China Can Impose $645 Million Retaliatory Tariffs On US Imports Annually, Says WTO – EQ Mag Pro
WTO issued a decision in the US-China dispute over subsidy duties, stating that Beijing can impose duties on $645 million worth of US imports annually.
The World Trade Organisation (WTO) on Wednesday issued a decision in the US-China dispute over subsidy duties, stating that Beijing can impose duties on $645 million worth of US imports annually. The WTO in Geneva said that China can retaliate against $645 million worth of annual American exports as part of a decade-old trade dispute over US anti-subsidy duties on Chinese goods. It added that the organisation has calculated the figure based on the parties’ agreement to use a “two-step Armington model”.
“We determine that the level of N/I of benefits accruing to China as a result of the WTO-inconsistent methodologies used by the United States in the CVD proceedings concerning products imported from China is USD 645.121 million per annum,” said the WTO arbitrator on Wednesday.
“Therefore, in accordance with Article 22 of the DSU, China may request authorization from the DSB (Dispute Settlement Body) to suspend concessions or other obligations at a level not exceeding USD 645.121 million per annum,” the decision added.
In light of the parties’ arguments and evidence in these proceedings, the WTO determined that the appropriate level of N/I is $645.121 million per annum, the organisation said. It added that the present arbitration proceedings arise in a dispute initiated by China against the US. WTO stated that challenged measures of the US relating to the imposition of countervailing duties on a range of Chinese products, and the investigations leading to the imposition of such duties. These measures were found to be WTO-inconsistent in the original and compliance proceedings, following which China requested the DSB authorisations to suspend concessions at an annual amount of $2.4 million, according to the WTO.
Now, following the WTO decision, Beijing may request formal WTO authorisation to retaliate against US goods and services, which could be granted as soon as next month. Washington, on the other hand, could attempt to head off China’s WTO-authorised tariffs. However, to do so, the US must revise its countervailing duties, which would increase competition for key US manufacturing sectors like steel and aluminium.
US ‘deeply disappointed’ over WTO’s decision
Meanwhile, after the WTO announced its decision, the US decried the move. A spokesman for the US Trade Representative, Adam Hodge, said in a statement that the decision made by the WTO is “deeply disappointing”. It “reflects erroneous Appellate Body interpretations that damage the ability of WTO members to defend our workers and businesses from China’s trade-distorting subsidies,” US Trade Representative, Adam Hodge, reportedly said.
In an emailed statement, Hodge stressed that the WTO’s decision “reinforces the need to reform WTO rules and dispute settlement, which have been used to shield China’s non-market economic practices and undermine fair, market-oriented competition,” according to Swissinfo.
Source: republicworld
