Panel and Appellate Body proceedings
At its meeting on 18 May 2010, the DSB established a panel. China, the European Union, Japan, Mexico, Thailand and Viet Nam reserved their third-party rights. On 8 July 2010, the panel was composed.
On 18 January 2011, the panel report was circulated to Members. Before the panel, Korea restricted its claim to an allegation that the zeroing methodology used by the United States in the anti-dumping investigations at issue was inconsistent with Article 2.4.2 of the Anti-Dumping Agreement. The United States did not contest Korea's claim. In particular, the United States did not contest the factual assertions made by Korea regarding the United States' actions, nor the legal relevance of the Appellate Body reports cited by Korea as applicable to those facts.
The Panel upheld Korea's claim. Specifically, the Panel found that the “zeroing” methodology used by the USDOC in calculating the margins of dumping in the three anti-dumping investigations at issue was inconsistent with Article 2.4.2 of the Anti-Dumping Agreement, and therefore concluded that the United States had acted inconsistently with its obligations under this provision.
On 24 February 2011, the panel report was adopted by the DSB.