Chinese Trade Disputes The Focus Of WTO Meeting
30 May 2013
Posted by: Author: Ulrika Lomas
Source: Ulrika Lomas (Tax-News.com, Brussels)
Among decisions taken during the meeting of the World Trade Organization's Dispute Settlement Body (DSB) on May 24, 2013, a panel was approved to examine Japanese claims of illegitimate Chinese anti-dumping duties being levied on High Performance Stainless Steel Seamless Tubes from Japan.
The panel will investigate Japanese claims set out in a request for consultations by Japan on December 20, 2013. The dumping duties were introduced by way of Notices No 21 and 72, issued by the Chinese Ministry of Commerce (MOFCOM) during 2012. The European Union, India, Korea, Russia and the United States reserved their third-party rights to participate in the panel's proceedings.
Other matters progressed during the DSB's meeting included a confirmation from China that it will implement the DSB's recommendations and rulings in the dispute "China - Definitive Anti-Dumping Duties on X-Ray Security Inspection Equipment from the European Union" in a manner that respects its WTO obligations.
In February 2013, a World Trade Organization panel ruled against China in respect of anti-dumping duties, of 71.8 percent, on imports of certain security inspection equipment (x-ray scanners) from the European Union. The panel in particular found that China's investigation into "dumping," where a product is sold to a foreign market at below the market price, was not objective, and flawed on many levels. The panel found that MOFCOM failed to consider all relevant economic factors, in particular, the "magnitude of the margin of dumping," when calculating its anti-dumping duties.
The Panel requested that China revoke the anti-dumping duties, and permitted the European Union to claim benefits under the Anti-Dumping Agreement of equal value to the illegitimate duties levied by Chinese authorities.
Also at the May 24, 2013, meeting, the DSB also deferred the establishment of a panel to examine Indonesia's complaint in the dispute "European Union - Anti-Dumping Measures on Imports of Certain Fatty Alcohols from Indonesia"; deferred the establishment of a panel to examine Panama's complaint in the dispute "Argentina - Measures Relating to Trade in Goods and Services"; and heard an additional statement from Dominica, speaking on behalf of Antigua and Barbuda, in relation to the ongoing dispute between the United States and the Caribbean territory on the cross-border supply of gambling and betting services.