WTO Forms Panel to Decide China's Challenge of U.S. CV Duties on 22 Products

The World Trade Organization established a panel to settle China’s challenge of U.S. countervailing duties on 22 products (DS437) at a Dispute Settlement Body meeting on Sept. 28. China, which originally requested consultations on May 25, is challenging International Trade Administration determinations of state ownership and control, treatment of Chinese export restraints as subsidies, and the application of Adverse Facts Available. According to the WTO, China said it recognizes WTO members’ legitimate rights to adopt trade remedy measures but such rights must be exercised in accordance with WTO rules and not be subject to any form of abuse. At the same meeting, China rejected a U.S. request for formation of a panel in its challenge of Chinese countervailing duties on U.S. automobiles.