WTO rules against US in Brazil orange juice dispute

25th March 2011, Comments 0 comments

The World Trade Organization on Friday ruled that some anti-dumping duties imposed by the United States on imports of Brazilian orange juice violated international trade rules.

Brazil had claimed in a complaint filed in 2008 that the method used by Washington to calculate when its orange juice was dumped, or sold at less than cost price on US markets, was illegal.

The WTO dispute settlement panel accepted the Brazilian complaint on two points, ruling that the United States had "acted inconsistently" in applying its controversial and complex method called 'zeroing.'

It recommended that the United States "bring its measures into conformity with its obligations under the Anti-Dumping Agreement."

Brazil argued that the unfair calculation allowed the United States to impose extra duties on its orange juice, hampering its exports.

The United States has lost several disputes in the 153-member WTO over its use of the anti-dumping calculation on a variety of imports.

The European Union withdrew a complaint in the Geneva-based trade watchdog last September that focused on zeroing after the United States said it was taking steps to change the measure.

However, the WTO panel on Friday urged trading nations to find a lasting "systemic" solution to the controversial method "sooner rather than later," instead of leaving it to repeated disputes.

© 2011 AFP

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