. /.  WORLD TRADE  
ORGANIZATION  WT/DS217/20 
16 January 2004 
 (04-0160) 
 Original:   English 
 
 
 
 
UNITED STATES – CONTINUED DUMPING AND  
SUBSIDY OFFSET ACT OF 2000 
 
Recourse by Brazil to Article 22.2 of the DSU  
 
 
   The following communication, dated 15 January 2004, from the delegation of Brazil to the 
Chairman of the Dispute Settlement Body, is circulated pursuant to Article 22.2 of the DSU.   
 
_______________ 
 
   Brazil requests that a special meeting of the Dispute Settlement Body be held on 
26 January 2004 in order to cons ider the following agenda item: 
 
"United States – Continued Dumping and Subsidy Offset Act of 2000 "  
(WT/DS217, AB-2002-7) Recourse by Brazil to Article 22.2 of the U nderstanding on Rules and Procedures Governing 
 the Settlement of Disputes   
 
 The Panel and the Appellate Body found that the Continued Dumping and Subsidy Offset Act 
of 2000 (CDSOA) was inconsistent with the Unite d States' obligations under the General Agreement 
on Tariffs and Trade 1994 (GATT 1994), the Agreemen t on Implementation of Article VI of the 
General Agreement on Tariffs and Trade 1994 (A nti-Dumping Agreement), the Agreement on 
Subsidies and Countervailing Measures (SCM Agreem ent) and the Marrakesh Agreement establishing 
the World Trade Organization (WTO Agreement), namely that:  - the CDSOA is a non permissible specific acti on against dumping or a subsidy contrary to 
Article 18.1 of the Anti-Dumping Agreement, Artic le 32.1 of the SCM Agreement and Articles VI:2 
and VI:3 of GATT 1994; 
 - consequently, that the United States has failed to comply with Article 18.4 of the Anti-Dumping Agreement, 32.5 of the SCM Agreement and Article XVI:4 of the WTO Agreement; and 
 
- to the extent that the CDSOA is inconsistent with provisions of the Anti-Dumping and SCM 
Agreements, the CDSOA nullifies or impairs benef its accruing to Complaining Parties under those 
Agreements.   WT/DS217/20 
Page 2  
 
 On 27 January 2003, the Dispute Settlement B ody (DSB) adopted the Appellate Body report 
and the Panel report as modified by the Appellate Body report. The United States stated that it intended to implement the recommendations and rulings of the DSB.    An arbitration under Article 21.3(c) of the Understanding on Rules and Procedures Governing 
the Settlement of Disputes (DSU) subsequently dete rmined that the reasonable period of time for the 
United States to implement the DSB recomm endations and rulings would expire on 
27 December 2003.   The United States has failed to implement the recommendations and rulings of the DSB with 
respect to the CDSOA by that date, and no mutually acceptable arrangement has yet been made. 
Therefore, under Article 22.2 of the DSU, Brazil re quests the authorization of the DSB to suspend the 
application to the United States of tariff concessi ons and related obligations  under GATT 1994 in an 
amount that will be determined every year by th e amount of offset payments made to affected 
domestic producers in the latest annual distribu tion of anti-dumping and countervailing duties under 
the CDSOA, as explained below. 
  Brazil intends to impose additional import duti es on a final list of goods originating in the 
United States. In accordance with Article 22.4 of the DSU, every year, the rate of the additional duty 
will be set so as to collect over one year additi onal duties equivalent to an amount established by 
adding (i) the amount of offset paym ents attributed to duties collected on products from Brazil and (ii) 
a share of the balance of total offset payments less  the offset payments attributed to duties collected 
on products from other members that are authori zed by the DSB to suspend concessions or other 
obligations in this dispute. Every year, prior to the adjustment of the duty, Brazil will notify to the 
DSB a list indicating the level of the additional duty  on the selected goods in the light of the changes 
in the level of the disbursements made under the CDSOA. 
  
__________ 
 
 