U.S. tariffs on China ‘violate international rules’ first decision BY WTO

U.S. tariffs on China ‘violate international rules’ first decision WTO9/16 4:41

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The World Trade Organization (WTO) has ruled that sanctions imposed by the Trump administration in the United States to impose tariffs on imports from China violate international trade rules. This is the first time the WTO has made a decision on a series of trade frictions between the United States and China.
In 2018, the Trump administration in the United States imposed sanctions to impose a 25 percent tariff on imports from China under Section 301 of the Trade Act, claiming that China infringed intellectual property rights by unfairly handing over the high-tech technology of American companies.

In response, China filed a complaint with the WTO, an international organization responsible for resolving trade disputes, and a hearing was underway at a subcommittee meeting.

The WORLD Trade Organization (WTO) today confirmed China’s appeal in a subcommittee’s ruling report, revealing that it has indicated that U.S. sanctions violate international trade rules.

In its report, the WTO Subcommittee points out that the United States has not provide a good basis for the implementation of sanctions.

This is the first time the WTO has made a decision on a series of trade frictions between the Trump administration and China in the United States.

The WTO’s dispute resolution process is a two-judge system, so if there is an objection, it is expected to appeal, but the second senior committee is currently unable to secure the necessary number of members due to U.S. opposition and has been suspended.

The U.S. government has issued a statement condemning the WTO’s decision, but has not disclosed whether it will appeal.

U.S. “WTO has not taken steps to stop fraud”

The U.S. Trade Representative said in a statement today, “China’s decision not to challenge the theft of intellectual property rights indicates that the WTO has not taken steps to stop trade fraud. We should allow the Trump administration to protect itself from China’s unfair trade practices.”

The U.S. has opposed the U.S. tariff increase as legitimate, but has not disclosed whether it will appeal.

China praises judgment, U.S. respects

A spokesman for China’s Ministry of Commerce said in a statement, “We praise objective and fair judgment. I hope that the United States will fully respect the multilateral trading system based on this decision and rules.”