From the draft consolidated texts on anti-dumping and subsidies and countervailing measures circulated by the WTO today, there's this new provision that appears to govern zeroing:
2.4.3 When the authorities aggregate the results of multiple comparisons in order to establish the existence or extent of a margin of dumping, the provisions of this paragraph shall apply:
(i) when, in an investigation initiated pursuant to Article 5, the authorities aggregate the results of multiple comparisons of a weighted average normal value with a weighted average of prices of all comparable export transactions, they shall take into account the amount by which the export price exceeds the normal value for any of the comparisons.
(ii) when, in an investigation initiated pursuant to Article 5, the authorities aggregate the results of multiple comparisons of normal value and export prices on a transaction-to-transaction basis or of multiple comparisons of individual export transactions to a weighted average normal value, they may disregard the amount by which the export price exceeds the normal value for any of the comparisons.
(iii) when, in a review pursuant to Articles 9 or 11, the authorities aggregate the results of multiple comparisons, they may disregard the amount by which the export price exceeds the normal value for any of the comparisons.
I've only looked at this quickly, but it seems to say the following. Under 2.4.3(i), for weighted average to weighted average comparisons in original investigations, zeroing is not permitted ("they shall take into account the amount by which the export price exceeds the normal value for any of the comparisons").
Under 2.4.3(ii), for transaction to transaction comparisons and weighted average to transaction comparisons in original investigations, zeroing is permitted ("they may disregard the amount by which the export price exceeds the normal value for any of the comparisons").
Under 2.4.3(iii), in reviews, zeroing is permitted for any type of comparison ("they may disregard the amount by which the export price exceeds the normal value for any of the comparisons").
This is the first I've seen or heard of this proposal, so I'm not sure of the origins. It clearly seems like a compromise, but I'm not sure what its chances of making the final cut are.
ADDED: Here is a Reuters article about the issue.
MORE: The U.S. press release on the text:
"We appreciate Rules Negotiating Group Chairman Valles' leadership in this difficult and complex negotiation. While the U.S. is very disappointed with important aspects of this draft text, we believe it provides a basis for further negotiations. As we proceed with those negotiations, we will be fully committed to preserving the strength and effectiveness of U.S. trade remedy laws."
