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WTO rules against China in row with EU, Japan over steel pipes

AFP, Geneva
A WTO panel largely ruled Friday against China in its row with the European Union and Japan over Chinese anti-dumping duties on imports of steel pipes.
Japan and the EU went to the World Trade Organisation in 2012 and 2013 to protest the anti-dumping measures imposed by Beijing on imports of steel pipes.
The tubes are used mainly for super heaters and reheaters of supercritical boilers in power stations, trade sources said.
A three-member panel was set up in 2013 to rule on the dispute.
The WTO panel recalled that the EU and Japan had presented claims against the determination of China's ministry of commerce that dumped imports had hurt the domestic industry.
They claimed that China's consideration of the price effects of the imports was inconsistent with terms of the anti-dumping agreement.
The panel "upheld many of the claims... but did not side with the complainants in all matters," the WTO said.
For example, the panel rejected the claims of the complainants that China was "required — and failed - to assess whether price undercutting by the subject imports had the actual effect of placing downward pressure on domestic prices."
The complainants claimed, the panel said, that by applying provisional measures for a period exceeding four months without meeting terms of the anti-dumping agreement,
The panel upheld those claims, it added.
China must take necessary steps to comply
now with the anti-dumping agreement.
However, China can also appeal the ruling within the next 60 days.
Japan had complained about the effect of the anti-dumping measures on exports to China from companies like Nippon Steel and Sumitomo Metal Corp.
The EU meanwhile defended the interest of companies like Tubacex S.A of Spain and Salzgitter AG of Germany.
"In international trade we all need to play by the rules. I am glad that the WTO panel confirms this today asking China to bring its customs duties in line with the WTO obligations," said EU Trade Commissioner Cecilia Malmstrbm in a statement.
"I hope to see China reacting to this ruling immediately and restoring fair trading conditions for EU producers."