Udbhav Tiwari - Domestic Implementation of WTO Trade Remedy Decisions in the USA

7/23/2019 Udbhav Tiwari - Domestic Implementation of WTO Trade Remedy Decisions in the USA

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U D B H A V T I W A R I

( I N T E R N A T I O N A L T R A D E T E A M )

I N T E R N S H I P P R E S E N T A T I O N

N O V E M B E R , 2 0 1 5

Domestic Implementation of WTOTrade Remedy Decisions in theUnited States of America



Trade Remedies

Permissile import restraints that other!ise !o"ld econtrary to WTO principles essentially# e$ceptions to the edroc% WTO r"les of indin& tariffs

and '() *most fa+ored nation, treatment

Desi&ned to allo! relief from imports deemed -"nfair#.or ad/"stment from a s"r&e in imports often called the -safety +al+e. to allo! f"rther trade lieraliation in

de+elopin& economies

WTO identifies three primary types safe&"ards *temporary relief from import s"r&es,

co"nter+ailin& d"ties *co"nteractin& s"sidies,

antid"mpin& *co"nteractin& "nfairly lo! prices,



Trade Remedy In+esti&ations in the USA

Antid"mpin& and o"nter+ailin& D"ty in+esti&ationsare carried o"t "nder a"thorities in Title 3II of theTariff Act of 140 in the USA6

ommerceDepartment

7$istence of D"mpin& or

S"sidiation

8e+el of D"mpin& orS"sidiation

International Tradeommission

'aterial In/"ry from D"mped

or S"sidied Import

Threat of 'aterial In/"ry fromD"mped or S"sidied Import



Trade Remedies at the WTO

AD and 3D Tariffsco"nteract -"nfair. trade

practices

9AD : 3D A&reements;

*AD, and *3D,Imports implyUnfair Tradin&

Alle&ation of"nfairness :

tariffs m"st tar&etindi+id"al co"ntry

Safe&"ards protect fromserio"s impact of

"nforeseen imports9Safe&"ards A&reement;

All imports areconsidered fairly

traded# /"st !ron&ly timed6

All so"rces*co"ntries, are

incl"ded ar fe!e$ceptions *De+6

)ations# etc6,



Domestic Implementation : the WTO

Trade Remedy A&reements allo! WTO DSU &o+erned enforcement6

'inim"mProced"ral andS"stanti+e

Re<"irements7nforceale at the WTO

Three sta&e process atthe WTO

*1, ons"ltations

*2, Panel : A=

Reports :

*,omplianceProceedin&s

Ad+erse DS= Reportsre<"ire the defendin&'emer to initiatecompliance plans or

face alternati+eretaliatory meas"resfrom affectednation>s6



Ur"&"ay Ro"nd A&reement Act

Ur"&"ay Ro"nd A&reements Act *-URAA.,passed y the U6S on&ress in 144?

Relationship of WTO A&reements to (ederal and StateU6S la! and details remedies ased on alle&ed

+iolations of WTO a&reement

Intended to rin& U6S6 la! f"lly into compliance !ith U6S6oli&ations "nder the WTO A&reements6

@arshly Restricted y Section 12 : 124 for o"rt andRe&"latory A&ency Proceedin&s



Section 124 Re&"latory A&ency Determinations inTrade Remedy Implementation Proceedin&s

Sec6 124 B A"thorities and proced"res "nder !hichre&"latory a"thorities may iss"e ne! determinationsto implement ad+erse WTO decisions6

United States Trade Representati+e has solediscretion to in+o%e Section 124 Determinations

Department of ommerce *DO, and>or the U6S6International Trade ommission *IT, cond"ct

accelerated in+esti&ations in a fle$ile proced"re

on&ressional ommittee cons"ltations are re<"ired y the USTR at almost e+ery sta&e to ens"re o+ersi&ht



PreBInitiation Section 124 Determination Proced"res

USTR m"st carry o"t

on&ressional andP"lic ons"ltationsfor almost all actions

of the USA at the WTO# incl"din& Trade

Re+ie!s : DSUProceedin&s6

D"rin& DSUProceedin&s# Section

12C Re<"ires the USTRto inform and cons"lt

!ith *1, on&ressionalommittees *2,

Affected DomesticProd"cers and *, Iss"e

a )otice for P"lic

Participation

7+en in the e+ent of an

ad+erse WTO Decisionthe USTR m"st also

cons"lt !ithon&ressional

ommittees eforeinitiatin& Section 124

implementations6



Possile Administrati+e Actions (ollo!in& WTODecisions in the USA

United States TradeRepresentati+e

9Sole DiscretionaryPo!er;

Department ofommerce 124 *,

97$istence : 'ar&inof Unfair Imports;

International Tradeommission 124 *a,

9In/"ry ca"sed yUnfair Trade Imports;

on&ressionalons"ltations Sec

122 : Others6



Sim"ltaneo"s Section 124 Administrati+e Actions inUS aron Steel *India,

US aron Steel*India,

• WTO Anti D"mpin&

ase# in fa+o"r ofIndia6• United States has

initiated Section 124Determination#

Sim"ltaneo"s Administrati+e Actions

• USTR instr"cted

Dept6 of ommerceto initiatedetermination ofd"mpin&6 9Sec6 124*,;• Sim"ltaneo"sly#

as%ed the USTR toiss"e an ad+isoryreport on possilef"t"re actions6 9Sec6124 *a,;

Rare and possily"ni<"e in Sec6 124

@istory

• The Do and the IT

oth loo% intoseparate areas ofd"mpin& claims6• Therefore# in most

sit"ations# the Do isas%ed to determine ifd"mpin& is occ"rrin&in the first place efore ITsin+ol+ement in Sec6124 Proceedin&s6



Section 124 Determinations Se<"ence of 7+ents

16Ad+erse r"lin& ythe DS= at the WTO

a&ainst the USA

26 USTR enters intocons"ltations !ith

Do and on&6ommit6 for possile

f"t"re actions6

6 =ased on thesecons"ltations# the

USTR decides et!een Sec6 124meas"res or alt6

meas"res incl"din&acceptin& retaliation6

?6 Upon a positi+ead+isory report# the

IT m"st reBcond"ctin+esti&ations t toens"re compliance

9120 days;

56 If the IT isin+ol+ed# the IT is

re<"ested to iss"e anad+isory report on

f"t"re actions6

921 days;

E6 If the Do isin+ol+ed# the Do is

m"st reBcond"ctin+esti&ations t to

ens"re compliance6

91F0 days;

C6 The proced"re for oth Do and the ITis lar&ely fle$ile and

"ncodified# to e$peditethe process

97laorated in )e$tSlide;

F6 Once the USTRrecei+es the ne!

determination# it hascomplete discretion on

ho! : !hen toimplement them

domestically in the USA

46 If the USTR decides toimplement the ne!r"lin&# it m"st e

p"lished in the (ederalRe&ister6 ("rther# the

ne! determination onlyapplies prospecti+ely6



Section 124 Determinations Uncodified Proced"re forIn+esti&ations

16 (or oth Do andIT in+esti&ations# aP"lic )otice is filled

in the (ederalRe&ister6

26 Interested Parties file8etters of Appearanceand a Administrati+eProtecti+e Order for

informationconfidentiality

6 Once 8oA and Ao areappro+ed# interested

parties are &i+en lo&in to A7SS# an onlinedoc"ment : fillin&

interface6

?6 All f"rther actionsand information is

"s"ally &o+erned ys"/ecti+e formats and

time deadlines ased on Admin Re+6 proced"res

56 These <"estionersand all f"t"re

information is a+ailalep"licly at the Do as

!ell as on A7SS forp"lic +ie!in&6

E6 Interested parties*and optionally otherthird parties , may

iss"ed <"estionnaires forfact"al information

C6 Preliminary Res"lts ofthe Determination areiss"ed ased on WTO

decision and commentsare re<"ested from

parties and the p"lic

F6 Then# parties may e&i+en an opport"nity tofile a !ritten rief and

hold hearin&s# incl"din&re"ttals to all

information s"mitted6

46 On the asis of theinformation recei+ed#

p"lic comments and the WTO Decision# the Do

and>or IT iss"e theirne! d"ty to the USTR6



Post Section 124 Proceedin&s Domestic A+en"es







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Udbhav Tiwari - Domestic Implementation of WTO Trade Remedy Decisions in the USA