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Let the WTO Rules Rule.doc
Let the WTO Rules Rule
The decade in the World Trade Organization hasbeen a learning and growing process for China: inthe course of grappling with disputes with its tradepartners, the country has become better versedin international rules and comfortable in employing them in its defense. Recent events make thisevident.
On March 11 the WTOs appellate body ruledthat the U.S. had unlawfully imposed anti-dumpingand countervailing duties on four Chinese products-circular welded carbon quality steel pipe (CWP), light-walledrectangular pipe and tube (LWR), laminated woven sacks (LWS) andcertain new pneumatic off-the-road tyres (OTR). It determined thatthe United States Department of Commerce (USDOC) inappropriatelycharacterized as“public bodies” China?s state-owned enterprises (SOE)and state-owned commercial banks (SOCB) that supplied goods andloans to investigated companies. It also upheld Chinas claims thatthe U.S. cannot treat China as a non-market economy country whilesimultaneously imposing on its imports anti-dumping and countervailing duties, since the latter are normally applied to market economycountries.
In fact, the U.S. Department of Commerce decided back in 1984that the U.S. countervailing duty law could not be applied to nonmarket economies, but it made an abrupt departure from its previous practice in 2006 by initiating an anti-dumpingand countervailing duties iuvestigation on Chinamade coated flee sheet paper. Such dual investigations against Chinese products have since occurredfrequently. The WTO in its March 11 verdict finallyexpressed its stance that these actions violate WTOrnles. An official of the Chinese Ministry of Commerce welcomed the WTO decision, hailing it as asignificant victory for China in contentious tradenractices under the WTO svstem.
“China cannot be passive in its response to anti-dumping investigations,” remarked Mei Xinyu, a research fellow of the Chinese Academyof International Trade and Economic Cooperation,“It mu
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