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Customs &
Trade News


July 18, 2018

United States initiates five WTO complaints over retaliatory duties on U.S. products

The United States has requested World Trade Organization (WTO) dispute consultations with Canada, China, the European Union (EU), Mexico and Turkey regarding additional duties imposed by the five WTO members on imports of certain U.S. products.

The duties were imposed in response to the additional duties imposed by the United States on steel and aluminium products.

The United States claims the actions by the five WTO members are inconsistent with provisions of the WTO's General Agreement on Tariffs and Trade (GATT) 1994.

A request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation.

After 60 days, if consultations have failed to resolve the dispute, the complainant may request that the WTO establish a dispute settlement panel to examine the matter.

Canada's retaliatory tariffs, effective July 1, 2018, impose 10 to 25 percent duties on $12.7 billion in U.S. imports.

China's retaliatory tariffs, effective April 2, 2018, impose 15 to 25 percent additional duties on $3.0 billion in U.S. imports.

The EU's retaliatory tariffs are effective in two tiers. The first tier, effective June 22, 2018, imposes 10 to 25 percent additional duties on $3.2 billion in U.S. imports. Tier 2 is not effective until June 1, 2021. In tier 2, the EU will be imposing 10 to 50 percent additional duties on $4.2 billion in U.S. imports.

Mexico's retaliatory tariffs went into effect in two tranches, on June 5, 2018 and July 5, 2018. In total, Mexico is imposing 7 to 25 percent duties on $3.6 billion in U.S. imports.

Turkey's retaliatory tariffs, effective June 21, 2018, impose 4 to 70 percent additional duties on $1.8 billion in U.S. imports.


 

Transport &
Trade News