U.S.' Time Period to Implement WTO AD/CV Double Counting Ruling Now Expires April 2012
The World Trade Organization has circulated a January 17, 2012 communication from the delegations of China and the U.S. regarding implementation of the WTO Appellate Body's ruling (DS379) against the U.S.' practice of "double counting" China's subsidies in antidumping and countervailing investigations for certain products from China. The countries have mutually agreed to extend the "reasonable period of time" for implementation, which was originally set to expire on February 25, 2012, to April 25, 2012.
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(The products subject to this ruling include new pneumatic off-the-road tires, laminated woven sacks, circular welded pipe, and light-walled rectangular pipe and tube from China.)
U.S. & China Previously Agreed Implementation Period Would Expire on Feb 25
In March 2011, the WTO Appellate Body ruled against the U.S.' imposition of "double remedies" in the subject AD and CV duty investigations, or the offsetting of the same subsidization twice by the concurrent imposition of AD duties calculated on the basis of a non-market economy (NME) methodology and CV duties. In April 2011, the U.S. announced its intent to implement the ruling, either by simply removing the CV duties or by trying to adjust for double counting in some other way, but requested a reasonable period of time to do so. (See ITT's Online Archives 11031414 and 11051209 for summaries.)
In July 2011, the U.S. and China agreed that the reasonable period of time would expire on February 25, 2012. (See ITT's Online Archives 11071137 for summary.)
CAFC Has Ruled Against CV Duties on NME Goods
In December 2011, the Court of Appeals for the Federal Circuit ruled that CV duties may not be imposed on goods from China or other NMEs, based on Congressional intent. (See ITT’s Online Archives 10080911 and 11122210 for summaries of the CAFC and lower court rulings.)
Administration Disagrees with CAFC Ruling, but Says ITA Will Have to Revoke CV Orders for NMEs
U.S. Trade Representative Kirk and Commerce Secretary Bryson have stated in a January 18, 2012 letter to the Senate Finance Committee that the CAFC ruling was flawed, but that absent legislative action, its ruling will take effect shortly after February 2, 2012. They state the ITA will be required to revoke all CVD orders and terminate all CVD proceedings involving NMEs, including 24 existing CVD orders on imports from China and Vietnam, as well as five pending investigations and two recently filed petitions.
(See ITT's Online Archives 12012015 for summary of USTR Kirk and Secretary Bryson's letter on the U.S.' obligations in light of the CAFC and WTO rulings.)
WTO document available via email by sending a request to documents@brokerpower.com.