EU Appeals WTO Ruling in China Steel Fastener Dispute

The EU announced last Friday that it was appealing a WTO panel decision that found the 27-member bloc’s method for applying anti-dumping duties on various Chinese screws, nuts and bolts to contravene multilateral trade rules.

The panel ruling against the EU found fault with several of the procedures identified by China in its complaint, such as parts of the methodology the EU used for calculating a ‘normal value’ against which to measure whether Chinese fasteners were being sold below the cost of production, and by how much. WTO rules normally afford countries greater latitude in calculating such values for imports from non-market economies.

The ruling is a blow to the EU and its method of calculating duties for non-market economies, which include Vietnam and Cuba in addition to China.

While China initially welcomed the decision, reiterating its view that the EU policies placed an unfair burden on Chinese exports, Reuters reports that China will also appeal the WTO ruling against the EU, saying the decision does not go far enough in its favour, citing a person familiar with the case.

While the decision mostly sided with China, it dismissed Beijing’s argument that Brussels made unfair comparisons between high and low-quality screws and bolts. The person reported to Reuters that this is what prompted China to appeal. Under WTO rules, China has until Wednesday to make its appeal.