China Hails WTO Ruling Against EU Duties

The Ministry of Commerce (MOC) on July 16, 2011 welcomed the World Trade Organization ruling that the European Union (EU) is illegally taxing Chinese steel fasteners.

It is of great significance and will help Chinese enterprises enjoy better competitive conditions in the international market including the EU, said an unidentified official of the MOC Treaty and Law Department in a statement on its website.

"This is not only a victory for Chinese industry but for the WTO rules as well," the official said.

The ruling has reinforced the confidence of WTO members in the WTO rules and the multilateral trading system, the official said.

The ruling from the WTO's appellate body on July 15, 2011 said the EU isn't complying with international commerce rules by imposing anti-dumping duties on the fasteners from China.

The WTO ruled the EU's single duty requirements and practices are discriminatory and violated WTO rules.

It said the EU isn't calculating them fairly as it takes China as a single exporter, instead of treating the companies individually.

For a long time, the EU has been requiring Chinese exporters to prove they meet with the "single duty" requirements in responding to anti-dumping cases.

The EU imposed anti-dumping duties of 26.5 to 85 percent on fasteners from China for five years in January 2009.

China is the world's biggest producer of screws, nuts, bolts and washers, while the EU is its major market.

The WTO set up an expert panel on October 23, 2009 after China initiated the WTO case on July 31, 2009, saying anti-dumping measures taken by the EU against the import of Chinese steel fasteners violated WTO trade rules.

The WTO ruled on December 3 last year that the EU anti-dumping duties are discriminatory and violate global commerce rules.

The EU appealed on March 25 this year. China appealed further on March 30 on the remaining problems that did not win support from the expert panel.