Colombia - Anti-Dumping Duties on Frozen Fries from Belgium, Germany and the Netherlands - Recourse to article 21.5 of the DSU by the European Union - Report of the Panel


COLOMBIA – ANTI‑DUMPING DUTIES ON FROZEN FRIES FROM
BELGIUM, GERMANY AND THE NETHERLANDS

RECOURSE TO ARTICLE 21.5 OF THE DSU BY THE EUROPEAN UNION

REPORT OF THE PANEL

BCI deleted, as indicated [[***]]


TABLE OF CONTENTS

 

1   INTRODUCTION.. 8

1.1   Complaint by the European Union. 8

1.2   Panel establishment and composition. 8

1.3   Panel proceedings. 9

2   FACTUAL ASPECTS. 10

3   PARTIES' REQUESTS FOR FINDINGS AND RECOMMENDATIONS. 10

4   ARGUMENTS OF THE PARTIES. 11

5   ARGUMENTS OF THE THIRD PARTIES. 11

6   INTERIM REVIEW.. 11

7   FINDINGS. 11

7.1   Order of the Panel's analysis. 11

7.2   General principles regarding treaty interpretation, the applicable standard of review, and burden of proof 12

7.2.1   Treaty interpretation. 12

7.2.2   Standard of review. 12

7.2.3   Burden of proof 12

7.3   Procedural background and overview of the European Union's claims. 13

7.4   Claim under Article 2.4.2 of the Anti‑Dumping Agreement: the use of simple averaging to determine normal value and establish the existence of margins of dumping. 13

7.4.1   Introduction. 13

7.4.2   Overview of the methodology MINCIT applied to determine the existence of margins of dumping. 14

7.4.3   Applicable requirements of Article 2.4 and Article 2.4.2. 16

7.4.4   Evaluation. 18

7.4.4.1   Whether the European Union's claim under Article 2.4.2 should be dismissed on jurisdictional grounds. 18

7.4.4.2   Whether the normal values MINCIT used for the challenged comparisons comply with Article 2.4.2. 21

7.4.5   Conclusion. 24

7.5   Claims under Articles 2.1 and 2.4 of the Anti‑Dumping Agreement: the "fair comparison" requirement and the "article‑to‑article" comparison methodology. 24

7.5.1   Introduction. 24

7.5.2   Applicable requirements of Article 2.1 and Article 2.4. 24

7.5.3   Scope of the European Union's Article 2.4/2.1 claims. 25

7.5.4   Whether MINCIT's comparisons in respect of three article‑pairs resulted in an unfair comparison between the export price and normal value. 26

7.5.4.1   Main arguments of the parties. 26

7.5.4.1.1   The European Union. 26

7.5.4.1.2   Colombia. 27

7.5.4.2   Evaluation. 28

7.5.4.2.1   Relevance of article numbers for the purpose of making a fair comparison. 28

7.5.4.2.2   Relevance of similarities between three‑ and five‑digit numbers for the purpose of making a fair comparison. 31

7.5.4.2.3   Interaction between MINCIT and Agrarfrost 37

7.5.4.2.4   Issues concerning the weighted average prices and quantity of the selected articles. 38

7.5.5   Conclusion. 38

7.6   Claims under Articles 1 and 9.3 of the Anti‑Dumping Agreement and Article VI of the
GATT 1994. 38

7.6.1   Introduction. 38

7.6.2   Main arguments of the parties. 38

7.6.3   Evaluation. 39

8   CONCLUSIONS AND RECOMMENDATION.. 40