Organization: Office of Trade Negotiations, Executive Yuan
Publish Date: 2016-12-23 10:53
The Panel of the World Trade Organization ("WTO") issued on December 21, 2016 its report in the dispute between Taiwan and Canada relating to the anti-dumping duties imposed by Canada on imports of Taiwanese carbon steel welded pipes. It was found that both Canada's anti-dumping measures as well as Canada's domestic anti-dumping legislation violate WTO rules.
Canada imposed its anti-dumping duties in December 2012 claiming that Taiwanese exporters were selling the product at unfairly low prices in the Canadian market. Taiwan initiated consultations with Canada in June 2014, and the Panel meetings took place in March and June 2016. The Office of Trade Negotiations under the Executive Yuan in close cooperation with relevant agencies, the steel industry, domestic and foreign legal counsel successfully litigated the dispute in front of the Panel.
The Panel Report contains several important findings with implications going beyond this particular dispute. In particular, the Panel condemned Canada for failing to terminate the investigation with regard to exporters having a de minimis margin of dumping, i.e. a margin of less than 2% of the export price. The Panel also agreed with Taiwan that imports from such exporters cannot be included in the injury and causation analyses and, as a consequence, cannot be subject to definitive anti-dumping duties. Importantly, the Panel also clarified the authorities' obligations when dealing with imports from exporters that were not cooperating during the investigation and with new types of products. The Panel rejected Canada's use of the highest margin found in the course of the entire investigation to establish the margin of dumping for non-cooperating exporters. It also condemned Canada's use of facts available to determine the anti-dumping duties applicable on new product types that were not previously exported from Taiwan to Canada.
Finally, the Panel found that several provisions of Canada's underlying legislation are "as such" inconsistent with the Anti-Dumping Agreement and the GATT 1994, meaning that Canada will have to amend its legislation in order to comply with the Panel's ruling.
Taiwan welcomes the Panel's ruling and expresses its hope that Canada will take all the necessary steps to promptly comply with the Panel's findings and restore free trade in carbon steel welded pipes between the two countries.
Link: WTO Panel backs Taiwan in trade dispute against Canada