Why the EU Anti-dumping Practice to Adjust Inputs Costs in Situations Where Such Costs Are 'Artificially Low' Is Legitimate and Justified

摘要

Several EU anti-dumping decisions, involving adjustments of input costs of foreign exporters because these costs were 'artificially low', are presently being challenged in the World Trade Organization (WTO) Dispute settlement by Russia, Argentina, and Indonesia. These countries claim that the cost adjustment methodology that the EU used to calculate dumping in these cases is inconsistent with Article 2.2.1.1 of the WTO Antidumping Agreement (ADA). They argue that Article 2.2.1.1 does not allow such upward adjustments of costs in situations other than an incorrect transposition in the exporter's accounting books of the costs actually incurred.