Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

WTO Faults US Over Trump’s China Tariffs

The US imposed sweeping tariffs on $250 billion of Chinese goods as part of Donald Trump’s America First programme © AFP/File / STR

Geneva, Switzerland, Sep 15 – The World Trade Organization has upheld a complaint by China over additional US duties on some $250 billion of Chinese goods, a decision that sparked outrage in Washington.

The Geneva-based body has been caught in the middle of trade tensions between the United States and China, and has faced relentless attacks from President Donald Trump.

The tariffs, imposed in 2018, marked the beginning of the trade war between the world’s two largest economies.

But a panel of experts — set up by WTO’s Dispute Settlement Body last year to review the US move — ruled Tuesday the tariffs on Chinese goods were “inconsistent” with global trade rules, and recommended the US “bring its measures into conformity with its obligations”.

Clash of the titans: Key indicators for China and United States. © AFP / Gal ROMA

The decision was met with ire in the US, with Trade Representative Robert Lighthizer saying it proved the WTO “is completely inadequate to stop China’s harmful technology practices”.

“The Trump Administration will not let China use the WTO to take advantage of American workers, businesses, farmers, and ranchers,” he said.

But Beijing welcome the move as an “objective and fair ruling”.

“China also hopes that the United States will fully respect the rulings of the expert group…take practical actions to meet China and other WTO members half way, jointly maintain the multilateral trading system, and promote the stable and healthy development of the world economy,” a spokesman from the commerce ministry said.

– ‘Blatant breach’ –

Advertisement. Scroll to continue reading.

Tuesday’s announcement marks one of the first in a series of anticipated panel rulings over complaints filed by a long line of countries over Trump’s decision to hit them with steep tariffs on steel and aluminium imports.

In a 72-page report, the panel said Washington had “not met its burden of demonstrating that its measures were provisionally justified” under international trade rules.

US Trade Representative Robert Lighthizer said the Trump Administration “will not let China use the WTO to take advantage of American workers, businesses, farmers, and ranchers” © POOL/AFP/File / Anna Moneymaker

In particular, it rejected the US argument that the tariffs were applied to products it said had benefitted from practices that the US considers are contrary to “public morals”, like theft, misappropriation and unfair competition.

“The United States had not met its burden of demonstrating how its restrictions contributed to protecting its public morals and did not extend beyond what was necessary,” it said.

– ‘No remedy’ –

Lightizer said in response the US report had cited thousands of pieces of evidence showing China’s unfair trade practices, which “have cost US innovators, workers, and businesses billions of dollars every year”.

He said the WTO ruling showed that it “provides no remedy for such misconduct”.

Usually parties unhappy with a panel decision can appeal within 60 days.

But that process has been complicated since the WTO Appellate Body — also known as the supreme court of world trade — stopped functioning in December after years of relentless US opposition.

Washington accuses the court of major overreach and has blocked the appointment of new judges, leaving it without the required quorum.

Advertisement. Scroll to continue reading.

The European Union, China and a number of other countries have launched a temporary system for appealing trade dispute rulings, but the United States is not participating.

In its report, the panel stressed that it was “very much aware of the wider context in which the WTO system currently operates, which is one reflecting a range of unprecedented global trade tensions”.

It called on the United States and China to “pursue further efforts to achieve a mutually satisfactory solution” to their dispute.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Headlines

NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...