Posted on 21 Jun 2023
The World Trade Organisation said on Monday that China’s anti-dumping duties on certain Japanese stainless steel products were inconsistent with the Anti-Dumping Agreement, although some of Japan’s claims were dismissed, Kallanish learns.
The products, which are stainless steel billets, hot rolled coils and plates, involved in the case come under HS codes 72189100, 72189900, 72191100, 72191200, 72191312, 72191319, 72191322, 72191329, 72191412, 72191419, 72191422, 72191429, 72192100, 72192200, 72192300, 72192410, 72192420, 72192430, 72201100, and 72201200.
After one year of investigation, the AD measures came into effect from 23 July 2019 for a period of five years (see Kallanish passim). The rate subject to Japanese suppliers was 29% except for Nippon Yakin Kogyo Co., Ltd. (18.1%).
On 11 June 2021, Japan requested consultations with China with respect to these measures. Three months later, a panel was established but the final report was not circulated until this Monday because of challenges caused by the global Covid-19 pandemic.
The measures at issue “have nullified or impaired benefits accruing to Japan under this agreement [the Anti-Dumping Agreement]”, WTO concludes. The WTO recommends that China bring its measures into conformity with its obligations under the Anti-Dumping Agreement.
The report is expected to be adopted at a meeting of the WTO's Dispute Settlement Body (DSB) within 60 days. Therefore, the focus of this case will turn to whether China will withdraw relevant anti-dumping duties.
China has yet to comment. Japan's Ministry of Economy, Trade and Industry said that China has shown no willingness to repeal the duties that it estimates caused Japan an annual loss of JPY 5.6 billion ($39.43 million).
In 2022, China imported 10,791 tonnes of the products from Japan, which was down 53.9% on-year. Meanwhile, the market share of Japanese materials dropped from 1.36% to just 0.62%.
Source:Kallanish
