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No timescale yet for EU action on WTO report


The European Union has confi rmed its intentions to implement the recommendations and rulings of the WTO Dispute Settlement Body regarding its anti-dumping measures on fasteners from China, but there is no indication yet of a timescale.


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Manager page n 28th July 2011 the WTO Dispute Settlement Body (DSB) formally adopted the Appellate rulings, which it elected to do in writing on 18th


Body report on European Union Defi nite Anti-Dumping Measures on Certain Iron or Steel Fasteners from China (WT/DS397/AB/R). The European Union was required, within 30 days, to state its intentions to implement the DSB’s recommendations and August.


The short communication from the EU delegation included the following statement: “The


European Union intends to implement the recommendations and rulings of the DSB in this dispute in a manner that respects its WTO obligations. We are consulting internally on the options for doing so. The European Union will need a reasonable period of time in which to do this. My delegation stands ready to discuss this matter with China in due course, in accordance with Article 21.3(b) of the DSU”. WTO procedures state: “If complying with the recommendation immediately proves impractical, the member will be given a ‘reasonable period of time’ to do so”. At its 2nd


September meeting


the DSB noted the EU communication. China told the meeting it was ready to discuss the ‘reasonable period of time’ with the EU. If a mutually acceptable timescale is not agreed provision exists for arbitration, normally carried out by a member of the WTO Appellate Body acting in an individual capacity. In the period 2000-2008 reasonable periods of time published determined through arbitration (as published on the WTO website) ranged from 6 to 15 months, with the median 11.5 months.


WTO Appeals Body upholds key criticisms of EU


The WTO Appellate Body upheld key criticisms of EU anti-dumping regulation and its application in the investigation on steel fasteners from China.


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10 n 15th July the Appellate Body of the World Trade Organisation made public its


response to the appeals lodged by both the European Union and China in relation to the EU’s imposition of anti-dumping duties on steel fasteners from the People’s Republic of China.


The 249-page document outlines the appeals from both parties and addresses the claims by


both parties in detail before presenting fi ve pages of Findings and Conclusions. Most signifi cantly the Appellate Body upheld a WTO Panel ruling that the EU was wrong to


apply countrywide duties on a non-market economy rather than determining individual dumping margins for each exporter. Analysts have interpreted this as meaning the EU will need to rewrite the regulation on which


its anti-dumping investigations are based. An unnamed WTO trade offi cial told Reuters the EU would be ill advised to bring further cases against non-market economies based on criteria that had been determined as fl awed. The Appellate Body also found the EU was incorrect in the way it defi ned the domestic industry, saying that producers representing 27% of EU production did not represent “a major


Fastener + Fixing Magazine • Issue 71 September 2011


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