USA-China trade arrives at the door of WTO
Special Correspondent ( New Delhi): In the thick of intensifying trade war between China and the US, China has chosen to approach WTO to file a complaint against the US over unfair import tariffs on its goods.WTO is an international forum which regulates and oversees the limit of tariff each country is allowed to impose.
On Sunday, the US began imposing 15 % tariff on imported goods from China worth $125 billion. Whereas China in retaliation imposed 5% tariff on US crude oil, and this is first China has targeted Crude oils since the trade war between the two the sparked last year. China has even imposed an additional tariff on goods worth $75 billion and extra tariff of 5% and 10% on about 1,717 items.
China has often accused the US of bullying other economies.
Chinese state media agency Xinhua while lashing out at the US for its bullying said, “The US should learn how to behave like a responsible global power and stop acting like a school bully.”
US has justified its imposition of tariff on the grounds of China’s repeated Intellectual Property thefts, an unfair practice which doesn’t come under WTO rules. In its submission, it claimed exemption from WTO on the basis of protecting public morals by imposing trade restrictions over gambling, animal rights, and public broadcasting. A WTO’s clause, “measures necessary to protect public morals” offers this exemption.
The US has coaxed China time and again to alter its unfair policies on intellectual property protection, forced transfers of technology to Chinese firms, industrial subsidies and market access.
China, however, always brushed aside any such claims and accused the US of threatening other economies with unilateral tariffs imposition.
Earlier, in G20 Summit a truce deal over a trade war was reached but the US increase of tariffs on China has ripped apart that pact and forced China to seek the intervention of WTO.
According to the WTO rules USA has 60 days to settle disputes. After that, China could ask the WTO to adjudicate the matter, which may take many years.
The trade war between these two largest economies has pushed the global economy on the verge of recession. Many countries, especially in South Asia already have started facing the repercussions.
