International Trade Daily™ provides rapid, reliable notification of the most significant developments affecting U.S. trade and international business policy, as well as the policies of major U.S....
The Trump administration April 27 appealed a World Trade Organization ruling that said the U.S. failed to sufficiently modify a series of illegal anti-subsidy duties against China.
The ruling stems from a 2014 WTO decision that rejected the U.S. Commerce Department’s duties on an array of Chinese products such as solar panels, kitchen shelves, and aluminum tubes.
The U.S. said it disagreed with the WTO’s latest compliance decision, which concluded the U.S. continues to impose flawed countervailing duties based on import prices of similar merchandise from third countries.
A WTO appellate body will now investigate the merits of the U.S. appeal and work to issue a report within 90 days, though that timeline may be prolonged due to a bottleneck of appeals.
If the WTO reaffirms the earlier ruling, it could blunt the Trump administration’s ability to tackle Chinese manufacturing subsidies and may add to the escalating trade tensions between the U.S. and China.
The WTO launched a separate investigation to determine whether the U.S. complied with a dispute ruling that rejected U.S. countervailing measures on Indian steel imports.
Two years ago, the U.S. lost a WTO ruling that said the U.S. Commerce Department improperly calculated anti-subsidy duties against hot-rolled carbon steel flat products from India.
U.S. trade officials criticized the ruling because it rejected the Commerce Department’s interpretation of a public body and said it undermined America’s ability to curb trade-distorting subsidies from major subsidizers like China.
The Commerce Department operates under the assumption that certain state-owned enterprises could be considered a “public body” within the meaning of Article 1.1 of the WTO Subsidies and Countervailing Measures Agreement.
Though the U.S. pledged to change its countervailing duty methodology, India alleged that the U.S. did not follow through during a previously defined compliance period.
A WTO dispute panel will now determine whether the U.S. fully implemented the ruling’s recommendations and issue a ruling within 90 days, though that timeline may be prolonged.
The WTO granted Indonesia’s request to launch a trade dispute investigation into Australia’s anti-dumping duties on Indonesian paper imports.
Indonesia alleged that Australia’s import duties on A4 copy paper violated international trade rules and requested WTO consultations to address its concerns.
Jakarta said Australia’s anti-dumping commission improperly calculated Indonesia’s prices and costs when calculating its anti-dumping measures on Indonesian imports of A4 copy paper.
The U.S. is participating in the dispute as a third party because it is the primary export market for Australian uncoated paper and the second-largest export market for Indonesian uncoated paper.
Other third-party participants include: Canada, Japan, the European Union, Singapore, Vietnam, Thailand, Ukraine, Russia, India, Israel, and China.
The U.S. separately blocked South Korea’s first request to investigate the legality of a key provision of U.S. anti-dumping and countervailing investigations.
South Korea’s dispute claimed the Commerce Department improperly applied the principle of “adverse facts available” to South Korean producers and exporters in six anti-dumping and countervailing cases that primarily involved steel products.
The Commerce Department’s “adverse facts available” principle generally permits U.S. trade officials to consider evidence that may have an adverse impact on the subject of an anti-dumping investigation that is deemed to be non-cooperative.
Though WTO rules permit the U.S.to block a first request for an inquiry, South Korea’s dispute request may not be rejected a second time.
To contact the reporter on this story: Bryce Baschuk in Geneva at firstname.lastname@example.org
To contact the editor responsible for this story: Jerome Ashton at email@example.com
Copyright © 2018 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)