China is seeking about $2.400 billion in sanctions against the United States for failing to comply with WTO rules in a tariff case dating back to the administration of former President Barack Obama, according to a document published on Monday (21.10.2019).
World Trade Organization appeals judges said in July that the United States had failed to fully comply with a ruling by the organization and could face Chinese sanctions if it did not remove certain tariffs.
The WTO's Dispute Settlement Body (DSB) authorized Beijing to apply compensatory sanctions in mid-August. The United States said at the time that it did not consider the WTO's findings valid and that the judges had applied "an erroneous legal interpretation to the dispute."
China remains a “repeat violator” of WTO subsidy agreements, the U.S. delegation said. Contacted by Reuters on Monday, the U.S. mission in Geneva had no immediate comment.
In its appeal to the WTO, China said: “In response to the continued failure of the United States to comply with the recommendations and rulings (of the DSB), China requests authorization from the DSB to suspend concessions and related obligations totaling US$2.400 billion..
The United States failed to comply with the DSB's recommendations and rulings within a specified period and has not reached any compensation agreement, it said.
China went to the WTO in 2012 to challenge U.S. tariffs on Chinese exports it said had been subsidized, including solar panels and steel and aluminum materials — shipments Beijing valued at $7.300 billion at the time.
The levies were imposed as a result of 17 investigations by the U.S. Department of Commerce between 2007 and 2012.
The DSB arbitration panel is scheduled to review China's request on October 28. The United States could appeal the amount of the penalties sought as compensation, potentially leading the dispute to arbitration.
Source: Reuters
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