WTO Establishes Panel to Examine U.S. Countervailing Duties Against China

The World Trade Organization (WTO) Dispute Settlement Body (DSB) agreed to establish a panel on Sept. 28 to study China's complaint against countervailing duty measures of the United States against certain products from China.

China said that it recognized WTO members' legitimate rights to adopt trade remedy measures but such rights must be exercised in accordance with WTO rules and not be subject to any form of abuse.

The United States said the measures applied were necessary in order to offset alleged subsidies bestowed by China.

China brought 22 countervailing measures applied by the United States to the WTO on May 25 and requested for consultations.

It said that countervailing measures on 22 products, including steel products, solar cells and paper products, has affected China's export to the United States to the tune of 7.3 billion U.S. dollars.

At Friday's DSB meeting, China rejected the first request by the United States for the establishment of a panel to examine China's anti-dumping and countervailing duties on certain automobiles from the United States.

The United States filed the dispute on July 5, for which consultations between the two parties were not successful. According to WTO rules, members have the right to reject the request for the establishment of a panel once.