China applies to WTO for authorization to retaliate against US

Release time:

2018-09-13

According to news on September 12, the documents provided by the World Trade Organization to its members on the 11th showed that because the United States has not taken substantive actions to correct a number of illegal anti-dumping measures imposed on Chinese products, China has applied to the WTO for authorization to implement about US $7 billion per year against the United States. Trade retaliation.

In October 2016, the WTO issued an expert group report, ruling that the 13 anti-dumping measures imposed by the United States on China's mechanical and electrical, light industry and other industries violated WTO rules. The Appellate Body report, issued in May 2017, also supported the panel's ruling. The WTO arbitrator then ruled that the United States should complete the enforcement of the award by August 22 this year.

The document on the 11th shows that China believes that the United States has not implemented the ruling of the above-mentioned case within the specified time. Therefore, in accordance with the relevant provisions of the WTO dispute settlement mechanism, China submitted an application for trade retaliation authorization to the WTO, proposing to impose trade retaliation of about US $7.043 billion per year against the United States.

The WTO provides that if the losing party fails to implement the award or recommendation within the reasonable enforcement period established, and the parties to the dispute have not reached an agreement on compensation within 20 days after the reasonable period, the winning party may request the WTO Dispute Settlement Body to authorize the implementation of "suspension of concessions" (I. e. trade retaliation measures).

According to WTO rules, after China makes a request for trade retaliation authorization, if the US side does not object to the extent of retaliation, the WTO dispute settlement body shall, within 30 days after the end of a reasonable period (that is, before September 21), grant China retaliation authorization.

This is the first time after China's accession to the WTO that the losing party in a dispute settlement case has made a request for trade retaliation authorization for not implementing the dispute settlement case ruling.

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