By TIOL News Service

GENEVA, MAY 25: IN the on-going battle where China had levied anti-dumping duties on certain automobiles from the USA, the WTO Panel has concluded that,

+ China acted inconsistently with Articles 6.5.1 of the Anti-Dumping Agreement and 12.4.1 of the SCM Agreement in failing to require the submission of adequate nonconfidential summaries of confidential information contained in the petition;

+ China acted inconsistently with Article 6.9 of the Anti-Dumping Agreement because MOFCOM failed to disclose the essential facts under consideration which formed the basis of its decision to impose the AD duties;

+ China acted inconsistently with Article 6.8 and paragraph 1 of Annex II of the Anti- Dumping Agreement with respect to the determination of the residual AD duty rate for unknown US exporters;

+ China acted inconsistently with Article 12.7 of the SCM Agreement with respect to the determination of the residual CVD rate for unknown US exporters;

+ China acted inconsistently with Articles 3.1 and 3.2 of the Anti-Dumping Agreement and Articles 15.1 and 15.2 of the SCM Agreement in connection with MOFCOM's analysis of price effects;

+ China acted inconsistently with Articles 3.1 and 3.5 of the Anti-Dumping Agreement and Articles 15.1 and 15.5 of the SCM Agreement in connection with MOFCOM's causation determination; and

+ China acted inconsistently with Article 1 of the Anti-Dumping Agreement and Article 10 of the SCM Agreement as a consequence of the foregoing violations of these Agreements.

For the reasons set forth in this Report, the Panel further concludes as follows:

i. The United States has not established that China acted inconsistently with Articles 6.9, 12.2 and 12.2.2 of the Anti-Dumping Agreement with respect to the disclosure of the essential facts and public notice regarding MOFCOM's determination of the residual AD duty rate for unknown US exporters;

ii. The United States has not established that China acted inconsistently with Articles 12.8, 22.3 and 22.5 of the SCM Agreement with respect to the disclosure of the essential facts and public notice regarding MOFCOM's determination the residual CVD rate for unknown US exporters; and

iii. The United States has not established that China acted inconsistently with Articles 3.1 and 4.1 of the Anti-Dumping Agreement and Articles 15.1 and 16.1 of the SCM Agreement in connection with MOFCOM's definition of the domestic industry.

Under Article 3.8 of the DSU, in cases where there is an infringement of the obligations assumed under a covered agreement, the action is considered prima facie to constitute a case of nullification or impairment. Thus, the panel has concluded that, to the extent that the measures at issue are inconsistent with the Anti-Dumping and SCM Agreements, they have nullified or impaired benefits accruing to the United States under those Agreements. On this basis, pursuant to Article 19.1 of the DSU, it has recommended that China bring its measures into conformity with its obligations under the Anti-Dumping and SCM Agreements.