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BUSINESS Wednesday 16 september 2020
U.S. tariffs on China are illegal, says world trade body

By JAMEY KEATEN 25% duties were imposed in
Associated Press June 2018 against Chinese
GENEVA (AP) — A World goods worth about $34 bil-
Trade Organization panel lion in annual trade, target-
ruled Tuesday that Trump ing industrial products and
administration tariffs on items like airplane propel-
$200 billion worth of Chi- lers, water purifiers and mo-
nese goods are illegal, vin- torcycles.
dicating Beijing even if the The Trump administration
United States has all but has justified the sanctions
incapacitated the WTO's under Section 301 of the
ability to hand down a fi- Trade Act of 1974, once a
nal, binding verdict. common tool used by the
The decision marks the U.S. government to impose
first time that the Gene- sanctions and recently re-
va-based trade body has vived by Trump. The U.S. ar-
ruled against a series of gued that China's actions
high-profile tariffs that Presi- had amounted to "state-
dent Donald Trump's gov- sanctioned theft" and "mis-
ernment has imposed on a appropriation" of U.S. tech-
number of countries — al- nology, intellectual proper-
lies and rivals alike. Trump ty and commercial secrets.
has repeatedly claimed Trade lawyer Mark Her-
that the WTO treats the U.S. President Donald Trump walks on the South Lawn as he arrives at the White House, Monday, Sept. lach, a partner with the
unfairly. 14, 2020, in Washington from a trip to Phoenix. firm Eversheds Sutherland,
The ruling, in theory, would Associated Press said there has been a long-
allow China to impose re- standing controversy over
taliatory tariffs on billions' interests on issues including offered no fixes for it. last year when the terms of whether the 301 law is con-
worth of U.S. goods. But it intellectual property theft "The United States must two of its last three judges sistent with WTO rules.
is unlikely to have much and technology transfer — be allowed to defend it- expired with no replace- "It's not surprising that a
practical impact, at least in and it quickly drew criticism self against unfair trade ments. That means the WTO panel didn't like what
the short term, because the of U.S. trade representative practices, and the Trump United States can appeal the U.S. was doing,'' he said.
U.S. can appeal the deci- Robert Lighthizer. administration will not let the decision "into the void,'' The WTO panel ruled that
sion and the WTO's appeals "This panel report confirms China use the WTO to take said Timothy Keeler, a law- the U.S. measures violated
court is currently no longer what the Trump adminis- advantage of American yer at Mayer Brown and longstanding international
functioning — largely be- tration has been saying for workers, businesses, farmers former chief of staff for the trade rules because they
cause of Washington's sin- four years: The WTO is com- and ranchers," he added. U.S. trade representative. only applied to products
gle-handed refusal to ac- pletely inadequate to stop The Chinese ministry of The U.S. tariffs target two from China, and that Wash-
cept new members for it. China's harmful technology commerce said the ruling batches of Chinese prod- ington had not adequate-
In its decision, the WTO's dis- practices," Lighthizer said was "objective and fair" ucts. Duties of 10% were ly substantiated its claim
pute settlement body ruled in a statement. He said the and called on the U.S. to imposed on some $200 bil- that the Chinese products
against the U.S. govern- United States had present- respect it. lion worth of goods in Sep- hit with the extra duties
ment's argument that Chi- ed "extensive evidence" of The appeals court issues tember 2018, and were had benefited from the
na has wrongly engaged China's intellectual prop- final rulings in trade cases jacked up to 25% eight allegedly unfair Chinese
in practices harmful to U.S. erty theft and the WTO has and stopped functioning months later. An additional practices.q

U.S. drops tax on Canada aluminum, heading off retaliation

By PAUL WISEMAN and ROB ing to normal levels. It said keeping the virus under the
GILLIES it could re-impose the tariffs control we all know that the
WASHINGTON (AP) — The if the imports surged again. last thing we need is tariffs,"
Trump administration said Canada was preparing to Freeland said.
Tuesday that it is dropping impose retaliatory tariffs on "Common sense has pre-
taxes on Canadian alumi- U.S. products Tuesday. vailed."
num, easing tensions with a Mary Ng, Canada's minister A senior Canadian govern-
close ally just hours before of International Trade, wel- ment official, who spoke
Canada was prepared to comed the change in the on condition of anonym-
impose retaliatory sanc- U.S. position. ity, also said that Canada
tions. "Canada has not conced- had made no concessions.
The Office of the U.S. Trade ed anything," Ng said. "Their statement has all sorts
Representative said the Deputy Prime Minister of language about what
U.S. is ending the 10% tar- Chrystia Freeland said Can- they expect from Canada,
iffs a month after imposing ada is prepared to impose but it's important to note
them. The U.S. had charged retaliatory measures if the Canada has agreed to Molten aluminum is seen inside a smelter at the Alouette alumi-
last month that an influx of tariff is reimposed. She said none of that," said the of- num plant in Sept-Iles, Quebec, on May 21, 2019.
Canadian aluminum justi- it was not a negotiated ficial said, who was not au- Associated Press
fied the levy. deal with the United States. thorized to speak publicly
But the office said Tuesday "At a time when we all fo- on the matter. tariffs — that's a victory for the tariffs on aluminum im-
that shipments of Cana- cused on recovering from The official added that, Canada and the U.S." ports from most countries in
dian aluminum are return- the COVID recession and "We're glad the U.S. lifted Trump originally imposed 2018. q