China Takes Trump Tariffs to WTO

China has requested WTO dispute consultations with the United States in regard to new tariff measures applied by the United States on goods originating in China. The request was circulated to WTO members on 5 February.

China claims that the 10 per cent additional ad valorem duties applied on all goods originating in China, as well as measures with respect to the availability of drawback and duty-free de minimis treatment, which apply to all products of Chinese origin, are inconsistent with US most-favoured-nation obligations under Article I:1 of the General Agreement on Tariffs and Trade (GATT) 1994 and US tariff obligations under Article II:1(a) of GATT 1994.

In part the complaint states "The measures at issue, including the 10% additional tariffs, as well as the measures with respect to the availability of drawback and duty-free de minimis treatment, as provided in Section 2(f) and 2(g) of the Executive Order, respectively, which are imposed on the basis of unfounded and false allegations concerning China, apply only to all products of Chinese origin.

"Furthermore, the 10% additional tariffs imposed are in excess of the United States' bound rates in its Schedule of Concessions and Commitments annexed to the GATT 1994. The measures at issue not only violate WTO rules, but are discriminatory and protectionist in nature."

Further information is available in document WT/DS633/1

The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.