WTO Favors China Over U.S. in Anti-Dumping Case
S. Rina | | Oct 21, 2016 02:37 AM EDT |
(Photo : https://pixabay.com/en/mining-excavator-electric-1736289/) The World Trade Organization (WTO) provided a panel ruling for the complaint lodged by China in December, 2013.
China scored victories on most of the cases of anti-dumping rules applied by the United States. The World Trade Organization provided a panel ruling for the complaint lodged by China in December 2013.
The complaint was part of the series of disputes between China and the US regarding the definition of dumping.
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WTO panel assessed that the US method of determining dumping margins in certain cases of "target dumping" is faulty. Target dumping denotes price cuts carried out by foreign firms on products aimed at specific demography, time period or regions.
The panel ruled against the zeroing practice employed by the US Commerce Department in cases of target dumping.
The practice involves assigning a value of zero to any instance where the export price exceeds the producer's regular price in the home market, partly to make up for customer and freight expenses. This practice leads to elevated levels of US anti-dumping duties on overseas manufacturers.
The ruling has been welcomed by Chinese authorities.
The country's Ministry of Commerce said the decision upholds "China's principal claims." The ministry also added that the dispute spans a large number of industries, including metals and minerals, light and machinery sectors, contributing up to $8.4 billion worth of exports.
The US Trade Representative's office, on the other hand, expressed its disappointment over the findings.
It stated that the report will be carefully reviewed for determining the next steps. The department's spokesperson even noted that the ruling will not "undermine the commitment of the United States to impose antidumping duties to address injurious dumping." Both parties have 60 days to appeal the said ruling.
TagsWTO, US Trade Representative's office, Ministry of Commerce
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