Brussels, 19/01/2016 (Agence Europe) - In a verdict delivered on Monday 18 January, the Appellate Body of the World Trade Organization (WTO) dismissed the EU at the end of the last stage of the judicial process regarding the dispute between the EU and China over the EU's anti-dumping duties on Chinese steel fasteners. It is possible the EU may now incur Chinese sanctions.
On 9 September 2015, the EU filed a notice of appeal concerning the report of the WTO's dispute settlement body (DSB) on compliance with the WTO verdict with regard to China's complaint in 2009 against EU anti-dumping duties on imports of fasteners (screws, nuts and bolts) from China (DS 397) (see EUROPE 11386).
China obtained the establishment of a compliance panel to check the EU's compliance with the DSB's verdict of December 2010, which condemned the EU's anti-dumping duties. This verdict was confirmed by the appellate body in July 2011 (see EUROPE 10421).
The EU's last appeal in September 2015 was returned against it. In its report published on Monday, the WTO's Appellate Body overturned some of the findings of the compliance panel which were in favour of the EU, and it reached an even stronger decision against the EU.
In its conclusions, the Appellate Body states that the EU's measures are “inconsistent” with the EU's anti-dumping agreement, and it “recommends that the DSB request the European Union to bring its measures into conformity with its obligations under that agreement”.
Should it want to, China can now ask the EU for compensatory measures. To do this, China must make a specific request to the WTO and calculate the amount of damages caused by the EU's taxes. This would be a first since China joined the WTO in 2001.
“[The EU's measures] have negative effects on China's exports of around a billion dollars and on more than 100,000 jobs with Chinese manufacturers of fasteners. This has caused enormous economic losses for Chinese industry, which was strongly opposed to these measures. The EU must now comply with this decision and remove its illegal duties, otherwise China will look to the practical implications”, the Chinese Ministry of Trade commented on Monday.
In January 2009, the EU decided to impose anti-dumping duties ranging from 26.5% to 85% on certain elements of steel or iron fasteners imported from China. (Original version in French by Emmanuel Hagry)