12 Sep 2018 15:40 IST

China asks for WTO authorisation to impose sanctions on US goods

In 2016, it had won a dispute on methodologies applied by the US during its anti-dumping proceedings

China has asked for the authorisation from the World Trade Organisation (WTO) to impose an annual trade sanction of $7 billion on US goods, as a result of the failure of the US to comply with a WTO’s ruling, documents published on Tuesday by the WTO revealed.

A document circulated to all WTO members said China requests authorisation from WTO’s Dispute Settlement Body (DSB) to “suspend concessions or other obligations” with respect to the US “at a level equivalent to the nullification or impairment suffered”, due to the failure of the US to comply with the recommendations and rulings of the DSB.

The level of nullification or impairment totals approximately $7.043 billion annually, Xinhua reported.

China won a WTO ruling in 2016 in a dispute on certain methodologies applied by the US during its anti-dumping proceedings.

The ruling was later confirmed by an appeal last year. However, China considers that “no substantive effort and progress has been made” by the US to fulfil its implementation obligation.