WTO Rulings Means US Faces Chinese Sanctions Over Obama-Era Tariffs

19-Jul-2019 Intellasia | Forbes | 6:02 AM Print This Post

The US faces financial and trade penalties from China after the World Trade Organisation ruled in a long-running dispute that tariffs placed on $250 billion of Chinese goods like solar panels, steel pipes and lawn mowers, by President Barack Obama were unfair. The ruling which has been slammed by the Trump administration raises the stakes in the trade war between Beijing and Washington.

* China approached the WTO in 2012 to challenge US tariffs imposed on Chinese goods, including solar panels, which Washington claimed threatened American jobs and businesses because Beijing was subsidising businesses and state-owned companies..

* The WTO appellate bodypart of the organisation’s dispute settlement armagreed that while some Chinese goods were subsidised by the state, it found enough evidence to suggest that the U.S did not correctly calculate the impact of the government support.

* US trade representative hit back, accusing the WTO appellate body of undermining its own rules and saying it would work to ensure a “level playing field” and minimise harm to local businesses and jobs.

* The US has previously argued that Chinese state-owned enterprises receive preferential treatment through government subsidies, much to the chagrin of trade ministers in the U.S, as well as the E.U and Japan.

* It coincides with President Donald Trump announcing he could impose more tariffs on China “if we want”.

Chief Critic: In response to the findings, the US state representative said in a statement: “The WTO appellate report undermines WTO rules, making them less effective to counteract Chinese SOE subsidies that are harming US workers and businesses and distorting markets worldwide.”

It called into question the body’s working practices, and added that the ruling “ignores the findings of the World Bank, OECD working papers, economic surveys, and other objective evidence, all cited by the United States.”

Key Background: The latest developments are likely to escalate tension in the ongoing U.S- China trade war which has seen both sides impose retaliatory tariffs one one another.

https://www.forbes.com/sites/isabeltogoh/2019/07/17/wto-rulings-means-us-faces-chinese-sanctions-over-obama-era-tariffs/#7030717437bd

 


Category: China

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