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WTO lets China impose countermeasures on imported US goods worth $3.5 bln a year

China’s countermeasures will come into force once they are approved by the WTO’s Dispute Settlement Body

Yangshan Port, Shanghai, China REUTERS/Aly Song

Yangshan Port, Shanghai, China

© REUTERS/Aly Song

GENEVA, November 1. /TASS/. The WTO has granted China the right to impose countermeasures on US goods and services worth more than $3.5 bln a year due to a violation of the WTO rules by the US, the WTO Arbitrator ruled on Friday.

"A WTO arbitrator has determined that China may impose countermeasures on imported goods from the United States up to a value of $3,579 billion annually as a result of the United States' failure to comply with a WTO ruling regarding the US use of certain methodologies in anti-dumping investigations involving Chinese products," according to the ruling.

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"The amount is equivalent to the level of nullification or impairment to trade for Chinese exporters whose products are subject to anti-dumping duties based on the methodologies found to be inconsistent with WTO rules," the arbitrator says.

Talking to reporters, one of the WTO representatives revealed on condition of anonymity that China’s countermeasures will come into force once they are approved by the WTO’s Dispute Settlement Body (DSB).

According to the official, Beijing should submit a relevant request to the DSB. To ensure that the DSB includes the request in the agenda of the next meeting, China should send it no later than 10 days before the meeting. The next meeting of the DSB is scheduled for November 22.

On May 22, 2017, the DSB adopted the WTO panel and Appellate Body rulings which found that certain practices used by US authorities in anti-dumping investigations on Chinese goods were inconsistent with WTO rules.

The United States and China were unable to agree on a reasonable period of time for the US to implement the ruling. On January 19, 2018, a WTO arbitrator determined the reasonable period of time to be 15 months, expiring on August 22, 2018. In September 2018, China asked the WTO for permission to retaliate. The US disagreed with the amount of China’s retaliation set at $7,043 bln a year. The arbitrator determined the appropriate level of countermeasures China may impose on imported US goods worth up to $3,579 bln annually.

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