The World Trade Organization on Friday reiterated that China’s import duties on high-tech steel from the United States were inconsistent with its membership obligations within the trade body.
The World Trade Organization on Friday re-affirmed that China’s import duties on high-tech steel from the United States were inconsistent with its membership obligations within the trade body.
“The WTO report confirms we were right,” said U.S Trade Representative Michael Froman in a statement. “Following our challenge, China terminated those duties just a few months ago, reopening a more than $250 million market for American workers and steel companies. Today’s report highlights once again that the United States can and will ensure that our trading partners live up to their obligations.”
The United States, which estimates that the Chinese duties had resulted in more than $250 million in annual export losses to U.S. steel exporters, has been fighting the duties in the WTO since 2010.
On April 10, 2010, China imposed antidumping and countervailing duties on grain-oriented electrical steel, commonly referred to as GOES, from the United States. Before China imposed these duties, U.S. exports of GOES amounted to more than $260 million. The year after China imposed the duties, however, the value of U.S. exports of GOES fell to less than $3 million. China’s antidumping duties ranged as high as 64.8 percent, and the countervailing (anti-subsidy) duties ranged as high 44.6 percent, according to the Office of the U.S. Trade Representative.
On Sept. 15, 2010, the United States initiated WTO dispute settlement proceedings challenging China’s duties. The WTO panel decided in favor of the United States, finding that China breached several procedural and due process obligations in conducting its antidumping and countervailing duty investigations.
The WTO recommended that China bring its measures into conformity with the organization’s rules. On July 31, 2013, China continued imposing antidumping and countervailing duties on imports of U.S. GOES – again finding that U.S. exports caused adverse price effects in the Chinese market and these exports caused material injury to China’s domestic industry.
On Jan. 13, 2014, the United States initiated a WTO compliance challenge. As in the original proceeding, the compliance panel sided with the United States, finding numerous flaws in China’s determination that U.S. exports caused adverse price effects in the Chinese market. “The compliance panel also found that China again claimed unsupported findings that U.S. exports caused injury to China’s domestic industries. Furthermore, China failed to disclose the essential facts underlying its revised material injury determination. As a result, the WTO panel found that China failed to comply with the recommendations and rulings of the DSB (dispute settlement body) in this dispute,” USTR explained.
In April, China’s Ministry of Commerce revoked the antidumping and countervailing duties on U.S. GOES before the WTO compliance panel issued its public report.
WTO re-affirms Chinese duties on U.S. GOES non-compliant
