US Rejects China’s Request For Panel To Mediate WTO Dispute

china dumping steel

The US on Friday deferred China’s first request to establish a WTO dispute settlement panel to mediate its dispute against the US and its practice of levying both antidumping and countervailing duties on imports from nonmarket economies (NMEs), such as China.

China filed its WTO complaint in mid-September, taking issue with US CV and AD duty measures on a variety of products, including steel. As reported, WTO documents show the suit pertains to import orders and investigations implemented by the US between November 20, 2006 and March 13, 2012. March 13 was the date the US signed into law the newest CVD legislation permitting it to levy both AD and CV duties against NMEs.

The implementation of CVDs in addition to AD duties in NME cases is called “double remedies” or “double counting” by opponents of the measure.

As reported, China is questioning “any and all determinations or actions” by the US Department of Commerce, the US International Trade Commission or US Customs and Border Protection relating to the “imposition or collection” of CVDs. The dispute also includes AD measures, “as well as the combined effect of these antidumping measures and the parallel countervailing duty measures.”

Imports covered in the dispute include circular welded carbon quality steel pipe, light-walled rectangular pipe and tube, circular welded austenitic stainless pressure pipe, circular welded carbon quality steel line pipe, pre-stressed concrete steel wire strand, steel grating, wire decking and OCTG. Also included are seamless carbon and alloy steel standard, line and pressure pipe; drill pipe and galvanized wire.

 

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China escalates U.S. trade dispute, requests WTO decision

The low cost of labour, coupled with the massive scale of production at its 14,000-person plant, have enabled China’s Suntech to become the global industry leader in solar power in just a decade

GENEVA (Reuters) – In a move that escalates a trade row with the United States, China said it would ask the World Trade Organization (WTO) to adjudicate a dispute over U.S. punitive import duties on 22 Chinese exports, including solar panels and steel products.

China first brought the complaint to the WTO in May by asking the United States for formal “consultations” to explain the duties, which Washington says are intended to offset illegal subsidies that gave Chinese goods an unfair price advantage.

WTO rules entitle China to demand adjudication after a 60 day period of consultations. China will make the demand for adjudication at a meeting of the WTO’s Dispute Settlement Body on Aug 31, China said in a statement circulated to WTO members this week.

The office of the U.S. Trade Representative said in May that China’s decision to bring the dispute to the WTO was “premature and not an appropriate use of dispute settlement system resources”, because the U.S. Department of Commerce was already working to address the issues raised by China.

But China’s statement said two subsequent rounds of talks, on June 25 and July 18, had failed to resolve the dispute, which includes wind towers, as well as certain types of steel pipe, wire, cylinders and wheels, aluminum extrusions, wood flooring, magnesia bricks, thermal and coated paper and citric acid.

China is by far the world’s biggest producer of steel and is also a leading maker of clean energy equipment such as solar panels and wind towers, helped by Beijing’s ambition of tackling carbon emissions without slowing China’s growth.

Foreign competitors complain that its oversupply is the result of a market that is driven by forces such as government edicts and subsidies rather than fundamental supply and demand, and China has created surpluses that distort the global market.

China decided to bring the latest WTO complaint, which it says affects exports worth $7.3 billion, after winning a previous WTO dispute last year over U.S. duties on imports of Chinese steel pipes, off-road tires and woven sacks.

Many of China’s grievances might have been dealt with by a U.S. court decision last year, which struck down the Commerce Department’s ability to impose anti-subsidy duties on “non-market economies” like China.

But the U.S. Congress voted to restore it in March, ensuring U.S. duties on about two dozen Chinese goods stayed in place.

The case is one of several currently “live” disputes between the United States and China at the WTO.

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