2023-08-16 20:31:38
The World Trade Organization considers that the additional tariffs imposed in 2018 by China on imports from the United States in response to those previously applied by this country on Chinese aluminum and steel are “inconsistent” with the General Agreement on 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 “into conformity” with its obligations under the GATT 1994.
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 by applying additional tariffs 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, assuring that national security issues cannot be examined in the WTO dispute mechanism.
In a statement, the Office of the US Trade Representative welcomed the WTO panel report that China illegally retaliated.
“China’s decision to continue with this dispute highlights its hypocrisy in suing the United States in the WTO and at the same time retaliating unilaterally with tariffs,” he says, 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.
For its part, China’s Ministry of Commerce has “taken note” of the WTO experts’ report and is studying its content.
A spokesman for the Ministry has insisted that the root of the problem in this case lies in the “unilateralism and protectionism of the United States”, defending the conformity with the legality of the adoption of countermeasures by China to safeguard its rights and legitimate interests.
“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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