WTO Panel Finds “Zeroing” Permitted to Unmask Targeted Dumping

On April 9, 2019, the Report of the World Trade Organization (“WTO”) Panel in United States – Anti-Dumping Measures Applying Differential Pricing Methodology to Softwood Lumber from Canada was published. This dispute concerned US anti-dumping measures applying the differential pricing methodology (“DPM”) to softwood lumber products from Canada. Departing from the WTO Appellate Body’s previous decision, the Panel finds that Article 2.4.2 permits zeroing under the DPM to the extent that this methodology is limited to US sales raising targeted dumping concerns. This Legal Update provides background and discusses the importance of the Panel’s findings.