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WTO to set up panels to review Trump's US steel and aluminium tariffs

The tariff spat has escalated into an all-out trade war between the US and China

AFP | PTI  |  Geneva 

Representative image of WTO

The agreed Wednesday to hear complaints from a range of countries over new US steel and aluminium tariffs, as well as complaints from Washington over retaliatory duties.

The WTO's Dispute Settlement Body (DSB) agreed to establish panels to review US President Donald Trump's decision to hit a long line of countries with of 25 per cent on steel and 10 per cent on aluminium.

The DSB will create separate panels for the complaints by the European Union, China, Canada, Mexico, Norway and Russia, after the US said it would not agree to a single panel to hear all of them.

A seventh request from Turkey for a panel will be discussed during a meeting later Wednesday.

The DSB agreed Wednesday to Washington's request for three panels to rule on the legality of retaliatory imposed by Canada, China and the European Union.

It also agreed to a US call for a panel to be created to review "certain Chinese measures pertaining to the protection of intellectual property rights."

Marking a departure from a decades-long US-led drive for free trade, Trump has justified the steep with claims that massive flows of imports to the United States threaten national security.

The tariff spat has escalated into an all-out trade war between the US and China and growing trade tensions between Washington and many of its traditional allies.

The decision to establish the panels follows rounds of failed consultations between the parties and mark an escalation in an ongoing showdown at the WTO around Trump's controversial trade policies.

The first requests to establish the panels were rejected last month, prompting the sides to file second requests.

Under WTO regulations, parties in a dispute can block a first request for the creation of an arbitration panel, but if the parties make a second request, it is all but guaranteed to go through.

The creation of a DSB panel usually triggers a long and often costly legal battle that sometimes takes years to resolve.

First Published: Wed, November 21 2018. 19:30 IST