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Email Content: Poultry Industry News, Comments and more by Simon M. Shane

China Complains to WTO over U.S. Tariffs


On Monday September 2nd China registered the third in a series of complaints with the WTO alleging unfair imposition of tariffs by the U.S. contrary to WTO rules.  The Ministry of Commerce of China maintains $300 billion of exports to the U.S. are affected


On Friday August 30th the U.S. responded to the first WTO complaint in a submission that justified imposition of tariffs as a “measure necessary to protect public morals”.  This clause has been used with respect to restrictions on gambling but is questionable to justify allegations of intellectual property theft, coercive trade practices or subsidies to state-run enterprises.  The U.S. maintains that China has failed to address the structural problems raised in negotiations. The U.S. maintains that China has simply responded to U.S. tariffs with retaliatory measures including increased tariffs on oil and other products and an outright ban on agricultural commodities from the U.S. effective August 4th.


According to WTO rules the parties in a dispute have sixty days to negotiate a settlement.  If a complaint is eventually considered by a series of panels the process could take years.  At the G-7 Summit in August, participants considered an overhaul of WTO rules and procedures to expedite the resolution of disputes. The previously proposed September bilateral meetings between China and the U.S. to resolve the trade war will now take place in October. A delay in resolution of the trade dispute is affecting the industrial output and economy of both nations.

Copyright 2019 Simon M. Shane