8.6 C
New York
Saturday, September 18, 2021
Home Business U.S. reacts angrily to losing WTO ruling on China tariffs

U.S. reacts angrily to losing WTO ruling on China tariffs


A World Trade Organization panel ruled Tuesday that Trump administration tariffs on $200 billion US worth of Chinese goods are illegal, vindicating Beijing even if the United States has all but incapacitated the WTO’s ability to hand down a final, binding verdict.

The decision marks the first time that the Geneva-based trade body has ruled against a series of high-profile tariffs that U.S.President Donald Trump’s government has imposed on a number of countries — allies and rivals alike. Trump has repeatedly claimed that the WTO treats the U.S. unfairly.

In its decision, the WTO’s dispute settlement body ruled against the U.S. government’s argument that China has wrongly engaged in practices harmful to U.S. interests on issues including intellectual property theft and technology transfer.

The ruling, in theory, would allow China to impose retaliatory tariffs on billions’ worth of U.S. goods.

But it is unlikely to have much practical impact, at least in the short term, because the U.S. can appeal the decision and the WTO’s appeals court is currently no longer functioning — largely because of Washington’s single-handed refusal to accept new members for it.

The appeals court issues final rulings in trade cases and stopped functioning last year when the terms of two of its last three judges expired with no replacements. That means the United States can appeal the decision “into the void,” said Timothy Keeler, a lawyer at Mayer Brown and former chief of staff for the U.S. Trade Representative.

“This panel report confirms what the Trump administration has been saying for four years: The WTO is completely inadequate to stop China’s harmful technology practices,” said U.S. trade representative Robert Lighthizer in a statement. He said the U.S. had presented “extensive evidence” of China’s intellectual property theft and the WTO has offered no fixes for it.

“The United States must be allowed to defend itself against unfair trade practices, and the Trump administration will not let China use the WTO to take advantage of American workers, businesses, farmers, and ranchers,” he said.

Abolish the WTO: Republican senator

Missouri Sen. Josh Hawley, one of the prominent China critics in the Republican Party, said it was “more evidence that the WTO is outdated, sclerotic, and generally bad for America. USA should withdraw and lead the effort to abolish it.”

The Chinese ministry of commerce said the ruling was “objective and fair” and called on the U.S. to respect it.

The U.S. tariffs target two batches of Chinese products. Duties of 10 per cent were imposed on some $200 billion worth of goods in September 2018, and were jacked up to 25 per cent eight months later. An additional 25 per cent duties were imposed in June 2018 against Chinese goods worth about $34 billion in annual trade.

The Trump administration has justified the sanctions under Section 301 of the Trade Act of 1974, once a common tool used by the U.S. government to impose sanctions — and recently revived by Trump. The U.S. argued that China’s actions had amounted to “state-sanctioned theft” and “misappropriation” of U.S. technology, intellectual property and commercial secrets.

The WTO panel ruled that the U.S. measures violated longstanding international trade rules because they only applied to products from China, and that Washington had not adequately substantiated its claim that the Chinese products hit with the extra duties had benefited from the allegedly unfair Chinese practices.



Source link

Today news
Today News 1 runs four of the western GTA’s most influential media websites, offering news, food, lifestyle and entertainment coverage for millions to the Golden Horseshoe and GTA regions. The independently-run, online news source was founded in 2019 and specializes in everything from breaking news to food and restaurant, arts and entertainment and lifestyle coverage.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Teetering property developer Evergrande sparks contagion fears for China’s economy

Property developer China Evergrande Group is teetering on the brink of collapse, weighed down by a giant debt load and billions of dollars...

Multimillionaire Robert Durst found guilty of murdering best friend

A California jury on Friday found multimillionaire real estate heir Robert Durst guilty of murdering his best friend Susan Berman in 2000, the...

France recalls ambassadors to U.S., Australia over submarine deal

France said late Friday it was immediately recalling its ambassadors to the U.S. and Australia after Australia scrapped a big French conventional submarine purchase...

P.K. Subban to produce new series Black Life: A Canadian History

Homegrown hockey star P.K. Subban says he hopes to educate audiences and spark conversation with the new docuseries, Black Life: A Canadian History....

Recent Comments