USTR Seeks Comments on WTO Consultations with China on Wind Power Subsidies
The Office of the U.S. Trade Representative is seeking comments on its December 22, 2010 request for World Trade Organization consultations with China regarding certain subsidies provided by the China on wind power equipment.
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Comments are due by January 31, 2011.
U.S. Seeks Talks on China’s Wind Power Equipment Fund
The consultation request addresses a measure of China’s entitled the “Provisional Measures on Administration of Special Fund for Industrialization of Wind Power Equipment” (Wind Power Equipment Fund). The Wind Power Equipment Fund provides grants that appear to be contingent on the use of domestic over imported wind power equipment, and thus appears to be a prohibited subsidy that is inconsistent with China’s obligations under the Agreement on Subsidies and Countervailing Measures.
In addition, as it appears that China has neither made available a translation of the measure into a WTO official language nor notified it to the WTO, China appears to have failed to comply with its transparency obligations under the WTO Agreement.
WTO Request Arises from Ongoing 301 Investigation Triggered by USW
This request for consultations arises out of an investigation USTR initiated in response to a petition filed by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO CLC (USW) under Section 301 of the Trade Act of 1974, as amended, regarding China’s green technology practices and discrimination faced by U.S. firms.
That investigation was initiated on October 15, 2010, and since then the USTR has sought information and advice from the petitioner and the appropriate committees, has taken account of the public comments submitted in response to its notice announcing the investigation, and has conducted its own research and worked with other agencies in order to verify and improve the various claims set out in the USW petition.
As a result of those efforts, USTR requested consultations under the DSU regarding China's Wind Power Equipment Fund.
WTO Panel May be Established 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. If such a panel is established, it would be expected to issue a report on its findings and recommendations within nine months after establishment.
(See ITT’s Online Archives or 12/23/10 news, 10122336, for BP summary announcing that the U.S. was requesting WTO talks with China over its wind power subsidies.
See ITT’s Online Archives or 09/10/10 news, 10091015, for BP summary of the USW filing the Section 301 petition against China’s green technology practices.)
USTR contact- Eric Garfinkel (202) 395-3150