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USTR Seeks Comments on WTO Dispute Regarding U.S. AD/CV Duty Measures on Four Products from China

The Office of the U.S. Trade Representative has issued a notice and request for comments on China's request for World Trade Organization consultations with the U.S. regarding certain U.S. final antidumping and countervailing duty determinations and orders involving four products imported from China.

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The USTR invites written comments from the public concerning the issues raised in this dispute. Comments should be submitted on or before December 12, 2008 to be assured of timely consideration.

Consultations Requested on AD/CV Orders on Certain Pipe, Tires, Sacks

China requested consultations on the final AD and CV duty determinations and orders on imports of the following products from China:

Circular Welded Carbon Quality Steel Pipe(A-570-910 and C-570-911)
Certain New Pneumatic Off-the-Road Tires(A-570-912 and C-570-913)
Light-Walled Rectangular Pipe and Tube(A-570-914 and C-570-915)
Laminated Woven Sacks(A-570-916 and C-570-917)

(See ITT's Online Archives or 07/23/08 news, 08072350 and 08072355; 09/05/08 news, 08090535 and 08090540; 08/06/08 news, 08080635 and 08080630; and 08/08/08 news, 08080845 and 08080850, for BP summaries of these AD/CV duty orders, respectively.)

China Questions AD/CV Final Determinations and Orders

In its request for consultations, China alleges that the U.S. acted inconsistently with certain provisions of the General Agreement on Tariffs and Trade 1994 (GATT), the WTO Agreement on Anti-Dumping (Antidumping Agreement), and the Agreement on Subsidies and Countervailing Measures (SCM Agreement) through the following actions:

Erroneous determinations about State-owned enterprises, etc. China alleges that the Commerce Department:

(i) erroneously concluded that certain State-owned enterprises are "public bodies;"

(ii) failed to determine whether such enterprises had been "entrusted or directed" to provide a "financial contribution;"

(iii) erroneously concluded that a "benefit" had been conferred; and

(iv) failed to demonstrate "specificity."

Inconsistent application of NME methodology. China alleges that Commerce acted inconsistently in its use of a non-market economy (NME) methodology for the purpose of determining the existence and amount of alleged dumping, simultaneously with the determination of subsidization and imposition of countervailing duties on the same subject merchandise.

Failure to inform, inconsistent application of adverse facts, etc. China alleges that Commerce acted inconsistently in its conduct of the underlying AD and CV duty investigations, including its failure to inform interested parties of certain issues and the use of adverse inferences and facts available.

Dispute Settlement Panel May Be Requested if Consultations Fail

The USTR states that if the consultations should fail to resolve the matter and a WTO dispute settlement panel (DSP) is established, such panel would be expected to issue a report on its findings and recommendations within approximately nine months after it is established.

(According to the WTO,consultations are the first step in a WTO dispute. Under WTO rules, parties that do not resolve a matter through consultations within 60 days may request the establishment of a WTO dispute settlement panel.)

USTR contact - Arun Venkataraman (202) 395-5694

USTR notice (D/N WTO/DS379, FR Pub 11/13/08) available at http://edocket.access.gpo.gov/2008/pdf/E8-26978.pdf

WTO dispute summary (DS379, updated 09/19/08) available at http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds379_e.htm