EU files WTO dispute against China on steel measures

GENEVA/BRUSSELS - The European Union on Thursday requested for consultations with China on the latter's measures on anti-dumping duties on Certain High-Performance Stainless Steel Seamless Tubes ("HP-SSST") from the EU.

The EU said in a statement that it believed the anti-dumping duties are "incompatible with WTO law, both on procedural and on substantive grounds."

WTO consultations will give the EU and China the opportunity to find a negotiated solution, said the EU, adding that, "If the consultations are not successful, after 60 days the EU can ask the WTO to establish a panel to rule on the case."

The WTO Dispute Settlement Body agreed on May 24 to establish a panel to study a complaint made by Japan concerning anti-dumping duties imposed by China on the same products exported by Japan. The panel has not been composed yet.

China's Minstry of Commerce announced the results of an anti-dumping investigation against the products in November 2012 and decided to impose anti-dumping duties over the products from the EU and Japan starting November 9, which will last for five years.

Request for consultations is the first step in a dispute at the Dispute Settlement System of the WTO.

Response to the request has to be given within 10 days and the member requested shall enter into consultations within a maximum of 30 days after the date of the receipt of the request.

The maximum period of consultations is 60 days after the reception of the request, unless both parties agree otherwise, according to the WTO.