WTO Says US Broke Global Trade Rules With China

On Tuesday, the World Trade Organization (WTO) panel has stated that the US has violated the trade laws in 2018 while dealing with China.

In 2018, the trade war between the US and China has reached an uncompromising situation where two economic superpowers have imposed certain tariffs and bans on each other.

Curtain raising to the trade war, Donald Trump administration has imposed tariffs that violated the WTO rules as per the trade panel experts. The complaint was lodged by China against the US.

Also, read | China And The U.S “War of Sanctions” Begins

China in its complaint said that the tariffs violated several global rules which includes a provision that requires all WTO members to offer equal tariff rates among the trading partners in the body.

more than $360 billion worth of Chinese products got the imposition of tariffs as a result of the Trade war with the US.

The US response

A US Trade Representative, Robert Lighthizer stated

This panel report confirms what the Trump administration has been saying for four years: The WTO is completely inadequate to stop China’s harmful technology practices,

Although the panel did not dispute the extensive evidence submitted by the United States of intellectual property theft by China, its decision shows that the WTO provides no remedy for such misconduct.

The United States must be allowed to defend itself against unfair trade practices, and the Trump administration will not let China use the WTO to take advantage of American workers, businesses, farmers and ranchers,

Now what will happen

The Trump administration has now had 60 days of time to respond to China’s complaint. But the WTO panel was severely damaged by the US by not appointing members in the panel.

Also, there arises a legal limbo, if the US chooses to fight the WTO’s latest decision. As per the WTO decision, China may seek authorization to retaliate by imposing tariffs on US products in order to recover some of the losses.

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