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Comments Sought on WTO Dispute over Chinese AD Duties on Specialty Steel

Tuesday, March 11, 2014
Sandler, Travis & Rosenberg Trade Report

The Office of the U.S. Trade Representative is seeking comments from interested parties by March 31 on a request it recently submitted to the World Trade Organization calling for the establishment of a dispute settlement panel to examine China’s continuing imposition of antidumping and countervailing duties on grain oriented flat-rolled electrical steel from the United States. 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. The U.S. is now pursuing further action, U.S. Trade Representative Mike Froman recently stated, because it believes “the evidence is clear that China has not brought its duties into compliance with WTO rules.” Specifically, USTR believes that China’s measures continuing to impose AD and CV duties on GOES from the United States, as set forth in MOFCOM Public Notice [2013] No. 51 and MOFCOM Public Notice No. 21 [2010], violate several WTO agreements. 

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