The United States on Monday launched separate disputes at the World Trade Organization against China, the European Union, Canada, Mexico and Turkey. US Trade Representative said in a statement said “The US steel and aluminum duties imposed by President Trump earlier this year are justified under international agreements the United States and its trading partners have approved. However, retaliatory duties on US exports imposed by China, the EU, Canada, Mexico and Turkey are completely without justification under international rules.”
US Trade Rep. Robert Lighthizer said their retaliation violates the rules of the Geneva-based WTO, which mediates trade disputes. He said “Instead of working with us to address a common problem, some of our trading partners have elected to respond with retaliatory tariffs designed to punish American workers, farmers and companies.”
If the WTO agrees that the retaliatory duties violate its rules, it would assess the damage and calculate the tariffs that the United States would be entitled to impose in response — retaliation for the retaliation. But WTO proceedings can drag on for years.
The United States has imposed tariffs of 25 percent on steel and 10 percent on aluminum on the grounds that the imported metals pose a threat to U.S. national security. China, the EU, Canada, Mexico and Turkey have counterpunched with taxes on more than USD 24 billion worth of US exports.
Source : STRATEGIC RESEARCH INSTITUTE, STEELGURU
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