The World Trade Organization (WTO) on Tuesday ruled out that tariffs imposed on Chinese goods by the US during the trade war between the two countries breached global trading rules, a ruling that drew anger from Washington. The Trump administration began levying duties on more than $200 billion of Chinese goods two years ago, saying they were justified because China forced technology transfer from US companies and stole intellectual property.
However, the WTO’s three-member panel said Washington had not adequately explained the justification. The panel decided that the tariffs violate trading rules because they were above maximum rates agreed to by the US and applied only to China. China’s Commerce Ministry said Beijing respected the WTO decision and expected Washington to do the same. Meanwhile, the US Trade Representative Robert Lighthizer said that the ruling proved that the WTO could not stop China’s harmful technology practices, a thing that the Trump administration has been saying in the last four years.
The WTO ruling will not affect the current tariffs applied on both Chinese and American goods. This will start a years-long legal process for the WTO to approve retaliatory measures, which have already been taken by China on its own and have not been challenged by the US so far. Washington will likely appeal this ruling, putting the matter into a legal void.
The ruling can help Trump to get support to pull out of the WTO, according to Margaret Cekuta, a former USTR official. Under the Trump administration, the US left the UN cultural organisation UNESCO. The president also threatened to leave the WHO.
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Published on September 16, 2020 4:02 PM (GMT+8)Last Updated on September 18, 2020 11:00 AM (GMT+8)
