Brazil Welcomes U.S. Decision to Change Anti-dumping Measures

Brazil on June 17, 2011 welcomed the U.S. decision to change some of its anti-dumping measures imposed on Brazilian orange juice exports in accordance with a World Trade Organization ruling.

The U.S. delegation to the organization, or WTO, said earlier that it intended to implement the recommendations of the WTO's dispute settlement body.

According to a statement issued by Brazilian Foreign Ministry, known as Itamaraty, it is the first time the United States has not appealed the WTO ruling that the U.S. calculation methodology for anti-dumping duties violated international trade rules.

It is "an important shift of attitude," Itamaraty said.

A WTO dispute settlement panel ruled in March the method of "zeroing" used by the U.S. Department of Commerce for calculation of the dumping margin was inconsistent with the Anti-Dumping Agreement and illegal.

"Zeroing" refers to a U.S. practice that treats all non-dumped sales as having a dumping margin of zero rather than a negative, thereby preventing non-dumped sales from offsetting dumped sales. Critics say this leads to overestimation of anti-dumping duties.

The WTO recommended the U.S. "bring its measures into conformity with its obligations under the Anti-Dumping Agreement."

Brazil claimed victory in its complaint about the "zeroing" method, which it took to the WTO in 2008.

Together with 13 similar cases opened by nine other countries, the success would contribute to consolidating multilateral case-law against this illegal practice, Itamaraty said.