China launches WTO dispute over Trump tariffs
GENEVA: China has launched a dispute at the World Trade Organization (WTO) over tariffs imposed by US President Donald Trump on Chinese goods, the Geneva-based body said on Wednesday (Feb 5).
Trump on Saturday ordered tariffs on goods from Mexico, Canada and China, demanding they staunch the flow of fentanyl - and illegal immigrants in the case of Canada and Mexico - but later froze tariffs against the two North American countries.
China, which Trump subjected to a tariff of 10 per cent on goods exports, had vowed to challenge the step at the WTO.
In a statement cited by the WTO, China's government said the measures appeared to be inconsistent with US obligations under the agreement that led to the creation of the trade body.
"China reserves the right to raise additional measures and claims regarding the matters identified herein during the course of consultations and in any future request for the establishment of a panel," the Chinese statement said.
It did not detail what measures those could be.
Since December 2019, the WTO's dispute settlement system has been effectively paralysed following the collapse of its appellate body, which has the final say on disputes.
Trump's first administration and that of his predecessor Joe Biden blocked the appointment of new judges to the body over what they saw as judicial overreach in disputes.
The body is unable to function with less than three judges.