WTO backs China's challenge of US trade remedy

The World Trade Organization released a panel report on Thursday backing China's challenge of the United States' countervailing and anti-dumping measures against certain products, saying that the US' imposition of two concurrent remedies violates WTO rules.

But the WTO did not agree with China's allegation that a US law authorizing the US Commerce Department to retroactively validate countermeasures on non-market-economy countries was inconsistent with the rules.

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China had claimed that the GPX Act, which explicitly allows for the application of countervailing measures to non-market economy countries, is inconsistent with the WTO rules and that the US failed to provide the Commerce Department with proper legal authority to deal with disputed trade practices between Nov 20, 2006 and March 13, 2012.

That claim was not supported by the WTO.

But China's Ministry of Commerce hailed the ruling as a "significant victory" because it rejected the US' concurrent use of multiple punitive measures against Chinese imports.

A total of 24 Chinese products, ranging from photovoltaic cells to tubular goods, were the focus of more than 20 investigations undertaken by the US from 2006 to 2012.

The US actions against what it said constituted commodity "dumping" could affect Chinese exports of more than $7.2 billion, according to the Chinese ministry.

In September 2012, China requested consultations with the US over its measures against the targeted products. At a meeting that December, the WTO Dispute Settlement Body established a panel to look into the case, and its opinion was released on Thursday.

Both sides now have 60 days to appeal after the distribution of the report, under WTO rules.