WTO rules act against China in anti-dumping cases

The World Trade Organization panel has confirmed that most of the complaints filed against China at the request of Japan and the EU for the supply of seamless stainless steel pipes and other products are aimed at imposing anti-dumping duties. Japan filed a complaint in December 2012 alleging that China is preventing Nippon Steel & Sumitomo Metal from selling pipes used in coal-fired power plants.

The EU, supporting exporters such as Tubacex in Spain and Salzgitter in Germany, stepped in against China in June 2013. Cecilia Malmström, EU Trade Commissioner, said that “In international trade, we must all play by the rules. I am delighted that the WTO group reaffirms this today, urging China to bring its customs duties in line with WTO commitments. I hope China will respond on this decision and will restore fair terms of trade for EU producers. "

The decision is systemic in that it highlights current shortcomings in China's application of trade rules. WTO rules allow countries to apply anti-dumping duties against unfair import prices, but there are strict conditions for the application of the rules and criteria by which it is determined whether a product is actually being sold at unfair prices. The Chinese Ministry of Commerce said it is ready to analyze the report in detail and consider possible next steps.

China is also under renewed pressure from the US, which recently filed a new complaint with the WTO to challenge Chinese subsidies supporting billions of dollars in exports. Canada has also escalated trade relations with China by filing a dispute with China over anti-dumping duties on pulp products to the WTO.