The European Union has given notice of appeal to the WTO in response to the compliance panel ruling issued, following China’s complaint that the EU’s anti-dumping measures on fasteners had not properly complied with WTO rules.

On 9th September the EU notified the WTO Dispute Settlement Body of its decision to appeal to the Appellate Body in relation to issues of law and legal interpretations in the Compliance Panel Report relating to Dispute DS397. On 14th September China notified the DSB of its decision to cross-appeal.

Three members of the WTO’s seven-strong appellate body will hear the appeal. A decision is normally issued within three months of the appeal being lodged. The appeal must be based on point(s) of law and cannot reopen factual findings made by the panel.

The dispute originated in July 2009 when China requested consultations regarding EU regulation 91/2009, which imposed definitive anti-dumping duties on imports of certain iron and steel fasteners originating in China. Following a Panel Report in December 2010, and a subsequent Appellate Body Report issued in July 2011, the EU did make some amendments to the anti-dumping measures including a reduction in the non-company specific tariff level to 74.1%.

In October 2013 China began proceedings, resulting in the request for a Compliance Panel to address a number of alleged failures by the EU to meet its obligations under WTO rules. The Compliance Panel report was issued in August 2015. According to trade defence specialists, a key ruling was that the EU was found not to have correctly defined the domestic industry in its investigation. This, the Compliance Panel ruled, rendered the resulting injury determination inconsistent with the obligations of Article 3.1 of the WTO anti-dumping agreement.