Japan seeks for exemption from Chinese safeguards

Japan seeks for exemption from Chinese safeguards

According to the anouncement by China's Ministry of Foreign Trade on Economic Cooperation (MOFTEC) it has been decided to lift some of the special safeguard measures in response to requests by the interested parties. It is acknowledged that Japan made several requests from China to exempt Japanese products from these safeguards repeatedly pointing out to the possibility that such action might be violating the WTO rules. As a consequence of these talks, China has agreed to exclude certain products from the safeguard measures. However, Japanese officials state that not too many products that Japan exports are included in the exemption list of MOFTEC and therefore these exemptions will be of only a little help to Japanese mills. The products that Japan really wants to be exempted are still subject ot these safeguards. Furthermore, the EU, South Korea, Tawian and Russia are countries to be effected from these Chinese safeguards. The safeguard measures to last for three years were implemented on November 20, 2002 by China Government, covering five categories of products. Chinese officials at that date stated that the safeguard measures could be seen as taking action to compensate the US steel import safeguards of upto 30%, implemented by the Bush Administration in March 2002. Products covered under the scope of Chinese safeguards are; HR sheet and coil, CR steel and coil, colour sheet and coil, non grain oriented electrical steel, CR stainless steel.