Zeroing Illegal Under US Law, NAFTA Panel Rules

Law360, New York (April 15, 2010, 6:34 PM EDT) -- A North American Free Trade Agreement panel has ruled that zeroing is illegal under U.S. law, a move that could make it more difficult for the federal government to engage in a practice long scorned by the World Trade Organization.

One American and two Mexican panelists comprised the majority in a 3-2 vote Wednesday, remanding to the U.S. Department of Commerce a duty calculation for steel products imported from Mexico. The panel ordered the department to recalculate the margin without zeroing.

Mexican exporters ThyssenKrupp Mexinox SA...
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