Beijing/Geneva: China today “regretted” the World Trade Organization’s ruling in favour of a US import ban on Chinese solar panel.
On July 11, 2019, China had requested the establishment of a panel with standard terms of reference. At its meeting on August 15 , 2019, the Dispute Settlement Body (DSB) established a Panel pursuant to the request of China. China had then requested the Panel to find that the safeguard measure imposed by the United States was inconsistent with the United States’ obligations under Article XIX:1(a) of the GATT 1994 and Articles 2.1, 3, and 4.2(b) of the Agreement on Safeguards. The United States, though, had requested the Panel to find that China had failed to establish any inconsistency with Article XIX of the GATT 1994 or the Agreement on Safeguards.
The Panel was chaired by Guillermo Valles, and had José Antonio de la Puente León, and Chantal Ononaiwu as its members. Besides, Brazil, Canada, the European Union, India, Japan, the Republic of Korea, Malaysia, Philippines,
the Russian Federation, and Chinese Taipei had notified their interest in participating in the Panel proceedings as third parties.
On September 2, 2021 the WTO circulated the Panel report in the case brought by China in “United States — Safeguard Measure on Imports of Crystalline Silicon Photovoltaic Products”. The report noted that a measure of ambiguity existed concerning the legal basis of China’s claim. It further agreed with the United States that China’s claim was premised on an incorrect interpretation of Article 3 of the Agreement on Safeguards. The Panel found that China had failed to demonstrate that the United States acted inconsistently with the prescribed Agreements on Safeguards.
It may be mentioned that on August 14, 2018, China had requested consultations with the United States with respect to the dispute concerning a safeguard measure imposed by the United States with regard to imports of certain crystalline silicon photovoltaic cells, whether or not partially or fully assembled into other products (including, but not limited to, modules, laminates, panels, and building-integrated materials) (CSPV products), pursuant to “Proclamation 9693 of January 23, 2018 – To Facilitate Positive Adjustment to Competition from Imports of Certain
Crystalline Silicon Photovoltaic Cells (Whether or Not Partially or Fully Assembled Into Other Products) and for Other Purposes”, published in the 83 US Federal Register 3541 on January 25, 2018.
Consultations were held on October 22, 2018, but failed to resolve the dispute, which led to China requesting the WTO to set up the Panel.
It was in May 2017, when two firms representing the United States’ domestic industry, Suniva, Inc. (Suniva) and SolarWorld Americas, Inc. (SolarWorld), petitioned the United States International Trade Commission (USITC) seeking the imposition of a safeguard measure on imports of CSPV products from all sources.
After conducting an investigation, the USITC unanimously determined in its final report of November 13, 2017 that CSPV products were being imported into the United States in such increased quantities as to be a substantial cause of serious injury to the domestic industry producing an article like or directly competitive with the imported article.
In response to a request from the United States Trade Representative (USTR) for further information, the USITC issued a supplemental report on December 27, 2017, wherein the USITC determined that unforeseen developments had resulted in CSPV products being imported into the United States in such increased quantities as to be a substantial cause of serious injury to the domestic industry.
Following the receipt of these reports, on January 23, 2018 the President of the United States had decided to impose a safeguard measure beginning on February 7, 2018.
– global bihari bureau
