14 Aug 2015
U.S. Prevails in WTO Enforcement Case Against Mainland China's AD/CV Duties on Specialty Steel
The Office of the U.S. Trade Representative is claiming victory in a challenge to mainland China's compliance with a 2012 ruling by the World Trade Organisation that certain AD and CV duties on U.S. exports of grain oriented electrical steel, a high-value magnetic specialty steel that is primarily used by the power generating industry in transformers, rectifiers, reactors and large electric machines, were inconsistent with multi-lateral rules.
The panel originally determined that Beijing breached several procedural and due process obligations in conducting the AD and CV proceedings and found numerous defects in mainland China's determination that U.S. exports caused adverse price effects in the domestic market. USTR states that despite this adverse finding mainland China continued to impose AD and CV duties on GOES and claimed that its new rationale for the duties was WTO compliant, which compelled U.S. authorities to seek further redress in Geneva in January 2014.
As in the original proceeding, the compliance panel found numerous defects in mainland China's determination that U.S. exports caused adverse price effects in the domestic market and found that Beijing again claimed unsupported findings that U.S. exports caused injury to a domestic industry. Furthermore, mainland China failed to disclose the essential facts underlying its revised material injury determination. As a result, the panel found that mainland China failed to comply with the recommendations and rulings of the Dispute Settlement Body.
In April 2015, after the compliance panel's meeting with the parties and after the parties had submitted all of their submissions, China's Ministry of Commerce revoked the AD and CV duties on GOES from the United States before the compliance panel issued its public report.