Business / Economy

WTO rules against US 'double remedy'

By Li Jiabao (China Daily) Updated: 2014-03-28 08:45

Zuo Haicong, dean of the Law School of Nankai University in Tianjin, said that the favorable part of the ruling had been expected because of a similar ruling in March 2011.

The WTO's Appellate Body ultimately backed China three years ago, saying that the US could not simultaneously impose both countervailing duties and anti-dumping duties without having assessed whether the extra duties amounted to double remedies.

"The win is significant because the WTO clearly said 'no' to the US measure involving double remedies, which could increase the duties on Chinese exports," Zuo said.

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"The GPX Act is unreasonable. But it's hard for the WTO to invalidate a US domestic law and it thus reached a compromise that the act didn't burden other economies," he added.

Both sides have 60 days to appeal after the distribution of the report, under WTO rules.

On Sept 17, 2012, China requested consultations with the US concerning the countervailing and anti-dumping measures involved in the new ruling.

At a meeting on Dec 17, 2012, the WTO Dispute Settlement Body established a panel to look into the case.

"The US may not appeal because there's little hope of changing the panel's ruling. Also, China will probably not appeal. It's not easy to challenge US domestic laws and, in the future, China will focus more on the implementation of the laws and ensure that US moves are consistent with the WTO rules," Zuo said.

The world's top two economies have been caught up in frequent trade disputes recently. The WTO on Wednesday ruled against China on export restrictions on rare earths following complaints from the US, the European Union and Japan.

US Trade Representative Michael Froman welcomed the WTO's ruling, which "means American companies and workers throughout our manufacturing economy will be able to compete fairly".

On Wednesday, ReneSola Ltd, a leading brand and technology provider of solar photovoltaic products in Zhejiang province, said that it has been selected as one of the respondents in the US Department of Commerce's anti-dumping investigation on certain crystalline silicon photovoltaic products from China.