are dumped on the market at below-market prices. Zeroing is a calculation method that led to higher duties for EU exporters, despite the method being found inconsistent by the World Trade Organization (WTO) in a series of dispute settlement cases. “This understanding solves this long-standing dispute,” says EU Trade Commissioner Karel De Gucht. “It will bring immediate relief to EU exporters who will no longer have to pay excessive anti-dumping duties … We have now re-established a level playing field for our companies.” The change in policy could save EU exporters approximately $15 million per year.