Let the WTO Rules Rule.doc

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1、1Let the WTO Rules RuleThe decade in the World Trade Organization hasbeen a learning and growing process for China: inthe course of grappling with disputes with its tradepartners, the country has become better versedin international rules and comfortable in employing them in its defense. Recent even

2、ts make thisevident. On March 11 the WTOs appellate body ruledthat the U.S. had unlawfully imposed anti-dumpingand countervailing duties on four Chinese products-circular welded carbon quality steel pipe (CWP), light-walledrectangular pipe and tube (LWR), laminated woven sacks (LWS) andcertain new p

3、neumatic off-the-road tyres (OTR). It determined thatthe United States Department of Commerce (USDOC) inappropriatelycharacterized as“public bodies” Chinas state-owned enterprises (SOE)and state-owned commercial banks (SOCB) that supplied goods andloans to investigated companies. It also upheld Chin

4、as claims thatthe U.S. cannot treat China as a non-market economy country whilesimultaneously imposing on its imports anti-dumping and countervailing duties, since the latter are normally applied to market economycountries. 2In fact, the U.S. Department of Commerce decided back in 1984that the U.S.

5、countervailing duty law could not be applied to nonmarket economies, but it made an abrupt departure from its previous practice in 2006 by initiating an anti-dumpingand countervailing duties iuvestigation on Chinamade coated flee sheet paper. Such dual investigations against Chinese products have si

6、nce occurredfrequently. The WTO in its March 11 verdict finallyexpressed its stance that these actions violate WTOrnles. An official of the Chinese Ministry of Commerce welcomed the WTO decision, hailing it as asignificant victory for China in contentious tradenractices under the WTO svstem. “China

7、cannot be passive in its response to anti-dumping investigations,” remarked Mei Xinyu, a research fellow of the Chinese Academyof International Trade and Economic Cooperation, “It must be heededin the international trade system.” Experts believe that Chinas movesin bilateral and regional economic co

8、operation in past years, such asthe establishment of the China-ASEAN Free Trade Area and free tradeagreements with Pakistan, New Zealand, Chile and Singapore, havebeen conducive to removing, reducing or staving off tariffand nontariff banrriers in international trade。 3But in some quarters acceptance doesnt come easily. Referring tothe March 11 WTO ruling, U.S. Trade Representative Ron Kirk saidin a statement:“It appears to be a clear ease of overreaehing by theAppellate Body.”For Chinese mantLfacturers and exporters, the ruling,however encouraging, may not provide long-term relief.

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