What is this body? Can you intervene? – Firstpost

Canada and China have announced plans to challenge the latest tariff measures imposed by the president of the United States, Donald Trump, looking for resources through the World Trade Organization (WTO) and regional commercial agreements.

The measure follows Trump’s decision to impose radical rates, with Canada facing a 25 percent tax in most of its exports, except energy products, which will be taxed at 10 percent. Meanwhile, China has been beaten with a 10 percent tariff on its exports to the United States.

A senior Canadian official, who spoke anonymously, confirmed that Ottawa considers these tariff Joined.

“Obviously we will seek the legal appeal that we believe we have through the agreements we share with the United States,” said the official. AFP In an informative session.

The Ministry of Commerce of China has also
criticized the decision of the United Statesdeclaring that he will file a legal complaint with the WTO while implementing countermeasures to protect their commercial interests.

The Ministry asked Washington to “participate in the Franco dialogue, strengthen cooperation and manage differences based on equality, mutual benefit and mutual respect.”

How Canada and China plan to take reprisals

Canada has presented a list of 1,256 American products that will be
Subject to retaliation rates Totalizing 30 billion Canadian dollars. These rates, which will enter into force on Tuesday, are aimed at a wide range of products, including cosmetics, appliances, tires, tools, plastics, furniture, coffee and alcoholic beverages.

Additional countermeasures could be announced in the coming weeks, which potentially increases the total value of the products aimed at 155 billion Canadian dollars (106 billion dollars).

In response to China’s specific tariffs, Beijing has pledged to implement countermeasures, although it has not yet specified the details. Historically, China has responded to American tariffs with taxes on US exports, but faces limitations due to its commercial imbalance with the United States.

Trump has justified tariffs on China as a means to
stop the fentanyl flow In the United States from Mexico. However, the Chinese government has defended its actions, arguing that the root cause of the US fentanyl crisis lies in matters of addiction to domestic drugs instead of Chinese exports.

The China Ministry of Commerce urged the United States to address such matters with “objectivity and rationality” instead of using tariffs as a pressure tool.

The role of the WTO: Can you intervene?

The WTO, an international organization with 164 member countries, has the task of supervising global trade and solving disputes between countries.

In theory, WTO can judge complaints and issue decisions that allow the winning country to impose retaliation rates. However, since Trump’s first mandate, the United States has blocked the appointment of judges to the WTO appeal body, which means that it cannot enforce decisions effectively.

Although the WTO can still call panels to review the cases, its inability to issue binding decisions has weakened its ability to mediate in commercial disputes.

The Trump administration has previously dismissed the unfavorable decisions of the WTO, with the former commercial representative of the United States, Robert Lighthizer, criticizing the organization for being “completely inappropriate to stop the Dancing Technological Practices of China.”

WTO failures against Trump

The WTO has previously failed against the Trump administration on multiple occasions. In 2018, China filed a complaint against the United States for tariffs imposed on solar panels, arguing that they violated global commercial rules and destabilized the international solar market.

That same year, China challenged the additional rates imposed by Trump, which led to a WTO case that ended in 2020.

A WTO panel of three people ruled that American tariffs on Chinese products were illegal according to world commercial rules because they applied exclusively to China and exceeded the rates of agreed rates without sufficient justification.

However, the ruling had little impact, since the WTO appeal body was not functional due to the Judicial Blocking appointments of the US China’s unfair commercial practices.

In 2022, the WTO also ruled that the 2018 Trump steel and aluminum tariffs violated international trade rules. However, the Biden administration rejected the ruling and refused to eliminate duties, causing criticism from the European Union.

Bernd Lange, president of the International Trade Committee of the European Parliament, at that time, declared: “The reaction of the United States to simply reject the ruling is incomprehensible. We have to have an honest discussion with the US. UU. If they are moving away from a rules -based commercial system, and if we can rescue the existing system. “

Canada, Mexico and China are among the largest commercial partners of the United States, and
The current trade war It could have significant economic repercussions, potentially slowing down global economic growth and exacerbating inflationary pressures.

In response, Canada has announced a mechanism that allows companies to request tariff relief under certain conditions.

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With agencies inputs