China asks WTO for sanctions in United States trade dispute

Lloyd Doyle
September 12, 2018

In this specific case, China alleged that the United States, in violation of WTO rules, was continuing a practice known as "zeroing", which calculates the price of imports compared to the normal value in the United States to determine predatory pricing.

The United States, which has repeatedly lost cases before the WTO over its calculation method, said in June a year ago that it would implement the panel's recommendations within a "reasonable" time frame.

China told the World Trade Organization (WTO) on Tuesday it wanted to impose $7 billion a year in sanctions on the United States in retaliation for Washington's non-compliance with a ruling in a dispute over USA dumping duties.

China will address the world's largest intergovernmental trade organization next week and ask for permission to impose sanctions on the USA amid the rapidly-escalating trade war.

The case concerned the U.S. Commerce Department's calculation method, "zeroing".

A worker places U.S. and China flags near the Forbidden City ahead of a visit by U.S. President Donald Trump to Beijing, in Beijing, China November 8, 2017.

The case dates back to December 2013, when China filed a dispute against the United States, taking issue with the way Washington assesses whether exports have been "dumped" at unfairly low prices onto the USA market.

China won a WTO ruling in the dispute in 2016, and that judgment was confirmed by an appeal previous year.

The U.S. calculating method was found to have been illegal in a string of trade disputes brought to the global trade regulator over recent years.

Built largely on the premise of bringing USA companies back to America, Trump's trade war appears to have driven them away. Dumping refers when a country underprices exports so that they can undercut domestically produced goods.

"The scenarios are not going to be good for anyone". Beijing has vowed to retaliate if the US takes any new steps on trade. So leaving the organization would be a blow to the organization. USA stock index futures pulled back on the news, with the Dow indicating a negative open of more than 60 points at around 6:35 a.m. ET.

Other reports by Iphone Fresh

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