China challenge EU anti-dumping duty on fasteners

The European Commission initiated an anti-dumping probe into Chinese made screws and bolts in November 2007 and imposed an anti dumping duty of 87% for 5 years at the beginning of the year. China sought consultations with the EU on the issue in July but discussions failed to lead to any kind of resolution of the matter. As a result, China has since called on the WTO to set up a panel of experts to rule on the case urging the EU to, 'promptly withdraw rules and measures', that have been imposed, and 'cease the disturbance to Sino-EC trade and impairment of China's interests'. The EU, which did not try to block the establishment of the panel, said its anti dumping measures were about "fighting unfair trade" and were not protectionist in nature. China is the world's biggest producer of screws, nuts, bolts and washers, and the EU is its biggest market importing €575million worth of Chinese fasteners in 2007. EU-China trade has exploded in recent years, making the EU the top destination for Chinese exports while China is Europe's biggest trade partner after the United States. Joining the case as third parties were Canada, the United States, Taiwan, India and Japan. Trade disputes handled through the Dispute Settlement Body, the internal legal system of the WTO, can take years to reach a resolution.