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  • February 2015
  • The WTO Panel Came to a Decision that China’s Measure which Imposes Anti-dumping Duties on Certain High-performance Stainless Steel Seamless Tubes from Japan is Inconsistent with the WTO Agreement

The WTO Panel Came to a Decision that China’s Measure which Imposes Anti-dumping Duties on Certain High-performance Stainless Steel Seamless Tubes from Japan is Inconsistent with the WTO Agreement- Release of WTO Panel Report on Imposing Anti-Dumping Duties by China -

On February 13 (Geneva time), 2015, the World Trade Organization (WTO) released the panel report on imposing anti-dumping duties by the People’s Republic of China (“China”) on certain high-performance stainless steel seamless tubes from Japan and the EU, an issue that has been examined by the WTO at the request of Japan. The report presents a ruling that China’s imposing of anti-dumping duties is inconsistent with the WTO Anti-Dumping Agreement (Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994) because of defects in the determination of injury and a causal relationship, and in the investigation procedure. It also requests China to bring its measures into conformity with the Anti-Dumping Agreement.

1. Background

On April 11, 2013, Japan requested the establishment of a panel under the WTO Agreement regarding China’s measure of imposing anti-dumping duties on certain high-performance stainless steel seamless tubes (HP-SSST) imported from Japan, and on May 24, 2013, a panel under the WTO Agreement was established.

Japan has been claiming that China’s imposition of anti-dumping duties is inconsistent with the WTO Anti-Dumping Agreement (Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994) because of defects in the determination of injury and a causal relationship, and in the investigation procedure.

Following that, the panel held meetings (oral hearings) in February and May 2014, and the WTO finally released a panel report, which presents a ruling that China’s imposing of anti-dumping duties is inconsistent with the WTO Anti-Dumping Agreement because of flaws in the determination of defects in the determination of injury and a causal relationship, and in the investigation procedure. It also requests that China bring its measures into conformity with the Anti-Dumping Agreement.

2. Details of the decision

The report recognizes that China’s imposition of anti-dumping duties is inconsistent with the WTO Anti-Dumping Agreement and recommends that China bring its measures into conformity with that Agreement. The following are the major points of the panel’s ruling:

  1. China’s decision to impose anti-dumping duties is inconsistent with Articles 3.1, 3.2, 3.4, and 3.5 of the Anti-Dumping Agreement because of defects in the determination of injury to China’s domestic industry and a causal relationship between such an injury and the dumped exports; and
  2. China’s decision is also inconsistent with Articles 6.5, 6.5.1, 6.9, 7.4, 12.2, and 12.2.2 of the Anti-Dumping Agreement because of defects in the investigation procedure, such as in the disclosure of essential facts.
  3. Some of Japan’s claims, including those regarding the interpretation of Articles 3.2 and 3.4 of the Anti-Dumping Agreement were not accepted.

3. Future schedule

Parties concerned may appeal to the WTO Appellate Body within 60 days from the release of the panel report. If no appeal is filed, the panel’s decision in the report will become the WTO’s final decision.

4. References

1) Relevant METI news releases

  1. Japan requests consultation with China under the WTO Agreement regarding China’s measure imposing Anti-dumping Duties on Certain High-performance Stainless Steel Seamless Tubes from Japan.

    (News release on December 20, 2012)
    http://www.meti.go.jp/press/2012/12/20121220003/20121220003.html

  2. Japan requests the establishment of a panel under the WTO Agreement regarding China’s measure imposing Anti-dumping Duties on Certain High-performance Stainless Steel Seamless Tubes from Japan.

    (News release on April 11, 2013)
    http://www.meti.go.jp/press/2013/04/20130411004/20130411004.html

  3. A panel under the WTO Agreement was established regarding China’s measure of imposing Anti-dumping Duties on Certain High-performance Stainless Steel Seamless Tubes from Japan.

    (News release on May 24, 2013)
    http://www.meti.go.jp/press/2013/05/20130524005/20130524005.html

2) What is HP-SSST?

HP-SSST is high-grade steel used in ultra-supercritical boilers in coal-fired power plants.

3) What is an anti-dumping duty?

An anti-dumping duty is a customs duty imposed on a certain product by the importing country where it is demonstrated that the export price of the product is less than its selling price destined for consumption in the exporting country (“dumping”) and the dumped imports are causing injury to the competing industry in the importing country. The amount of anti-dumping duty cannot exceed the difference between the export price of the product and the domestic selling price of the like product in the exporting country.

4) Value of Japan’s exports of certain HP-SSST to China

Japan’s exports of certain HP-SSST to China equaled approximately 140 million US dollars in 2014.

5) What is a panel under the WTO Agreement?

If consultations fail to settle a dispute, based on the request from the complaining party, the WTO panel examines the matter and gives rulings regarding the consistency with the WTO Agreement. A party, which is not satisfied with the panel rulings, may appeal to the WTO Appellate Body.

Release date

February 16, 2015

Divisions in charge

  • Information on WTO disputes settlement in general
    Multilateral Trade System Department, Trade Policy Bureau
  • Information on the iron and steel industry
    Iron and Steel Division, Manufacturing Industries Bureau
  • Information on Japan-China economic relationship
    Northeast Asia Division, Trade Policy Bureau

Related Information

WTO

Regional Affairs / China

Ministry of Economy, Trade and Industry
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