In a major setback to the U.S on its anti dumping duties on several Chinese products including solar panels and wind turbines, the World Trade Organization (WTO) on Monday slammed the U.S saying the tariff was wrong.
The international agency, upon hearing a petition filed by the Chinese government in 2012, stated the United States was wrong to slap punitive duties on a host of Chinese goods on the grounds that they were sold at too a low a price and benefitted from unfair subsidies.
According to WTO, the duties were “inconsistent” with global rules. “They have nullified or impaired benefits accruing to China,” said the panel consisting of independent trade and legal experts.
Commenting on the ruling, China’s foreign trade ministry said, “China urges the United States to respect the WTO rulings and correct its wrongdoings of abusively using trade remedy measures, and to ensure an environment of fair competition for Chinese enterprises.”
Meanwhile the U.S trade representative Michael Froman defended the tariffs saying these were placed to protect domestic businesses and workers.
“With respect to the other findings in the panel report, the administration is carefully evaluating its options, and will take all appropriate steps to ensure that US remedies against unfair subsidies remain strong and effective,” Froman said.
Washington is likely to appeal against the WTO ruling.
The latest WTO ruling is likely to have an impact in the renewable energy industry. Worldwide there have been debates on whether to impose tariffs on imported solar panels or not.
Last year the EU came to an agreement with China saying Chinese manufactures can sell products as long as they are sold for more than the minimum price.
Meanwhile the U.S has filed a complaint against India in WTO challenging India’s ruling requiring the use of domestically produced solar panels in projects under the National Solar Mission.