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China May Reverse Affirmative Decision on Japan's Seamless Stainless Pipes
The WTO arbitrated a breach of agreements in October last year against China's final determination for an antidumping (AD) case on Japanese seamless stainless steel pipes/tubes. As a result, as China accepted such arbitration, China is necessary to take some kind of action, and its implementation time limit is approaching. It is the time limit on August 23 this year, and attention is paid to whether the Chinese Government cancels its final affirmative determination or again determines to be affirmative after its reinvestigation.

The Chinese Government made its final determination in November 2012 to implement AD measures against Japanese high-quality seamless stainless steel pipes/tubes. AD duties to be imposed were 9.2%-14.4%. Against it, the Japanese Government requested bilateral talks in December 2012 to the Chinese Government based on the WTO agreements as a breach of AD agreements.

In February 2015, the WTO issued a panel report and decided to breach the agreements as there were defects in China's decision of injuries and causal relations and its procedures of the investigation.

However, China expressed its dissatisfaction with it and appealed to a higher committee while Japan made the allegation to the higher committee as there was a problem in a part of the panel report.

As a result, the higher committee supported in its report such panel report that China's AD measures were a breach of the agreements and simultaneously supported Japan's claims made which had not been recognized in the panel report. As a result, the WTO's decision against China's breach of the agreements was settled.

Responding to it, the Chinese Government has commenced its reinvestigation from June 20 this year. Attention is paid to whether the Government reverses its determination with no fact of AD or again determines to be affirmative with the fact of AD. It is normal and natural to reverse such determination based on the international rule but it is highly likely that China determines to be affirmative till 2017 as it falls on an expiration period of the AD measures in 2017.
last modified : Mon 22 Aug, 2016 [10:33]
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