US broke WTO rules on duties
Print Edition
THE World Trade Organization ruled yesterday that the United States had acted inconsistently with WTO rules with regard to its countervailing and anti-dumping measures on certain products from China.
In the dispute brought by China to the WTO in 2012, a panel report found that the US Department of Commerce failed to adjust the duty amounts to avoid double remedies in 25 anti-dumping and countervailing duty investigations against China initiated between 2006 and 2012. The WTO said the US action was inconsistent with the rules.
Meanwhile, the panel ruled that the US was not acting inconsistently with the WTO rules by passing the amendment to the Tariff Act in March 2012 and retroactively authorizing its investigating authority to impose countervailing duties against the so-called non-market economy countries as of November 2006.
China’s request for consultations in September 2012 with US over the dispute came after the so-called GPX bill was passed to authorize the department 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 department did not have legal authority to impose countervailing duties on goods from non-market economy countries and gave an application retroactive period since November 20, 2006.
In November 2012, China requested the formation of a panel to probe the case, which was established by the WTO’s Dispute Settlement Body a month later.
China had insisted that the GPX bill would place Chinese enterprises under an uncertain legal environment and violated WTO rules on transparency and procedural justice.
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