WTO checks China’s duties on U.S. steel

   The World Trade Organization on Friday adopted both its Panel and Appellate Body reports in a dispute with China over the imposition of duties on U.S exports of grain oriented flat-rolled electrical steel (GOES).
   “We are pleased that the WTO has adopted these important reports finding that China has misused trade remedies against U.S. exports of certain steel products,” said U.S. Trade Representative Ron Kirk in a statement. “This is a broad and decisive victory for the United States and for American workers and manufacturers.”
   On June 9, 2009, China initiated separate antidumping and countervailing duty investigations on GOES from the United States. On April 10, 2010, China issued final determinations of dumping, subsidization, and injury, along with a notice of imposition of antidumping and countervailing duties. At the request of the United States, the WTO established a panel in March 2011 to examine China’s antidumping and countervailing duty investigation on U.S. GOES.
   The United States alleged China improperly initiated the countervailing duty investigation of several U.S. laws. The United States also challenged the manner in which China conducted its investigation, alleging the country violated numerous procedural and due process obligations, thus, impairing the ability of the United States and U.S. companies to defend their interests. In addition, the United States alleged China’s finding of injury to its domestic industry was unsupported by the evidence on the record.
   A WTO panel sided with the United States in a report circulated in June 2012.
   On Oct. 18, 2012, the WTO Appellate Body rejected China’s appeal in its entirety. In particular, the Appellate Body upheld the panel’s findings of defects in China’s determination that U.S. exports caused adverse price effects.
   Within 30 days following the WTO’s adoption of the reports, China must announce its intentions with respect to implementing the WTO’s rulings.