WTO Favours China Over the US in Tariffs Case

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WTO Favours China Over the US in Tariffs Case
Image by World Trade Organization on flickr

On Tuesday, the World Trade Organisation (WTO) braced a complaint made by China covering the US duties on some Chinese goods for about $250 billion, implying that the US has violated global trading rules on China by imposing multibillion-dollar tariffs.

The US is outraged by the WTO as it ruled in China’s favour. The US president, Donald Trump, commented that WTO’s biased decision has helped China to get away with murder. The US says that the tariffs taxed two years ago on Chinese goods for more than $200 billion did justify that China was stealing intellectual property and forcing US companies to give technology for access to China’s markets.

Robert Lighthizer, US Trade Representative, stated that WTO is not able to stop China’s dangerous technology practices. Trump’s administration has been saying the same for the past four years.

China’s Commerce Ministry supported and respected WTO rules and said that he is expecting the US to do the same on the multilateral trading system. 

The verdict will have some direct impact on the US tariffs and this is only the beginning of a legal process that will take ages to play out—eventually heading to the World Trade Organisation sanctioning retaliatory measures if it is upheld.

The United States is expected to appeal the ruling that happened on Tuesday that will put the case in a legal void. The US has now blocked the appointment of judges to the WTO’s appellate body, limiting it from assembling the least number needed to hear the case.

Before the signing of the ‘Phase 1’ trade deal between Washington and Beijing in January, there was a 2-year trade conflict going on where Donald Trump had warned tariffs on almost all Chinese imports( $500 billion). Additional tariffs are yet on the spot around $370 billion worth of goods, and duties($62.16 billion) have been obtained since July 2018.