WTO backs China over shrimp dispute with US

GENEVA -- The World Trade Organization Dispute Settlement Body on Monday adopted a report which supports China in its claim against the anti-dumping measures taken by the United States on Chinese shrimp and diamond sawblades exports.

The report was adopted without US appeal, a development meaning its rulings are final.

Sources close to the WTO said the United States has announced its intention to implement the rulings, while both parties informed the Dispute Settlement Body that they have agreed that the "reasonable period of time" for compliance will be eight months.

In February 2011, China requested consultations with the United States regarding the latter's anti-dumping measures on certain frozen warm-water shrimp from China, complaining against the US Department of Commerce's use of zeroing in the original investigation and several administrative reviews to calculate dumping margins for the subject imports.

After failed consultations, a panel was established in October 2011 to look into the case. Report of the panel, circulated to WTO members on June 8, 2012, rules that certain anti-dumping measures taken by the United States on warm-water shrimp and diamond sawblades from China have violated relevant WTO rules.

The "zeroing" methodology in calculating the margins of dumping used by the United States in the investigations at issue was inconsistent with the Anti-Dumping Agreement, according to the ruling.