Canada requests WTO consultations with China over cellulose pulp duties

Canada requested consultations under the disputed settlement provisions of the World Trade Organization (WTO) with China with respect to the latter's anti-dumping duties on imports of cellulose pulp from Canada, said the world trade watchdog on Wednesday.

According to WTO, Canada claimed that the preliminary and final duty measures imposed on the goods in issue by China respectively in November 2013 and April 2014 "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."

China's Ministry of Commerce (MOC) launched an anti-dumping probe into cellulose pulp originating in the United States, Canada and Brazil in February last year.

MOC noted in its preliminary ruling in November last year that the product under investigation was involved in dumping, and decided to carry out a provisional anti-dumping measure via levy of a security deposit.

In its final rulings announced in April this year, the Chinese ministry concluded that it will impose anti-dumping duties on cellulose pulp imported from the United States, Canada and Brazil, and that the duties would last for five years.

The ministry said that companies from the above-mentioned countries have dumped cellulose pulp on the Chinese market and such imports have caused substantial damage to the domestic industry, and there was causality between the dumping and damage.

Cellulose pulp, made from plant fiber, is used as a raw material in the production of viscose and acetate fiber.

Request for consultations is the first step in a dispute under the dispute settlement system of the WTO.

Response to the request has to be given within 10 days and the member requested shall enter into consultations within a maximum of 30 days after the date of the receipt of the request. The maximum period of consultations is 60 days after the reception of the request.