HomeEconomySteel and aluminum tariffs: Washington appeals WTO verdict

Steel and aluminum tariffs: Washington appeals WTO verdict

The World Trade Organization rejected the argument of the “national security” of the United States, considering that customs measures were not applied in wartime or in the event of serious international tension.

The United States on Friday appealed WTO rulings on punitive steel and aluminum tariffs it is imposing on four countries, including China. They also appealed another decision made at the World Trade Organization regarding “Made in Hong Kong.” In late December, the WTO’s Dispute Settlement Body (DSB) ruled that Washington was violating international trade rules by imposing the “made in China” label on products imported from Hong Kong, a move taken by the former Trump administration. These calls were announced at a meeting of the DSB.

Punitive tariffs imposed by the Trump administration on imports of steel and aluminum products from China, Norway, Switzerland and Turkey, were maintained by his successor Joe Biden. Washington imposes these additional customs duties based on section 232 which authorizes it to limit the importation of certain products to protect national security. Although the rules of international trade provide for “security exceptions”, the DSB considers it unjustified, in this case, to invoke national security because the US measures were not “applied in time of war or in the event of serious international tension”.

US taxes on Spanish olives discussed

National security is also at the center of the second case in which the United States appealed on Friday. On December 22, the WTO, of which Hong Kong and China are separate members, said the United States was violating international trade rules by imposing the “made in China” label on goods imported from the island.

The DSB had found that this difference in treatment “modified the conditions of competition” to the detriment of Hong Kong products, stressing that the United States had “failed to demonstrate that the situation at issue constituted a case of serious international tension.” In appealing these decisions, Washington froze its proceedings because the WTO’s appellate body has not been operational since Donald Trump blocked the appointment of judges, a blockade that Joe Biden has not ended.

US taxes on Spanish olives were also discussed on Friday. In November 2021, the WTO considered that they violated international trade rules and asked Washington to adapt its measures to its obligations. The United States assured on Friday that it was done, which the EU rejected.

Author: TT with AFP
Source: BFM TV

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