US anti-dumping measures on Chinese products inconsistent with WTO rules: WTO

The World Trade Organization (WTO) ruled on Monday in its Appellate Body Report that United States had acted inconsistently with WTO rules with regard to its countervailing and anti-dumping measures on certain products from China.

As for the dispute brought by China to the world trade watchdog in 2012, the Appellate Body report, issued this afternoon, rejected the appeal requested by the U.S. and upheld China's claims with respect to double remedy, finding that the failure of U.S. Department of Commerce (USDOC) to make any duty adjustment to avoid double remedies in 25 countervailing and anti-dumping investigations initiated against China during 2006 and 2012 was inconsistent with WTO rules.

The Appellate Body upheld most of China's claims in the appeal, finding that the panel, established in December 2012, erred in its interpretation of Article X:2 of the GATT 1994 and in the application of its interpretation of Article X:2 to the GPX Legislation.

However, the Appellate Body was unable to complete the analysis on whether the GPX Legislation was consistent with WTO rules due to insufficient factual analysis made by the panel.

China's request for consultations in September 2012 with U.S.over the latter's countervailing and anti-dumping measures on Chinese products came after the so-called GPX bill was passed to authorize the USDOC to apply countervailing duties to "non-market economy" countries.

The bill, a remedy for the Tariff Act of 1930, overturned a previous federal court ruling that the USDOC did not have legal authority to impose countervailing duties on goods from non-market economy countries and gives an application retroactive period since November 20, 2006.

China had insisted that the GPX bill would place Chinese enterprises under an uncertain legal environment and violates WTO rules on transparency and procedural justice.

In November 2012, China requested the establishment of a panel to probe into the case, which was established by the Dispute Settlement Body (DSB) a month later.

The panel report was circulated to members in March 2014, which ruled that U.S. countervailing and anti-dumping measures were inconsistent with WTO rules but the passing the amendment to the Tariff Act was not.

China and the U.S. respectively appealed to the Appellate Body in April this year over certain issues of law covered in the panel report and certain legal interpretations developed by the panel.

In a statement published in the wake of WTO's final rulings, China's Ministry of Commerce (MOC) said this was a "significant victory of China's challenge against the United States' abuse of trade remedy measures through legal channel, which is of great impact."

According to the MOC, the annual export value of products at issue exceeds 7.2 billion dollars, which involves significant trade interest of China.

The ministry urged in the statement the U.S. to respect the WTO rulings and correct its wrong doings in abusing trade remedy measures, and to ensure an environment of fair competition.