Monday, July 7, 2014

WTO Appellate Body Reverses Panel, Finding in Favor of China and Against U.S.

The World Trade Organization (WTO) Appellate Body (AB) issued a decision today in a trade dispute between the United States and China involving the United States' treatment of non-market economies in certain anti-dumping (AD) and countervailing duty (CVD) investigations.  China claimed U.S. law and practice violated article X of GATT 1994 and the Subsidies and Countervailing Measures (SCM) Agreement.  In March 2014, a WTO dispute resolution panel found that the subject U.S. laws did not violate GATT; however, it found that the United States had violated its obligations under the SCM Agreement by failing to investigate China's allegation of "double remedies."

In its decision today, the AB reversed the panel's decision that the United States' laws did not violate article X:2 of GATT.  However, the AB found that it is unable to complete the analysis of U.S. law under article X:2 of GATT.  Accordingly, it requested that the United States re-examine the underlying AD and CVD investigations and reviews identified by the panel and AB as inconsistent with WTO rules and bring them into conformity with the United State's WTO obligations as construed by the AB's ruling.

For more information, see DS449-United States: Countervailing and Anti-dumping Measures on Certain Products from China.

(cgb)

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