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China Requests Mediation over U.S. Anti-Dumping Actions

Wednesday, September, 19, 2012


China has asked the World Trade Organization for mediation concerning the U.S.'s anti-dumping measures against 24 Chinese-made products that the Asian country exports to the States.

This isn't an isolated incident. In fact, each nation has accused the other of unfair dumping practices. And they are each seeking the mediation services of the World Trade Organization's Dispute Settlement Body.

The US's Claims Behind the Civil Mediation

The United States claims that China is using illegal subsidies to make Chinese businesses unfairly competitive on an international scale.

As such, the U.S. has taken what are known as "anti-dumping" measures against China. These measures typically involve filing a complaint with the World Trade Organization, and potentially issues duties (import taxes) against any earmarked made-in-China goods that enter the U.S.

The current dispute involves 24 different product types worth over $7 billion. These products include magnets, kitchen appliances, chemicals, steel, paper--even wind towers and wooden flooring.

The U.S. raised similar concerns about 22 other products in August.

Other International Mediation Services Requested

The U.S. has also made clear that it will seek WTO mediation services concerning automobile issues with China. Currently, China imposes anti-dumping duties on some United States automobiles.

The U.S. is expected to request mediation on September 28 at the next meeting of the WTO's Dispute Settlement Body. The U.S. and China have been trying, with little success, to resolve the auto issue since early July.

The United States' current action comes during the last month-and-a-half of the presidential race. Regardless of politics, anti-dumping measures and mediation for both nations may affect U.S.-China trade and relations for some time to come.