LatAm Steel Association Reacts to Withdrawal of WTO Suit by China
China claims that, further to terms of its WTO membership in 2001, it needs to be recognized as a market economy after 15 years.
SEATTLE (Scrap Monster): The Latin American Steel Association (ALACERO), in a press release, noted that the recent withdrawal of WTO suit over market economy status by China confirms that the country is not a market economy. This is the fact which it has been affirming for many years, the association press release said.
The panel of WTO adjudicators declared on Monday that China has withdrawn its suit, claiming market economy status. According to trade officials, it decided to pull out, after so much of the ruling going against it. Consequently, cheap imports from China will continue to face anti-dumping levies from U.S. and EU.
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China claims that, further to terms of its WTO membership in 2001, it needs to be recognized as a market economy after 15 years. Beijing had launched disputes against Brussels and Washington at the WTO in December 2016.
The subsidies that Chinese industry receives have continued to be a major problem for many years now. The dumping of subsidized goods has distorted the global steel market. In particular, it has resulted in significant loss of employment and industrial development in Latin American region, as the domestic steel industry is not in a position to counter the unfair competition from Chinese goods.
The safeguard measures to mitigate the effects of unfair trade have not yielded desired results, the association noted. As of now, there are 10 anti-dumping cases in steel in Latin America, out of which 65% are against China.