US seeks talks with China on steel dispute

The United States is seeking talks with China to solve a dispute the two nations are having over high-tech steel.

Reuters reports that on Monday the US challenged China’s claim that it has complied with World Trade Organization (WTO) rules regarding its placement of duties on imported US steel products.

China had claimed that the duties it has placed on grain oriented flat-rolled electrical steel (GOES) comply with WTO rules. However, US Trade Representative Michael Froman disputed this claim.

GOES is used in the cores of high-efficiency transformers, electric motors and generators.

“The WTO found that China’s duties are inconsistent with WTO rules. We were right, and China was wrong. Unfortunately, it appears that China has not corrected those inconsistencies,” Froman said in a statement.

As AFP reports, the dispute has some history. Back in September 2010, the US accused China of breaching trade rules by not providing sufficient evidence that antidumping duties were needed on US imports of the specialist steel.

In June 2012 the WTO ruled in favour of the US complaint. As a result, China pledged that it would comply with the ruling. Now, with the latest ruling, the WTO has agreed with the US and said that China has not complied.

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