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1st Ld: China files WTO dispute case over surrogate country approach

Xinhua, December 12, 2016 Adjust font size:

China has launched dispute settlement procedures at the World Trade Organization (WTO) by requesting consultations with the United States and the European Union (EU) regarding the surrogate country approach when calculating anti-dumping measures against Chinese exports, the Ministry of Commerce said Monday.

In a statement on its website, the ministry said in accordance with Article 15 of the accession protocol signed when China joined the WTO in 2001, the surrogate country approach expires on December 11, 2016.

All WTO members should live up to their international obligations to abandon the surrogate country approach when calculating anti-dumping measures against Chinese exports, it said.

Unfortunately, the United States and the European Union have not fulfilled this obligation yet, said the ministry.

Under the surrogate country approach, WTO members use costs of production in a third country to calculate the value of products from countries on its "non-market economy" list, which includes China. The practice allows countries to easily levy high tariffs in trade disputes.

The United States and the EU's use of the surrogate country approach has seriously affected exports and employment in some Chinese industries, said the ministry.

China reserves its right under the WTO rules and will resolutely defend its legal rights, it added. Endi