DS471: United States — Certain Methodologies and their Application to Anti-Dumping Proceedings involving China

China told the DSB meeting that, as indicated in the United States’ latest status report, the US has not yet initiated any substantive implementation process to address the DSB recommendations in this dispute, other than "consulting with the interested parties”.  China said it was very disappointed and deeply concerned with the failure of the US to implement the ruling in DS471, and that the WTO-inconsistent measures taken by the US had seriously infringed China’s legitimate economic and trade interests, distorted the relevant international market and seriously damaged the rule-based multilateral trading system. 

China said that in the absence of an agreement on compensation, and in line with Article 22.6 of the WTO's Dispute Settlement Understanding (DSU), it was requesting authorization from the DSB to suspend concessions or other obligations with respect to the United States at a level equivalent to the nullification or impairment suffered as a result of the failure of the United States to comply with the ruling.

The United States noted that on 19 September it objected to the level of suspension of concessions or other obligations proposed by China. Under the terms of Article 22.6 of the DSU, the filing of such an objection automatically results in the matter being referred to arbitration; the provision does not refer to any decision by the DSB, and no decision is therefore required or possible.

The United States said it is willing to discuss implementation with China on a bilateral basis, but that it was incorrect to suggest that no action has been taken on the matter; as reported by the US to the DSB, the US continues to consult with interested parties on options to address the recommendations of the DSB, with the internal process ongoing.

Brazil said that independent of the present case, objections to the level of proposed suspension of concessions should be made at the DSB both for reasons of transparency and because third parties do not participate in the arbitration process.  The United States said there was no provision under the DSU requiring this and that past experience showed that matters have been referred to arbitration in the past without any DSB action or any DSB item arising under the agenda.  WTO members always have an opportunity to express their views at a meeting of the DSB with respect to a particular arbitration if they so wish, the US added.

Next meeting

The next regular meeting of the DSB is scheduled for 26 September 2018.