Where Goes China?

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The Panel upheld the United States' claims. The United States also claimed that China acted inconsistently with Articles 6. The Panel upheld these claims. On 20 July , China notified the DSB of it decision to appeal to the Appellate Body certain issues of law and legal interpretations covered in the panel report.

On 18 October , the Appellate Body report was circulated to Members. China claimed that the Panel erred in the interpretation and application of Article 3. China also claimed that the Panel erred in finding that China acted inconsistently with Articles 6. The Appellate Body interpreted Article 3. Moreover, the Appellate Body found that the Panel did not act inconsistently with its duty to make an objective assessment under Article 11 of the DSU. China added that it would need a reasonable period of time to do so. On 4 March , Mr Ehlermann accepted this appointment.

On 3 May , the arbitration report was circulated to Members. On 13 January , the United States requested consultations pursuant to Article On 13 February , the United States requested the establishment of a compliance panel. At its meeting on 26 February , the DSB agreed to refer to the original panel, if possible, the matter raised by the United States.

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On 17 March , the compliance panel was composed. On 22 September , the Chair of the compliance panel informed the DSB that the compliance panel expected to issues its final report to the parties in the second quarter of On 31 July , the compliance panel report was circulated to Members. Pursuant to this redetermination, China continued to impose anti-dumping and countervailing duties on imports of GOES from the United States.


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The Panel found that the United States' claim regarding adverse impact pertained to those aspects of the redetermination that were essentially unchanged from the original determination, and that were not challenged by the United States in the original proceedings. Therefore, the Panel concluded that this claim of the United States was not properly before it, and accordingly did not rule on this claim. The United States' claim regarding price effects of subject imports.


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The Panel upheld the United States' claim, particularly because upon review of MOFCOM's finding that the increased volume of subject imports and the consequential loss in the domestic industry's market share to the subject imports had a suppressive and depressive effect on the domestic like product prices, the Panel found serious errors in MOFCOM's analysis of the underlying evidence. In the Panel's view, these errors called into question whether MOFCOM's conclusion regarding price effects was supported by reasoned explanations and was such as could have been reached by an objective investigating authority considering the evidence.

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The United States also questioned other aspects of MOFCOM's causation analysis such as MOFCOM's conclusion that the Chinese domestic industry was unable to benefit from the economies of scale, and argued that MOFCOM failed to properly consider the effects of other causes of injury, such as the effect of the expansion and increased production of the Chinese domestic industry as well as the effect of non-subject imports on the domestic industry.

The Panel agreed with the United States' arguments and upheld its claim on causation. However, the Panel rejected the United States' claim that MOFCOM failed to disclose the essential facts under consideration on the basis of which it made its findings that the domestic industry's loss in market share in led it to slash prices in Q1 , noting that MOFCOM did disclose the facts that it actually relied upon to make that finding.

The Panel also rejected the United States' claim that MOFCOM failed to disclose facts underlying its finding that the price-cost differential of one of the two Chinese domestic producers decreased in However, the Panel saw no basis for a finding that MOFCOM failed to comply with the obligation to disclose the essential facts under consideration with respect to MOFCOM's substantively inadequate determinations regarding the domestic industry's inability to achieve economies of scale and the domestic industry's inventory overhang.

The Panel also saw no basis for a finding that MOFCOM failed to comply with the obligation to disclose essential facts regarding capacity, output and demand. In support of its claims, the United States asserted that MOFCOM, in the public notice of the redetermination, explained neither the matters of fact and law nor the reasons that led it to maintain anti-dumping and countervailing duties. At its meeting on 31 August , the DSB adopted the compliance panel report.

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If so, please contact webmaster wto. Summary of key findings. The United States' claims with respect to initiation of certain countervailing duty investigations 2. The United States' claims with respect to the non-confidential summaries 3. The United States' claim with respect to public notice of the calculations used to determine the dumping margins 4.

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