China's measures on EU scanner inconsistent with rules: WTO panel

A World Trade Organization panel circulated a report Tuesday regarding the dispute of China's anti-dumping duties on X-ray security inspection equipment from the European Union.

The report listed certain measures taken by China that were inconsistent with the Anti-Dumping Agreement, including not conducting an objective examination based on positive evidence of the effect of the dumped imports on prices in the domestic market for like products, not conducting an objective examination of the impact of the dumped imports on the domestic industry, etc.

"To the extent, China has acted inconsistently with certain provisions of the Anti-Dumping Agreement, we conclude that China has nullified or impaired benefits accruing to the EU under that agreement," said the report.

"Having found China acted inconsistently with certain provisions of the Anti-Dumping Agreement, we recommend China bring its measure into conformity with its obligations under that Agreement," it said.

However, the panel also rejected some of the EU's claims.

China's Ministry of Commerce said in a statement that China noticed that the panel supported China's claims regarding certain issues at dispute such as disclosure before final determination, public notice of final determination, and positive-evidence based examination of the state of the industry and non-attribution analysis.

"China welcomes this finding," read the statement. "With regard to the findings on other issues at dispute, China will conduct further evaluation and reserves the right to appeal," it said.

Starting Jan. 23, 2011, China imposed anti-dumping duties between 33.5 percent and 71.8 percent on X-ray security inspection equipment imported from the EU with a time span of five years. The EU requested consultations with China on that on July 25, 2011.