The World Trade Organisation (WTO) has ruled that China violated trade concessions it made in joining the UN body when it imposed tariffs on US products.
The ruling is in reference to Beijing imposing tariffs worth $2.4 billion on US imports in retaliation to President Donald Trump’s steel and aluminium duties imposed when he was still in office.
It's ruling by a panel of three experts, published on August 16, meant the WTO agreed with Washington’s claims that China’s tariffs denied it treatment as a so-called most favoured nation.
The WTO also found that Beijing violated trade concessions it had made when it joined the WTO.
The organisation’s most favoured nation principle is a commitment by its 164 members to treat other signatories in an indiscriminate manner or else provide compensation in the form of trade concessions.
The Biden administration was “pleased” with the ruling and said China’s actions highlight Beijing’s hypocrisy by both suing the United States and unilaterally retaliating with tariffs, US trade representative spokesperson Sam Michel said.
China’s Ministry of Commerce defended the tariffs, saying the move is fair and intended to safeguard its legal interests.
In a statement issued after the WTO ruling, China urged the US to remove its duties.
