AK Steel Comments on China's Failure to Implement WTO Rulings in Electrical Steel Case
While the determination released today reduces the duties on imports of GOES produced by AK Steel, it fails to comply with the WTO rulings and recommendations. Under WTO rules, antidumping and countervailing duties can only be applied if the administering authority determines, based on positive evidence and an objective examination of the evidence, that the domestic industry is materially injured by reason of the dumped and subsidized imports.
In the GOES case, a WTO dispute panel found that MOFCOM's findings on injury and causation violated China's WTO obligations because, among other things, they were not based on positive evidence and an objective examination of the evidence. Moreover, the panel found that MOFCOM did not analyze other significant factors affecting domestic industry performance that the panel found were important to any valid causation determination. Notwithstanding the WTO's rulings, and without collecting any new or additional evidence, it appears that MOFCOM has simply reiterated essentially the same findings on injury and causation without even addressing the flaws identified by the panel and the Appellate Body.
"AK Steel applauds the efforts of the United States Trade Representative to enforce China's WTO obligations in this dispute," said James L. Wainscott, chairman, president and CEO of AK Steel. "We are disappointed that the Government of China has chosen to disregard its WTO obligations, and we will continue to urge the U.S. Government to seek further rulings that China has not complied with the DSB's recommendations and rulings."
AK Steel will also request that the U.S. Government seek WTO authorization to impose retaliatory tariffs against certain imports from China until China comes into compliance by revoking the antidumping and countervailing duty measures on GOES from the United States.