|
||
|
TWN
Info Service on WTO and Trade Issues (Jun25/07) Geneva, 6 Jun (D. Ravi Kanth) — China on 5 June blocked a first-time request by Canada for the establishment of a dispute panel at the World Trade Organization to examine the additional import duties imposed by China on certain Canadian agricultural and fishery products following a domestic “anti-discrimination investigation,” said people familiar with the development. At a special meeting of the WTO’s Dispute Settlement Body (DSB) on 5 June, Canada pressed ahead with its first request for the establishment of a dispute panel over what Canada claimed were allegedly illegal additional duties imposed by China, comprising a 100% tariff on Canadian canola seed oil, canola meal, and peas; and a 25% tariff on certain fish, seafood and pork products from Canada, which came into effect on 20 March 2025. At the DSB meeting, Canada maintained that Beijing unilaterally suspended concessions to Canada without first seeking recourse at the WTO or obtaining the authorization of the DSB. Canada said that consultations with China took place on 23 April without any amicable resolution of the matter. However, Canada said it remains open to continuing dialogue with China in a manner that will address Canada’s concerns so as to fully restore market access for Canadian agricultural, fish and seafood products in a timely fashion. Responding to Canada’s complaint, China expressed regret that Canada chose to request for the establishment of a panel. According to China, Canada imposed discriminatory and unilateral restrictions on Chinese products ranging from solar panels to electric vehicles, among others. The imposition of tariffs on certain Canadian products are legitimate measures taken in accordance with Chinese domestic law following a fair, impartial and transparent investigation process, China said. The DSB took note of the statements and agreed to revert to the matter should a requesting member wish to do so. Pursuant to the Dispute Settlement Understanding (DSU), the establishment of a panel will be automatic, if the panel request comes up again at the next meeting of the DSB. In its communication (WT/DS636/2) to the DSB, Canada said that its panel request “relates to additional duties announced by China on March 8, 2025, pursuant to an investigation under the Foreign Trade Law of the People’s Republic of China. That investigation, termed an “anti-discrimination investigation”, purported to determine that Canada was discriminating against Chinese products and recommended “counter-measures” in the form of additional import duties.” Canada said the additional duties imposed by China, which cover a range of agricultural and fishery products and impose an ad valorem import duty of 100% on some products and 25% on others, came into effect on March 20, 2025. Canada said that China’s anti-discrimination investigation and subsequent imposition of counter-measures on products from Canada “is a unilateral action that flies in the face of the well-established rules for resolving disputes under the multilateral trading system.” It said that “China’s decision to proceed unilaterally in this manner is in direct contravention of the fundamental obligation on WTO Members to seek recourse to the dispute settlement processes set out in the Understanding on the Settlement of Disputes (DSU) when seeking redress for alleged violations of the covered agreements.” “In addition,” according to Canada, “China’s unilateral actions have deprived the broader WTO Membership of any role in the dispute settlement process and stripped the Dispute Settlement Body of its crucial function of facilitating a satisfactory resolution of the dispute.” Canada said that it considers the measures at issue, operating separately or together, to be inconsistent with China’s obligations under: a. Article 23.1 of the DSU because China has failed to have recourse to, and abide by, the rules and procedures of the DSU, in a situation where it seeks redress of an alleged violation of obligations under a covered agreement; b. Article 23.2(a) of the DSU because China made a unilateral determination of a violation of WTO obligations by Canada, and imposed counter-measures in response to alleged discriminatory treatment by Canada without engaging the dispute settlement processes set out in the DSU and, consequently, in the absence of findings contained in an adopted panel report or arbitration award rendered under the DSU; c. Article 23.2(b) of the DSU, read in conjunction with Article 21 of the DSU, because by unilaterally suspending concessions against Canada, China failed to obtain the authorization of the DSB according to the procedures set out in Article 21.3 of the DSU; d. Article 23.2( c) of the DSU, read in conjunction with Article 22 of the DSU, because by unilaterally suspending concessions on a discriminatory basis against Canada, China failed to follow the procedures set forth in Article 22 of the DSU and to obtain DSB authorization in accordance with those procedures before suspending obligations under a covered agreement in response to the alleged failure of Canada to implement DSB recommendations and rulings; e. Article I:1 of the GATT 1994, because China has applied additional import duties on certain agricultural and fishery products originating in Canada that have not been levied on products originating in the territory of other WTO Members and has thereby failed to extend immediately and unconditionally to Canada any advantage, favour, 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, as well as with respect to the method of levying such duties and charges and the rules and formalities in connection with importation; f. Article II:1(a) of the GATT 1994 because the measures at issue fail to accord to the commerce of Canada treatment that is no less favourable than that provided in China’s Schedule of Concessions that is annexed to GATT 1994; g. Article II:1(b) of the GATT 1994 because China has imposed duties on imports of certain agricultural and fishery products in excess of the duties set forth and provided in China’s Schedule of Concessions and Commitments annexed to the GATT 1994, and has failed to exempt products of Canada subject to the measures at issue from ordinary customs duties in excess of those set forth and provided in China’s Schedule of Concessions and Commitments annexed to the GATT 1994 and from all other duties or charges in excess of those imposed on the date of the GATT 1994 or those directly and mandatorily required to be imposed thereafter by legislation in force in China on that date. +
|
||
