NEW YORK The United
States has rejected Chinas request to set up a dispute
settlement panel at the World Trade Organization (WTO) over
alleged illegal subsidy duties to nonmarket economies.
During a meeting Friday at the
international organization, China said that the U.S. government
since 2006 has launched more than 30 countervailing duty
investigations against its productsincluding steel pipe,
aluminum extrusions and oil country tubular goodsthat
affect more than $7.3 billion in Chinese goods. These
investigations are unlawful because U.S. countervailing duty
laws shouldnt apply to nonmarket economies, such as
China, it added.
The issue dates back to earlier
this year when President Barack Obama signed a bill giving
authority to the U.S. Commerce Department to apply subsidy
duties to nonmarket economies, a decision lauded by domestic
steel interests (
amm.com, March 13). In September, China challenged
the law at the WTO, noting that "double counting"when
both countervailing and anti-dumping duties are imposed on a
product, causing the offsetting remedy to be calculated
twicecan occur (
amm.com, Sept. 21).
The United States on Friday said
that it didnt agree with the establishment of a panel,
adding that its legislative measures are "fully consistent"
with its WTO obligations. Under WTO rules, the establishment of
a panel is automatic upon a second request.
China also submitted a report on
friday regarding its intent to implement recommendations
concerning a ruling on grain-oriented electrical steel (
amm.com, Nov. 16). China added that it would
implement the recommendations in a manner that "respects its
WTO obligations" and would be discussed with the U.S.
government within a reasonable period of time.