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| International trade in nuts and screws |
It has been reported that China plans a World Trade Organisation (WTO) challenge to the anti-dumping duties of the European Union (EU) imposed in January on screws and bolts imported into EU countries from China. According to a source reporting to Reuters, China's commerce ministry seeks WTO dispute settlement consultation over the legal process used by Brussels.
News of the screws and bolts dispute came on the eve of the U.S.'s Obama administration announcement of its trade strategy that will emphasize enforcing trade agreements and countervailing duty and anti-dumping laws. China's posture in the WTO may ring with irony in light of the recent criticism herald by U.S. Steel Corp (X.N.) Chairman and CEO John Surma against China for allegedly undermining the global steel industry through tax benefits, calling on China to play by the world trade rules.
If the requested settlement consultation fails, China could request a WTO panel to hear the screws and bolts case. It would mark the first case taken by China against the EU at the WTO. The EU duties impact as many as 200 Chinese companies selling components widely used for cars and machinery in the EU. The import duties, of up to 85 percent, could amount to an annual lost by China-based importers into the EU of some €575 million (US$811 million).
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