United States Requests WTO Compliance Panel In Grain-Oriented Electrical Steel Dispute With China
March 25, 2014

On February 13, the United States requested a World Trade Organization (“WTO”) panel to determine if China complied with an earlier WTO ruling that China failed to properly conduct antidumping and countervailing duty investigations on grain-oriented electrical steel (“GOES”) from the United States.  Specifically, the United States claims that China failed to objectively examine the record of the investigations and render determinations based on all relevant evidence.  The United States also alleges that China disclosed neither the “essential facts” nor the reasoning of findings underlying its re-determinations.

The compliance panel was established on February 26, and the panel will circulate its report within three months.  The panel’s decision could be appealed to the Appellate Body.  In the event that China is found not to be in compliance, the United States would be permitted to suspend some of its WTO concessions or other obligations as to China.  The amount of such suspension would be calculated to equal the extent to which China’s non-compliance were deemed to have nullified or impaired the United States’ benefits under the WTO’s agreements.

The Office of the U.S. Trade Representative (“USTR”) is seeking comments on China’s compliance (or lack thereof) from interested parties by March 31, 2014.