WTO finds U.S. tariffs on China breach trading rules

US tariffs on China are illegal says world trade body

US tariffs on China are illegal says world trade body

The Trump administration's 2018 tariffs on Chinese goods violated an global trade treaty, the World Trade Organization has ruled, finding in China's favor.

China also alleged the duties broke a key dispute-settlement rule that requires countries to first seek recourse from the WTO before imposing retaliatory measures against another country.

Trump has repeatedly criticized the WTO, which oversees worldwide disputes on trade, for allegedly treating the US unfairly. The Trump administration has claimed the USA tariffs were necessary to confront China's widespread violations of intellectual property rights and forced technology transfer policies on the part of China.

The panel added that it had only looked into the US measures and not China's retaliation, which Washington has not challenged at the WTO. But it is unlikely to have much practical impact, at least in the short term, because the USA can appeal the decision and the WTO's appeals court is now no longer functioning - largely because of Washington's single-handed refusal to accept new members for it.

A panel of three WTO trade experts said in its report "that the United States had not met its burden of demonstrating that the measures are provisionally justified".

Kohli 'leading by example' as Bangalore seek IPL turn
The IPL 2020 is slated to be played from September 19-November 10 in the UAE across three venues - Dubai , Abu Dhabi, and Sharjah. You will be playing in Dubai and Abu Dhabi which probably have bigger grounds, wickets are not as flat as Chinnaswamy.

The appeals court issues final rulings in trade cases and stopped functioning a year ago when the terms of two of its last three judges expired with no replacements.

Mr Lighthizer said the WTO verdict would have "no effect on the. agreement between the United States and China, which includes new, enforceable commitments by China to prevent the theft of American technology".

The three-person panel affirmed the tariffs, which Washington has broadened to cover $550 billion in Chinese exports, violated two GATT provisions and stated that the U.S. has not justified their necessity under a third provision.

The dispute centers on the Trump administration's use of a 1970s-era U.S. trade law to unilaterally launch its commercial conflict against China in 2018.

China's Ministry of Commerce hailed the decision, expressing hope that the United States would "respect the rulings of the WTO" and "take practical actions" to bring its policies into line with the ruling. Duties of 10% were imposed on some $200 billion worth of goods in September 2018, and were jacked up to 25% eight months later. The US can appeal the decision at any time within 60 days, an act which would essentially veto it, since Washington has hamstrung the WTO's appellate department by refusing to appoint a representative to it.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.