WT/DS437/30  
 
18 October 2019  
(19-6841) Page: 1/2 
  Original: English  
 
UNITED STATES – COUN TERVAILING DUTY MEAS URES  
ON CERTAIN PRODUCTS FROM CHINA  
RECOURSE TO ARTICLE 22.2 OF THE DSU BY CHINA  
The following communication, dated 17 October 2019 , from the delegation of China  to the 
Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 22.2 of the DSU.  
 
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China requests that the following item be included in the agenda of the meeting of the Dispute 
Settlement Body ("DSB") to be held on 2 8 October 2019:  
1.  United States – Countervailing Duty Measures on Certain Products from China  (DS437)  
A.  Recourse to Article 22.2 of the Understanding on Rules and Procedures Governing 
the Settlements of Disputes by China  
The original dispute underlying this request concerns the imposition by the United States of 
countervailing duties on a range of products from China, as well as the investigations leading to the 
imposition of such duties.   
Before the original panel, China  challenged several aspects of the investigations conducted by the 
U.S. Department of Commerce and the determinations resulting from such investigations.  The panel 
found that the United States acted inconsistently with several of its obligations under the  Agreement 
on Subsidies and Countervailing Measures ("SCM Agreement").  China and the United States both 
appealed aspects of the panel's findings.  On appeal, the Appellate Body reversed certain of the 
panel's findings and confirmed that the United States had acted inconsistently with several of its 
obligations under the SCM Agreement.  The Appellate Body recommended that the United States 
bring its measures into conformity with its obligations under the SCM Agreement.  The original panel 
report, as modifie d by the Appellate Body report, was adopted on 16  January 2015.1 
By communication dated 15 April 2016, China and the United States informed the DSB of the 
Understanding between China and the United States regarding procedures under Articles 21 and 22 
of the Understanding on Rules and Procedures Governing the Settlement of Disputes ("DSU") with 
respect to this dispute ("Sequencing Agreement").2  The Sequencing Agreement provides that the 
reasonable period of time ("RPT") in this dispute would expire on 1 Apr il 2016.  Paragraph 6 of the 
Sequencing Agreement provides that China may request authorization to suspend concessions or 
other obligations pursuant to Article 22.2 of the DSU in the event that the DSB concludes, following 
a proceeding under Article 21.5 o f the DSU, that a measure taken to comply does not exist or is 
inconsistent with a covered agreement, and that the United States will not assert that China is 
precluded from obtaining such authorization on the grounds that the request was made outside the 
30-day time period specified in Article 22.6 of the DSU.  
China considered that the United States had failed to bring its measures into compliance with the 
recommendations and rulings of the DSB within the RPT.  On  13 May 2016, China requested 
consultations  with the United States pursuant to Article  21.5 of the DSU.  Consultations were held 
 
1 See WT/DS437/R, as modified by WT/DS437/AB/R.  
2 See Understanding between China and the United States regarding procedures under Articles 21 and 
22 of the DSU ("Sequencing Agreement"), WT/DS437/19.  WT/DS437/30  
 
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  on 27 May 2016, but failed to resolve the dispute.  On 8 July 2016, China requested the 
establishment of a panel pursuant to Article  21.5 of the DSU.  The report of the c ompliance panel 
was circulated to Members on 21 March 2018.  China and the United States both appealed aspects 
of the compliance panel's report.   
On 15 August 2019, the DSB adopted the compliance panel report, as modified by the Appellate 
Body Report.3  In its recommendations and rulings, the DSB ruled that the U.S.  measures at issue 
are inconsistent with the relevant provisions of the SCM Agreement, and recommended that the 
United States bring its measures into conformity with its obligations under that a greement.  At the 
DSB meeting held on 15 August 2019, the United States did not indicate its intention to implement 
the recommendations and rulings of the DSB in this dispute.     
Article 22 of the DSU provides that, in the event of a failure to comply wit h recommendations and 
rulings of the DSB within the specified period, the complaining Member may request authorization 
from the DSB to suspend the application to the Member concerned of concessions or other obligations 
under the covered agreements, and the  DSB shall, upon request, grant such authorization, if no 
satisfactory compensation has been agreed.  
The United States has failed to comply with the recommendations and rulings of the DSB within the 
RPT provided in the Sequencing Agreement, and no agreemen t on compensation has been reached.   
In response to the United States' continued non -compliance with the DSB's recommendations and 
rulings, China requests authorization from the DSB to suspend concessions and related obligations 
at an annual amount of $2. 4 billion.  
In considering what countermeasures to take, China follows the principles and procedures set forth 
in Article 22.3 of the DSU, and in particular, Article 22.3(a). Accordingly, China requests 
authorization to suspend the application to the United  States of concessions or other obligations with 
respect to goods under the agreements described in Article 22.3(g)(i) of the DSU.  
 
 
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3 See WT/DS437/RW, as modified by WT/DS437/AB/RW.