U.S. Files WTO Cases Against China on Steel and Electronic Payment Services
U.S. Trade Representative Kirk announced on September 15, 2010 that the U.S. has filed two cases against China at the World Trade Organization.
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The first case is a request for consultations on China’s imposition of antidumping and countervailing duties on imports of grain oriented flat-rolled electrical steel (GOES) from the U.S. The other is a request for consultations on China’s discrimination against U.S. suppliers of electronic payment services.
USTR Says China’s AD/CV Investigations on Certain U.S. Steel Violate WTO Rules
On June 9, 2009, China’s Ministry of Commerce (MOFCOM) initiated two investigations on grain-oriented flat-rolled electrical steel from the U.S. On April 10, 2010, MOFCOM imposed antidumping duties and countervailing duties, saying U.S. steel had been dumped into their market and subsidized.
Insufficient evidence, transparency. USTR believes that China’s antidumping and subsidy determinations in the GOES investigations violate numerous WTO requirements. In particular, USTR states that China initiated both investigations without sufficient evidence; failed to objectively examine the evidence; failed to disclose “essential facts” underlying its conclusions; failed to provide an adequate explanation of its calculations and legal conclusions; improperly used investigative procedures; failed to provide confidential summaries of Chinese submissions; and included U.S. federal and state programs that were not identified in the notice of initiation of the CVD investigation.
USTR Charges China with Monopoly Control over Electronic Payment Services
The U.S. is also disputing China’s treatment of U.S. suppliers of electronic payment services, which are provided in connection with the operation of electronic networks that process payment transactions involving credit, debit, prepaid, and other payment cards. They also enable, facilitate and manage the flow of information and the transfer of funds from cardholders’ banks to merchants’ banks.
Measures favor Chinese entity. According to USTR, China’s regulator of electronic payment services, the People’s Bank of China, has issued a series of measures -- dating back to 2001 -- that provide a Chinese domestic entity, China Union Pay (CUP), with a monopoly over the handling of domestic currency payment card transactions in China while excluding other potential suppliers. In addition, with regard to payment card transactions in foreign currency, such as those involving Chinese tourists visiting other countries, China imposes requirements and restrictions that favor CUP over foreign suppliers.
USTR states that these market access restrictions and discriminatory limitations on foreign suppliers seeking to engage in the supply of electronic payment services appear to violate Articles XVI and XVII of the General Agreement on Trade in Services.
It adds that under the terms of its accession to the WTO, China should have fully implemented its commitments to remove market access and national treatment limitations in this service sector by December 11, 2006.
WTO Panels May be Established in 60 Days if Consultations Fail
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.