WASHINGTON, Jan 14: The US has challenged China’s failure to comply with the WTO’s ruling in favor of its dispute on high-tech steel and has requested consultations with Beijing on the issue.
“Because the Obama Administration is determined to fight for American workers and businesses in the global trading system and to not stop fighting until their rights are fully realized the United States today is challenging China’s failure to comply with the WTO’s decision in favor of the United States in our dispute on high-tech steel,” US Trade Representative Michael Froman told reporters.
The ruling concerns US exports of GOES (grain oriented flat-rolled electrical steel) used majorly in power industry. The WTO ruled in November 2012 that China had unfairly imposed antidumping and countervailing duties.
“Specifically, we have requested consultations with China on its failure to bring antidumping and countervailing duties on US exports of GOES (grain oriented flat-rolled electrical steel) into compliance with its WTO obligations,” he said.
Froman said today’s action shows that when the United States steps up to the plate on trade enforcement, we will follow through.
“We are committed to ensuring that our trading partners play by the rules – and respond with appropriate action when they are found to be in violation,” he said.
The United States brought this dispute because it considers that China had breached WTO procedural and substantive rules when it imposed duties on GOES from the United States.
China’s duties effectively blocked US exports of GOES to China. Before China imposed these duties, US exports of GOES amounted to more than USD 250 million a year. The year after China imposed the duties, the value of US exports of GOES fell to USD 3 million, he said.
“We were right, and China was wrong. The WTO found that China’s duties are inconsistent with WTO rules. And unfortunately, it appears that China has not corrected those inconsistencies,” Froman said.
He said the evidence was clear that China did not bring its duties into compliance with WTO rules.
“We support the fair use of trade remedies as fundamental to WTO rights and obligations. But we will not stand by while China misuses trade remedies to block US exports unfairly, to the detriment of US workers and businesses,” he said.
“Through this action, we are standing up for our trade rights, and we are enforcing trade rules so that our workers and businesses can compete and win in the global economy,” Froman said. (AGENCIES)
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