On July 14, 2014, the Office of the U.S. Trade Representative (USTR) issued a press release announcing that the World Trade Organization (WTO) rejected numerous challenges by India against U.S. countervailing duties on certain steel products from India, but also ruled in favor of India on several claims.

The release explains that, “India alleged that several U.S. laws and regulations governing countervailing duty investigations, as well as specific countervailing duty measures imposed on imports of certain hot-rolled carbon steel flat products from India, were inconsistent with provisions of the Agreement on Subsidies and Countervailing Measure (“SCM Agreement”) and the General Agreement on Tariffs and Trade 1994 (“GATT 1994”).   The United States has had countervailing duty measures in place for these products since 2001. “

Among other things, the WTO rejected India’s challenges on the following:

• Commerce’s benchmark regulations, which Commerce uses to determine whether a subsidy has conferred a benefit.
• The U.S. statute and regulations allowing for the use of “facts available” in instances where responding companies fail to cooperate with an investigation violates Article 12 of the SCM Agreement.
• Commerce’s determination that the Government of India had provided goods through the grant of mining rights for iron ore and coal.
• The calculation of the benchmark and determination of benefit in connection with captive mining rights.

The WTO ruled in favor of India concerning high grade iron ore and determined that the Department of Commerce failed to consider relevant domestic price evidence.

The press release can be accessed here