WTO Panel Issues Mixed Ruling in US – GPX Legislation
4 April 2014
Mayer Brown Legal Update
A WTO dispute settlement panel has issued a mixed ruling in a challenge brought by China against recent US legislation related to the imposition of countervailing duties (“CVDs”). The law, which is commonly referred to as “the GPX Legislation,” directly authorizes the use of CVDs against imports from non-market economy (“NME”) countries. The panel rejected China’s claims that the United States has acted inconsistently with its WTO obligations in enacting the GPX Legislation. However, the panel agreed with China that the United States failed to investigate and avoid double remedies in 25 CVD proceedings against Chinese products and, therefore, has violated global trade rules administered by the WTO.