Date
16 November 2018
Washington’s non-compliance with a WTO ruling in a dispute over dumping duties is prompting China to plan some follow-up action. Photo: Reuters
Washington’s non-compliance with a WTO ruling in a dispute over dumping duties is prompting China to plan some follow-up action. Photo: Reuters

China seeks WTO authorization to impose sanctions on US

China told the World Trade Organization (WTO) on Tuesday that it wants to impose US$7 billion a year in sanctions on the United States in retaliation for Washington’s non-compliance with a ruling in a dispute over US dumping duties, Reuters reports.

In the request for authorization, published by the WTO, China claimed that it had suffered US$7.043 billion in damages annually, and therefore it is seeking to raise trade barriers on US goods to the same amount, as allowed under WTO rules.

The request for authorization from the WTO to introduce the sanctions is likely to lead to years of legal wrangling over the case for the penalty and the amount, the report noted.

China initiated the dispute in 2013, complaining about US dumping duties on several industries including machinery and electronics, light industry, metals and minerals, with an annual export value of up to US$8.4 billion at the time.

China won a WTO ruling in the dispute in 2016, and that judgment was confirmed by an appeal last year.

The case concerned the US Commerce Department’s way of calculating the amount of “dumping” — Chinese exports that are priced to undercut American-made goods on the US market.

The US calculation method, known as “zeroing”, tended to increase the level of US anti-dumping duties on foreign producers and was repeatedly ruled to be illegal in a series of trade disputes brought to the WTO.

China told the WTO last month that the deadline for the US to comply with the ruling expired on Aug. 22.

The WTO published an agenda on Tuesday for a meeting of its dispute settlement body on Sept. 21, showing China planned to take the legal step of asking for authorization for sanctions.

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CG/RC

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