WTO upholds some China claims against US
GENEVA/WASHINGTON: China won the bulk of a World Trade Organisation (WTO) complaint against certain United States methods of determining anti-dumping duties on Chinese products in a WTO dispute panel ruling released on Wednesday.
China brought the complaint in December 2013, one of a string of disputes challenging Washington’s way of assessing “dumping” or exporting at unfairly cheap prices.
Specifically, the panel found fault with the US practices of determining dumping margins in certain cases of “targeted dumping,” in which foreign firms cut prices on goods aimed at specific US regions, customer groups or time periods.
Dumping is normally found when a foreign producer’s US prices are lower than its home market prices for the same or similar goods, or when the imports are sold at prices below production costs.
The panel ruled against the US Commerce Department’s practice of The American Express Travel Centre in Washington DC.
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deal with the after effects of losing its exclusive partnership with warehouse chain Costco.
At the time the divorce was announced in January last year, Costco represented about 10 per cent of American Express-issued credit cards “zeroing” in cases involving targeted dumping. In zeroing, the department typically assigns a value of zero any time a producer’s export price is above that producer’s normal home market price, partly to account for freight and customs charges.
In practice, the zeroing methodology tends to raise the level of US anti-dumping duties on foreign producers.
Some points of China’s argument were rejected by the WTO panel.
Either side can appeal the ruling
and eight per cent of its business.
The companies officially parted ways in June of this year and American Express cards are no longer accepted at Costco stores.
The Costco co-branded credit card is now managed by Citigroup. within 60 days.
China’s Ministry of Commerce welcomed the ruling saying that the WTO panel had “upheld China’s principal claims” on the unlawfulness of targeted dumping and the separate rate applied in certain US anti-dumping measures.
The dispute related to several industries including machinery and electronics, light industry, metals and minerals, with an annual export value of up to US$8.4 billion (RM35.06 billion), it said. Reuters
Costco aside, American Express had had a relatively strong quarter.
The company’s United States consumer card division posted a profit of US$401 million, down from US$542 million a year earlier, reflecting the absence of Costco. AP