Industry News

On 18^th January the WTO published the determinations of the Appellate Body formed to consider an EU appeal against last year’s compliance rulings on anti-dumping measures on carbon steel fasteners originating in China.

The full 98-page Appellate Body report and a summary of its key findings are available from the WTO website by searching Dispute DS397. The report affirms key findings from the 2015 Compliance Panel and reverses some of its findings, toughening the rulings against the EU. A key element of criticism focuses on the transparency and basis of the EU’s use of an analogue country comparison to determine the level of anti-dumping tariffs. This system is used as China is not currently deemed a market economy under WTO rules. China argues that from the end of 2016 it should be granted market economy status as part of its accession to WTO membership. The EU and several European countries are believed to support such a move. The USA has already made clear its opposition. EU internal discussion on the subject has recently begun but the impact of low cost Chinese steel imports will inevitably fuel opposition within Europe.

In light of the latest rulings, China’s Ministry of Commerce has urged the EU to revoke the anti-dumping measures on imports of its carbon steel fasteners. The EU has so far made no statement on the issue and, based on previous developments in this case, appears unlikely to make significant changes in the short term.

The WTO cannot force the EU to take action to correct failures in compliance but it can ultimately approve retaliatory action by China, not necessarily related directly to the product in dispute, in the event that a negotiated settlement is not reached.

As always we will follow developments carefully and report on www.fastenerandfixing.com