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The eBearing News
December 14, 2004


United States Repeals
Antidumping Act of 1916
copyright © 2004 eBearing Inc.

President Bush has signed into law H.R. 1047 (Public Law 108-429), the Miscellaneous Trade and Technical Corrections Act of 2004.

Among the Act's provisions is Section 2006, repealing the Antidumping Act of 1916, and bringing the U.S. belatedly (by six years) into compliance with World Trade Organization regulations.

The Act states that selling imported goods within the U.S. is unlawful if those goods are imported or sold at a price lower than the actual market price in country of origin, providing for civil and/or criminal prosecution, penalties and damages, via the U.S. Federal Court system.

Unique in that it skirted the formal international trade dispute resolution system, the Antidumping Act of 1916 allowed individual private businesses to file action against competitors directly, and in their home market jurisdiction.

• eBearing's detailed section covering the Antidumping Act of 1916 (15 USC 72)

• The complete text of the original Act is here

In 1998, the World Trade Organization found the United States in violation of its WTO obligations because WTO rules supersede the Antidumping Act of 1916.

The United States, through various appeals and political/trade foot-dragging techniques, failed to repeal the Act. Finally, extensive trade sanctions were repeatedly threatened by the WTO, the European Union and Japan.

In mid-2004, repeal of the Antidumping Act of 1916 was finally added, as Section 2006, to the Miscellaneous Trade and Technical Corrections Act of 2004 (H.R. 1047, Public Law 108-429).

Section 2006 was added in a house - senate conference committee. "Conferees agreed to include a provision to repeal the antidumping provision of the Revenue Act of 1916. The basis for the legislative language is H.R. 1073 from the 108th Congress. This legislation is necessary in order to bring the United States into compliance with its World Trade Organization obligations."

Passed by the U.S. Senate on November 19, the Act is signed into law by President Bush on December 3, 2004.

The text of H.R. 1047, Section 2006:
Sec. 2006.
REPEAL OF ANTIDUMPING PROVISION OF REVENUE ACT OF 1916.


(a) REPEAL. -- Section 801 of the Act entitled "An Act to increase the revenue, and for other purposes", approved September 8, 1916 (15 USC 72), is repealed.

(b) EFFECT OF REPEAL. -- The repeal made by subsection (a) shall not affect any action under section 801 of the Act referred to in subsection (a) that was commenced before the date of the enactment of this Act and is pending on such date.
• Library of Congress full legislative texts of all versions of H.R. 1047

The U.S. immediately notified the WTO that this action, "brought the U.S. into compliance with the DSB's recommendations and rulings."

However, as with most trade legislation, the bill is not retroactive and in fact explicitly leaves open all complaints already filed and active under the Antidumping Act.

The European Union expressed some satisfaction to the WTO for the U.S. repeal, but said this should not be understood as an end to the dispute.

In 2003, the European Union adopted a legislation (EC 2238/2003) prohibiting enforcement of any U.S. court decision under the Antidumping Act of 1916 and allowing any EU company sued under the Act to counter-sue in the EU for damages.

Japan also formally welcomed the action to the WTO, but officially expressed regret that the U.S. failed to make the action retroactive, which leaves a Japanese printing press company responsible for USD $30 million in damages awarded by a Federal District Court in Iowa in May 2004.

In retaliation, Japan's parliament enacted a bill directly countering the Antidumping Act. Set to take effect December 8, 2004, the Japanese Ministry of Economy, Trade and Industry (METI) said it allows a Japanese company subject to privately-initiated antidumping claims to countersue in Japan to counter any damages awarded by U.S. courts to a U.S. company. Essentially, this move covers only the printing press dispute, opening the U.S. printing press company to a retaliatory $30 million claim in Japan.

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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.


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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.