Brussels — Mayer Brown advised international fertilizer company EuroChem Group in a case brought by Russia before a World Trade Organization (WTO) dispute settlement panel.

The Government of the Russian Federation lodged the case in 2015, arguing that anti-dumping measures introduced by Ukraine against certain imports of ammonium nitrate fertilizer violated the WTO’s anti-dumping agreement.

The anti-dumping measures against ammonium nitrate imports from Russia were initially imposed by Ukraine in 2008 and subsequently amended and extended following an interim and expiry review investigation concluded in 2014.

The WTO panel concurred, ruling in Ukraine – Anti-Dumping Measures on Ammonium Nitrate (DS493) that Ukraine had acted unlawfully by including EuroChem within the scope of the measures, despite rulings by its own courts that the company’s dumping margin in the original investigation period was de minimis.

As a result, the panel ruled that the Ukrainian authorities had acted inconsistently with Article 5.8 of the WTO Anti-Dumping Agreement by failing to immediately terminate its investigation into EuroChem.

Furthermore the panel endorsed the finding of the Appellate Body in Mexico – Anti-Dumping Measures on Rice that the logical consequence of an immediate termination of an investigation under Article 5.8 is that a producer whose dumping margin was found to be de minimis cannot be subject to an expiry or interim review investigation. The Ukrainian authorities were therefore found to have acted in breach of Article 5.8 of the WTO Anti-Dumping Agreement by including EuroChem in the scope of the subsequent interim and expiry review investigations and by imposing a 36.03% anti-dumping duty on the company as a result of these investigations.

It was Russia’s first major win before the WTO since it joined the organization in 2012.

The Mayer Brown team was led by Brussels Government & Global Trade partner Nikolay Mizulin and included Brussels Government & Global Trade associate Edouard Gergondet.