A World Trade Organization (WTO) dispute settlement panel issued a “mixed result” in a broad challenge brought by China against various aspects of 17 separate countervailing duty investigations conducted by the U.S. Commerce Department.
“The administration is committed to the strong enforcement of U.S. countervailing duty laws in order to respond to unfair subsidies, and to a strong defense of those duties when challenged by any U.S. trading partner,” said U.S. Trade Representative Michael Froman in a statement.
He added, however, that the White House “is carefully evaluating its options” related to the WTO panel’s decision.
The Chinese claims rejected by the WTO panel involved challenges to the use of facts available, the use of out-of-country benchmarks, aspects of the analysis used to determine whether a subsidy is “specific,” and the initiation of investigations of particular subsidies. The claims on which China prevailed mainly involved issues where the WTO panel followed findings made in previous WTO reports.
Both the United States and China have the right to seek adoption or appeal of the report within 60 days of the WTO panel report’s circulation.