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WTO agrees to set up an expert group to review US steel and aluminum tariff measures

Nov. 26, 2018

The World Trade Organization Dispute Settlement Body held a meeting on the 21st and agreed to the requirements of seven WTO members from China, the European Union, Canada, Mexico, Norway, Russia and Turkey to set up an expert group to review the steel and aluminum tariff measures announced by the United States in March this year to confirm Whether the measure violates WTO rules.


US President Trump announced on March 8 that due to the "national security" of imported steel and aluminum products, the United States will impose tariffs of 25% and 10% on imported steel and aluminum products, respectively. The Trump administration's tariff measures for steel and aluminum products in most economies came into effect on March 23, and tariff measures for steel, aluminum and aluminum products in the EU, Canada and Mexico came into effect on June 1.


At the meeting of the WTO Dispute Settlement Body held on October 29, the above seven members proposed that the US steel and aluminum tariff measures are essentially safeguard measures and require the establishment of an expert group to review whether this measure violates relevant WTO regulations. At the 21st meeting, they again filed this application and reiterated that the tariff measures adopted by the United States on the grounds of so-called "national security" are safeguards in terms of content and substance, and the purpose is to protect the US steel and aluminum industry. Free from the impact of imported products.


The Chinese representative said that the overwhelming majority of members of the WTO believe that the US steel and aluminum tariff measures are not in line with the core principles of the relevant WTO agreements. The Chinese side believes that this practice has had a serious systemic impact on the WTO.

The representative of Canada stressed that Canada’s claim that the export of steel and aluminum to the United States would pose a threat to US national security is “unbelievable” and members should be very cautious when invoking the WTO national security exception clause.


The representative of Norway stated that if the United States’ statement on the dangers of “national security” was accepted, it would make all WTO rules actually lose their enforcement power.


In addition, at this meeting, India and Switzerland also submitted a request for the establishment of an expert group to the WTO for the first time for the US steel and aluminum tariff measures.


According to the WTO rules, after a trade dispute between members, a request for consultation may be filed with the WTO Dispute Settlement Body. If the relevant members cannot reach an agreement during the consultation period, members may request the establishment of an expert group to decide the dispute.


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