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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

Trade Representative, Office of United States

NOTICE: NOTICES

ACTION: WTO Dispute Settlement Proceeding:

DOCUMENT ACTION: Notice; request for comments.

SUBJECT CATEGORY: WTO Dispute Settlement Proceeding Regarding Measures Related to Zeroing and Sunset Reviews

DATES: Although USTR will accept any comments received during the course of the dispute settlement proceeding, comments should be submitted on or before July 15, 2008.

DOCUMENT SUMMARY: The Office of the United States Trade Representative (``USTR'') is providing notice that pursuant to a request of Japan, the Dispute Settlement Body (``DSB'') of the World Trade Organization (``WTO'') has established a compliance panel under the Marrakesh Agreement Establishing the World Trade Organization (``WTO Agreement'') concerning the dispute United StatesMeasures Relating to Zeroing and Sunset Reviews; Recourse to Article 21.5 of the DSU by Japan. That request may be found at http://www.wto.org contained in a document designated as WT/DS322/27. USTR invites written comments from the public concerning the issues raised in this dispute.

SUMMARY: Measures Related to Zeroing and Sunset Reviews,

SUPPLEMENTAL INFORMATION

USTR is providing notice that the DSB has established, at the request of Japan, a dispute settlement compliance panel pursuant to the WTO Understanding on Rules and Procedures Governing the Settlement of Disputes (``DSU''). Such panel will hold any hearing in Geneva, Switzerland. It is possible that the public will be able to observe the hearing of the panel. If so, then USTR would intend to provide notice on USTR's Web site (under ``Opportunities to View Dispute Settlement Hearings'' on the Web page http://www.ustr.gov/ Trade_Agreements/Monitoring_Enforcement/Dispute_Settlement/WTO/ Section_Index.html) of the public hearing and the means by which the public may observe.

Major Issues Raised by Japan

In Japan's request for the establishment of a panel in connection with the dispute United StatesMeasures Relating to Zeroing and Sunset Reviews; Recourse to Article 21.5 of the DSU by Japan, Japan challenges the following:

The consistency with DSU Articles 17.14, 21.1, and 21.3 of the continued use of zeroing in transactiontotransaction comparisons in original investigations, in any comparison methodology in periodic reviews, and in any comparison methodology in new shipper reviews; Japan also alleges that the failure to eliminate zeroing in these contexts is a breach of Articles 2.4, 2.4.2, 9.3, and 9.5 of the Antidumping Agreement and Articles VI:1 and VI:2 of the GATT 1994;

The alleged failure to eliminate zeroing in eight periodic reviews, and, since the expiration of the implementation deadline, through the eight periodic reviews at issue and related instructions and notices, the continued imposition, collection, and/or assessment of antidumping duties in excess of the proper margin of dumping; Japan claims that the failure to eliminate zeroing in these periodic reviews is inconsistent with Articles 17.14, 21.1, and 21.3 of the DSU, Articles 2.4 and 9.3 of the Antidumping Agreement, and Article VI:2 of the GATT 1994;

The consistency of alleged measures taken to comply with the DSB's recommendations and rulings with Articles 2.4, 9.2, and 9.3 of the Antidumping Agreement and Article II:1(a), II:1(b), VI:1, and

FOR FURTHER INFORMATION CONTACT Ronald J. Baumgarten, Jr., Assistant General Counsel, Office of the United States Trade Representative, 600 17th Street, NW., Washington, DC 20508, (202) 3959583.