WTO Panel Issues Mixed Ruling In US – GPX Legislation

Keywords: World Trade Organisation, WTO, US-GPX legislation, China, countervailing duties, GPX Legislation, CVDs, import

On March 27, 2014, a WTO panel issued a mixed ruling in a challenge brought by China against a recent US legislation related to the imposition of countervailing duties ("CVDs").¹ The law, enacted in March 2012 and commonly referred to as "the GPX Legislation," directly authorizes the use of CVDs against imports from nonmarket economy ("NME") countries. The panel in US – GPX Legislation rejected China's claims that the United States has acted inconsistently with its WTO obligations in enacting the GPX Legislation. However, the panel agreed with the complainant that the United States failed to investigate and avoid double remedies in 25 CVD proceedings against Chinese products and, therefore, has violated global trade rules administered by the WTO.