On June 11, 2021, Japan requested consultations with China under the WTO Agreement Regarding China’s Measure Imposing Anti-Dumping Duties on Stainless Steel Products, which has been in place since July 2019.
In July 2019, China began imposing anti-dumping (AD) duties (hereinafter referred to as “anti-dumping measure”) on stainless steel products imported from Japan, the Republic of Korea, Indonesia and the EU , asserting that its domestic industry was being injured as a result of the dumped imports of these products. (The anti-dumping measure is expected to be in place for five years.)
Japan considers the anti-dumping measure inconsistent with the General Agreement on Tariffs and Trade (GATT) and the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade of 1994 (the WTO Anti-Dumping Agreement) due to flaws in the authorities’ determination and investigative procedures.
Japan has repeatedly called on China to abolish the anti-dumping measure at the WTO and in bilateral meetings, but has failed to resolve the issue. Therefore, he requested consultations under the WTO Agreement.
2. Future calendar
Specific timetables for the consultations will be coordinated with China in due course.
Stainless steel products (the products in question)
The anti-dumping measure covers stainless steel slabs, hot-rolled stainless steel sheet (sheets and cut sheets) and hot-rolled stainless steel coils. Stainless steel slabs are semi-finished products obtained by casting refined molten steel. Hot-rolled stainless steel sheet is used in industrial machinery and as a building material for structures such as ships and bridges. The uses of hot-rolled stainless steel coils include as semi-finished products cold-rolled stainless steel products for automotive parts and household appliances.
An anti-dumping duty is a customs duty imposed on a certain product by an importing country when it is demonstrated that the export price of the product is lower than its selling price for consumption in the exporting country and that imports dumped causes injury to competing industry in the importing country. The value of the anti-dumping duty cannot exceed the difference between the export price of the product in question and its domestic selling price in the exporting country.
Total value of exports of the subject products from Japan to China
The total value of stainless steel exports from Japan to China is about 70 billion yen per year, of which exports of products subject to the anti-dumping measure is about 9.2 billion yen (both figures are from 2019 ).
Consultations under the WTO Agreement
Under the WTO Agreement, before filing a request for the establishment of a panel (corresponding to the first trial) to determine whether the measures at issue are inconsistent with the WTO Agreement, the parties concerned are required to hold a consultation meeting and have recommended settling the dispute by reaching a mutually satisfactory solution (Article 4 of Annex 2 of the WTO Agreement: Understanding on Rules and Procedures governing dispute settlement).
Division in charge
Information on WTO dispute settlement in general:
WTO Compliance and Dispute Settlement, Multilateral Trading System Department, Trade Policy Office
Stainless steel industry information
Metal Industries Division, Bureau of Manufacturing Industries
Information on Japan-China economic relations
North East Asia Division, Trade Policy Bureau
METI – Ministry of Economy, Trade and Industry of the State of Japan published this content on June 11, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 11 Jun 2021 09:53:01 UTC.