WTO reviews China bid to slap US anti-dumping trade sanctions

China has alleged that the US, in violation of WTO rules, was continuing a practice known as ‘zeroing,’ which calculates the price of imports compared to the normal value in the US to determine predatory pricing. (AFP)
Updated 21 September 2018

WTO reviews China bid to slap US anti-dumping trade sanctions

  • The decision to appoint an arbitrator was reached during a special meeting of the WTO Dispute Settlement Body
  • The use of anti-dumping duties is permitted under international trade rules as long as they adhere to strict conditions

GENEVA: A World Trade Organization arbitrator will review Friday a Chinese request to impose more than $7 billion in annual sanctions on the US over anti-dumping practices, a Geneva trade official said.
The decision to appoint an arbitrator was reached during a special meeting of the WTO Dispute Settlement Body convened to discuss developments in a five-year-old trade dispute between the world’s top two economies.
Beijing had already warned earlier this month that it planned to ask the global trade body during the meeting for permission to impose $7.04 billion in annual trade sanctions on Washington in the case.
China’s representative told Friday’s meeting that measures taken by Washington had “seriously infringed China’s legitimate economic and trade interests.”
A source close to the WTO meanwhile said that the arbitration “was automatically triggered after the United States informed the WTO that it objected to the level of retaliation proposed by China.”
WTO arbitration can often be a drawn-out process, and the results are not expected to be known for months.
China initially filed its dispute against the US back in December 2013, taking issue with the way Washington assesses whether exports have been “dumped” at unfairly low prices onto the US market.
The use of anti-dumping duties is permitted under international trade rules as long as they adhere to strict conditions, and disputes over their use are often brought before the WTO’s Dispute Settlement Body.
In this specific case, China alleged that the US, in violation of WTO rules, was continuing a practice known as “zeroing,” which calculates the price of imports compared to the normal value in the US to determine predatory pricing.
In October 2016, a panel of WTO experts found largely in China’s favor in the case, including on the issue of “zeroing.”
The US, which has repeatedly lost cases before the WTO over its calculation method, said in June last year that it would implement the panel’s recommendations within a “reasonable” time frame.
This past January, the DSB set an August 22 deadline for Washington to bring its practices in line with the 2016 ruling.
According to WTO rules, the plaintiff in such cases can request permission to impose sanctions if the parties have not reached agreement on a satisfactory compensation within 20 days of the WTO deadline.


Saudi minister: OPEC+ will take responsible approach to virus

Updated 26 February 2020

Saudi minister: OPEC+ will take responsible approach to virus

  • Saudi Arabia supports the further oil production cut, but Russia is yet to announce its final position on the matter

RIYADH: Saudi Arabia’s energy minister said on Tuesday he was confident that OPEC and its partner oil-producing nations, the so-called OPEC+ group, would respond responsibly to the spread of the coronavirus.

He also said Saudi Arabia and Russia would continue to engage regarding oil policy.

“Everything serious requires being attended to,” the minister, Prince Abdul Aziz bin Salman, told reporters at an industry conference in Riyadh.

An OPEC+ committee this month recommended the group deepen its output cuts by an additional 600,000 barrels per day.

Saudi Arabia supports the further oil production cut, but Russia is yet to announce its final position on the matter.

The minister said he was still talking with Moscow and that he was confident of Riyadh’s partnership with the rest of the OPEC+ group.

“We did not run out of ideas, we have not closed our phones. There is always a good way of communicating through conference calls,” he said.

Regarding the coronavirus, which has impacted OPEC member Iran, he said OPEC+ members should not be complacent about the virus but added he was confident every OPEC+ member was a responsible and responsive producer.

The flu-like SARS-CoV-2 virus, which first broke out in China, has now spread to more than 20 countries.

“Of course there is an impact and we are assessing, but we’ll do whatever we can in our next meeting and we’ll address that issue,” UAE Energy Minister Suhail Al-Mazrouei said at the same industry conference.

Saudi Aramco CEO Amin Nasser on Monday said he expected a short-lived impact on oil demand.

“We think this is short term and I am confident that in the second half of the year there is going to be an improvement on the demand side, especially from China,” he said.

Oil climbed on Tuesday as investors sought bargains after crude benchmarks slumped almost 4 percent in the previous session, although concerns about the global spread of the virus capped gains.