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U.S. Accuses China of Failing to Comply with WTO Ruling Against “Retaliatory” Duties

Tuesday, January 14, 2014
Sandler, Travis & Rosenberg Trade Report

U.S. Trade Representative Mike Froman announced Jan. 13 that the U.S. has requested consultations with China concerning its failure to comply with a World Trade Organization ruling against its antidumping and countervailing duties on imports of U.S. grain oriented flat-rolled electrical steel. GOES is a high-tech, high-value magnetic specialty steel used primarily by the power generating industry in transformers, rectifiers, reactors and large electric machines.

Last fall the WTO adopted an Appellate Body ruling that China’s AD and CV duties on this product, which the U.S. had argued were imposed in a retaliatory manner, were inconsistent with WTO rules. “China’s duties effectively blocked U.S. exports of GOES to China,” Froman said. “Before China imposed these duties, U.S. exports of GOES amounted to more than $250 million a year. The year after China imposed the duties, the value of U.S. exports of GOES fell to $3 million.” The U.S. is now pursuing further action, Froman added, because it believes “the evidence is clear that China has not brought its duties into compliance with WTO rules.”

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