2023-08-16 19:55:35
The World Trade Organization (WTO) considers that the additional tariffs imposed in 2018 by China on imports from the United States in response to those previously applied by then-President Donald Trump on Chinese aluminum and steel are “incompatible” with the Agreement Agreement on Customs Tariffs and Trade (GATT) of 1994.
In its conclusions, the WTO panel of experts notes that, to the extent that China’s additional duty measure is inconsistent with certain provisions of the GATT 1994, it “has nullified or impaired benefits accruing to the United States from said Agreement”. Thus, it recommends that China bring its WTO-inconsistent measure “in conformity” with its obligations under the GATT 1994.
tariff war
The dispute between the two powers dates back to the decision of the Trump Administration to impose tariffs of 25% on steel imports and 10% on aluminum imports, after which China responded with the application of additional fees of between 15% and 25% to certain imports originating in the United States.
In December 2022, another WTO panel ruled against the tariffs applied by the United States to imports of steel and aluminum products, although then the Biden Administration rejected the ruling, ensuring that national security issues cannot be examined in the dispute mechanism of the WTO. Now, the multilateral body has ruled against China.
US denounces China’s “hypocrisy”
In a statement, the Office of the United States Trade Representative welcomed the WTO panel report Wednesday that China illegally retaliated. “China’s decision to pursue this dispute highlights its hypocrisy by suing the United States in the WTO and at the same time retaliating unilaterally with tariffs,” he says while accusing the Asian giant of having caused serious systemic damage to the WTO.
Likewise, the United States has condemned China’s refusal to correct its severe and persistent excess non-commercial steel and aluminum capacity, which is at the center of a global crisis that led to the national security actions taken, adding that the Biden Administration is committed to defending American workers.
China criticizes US “protectionism”
For its part, China’s Ministry of Commerce has “taken note” of the WTO experts’ report and is studying its content. A Ministry spokesman has insisted that the root of the problem in this case lies in the “US unilateralism and protectionism“, defended the conformity with the legality of the adoption of countermeasures by China to safeguard its legitimate rights and interests.
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“In December 2022, the WTO ruled that the US measures violated WTO rules. However, the United States insisted on going its own way (…) evading its implementation obligations and refusing to cancel the illegal tariff measures” , has remembered.
Thus, China has demanded that the United States immediately cancel measures imposed on steel and aluminum imports that violate WTO rules, and meet with other WTO members to collaborate on a multilateral trading system based on in standards.
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