WASHINGTON--(BUSINESS WIRE)--The Committee to Support U.S. Trade Laws (“CSUSTL”) reacted with disappointment to a World Trade Organization (WTO) Appellate Body report issued today in a dispute brought by China concerning antidumping (AD) and countervailing duty (CVD) measures applied by the U.S. Department of Commerce (Commerce) on circular pipe, rectangular pipe, laminated woven sacks, and off-the-road tires.
The report reverses several of the key conclusions reached by a WTO dispute panel in October 2010, which had upheld Commerce’s determinations with respect to when subsidized inputs and credit from government-owned companies and banks can be considered to be subsidies. The report also finds that Commerce violated WTO obligations by failing to assess whether a double remedy exists as a result of the simultaneous imposition of antidumping duties calculated on the basis of a non-market economy methodology, and countervailing duties, on the same products.
According to CSUSTL President Gilbert B. Kaplan, “We are deeply concerned and disappointed by the Appellate Body decision issued today regarding the application of the countervailing duty law to China. The United States follows the rule of law and issues well-reasoned and thoroughly explained decisions. But by doing so, it seems like we make ourselves susceptible to being overturned by the WTO Appellate Body which has not supported the legitimate use by the United States of its trade laws. These laws are critical to the United States manufacturing sector, to U.S. workers, and to the creation of good jobs. This is not an outcome or a process the U.S. can tolerate. ”
“When China joined the WTO in 2001 it agreed to continue to be treated as a non-market economy in dumping cases for a period of time, and it also agreed to special rules that would apply in countervailing duty cases on its exports. This was part of the bargain countries reached to permit China to enjoy the benefits of WTO membership,” said Terence P. Stewart, managing partner of Stewart and Stewart. "Today the Appellate Body upset that delicate balance by erecting new obstacles to the effective enforcement of our trade laws that are not found in the text of our international agreements. Over-reaching decisions such as these must be addressed, as they threaten to undermine the legitimacy of the WTO's dispute settlement system."
Roger B. Schagrin, Chairman of the CSUSTL Government Affairs Committee added: "It is time for Congress and the Administration to tell the WTO that the U.S. will not continue to negotiate over new dumping and subsidy rules in the Doha Round when the Appellate Body makes up new rules instead of following the rules carefully negotiated in the Uruguay Round."
About CSUSTL
The Committee to Support U.S. Trade Laws is an organization of companies, trade associations, labor unions, workers, and individuals committed to preserving and enhancing U.S. trade laws. CSUSTL’s members span all sectors, including manufacturing, technology, agriculture, mining, energy, and services. CSUSTL is dedicated to ensuring that the unfair trade laws are not weakened through legislation or policy decisions in Washington, D.C., in international negotiations, or through dispute settlements at the World Trade Organization and elsewhere.
CSUSTL Contact Information:
| Gilbert B. Kaplan, 202-661-7981 |
| Roger B. Schagrin, 202-223-1700 |
| Terence P. Stewart, 202-466-1241 |