. /.   WORLD TRADE  
ORGANIZATION  WT/DS414/1 
G/L/927 
G/SCM/D85/1 G/ADP/D85/1 
20 September 2010 
 
 
(10-4730) 
 Original:   English 
 
  
CHINA – COUNTERVAILING AND ANTI-DUMPING DUTIES ON  
GRAIN ORIENTED FLAT-ROLLED ELECTRICAL STEEL  
FROM THE UNITED STATES 
 
Request for Consultations by the United States
 
   The following communication, dated 15 September 2010, from the delegation of the United 
States to the delegation of China and to the Chairman  of the Dispute Settlement Body, is circulated in 
accordance with Article 4.4 of the DSU.  
_______________ 
 
 
 My authorities have instructed me to request  consultations with the Government of the 
People's Republic of China ("China") pursuant to Articles 1 and 4 of the Understanding on Rules and 
Procedures Governing the Settlement of Disputes , Article XXIII:1 of the General Agreement on 
Tariffs and Trade 1994  ("GATT 1994"), Article 30 of the Agreement on Subsidies and Countervailing 
Measures  ("SCM Agreement") (to the extent that Artic le 30 incorporates Article XXIII of the GATT 
1994), and Article 17.3 of the Agreement on Implementation of Article VI of the General Agreement 
on Tariffs and Trade 1994  ("AD Agreement") with respect to China's measures imposing 
countervailing duties and anti-dumping duties on grain oriented flat-rolled electrical steel ("GOES") 
from the United States, as set forth in Ministry  of Commerce of the People's Republic of China 
("MOFCOM") Notice No. 21 [2010], including its  annexes. China's measures appear to be 
inconsistent with China's obligations under th e provisions of the GATT 1994, the SCM Agreement 
and the AD Agreement.    In particular, China's countervailing and an ti-dumping measures on GOES from the United 
States appear to be inconsistent with th e following provisions of the GATT 1994, the SCM 
Agreement and the AD Agreement. 
 
1. Articles 10 and 19 of the SCM Agreement, be cause China improperly determined that 
government purchases under US Buy American Laws conferred a "benefit".  2. Article 12.8 of the SCM Agreement, because Ch ina failed to disclose the "essential facts" 
underlying its determinations. 
 3. Article 12.7 of the SCM Agreement, because Ch ina improperly based its determinations on 
the facts available.  4. Article 22.3 of the SCM Agreement, because Chin a failed to provide in sufficient detail the 
findings and conclusions it reached on all issues of fact and law it considered material.   WT/DS414/1, G/L/927,  
G/SCM/D85/1, G/ADP/D85/1 Page 2 
 
 
   
5. Article 22.5 of the SCM Agreement because Chin a failed to make available all relevant 
information on the matters of fact and law and re asons which have led to  the imposition of final 
measures. 
 
6. Article 11.2 of the SCM Agreement because: (a) the application for a countervailing duty 
investigation failed to contain information reaso nably available to the applicant regarding the 
existence of a financial contribution, a benefit, sp ecificity, injury and causation; and (b) there was not 
sufficient evidence in the appli cation to justify the initiation of an investigation.   
 
7. Article 11.3 of the SCM Agreement because China failed to review appropriately the 
accuracy and adequacy of the evid ence provided in the application. 
 8. Articles 12.3 and 12.4.1 of the SCM Agreement, because China failed to provide, or require 
the applicant to provide, adequate non-confidentia l summaries of allegedly confidential information. 
 9. Article 22.2(iii) of the SCM Agreement, b ecause China included in its countervailing duty 
investigation the American Recovery and Reinvestment Act of 2009  ("Recovery Act") and laws of the 
various US states dealing with the government purchase of goods.  
10. Articles 15.1, 15.2, 15.5, 12.8, of the SCM Agreement, and Articles 3.1, 3.2, 3.5, 6.9 and 12.2 
of the AD Agreement, because: (a) China's analysis of the effect of imports under investigation and 
alleged causal link was not based upon an objective examination on the basis of positive evidence; 
(b)  China failed to provide in sufficient detail th e findings and conclusions reached on all issues of 
fact and law it considered material; and (c) China failed to disclose the "essential facts" underlying its 
determinations. 
 11. Article 10 of the SCM Agreement as a conseque nce of the breaches of the SCM Agreement 
described above.  12. Article 1 of the AD Agreement as a conseque nce of the breaches of the AD Agreement 
described above. 
 13. Article VI of the GATT 1994. 
  China's measures also appear to nullify or impa ir the benefits accruing to the United States 
directly or indirectly under the cited agreements. 
  We look forward to receiving your reply to the present request and to fixing a mutually 
convenient date for consultations.  
__________