. /.   WORLD TRADE  
ORGANIZATION  WT/DS368/1 
G/L/826 
G/SCM/D77/1 G/ADP/D72/1 
18 September 2007 
 
(07-3901) 
 Original:   English 
 
 
 
UNITED STATES – PRELIMINARY ANTI-DUMPING AND 
COUNTERVAILING DUTY DETERMINATIONS ON 
COATED FREE SHEET PAPER FROM CHINA 
 
Request for Consultations by China  
  
 The following communication, dated 14 Septem ber 2007, from the delegation of China to the 
delegation of the United States and to the Chairman of the Dispute Settlement Body, is circulated in 
accordance with Article 4.4 of the DSU. 
 
_______________ 
 
  My authorities have asked me to request consultations with the Government of the 
United States pursuant to Article 4 of the Understanding on Rules and Procedures Governing the 
Settlement of Disputes  (the DSU), Article XXIII:1 of the General Agreement on Tariffs and Trade 
1994  (GATT 1994), Article 30 of the Agreement on Subsidies and Countervailing Measures  (the 
SCM Agreement), and Article 17 of the Agreement on Implementation of Article VI of the General 
Agreement on Tariffs and Trade 1994  (the AD Agreement) concerning the preliminary anti-dumping 
and countervailing duty determinati ons made by the US Department of Commerce on 29 May 2007 
and 2 April 2007, respectively, in respect of coat ed free sheet paper from China.  These preliminary 
determinations appear at 72 Federa l Register 30,758 (4 June 2007) ( Preliminary Determination of 
Sales at Less Than Fair Value and Postponement of Final Determination: Coated Free Sheet Paper 
from the People's Republic of China ) and 72 Federal Register 17,484 (9 April 2007) ( Coated Free 
Sheet Paper from China: Amended Prelimina ry Affirmative Countervailing Duty Determination ). 
  China considers that these measures are inconsis tent with the obligations of the United States 
under, inter alia,  Articles VI of the GATT 1994, Articles 1, 2, 10, 14, 17, and 32 of the 
SCM Agreement, and Articles 1, 2, 7, 9, and 18 of the AD Agreement.    
 These inconsistencies include, inter alia : 
 1. the failure of the US authorities to dem onstrate specificity under Article 2.1 of the 
SCM Agreement in respect of alleged counterva ilable subsidies identified in the preliminary 
CVD determination, and to clearly substantia te these determinations of specificity on the 
basis of positive evidence, as required by Article 2.4 of the SCM Agreement; 
 2. the failure of the US authorities to make a proper determination of benefit under Articles 1 
and 14 of the SCM Agreement in respect of  the alleged "government policy lending 
program"; 
 WT/DS368/1, G/L/826,  
G/SCM/D77/1, G/ADP/D72/1 Page 2 
 
 
  3. the failure of the US authorities to ensure th at the preliminary affirmative determination of 
subsidization, and the imposition of provisi onal countervailing duties, were based on the 
amount of subsidy found to exist, as required by Articles 17 and 19 of the SCM Agreement; 
and 
 
4. the failure of the US authorities to ensure th at the preliminary affirmative determination of 
dumping, and the imposition of provisional anti- dumping duties, were based on the amount of 
dumping found to exist, as required by Articles 7 and 9 of the AD Agreement.   
 
 China reserves the right to raise additional claims and legal matters regarding the 
above-mentioned measures during th e course of the consultations. 
  China looks forward to receiving the reply of the Government of the United States to this 
request and to setting a mutually conv enient date for consultations.   
 
__________