Two New U.S. – China WTO Decisions — Who is the Biggest Winner?

         China and WTO
      This week two WTO panels  decided the first two cases involving China – U.S. litigation in 2014. These were two major cases.
     The first case was brought by the United States involving China’s export restriction on rare earths. The second case was brought against the United States involving its 2012 legislation allowing countervailing duties on imports from non-market economies (China) and the issue of ‘double remedies’ (whether both countervailing duties and anti-dumping duties can be levied at the same time).
      The first case was a solid win for the United States. The second case was a split decision. It upheld the U.S. legislation but not ‘double remedies.’
     To me these cases are in a long line of cases involving U.S. – China trade litigation in the WTO. Both parties are submitting their trade disputes to the WTO’s dispute resolution system. This is good. This takes these commercial disputes away from the glare of realpolitik and put them in a more regularized context that leads to peaceful solutions. This is a plus for both China and the U.S. Historically, this is a bigger deal ford the global trading system.


About Stuart Malawer

Distinguished Service Professor of Law & International Trade at George Mason University (Schar School of Public Policy).
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