BRUSSELS - the World Trade Organization Friday condemned EU anti-dumping duties on imports of Chinese screws, transferring Beijing his greatest legal victory at the headquarters in Geneva body. EU officials described the decision as a major setback.
Legal experts said the victory was a sign of Chinese strategy of combating foreign import tariffs by setting world-class trade lawyers and lobbying heavily at the WTO Headquarters in Geneva.
The 394 page judgment could also precedent which makes it more difficult to impose anti-dumping duties on emerging markets such as China and Viet Nam set for the EU and the USA.
Joined China WTO in 2001. Its exports to the rich world immediately access what to tensions on currency values, public contracts in the Chinese market by Western companies and fees of "dumping" or export in a foreign country below cost increased.
The EU and the us have made extensive use of WTO rules which allow countries to impose duties on dumped goods.
Countries where the State plays an important role in the economy, such as China or India, are common targets. From 1999 to 2009 China was combined of 445 dumping measures or 24% those of all WTO members, which.
It was not well with the Chinese Government. In a statement released Friday in following complained the ruling Chinese Ministry of Commerce of systematic "unfair treatment" over the last decade.
Beijing 2008 around if it emerged as a key player for the first time in the failed discussions about the Doha round of trade talks began putting up a fight. At the same time it opened a brand new mission, a football field of WTO Headquarters away. China started top dollar to pay for expert trade lawyers. "We started lining for your business," says attorney for a law firm with international trade a headquarters in Geneva.
Since China has systematically challenged EU and U.S. fare hikes against its exports. "You have a lot of complaints against you, and have on sent to other countries," Simon Lester, founder of WorldTradeLaw.net LLC, a Washington-based advice. Earlier this week, China the methodology called years two ago by the United States to impose duties on Chinese steel tubes, tyres and cloth bags.
Early 2009 the EU introduced anti-dumping duties of up to 87% for five years on imports of Chinese screws and fasteners. Tariffs helped cut EU imports thereof to $555.7 million in 2009 from $ 1.39 billion in 2007.
Appealed in July of China and the WTO accepted a few months later.
Their main claim was the EU unfair cost in India and the EU itself as comparisons used in determining what should have screws costs in China. Because China is classified as a "not market economy", investigators are allowed to use a formula to determine what do good without public aid costs should have.
On Friday the WTO accepts the Chinese claim that the Chinese argument that manufacturing in China legally cheaper, even without the aid of the State is to accept.
In a statement, China welcomed the judgment. The WTO, it said it had "Clear.", that legislation and practice discriminatory and incompatible rules are Europe's anti-dumping
"It is important to note that this is only an intermediate step, is because the EU and China can decide to it appeal." It is therefore too early to speculate what effect the judgment would have, "said John Clancy, an EU spokesperson." Off the record EU officials admitted, it was a major defeat.
The EU has now 60 days to appeal. If it loses, it will have to revise these tariffs, and changes the way it examined allegations of dumping.
Write toJohn W. Miller at the john.miller@dowjones.com
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