UNITED STATES – PRELIMINARY ANTI-DUMPING AND COUNTERVAILING DUTY DETERMINATIONS ON COATED FREE SHEET PAPER FROM CHINA
Document: Request for Consultations by China
Date: 18 September 2007
Document codes: WT/DS368/1; G/L/826; G/SCM/D77/1; G/ADP/D72/1
Complainant: China
Respondent: U.S.
Dispute stage: Consultation
Agreements cited: Art. 1, 2, 7, 9, 18  Anti-dumpingArt. VI  GATT 1994Art. 1, 2, 10, 14, 17, 32  Subsidies and Countervailing Measures (SCM)

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 Preliminary 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

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 the 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 convenient date for consultations.