The World Trade Organization's Committee on Anti-Dumping Practices held a meeting with WTO members recently to present feedback on 30 anti-dumping actions taken during 2011, and to hear nations' current trade policy concerns.

During the meeting, a number of nations voiced concerns about anti-dumping measures in place in other territories. 'Dumping' is said to have occurred when a good made in one country is sold at below cost in another. Under world trade rules, nations are permitted to tax 'dumped' goods on entry into the country to protect domestic industry, although they must follow strict procedures when doing so.

Perhaps inevitably, however, much attention focussed on tensions between China and its main trading partners. The United States for example said it was deeply troubled by what it described as lack of due process in China’s anti-dumping actions, and in particular the imposition last December of anti-dumping measures on imports of some USD3bn worth of US automobiles.

Separately, Japan and the European Union expressed concerns over China’s anti-dumping investigations on photographic paper and paper board, and on certain high-performance stainless steel seamless tubes, respectively.

China said it had improved practices to ensure the rights of parties concerned in anti-dumping investigations, and maintained that its anti-dumping measures were consistent with the WTO.

China, however, had some gripes of its own. In particular, Beijing highlighted EU anti-dumping duties on bicycles from China, which have been in place for 20 years. This, it argued, was a case of over-protection, noting Chinese bicycle exports to the EU had decreased considerably. It also expressed concern that the EU’s anti-dumping investigation on ironing boards was targeting only one Chinese company in violation of WTO rules.

China also expressed concerns regarding Mexico’s anti-dumping investigations on graphite electrodes and coaxial cables.

In other grievances, Japan complained about Australia's anti-dumping duties on Japanese goods, which were said to have been in place for 20 years. In response to calls from Japan for the revocation of the measures, Australia invited Japan to engage in bilateral talks on the issue.

While it welcomed the revocation of US anti-dumping duties on steel plate earlier this year, Japan also expressed concern about four other US measures on Japanese products which have been in place for more than 20 years.

During its meeting, the Committee reviewed notifications of anti-dumping legislation from Australia, India, the United States and Ecuador, and notifications on preliminary and final anti-dumping actions submitted by 18 members.

A report published by the WTO in November 2011 concluded that despite the crisis, governments largely resisted protectionist pressures in 2011. While there was a 53% year-on-year rise in the introduction of export restrictions, there has been a fall in anti-dumping actions, from 213 in 2008 to 153 in 2011.

May 1, 2012

Source: Tax News

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