On Friday, a World Trade Organization (WTO) panel ruled in favor of two US producers in a case against Chinese import duties on grain-oriented electrical steel, a specialty steel product used in power transformers and other machinery. The panel said that China was inconsistent with WTO rules in its imposition of the countervailing duties.
The case involved the two domestic producers of the products: ATI Allegheny Ludlum and AK Steel. In a statement Friday, AK Steel applauded the decision of a dispute settlement panel at the WTO in Geneva that China had no legal basis to impose AD and CVD duties on imports of grain oriented electrical steel from the US beginning in December 2009.
"The WTO has correctly decided that China's Ministry of Commerce had no justification to impose duties on AK Steel products. China's case was contrary to the WTO rules from the beginning and should never have been pursued," said James L. Wainscott, Chairman, President, and CEO of AK Steel. Mr. Wainscott added, "AK Steel is very grateful to United States Trade Representative Ron Kirk and his staff for working tirelessly on this case to defend the rights of US manufacturers."
In December 2009, China's Ministry of Commerce (MOFCOM) imposed duties on imported electrical steel products. The tariffs total approximately 19.5 percent against AK Steel. The US requested consultations with the government of China in September 2010, beginning the WTO dispute settlement process. China may appeal the panel's decision to the WTO Appellate Body. In such event, the tariffs will remain in effect during the pendency of the appeal.