Jinwoo Rhee and Eon-kyung Park. "Interpretation and Adoption of Article 2.2.2 of WTO Anti-dumping Agreement - Focused on Issues Regarding to Calculation of Constructed Value in US-OCTG(Korea) (DS488)." Korean Journal of International Economic Law 16, no. 3 (2018): 39-74. https://doi.org/10.46271/KJIEL.2018.11.16.3.39.
-Abstact-
On 11 July 2014, The USDOC (U.S. Department of Commerce) decided that OCTG(Oil Country Tubular Goods) made by Korean steel corporates was dumped, and determined the high margin of dumping; from 9.89% to 15.75%. For the following countermeasure, the Koreans steel corporates and Korean government(Ministry of Trade, Industry and Energy) brought the USDOC’s dumping determination to WTO, and complained that the determination was inconsistent with WTO Anti-dumping Agreement. In this US-OCTG (Korea)(DS488) case, Korea won the issues regarding to the methods for calculating constructed value under Article 2.2.2 of WTO Anti-dumping Agreement. The panel found that the USDOC acted inconsistently with Article 2.2.2 of WTO Anti-dumping Agreement in calculating constructed value during its dumping investigation. The panel, following the contextual meaning of the article, ‘the sales made in low volume in Korean domestic market’ could not justify the USDOC’s rejection about Korean respondents’ submitted actual data. Plus, USDOC had erroneously interpreted and applied the term ‘same general category of products’ narrowly, which brought about excluding non-OCTG products from the range of the dumping investigation. The panel, also pointed out the calculation of the ‘profit cap’ is mandatory under Article 2.2.2.(ⅲ) of WTO Anti-dumping Agreement, therefore USDOC failed to provide a proper explanation about the omission of the calculation of the ‘profit cap’. The panel confirmed the fact that the members of WTO acted consistently with Article 2.2.2. of WTO Anti-dumping Agreement to calculated constructed value, and the members should conform WTO Agreement during dumping investigation; neither distorting of the agreement, nor unduly rejecting the actual data from respondents are allowed.