TWN
Info Service on WTO and Trade Issues (Jul18/18)
24 July 2018
Third World Network
US initiates disputes against five nations over retaliatory tariffs
Published in SUNS #8727 dated 23 July 2018
Geneva, 20 Jul (Kanaga Raja) - The United States has initiated disputes
against Canada, China, the European Union, Mexico and Turkey at the
World Trade Organisation over the additional duties imposed by these
five WTO Members on imports of certain products from the United States.
In initiating these disputes, the United States has sought consultations
with these five WTO Members, the first step in the formal dispute
settlement process at the WTO.
Canada, China, the European Union, Mexico and Turkey had imposed these
additional duties in response to the additional duties that the United
States had imposed under Section 232 of its trade law (national security
reasons) on imports of steel and aluminium products from these Members.
The requests for consultations by the United States with these five
WTO Members were circulated to all WTO Members on 19 July. If the
consultations fail to settle the dispute within 60 days after the
date of receipt of the request for consultations, the complaining
party may request the establishment of a panel.
The establishment of a panel may also be requested by a complaining
party during the 60-day period if the consulting parties jointly consider
that the consultations have failed to settle the dispute.
In its request for consultations with Canada (WT/DS557/1), the United
States said Canada's additional duties measure does not impose the
increased duties on like products originating in the territory of
any other WTO Member, and thus appears inconsistent with the most-favored-nation
obligation in Article I of the GATT 1994.
The additional duties measure results in rates of duty greater than
rates of duty set out in Canada's schedule of concessions, and thus
appears inconsistent with Article II of the GATT 1994.
The legal instruments through which Canada imposes the additional
duties measure include the following, operating separately or collectively:
* Customs Notice 18-08 Surtaxes Imposed on Certain Products Originating
in the United States, Canada Border Services Agency, June 29, 2018;
* Countermeasures in Response to Unjustified Tariffs on Canadian Steel
and Aluminum Products, Department of Finance Canada Press Release,
June 29, 2018;
* Notice of Intent to Impose Countermeasures Action against the United
States in Response to Tariffs on Canadian Steel and Aluminum Products,
Department of Finance Canada Press Release, issued May 31, 2018.
According to the United States, the additional duties measure appears
to be inconsistent with:
* Article I:1 of the GATT 1994, because it fails to extend to products
of the United States an advantage, favor, privilege or immunity granted
by Canada with respect to customs duties and charges of any kind imposed
on or in connection with the importation of products originating in
the territory of other Members; and
* Article II:1(a) and (b) of the GATT 1994, because it accords less
favorable treatment to products originating in the United States than
that provided for in Canada's schedule of concessions.
The additional duties measure appears to nullify or impair the benefits
accruing to the United States directly or indirectly under the GATT
1994, said the United States.
In its request for consultations with China (WT/DS558/1), the United
States said that China's additional duties measure does not impose
the additional duties on like products originating in the territory
of any other WTO Member, and thus appears inconsistent with the most-favored-nation
obligation in Article I of the GATT 1994.
The additional duties measure results in rates of duty greater than
rates of duty set out in China's schedule of concessions, and thus
appears inconsistent with Article II of the GATT 1994.
The legal instruments through which China imposes the additional duties
measure include the following, operating separately or collectively:
* Ministry of Commerce Notice on Publicly Soliciting Opinions on US
Imported Steel and Aluminum Products 232 Measures and Chinese Countermeasures
(Ministry of Commerce, published March 23, 2018);
* State Council Customs Tariff Commission Notice on Suspension of
Tariff Concession Obligations on Some Imported Products Originating
from the United States (State Council Customs Tariff Commission, Shui
Wei Hui [2018] No. 13 , issued April 1, 2018, effective April 2, 2018).
According to the United States, the additional duties measure appears
to be inconsistent with:
* Article I:1 of the GATT 1994, because it fails to extend to products
of the United States an advantage, favor, privilege or immunity granted
by China with respect to customs duties and charges of any kind imposed
on or in connection with the importation of products originating in
the territory of other Members; and
* Article II:1(a) and (b) of the GATT 1994 because it accords less
favorable treatment to products originating in the United States than
that provided for in China's schedule of concessions.
The additional duties measure appears to nullify or impair the benefits
accruing to the United States directly or indirectly under the GATT
1994.
In its request for consultations with the European Union (WT/DS559/1),
the United States said the European Union's additional duties measure
does not impose the additional duties on like products originating
in the territory of any other WTO Member, and thus appears inconsistent
with the most-favored-nation obligation in Article I of the GATT 1994.
The additional duties measure results in rates of duty greater than
rates of duty set out in the European Union's schedule of concessions,
and thus appears inconsistent with Article II of the GATT 1994.
The legal instruments through which the European Union imposes the
addition al duties measure include the following, operating separately
or collectively:
* Commission Implementing Regulation (EU) 2018/886 of 20 June 2018
on certain commercial policy measures concerning certain products
originating in the United States of America and amending Implementing
Regulation (EU) 2018/724 , Official Journal of the European Union,
June 21, 2018;
* Commission Implementing Regulation (EU) 2018/724 of 16 May 2018
on certain commercial policy measures concerning certain products
originating in the United States of America, Official Journal of the
European Union, May 17, 2018.
According to the United States, the additional duties measure appears
to be inconsistent with:
* Article I:1 of the GATT 1994, because it fails to extend to products
of the United States an advantage, favor, privilege or immunity granted
by the European Union with respect to customs duties and charges of
any kind imposed on or in connection with the importation of products
originating in the territory of other Members; and
* Article II:1(a) and (b) of the GATT 1994 because it accords less
favorable treatment to products originating in the United States than
that provided for in the European Union's schedule of concessions.
The additional duties measure appears to nullify or impair the benefits
accruing to the United States directly or indirectly under the GATT
1994.
In its request for consultations with Mexico (WT/DS560/1), the United
States said Mexico's additional duties measure does not impose the
increased duties on like products originating in the territory of
any other WTO Member, and thus appears inconsistent with the most-favored-nation
obligation in Article I of the GATT 1994.
The legal instruments through which Mexico imposes the additional
duties measure include the following:
* Decree Modifying the Tariff Schedule of the Law of General Import
and Export Taxes, the Decree establishing the General Import Tax Rate
applicable during 2003 for goods originating in North America, and
the Decree establishing Various Sectoral Promotion Programs (enacted
June 5, 2018; effective June 5, 2018).
The additional duties measure appears to be inconsistent with Article
I:1 of the GATT 1994, because it fails to extend to products of the
United States an advantage, favor, privilege or immunity granted by
Mexico with respect to customs duties and charges of any kind imposed
on or in connection with the importation of products originating in
the territory of other Members.
The additional duties measure appears to nullify or impair the benefits
accruing to the United States directly or indirectly under the GATT
1994, said the United States.
In its request for consultations with Turkey (WT/DS561/1), the United
States said Turkey's additional duties measure does not impose the
additional duties on like products originating in the territory of
any other WTO Member, and thus appears inconsistent with the most-favored-nation
obligation in Article I of the GATT 1994.
The additional duties measure results in rates of duty greater than
rates of duty set out in Turkey's schedule of concessions, and thus
appears inconsistent with Article II of the GATT 1994.
The legal instruments through which Turkey imposes the additional
duties measure include the following:
* Decision on Implementation of Additional Financial Obligations for
the Import of Certain Products Originating in the United States of
America, Council of Ministers Decision No. 11973/2018, Official Gazette
No. 30459, June 25, 2018.
According to the United States, the additional duties measure appears
to be inconsistent with:
* Article I:1 of the GATT 1994, because it fails to extend to products
of the United States an advantage, favor, privilege or immunity granted
by Turkey with respect to customs duties and charges of any kind imposed
on or in connection with the importation of products originating in
the territory of other Members; and
* Article II:1(a) and (b) of the GATT 1994, because it accords less
favorable treatment to products originating in the United States than
that provided for in Turkey's schedule of concessions.
The additional duties measure appears to nullify or impair the benefits
accruing to the United States directly or indirectly under the GATT
1994, it said.
