NEW YORK The United
States and China held consultations in Geneva Monday concerning
a dispute over the imposition of subsidy duties on non-market
The issue dates back to March of
this year, when President Obama signed legislation giving the
U.S. Department of Commerce power to apply both dumping and
subsidy remedies to non-market economies such as China (
amm.com, March 13).
Critics say that imposing both
duties results in inflated margins because the remedies are
calculated twicea practice known as
Members of the domestic steel
and aluminum industries strongly supported the bill due to the
high number of trade cases involving China in which both
anti-dumping and countervailing duties apply.
According to a notice dated Nov.
5 on the website of Chinas Ministry of Commerce, the two
parties met and exchanged views on the issues. The notice said
that the Chinese government will decide whether to "continue
the case" based on the results of the consultations.
"The U.S. side of this approach
to Chinese enterprises in an uncertain legal environment is in
violation of the WTO transparency rules and process," the
China first challenged the U.S.
government at the World Trade Organization in September,
including a list of products affected which included steel
pipe, aluminum extrusions and galvanized steel wire (
amm.com, Sept. 21).
A WTO spokesman told
AMM that discussions between governments are private
and no details would be released.
A U.S. Trade Representative
spokeswoman could not be reached for comment.
Under WTO laws, if both governments cannot come to a
compromise, China can request that a dispute settlement body be