Daily Management Review

China Asks Permission Form WTO To Impose $2.4 Billion In Tariffs Against US


China Asks Permission Form WTO To Impose $2.4 Billion In Tariffs Against US
China has appealed to the World Trade Organization (WTO) to seek an approval to impose tariffs on $2.4 billion on United States imports into the country in retaliation for Washington not complying to an order from the WTO that was passed by it during the presidency of Barak Obama, showed a document that was published in the media recently.
The United States did not completely comply with a WTO ruling, said the global trade regulatory body, and that non-compliance could allow China to impose sanctions on it if the US failed to remove certain tariffs that were imposed in violations to WTO rules.
In mid-August, China was effectively given the green signal for to seek compensatory sanctions against the US by WTO’s Dispute Settlement Body. In response to the verdict, the US had disclaimed the ruling of the WTO claiming the it did not see any validity in the findings of the WTO and had said that the judges had applied “the wrong legal interpretation in this dispute”.
The U.S. delegation said that the “serial offender” of the WTO’s subsidies agreement was China.  There were no immediate comments available in the media over the latest appeal by China.
“In response to the United States’ continued non-compliance with the (WTO Dispute Settlement Body’s) recommendations and rulings, China requests authorization from the DSB to suspend concessions and related obligations at an annual amount of $2.4 billion,” said China to the WTO in its request as posted by the WTO.
The WTO posting said that the DSB recommendations and rulings had not been complied with by the United States within the time frame that had been agreed upon by all parties and that none of the parties had come to any agreement on compensation.
Anti-subsidy tariffs, known as countervailing duties, that were imposed by the US against Chinese exports were challenged by Beijing at the WTO in 2012. The Chinese products that the US had targeted then included solar panels, wind towers, steel cylinders and aluminium extrusions which, according to the WTO case, was valued at a total of $7.3 billion at the time of the imposition of tariffs. .
The US had imposed the tariffs based on the outcome 17 investigations that had been conducted by the U.S. Department of Commerce between 2007 and 2012.
According to the WTO ruling, the global trade redress forum had acknowledged that Washington had then been able to effectively prove that state-owned enterprises (SOEs) were used by China to subsidise and distort its economy, said the office of U.S. Trade Representative (USTR) Robert Lighthizer.
But Chinese prices to measure subsidies must be accepted by the United States, the ruling had also said. The USTR had viewed those prices as “distorted”.
Currently the US and China are locked in a tit for tat tariff trade war for almost a year and a half now. China’s “serious commitment” to purchase more of US agricultural goods worth up to $50 billion, promised by China as a part of the phase 1 of the trade agreement between the two parties, will be dependent on private companies and market conditions, said White House economic adviser Larry Kudlow on Thursday.