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  • May 2015
  • Japan appealed to the WTO Appellate Body regarding China’s Measure Imposing Anti-dumping Duties on Certain High-performance Stainless Steel Seamless Tubes from Japan.-

Japan appealed to the WTO Appellate Body regarding China’s Measure Imposing Anti-dumping Duties on Certain High-performance Stainless Steel Seamless Tubes from Japan.

On May 20 (Geneva time), 2015, Japan requested an appeal to the WTO Appellate Body regarding the panel report on the measure 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. The panel report presented a ruling that China’s imposition of anti-dumping duties was 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 its determination of injury and causal relationship, and because of defects in the investigation procedure; however, the report did not accept Japan’s claims on some of the issues. Therefore, Japan appealed to the Appellate Body regarding these issues.

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 its determination of injury and causal relationship, and because of defects in the investigation procedure.

In February 2015, the WTO released a panel report, which presented a ruling that China’s imposing of anti-dumping duties is inconsistent with the WTO Anti-Dumping Agreement because of flaws and defects in the determination of injury and causal relationship, and because of defects in the investigation procedure. The panel report also requested that China bring its measures into conformity with the Anti-Dumping Agreement. On the contrary, the panel report did not accept Japan’s claims on some issues regarding the provisions including Articles 3.2 and 3.4 of the Anti-Dumping Agreement.

Therefore, on May 20, 2015, Japan requested an appeal to the WTO Appellate Body regarding these issues.

2. Details of the decision

The report recognized that China’s imposition of anti-dumping duties was inconsistent with the WTO Anti-Dumping Agreement and recommended that China bring its measures into conformity with that Agreement. But Japan’s claims on some issues were not accepted. The major points of the panel’s ruling are as follows:

  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 the lack of 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 Article 3.2 of the Anti-Dumping Agreement (the price effect analysis) that the actual effect of the dumped imports on domestic prices should be examined and its claim regarding Article 3.4 (the impact analysis) of the Anti-Dumping Agreement that the relationship between the dumped imports and the state of the domestic industry should be examined were not accepted.

2. Future schedule

In principle, the report of the WTO Appellate Body is to be circulated to WTO Members within 60 days (with an absolute maximum of 90 days), and the Dispute Settlement Body is to adopt the report within 30 days of its circulation, but the period of the examination by the WTO Appellate Body tends to be prolonged. Therefore, it is possibile that it will take more than 90 days for the WTO Appellate Body to circulate its report.

3. 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/english/press/2012/1220_01.html (in English)

  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/english/press/2013/0411_02.html (in English)

  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/english/press/2013/0524_01.html (in English)

  4. 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 -

    (News release on February 16, 2015)
    http://www.meti.go.jp/english/press/2015/0213_01.html (in English)

(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 (first instance), which is a quasi-judicial third party organization, examines the matter in question and gives rulings regarding its consistency with the WTO Agreement. If any violations are confirmed, the panel recommends corrective measures. A party, which is not satisfied with the panel rulings, may appeal to the WTO Appellate Body (second instance).

Release date

May 20, 2015

Division in Charge

  • Office for WTO Compliance and Dispute Settlement, Multilateral Trade System Department, Trade Policy Bureau for information on dealing with general WTO disputes
  • Iron and Steel Division, Manufacturing Industries Bureau for information on the iron and steel industry
  • Northeast Asia Division, Trade Policy Bureau for information on Japan-China economic relationship

Related Information

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