2023-08-17 04:53:26
The World Trade Organization (WTO) has ruled that China’s tariffs on billions of dollars worth of US imports violate international trade rules. The WTO dispute settlement body ruled on Wednesday that China’s “additional tariff measures” are inconsistent with several articles of the General Agreement on Tariffs and Trade (GATT). Beijing said it would review the verdict, and the US welcomed the decision.
China imposed tariffs on certain US imports in April 2018 in retaliation for US tariffs on steel and aluminum imports. Imports worth US$ 3 billion were affected. It involved 128 US products, including fruit and pork.
Washington welcomed the WTO body’s decision. Sam Michel, a spokesman for US Trade Representative Katherine Tai, said the ruling confirmed that China “illegally retaliated with alleged ‘protective tariffs’.”
China had imposed the tariffs shortly after US President Donald Trump had introduced tariffs on steel and aluminum imports from China in 2018, but also from the European Union, Norway, Switzerland and Turkey, among others. This was justified with a danger to national security due to the USA being too dependent on such imports.
The government of Trump’s successor, Joe Biden, reached an agreement with the EU in 2021 to eliminate tariffs while other countries remained in place. Several states have filed suit.
The dispute settlement body of the WTO decided last year that the US tariffs also violated several provisions of the GATT. The panel also noted that the tariffs were not justified by the security exceptions provided for in the agreement, as they were not imposed in times of war or serious international tensions. Washington appealed the decision.
In Wednesday’s decision, the WTO body did not elaborate on whether Washington had the right to invoke national security when imposing its own tariffs. However, it was recognized that the US tariffs were introduced with such goals in mind – and not as so-called safeguard measures to protect domestic industry.
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