WTO panel to examine Japan-China steel duties dispute

The World Trade Organization said Friday its dispute settlement board had agreed to a request from Japan to create a panel to examine its dispute with China over steel duties.

Japan had requested for a panel to evaluate its complaint against China for imposing duties on steel tube imports, which Beijing claims were being sold at prices below market levels.

Japan charged that the duties violated international agreements, in the latest volley in a slew of trade rows between China and its key trade partners that have seen tit-for-tat duties put on a range of goods.

China announced the new duties -- ranging from 9.2 to 14.4 percent -- late last year on imports both from Japan and the European Union of steel tube mainly used in industrial boilers.

China meanwhile expressed disappointment Friday with Japan's request, insisting the imposed duties were in line with its obligations under global trade rules.

Beijing has insisted the duties are needed since it claimed the imports were being sold at below market prices and causing "substantive harm" to Chinese industry.

It launched a probe earlier this month into the alleged dumping.

China, the world's top exporter, is also at loggerheads with its main trade partners, Japan, the United States and the EU, over sales of automobiles, rare earth minerals and solar cells.

The WTO panel will have about six months to draft its report on the dispute.

Before requesting the panel, Japan had last December held bilateral consultations with China in a bid to settle their differences, which is always the first step towards settling international trade disputes.

When the consultations hit a wall, Tokyo moved on to the next step in the dispute settlement process by making two separate requests for a panel to look at the matter.

The countries are required to act in accordance with the panel's conclusions.