China files WTO complaint against US CVDs

17  January 2013

BEIJING — China on Monday requested to negotiate with the US over countervailing duties levied by it against Chinese tires within the trade dispute settlement mechanism of the World Trade Organization.

“Through consultations within the WTO trade dispute settlement mechanism, the Chinese side hopes the US can correct its wrong-doing and properly deal with concerns from China,” said Shen Danyang, a spokesman for the Ministry of Commerce.

In a statement on MOC’s website, Shen said China has reiterated its stance on different occasions that it resolutely opposes the abuse of trade remedy rules or trade protectionism. He added that China will exercise its rights as a WTO member to protect the legitimate interests of domestic industries.

China’s request for consultation came after the US Court of Appeals for the Federal Circuit passed a so-called GPX bill earlier this year to authorize the US Department of Commerce to apply CVDs to “non-market economy” countries.

The bill, a remedy for the Tariff Act of 1930, overturned a previous federal court ruling that the US DOC did not have legal authority to impose CVDs on goods from non-market economy countries and gives an application retroactive period since November 20, 2006.

Shen said the US has for many years kept launching countervailing probes against Chinese products without legal support of US laws.

The GPX bill will place Chinese enterprises under an uncertain legal environment and violates WTO rules on transparency and procedural justice, Shen said.

According to the MOC, the trade dispute on tyres involves 24 types of tyre products worth about $7.23 billion.