Canadian Manufacturing

Canada files dispute against China over anti-dumping measures

Complaint filed with WTO over anti-dumping measures implemented by China for cellulose pulp



GENEVA—Canada has filed a dispute against China over anti-dumping measures the Asian nation has implemented on cellulose pulp.

According to the World Trade Organization (WTO), federal officials notified the international body governing trade this week of a request for consultations with China over anti-dumping duties levies on imports of cellulose pulp from Canada.

The request for consultations formally initiates a dispute with the WTO.

According to Canada, the preliminary and final duty measures, announced in November 2013 and April 2014, respectively, “appear to be inconsistent with China’s obligations under various provisions of the Anti-Dumping Agreement and the General Agreement on Tariffs and Trade (GATT) 1994.

Montreal-based forest products producer Tembec Inc. issued a release Oct. 15 requesting Trade Minister Ed Fast “enter into … discussions” with the WTO to resolve the issue with China.

Ottawa filed its dispute the same day, according to the WTO, though there was no indication it was as a result of Tembec’s claim.

The duties imposed by China on cellulose pulp from Canada and other nations “negatively impact Tembec’s operations and customers” as the company relies “on market access to China for sale of viscose staple fibre.

“Rayon viscose, the first man-made natural filament yarn and staple fiber is used in apparel, domestic textiles and automotive applications.”

Consultations through the WTO give Canada and China an opportunity to discuss the matter in hopes of finding a solution without further litigation.

If consultations have failed to resolve the dispute after 60 days, the complainant may request adjudication by a panel, according to the WTO.

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