U.S. Requests Dispute Panel in WTO China Case

WASHINGTON — U.S. Trade Representative Michael Froman said Friday the World Trade Organization will establish a dispute settlement panel on April 22, at the request of the U.S., after consultations with China failed to resolve its concerns in a case targeting a broad Chinese export subsidy program encompassing seven sectors, including apparel, textiles and footwear. Froman said the U.S. held consultations with China on March 13 and April 1 and 2, but failed to reach a resolution in a broad WTO case the U.S. filed in February. The U.S. is challenging China’s “Demonstration Bases-Common Service Platform” export subsidy program which American officials claimed provided $1 billion over a three-year period to suppliers. These suppliers in turn gave discounted or free services to Chinese manufacturers that export in the sectors identified. The value of subsidies provided varied, but officials said there is evidence that certain “base enterprises” have received at least $635,000 worth of annual benefits. “This program appears to grant unfair, prohibited export subsidies to a large range of Chinese manufacturers and producers, from sectors like textiles to agriculture to chemicals to advanced materials and metals,” USTR said. Exports from the Demonstration Bases program comprise a “significant portion of China’s global exports,” U.S.

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