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The World Trade Organization (WTO) ruled that the imposition of tariffs by the United States on Chinese products in 2018, a prelude to the trade war, was “inconsistent” with national trade rules. Health.
The WTO said the United States did not provide evidence to back up what it said China had unfairly stolen technology and had state subsidies, reasons why the tariffs were satisfactory.
Chinese officials welcomed the verdict.
However, the United States says the ruling shows that the WTO is “completely inadequate” for the role of confronting China.
Ambassador Robert Lighthizer, America’s top trade negotiator, said the United States “must be protected against unfair trade practices.”
“This commission’s report confirms what the Trump administration has been saying for the past four years: The WTO is completely inadequate to stop China’s harmful tech activities,” he said.
“The Commission does not question the proven evidence presented by the United States on the theft of China’s intellectual property, but its decision shows that the WTO does not offer remedial measures for the behavior. That is wrong.”
Trade war between the United States and China
China brought the case to the WTO in 2018, when the Trump administration began preparing for the first round of tariffs on items that would later count at more than $ 300 billion in total.
China complained about the tariffs, in effect in June and September 2018, on goods worth more than $ 200 billion in annual trade.
The United States says the tariff is a response to China’s theft of technology, subsidies and other “unfair business practices,” and that it is legal under trade rules. the trade dates back to the 1970s.
However, China says these taxes violate trade rules, because they are higher than the commitments made by the United States and are directed at a single country.
The WTO committee of experts agreed with China’s argument. The committee added that the United States did not demonstrate that such a tax was ethically appropriate, because it did not show how the taxed products benefited from business operations. trade is not fair.
“Consequently, the Commission found that the United States failed to demonstrate that the application of such measures was adequate,” the Commission said.
‘Global trade tensions at an unprecedented level’
The Commission added that it only considers the US measures without taking into account Chinese retaliation, which Washington has not appealed to the WTO.
Noting that these were “unprecedented global trade tensions”, the three-person commission encouraged the two sides to work together to find a solution to the dispute.
In a statement released on Tuesday, China’s Ministry of Commerce said it hopes the United States will respect the WTO ruling and take practical steps to maintain bilateral trade.
The Trump administration, which has repeatedly criticized the WTO, is likely to appeal.
However, the case could fall into legal paralysis, as Washington blocked appointments of superior court judges, leaving the court without the minimum number of members to consider the claims.
