WTO: China can hit the United States with sanctions worth $ 3.6 billion

GENEVA: The world Commerce The organization said Friday that China It can impose tariffs on US products worth up to $ 3.6 billion for non-compliance by the US government with the anti-dumping rules with respect to Chinese products.

Hand movement China your first payment of this type in the Commerce body at a time when it is involved in a major dispute with the United States that has completely ignored the WTO and resulted in tariffs on products worth hundreds of billions of dollars.

The announcement of a WTO arbitrator focuses on a case with origins long before the current one Commerce confrontation: a Chinese complaint filed almost six years ago seeking more than $ 7 billion in retaliation.

The decision means China may impose higher tariffs against the United States than China It is currently allowed according to WTO rules, and will be given room for maneuver in terms of US products and sectors. UU. to those who would like to address.

Parties to a WTO ruling in May 2017 were in favor of China in its case against about 40 anti-dumping resolutions of the United States, which involve Commerce limits on Chinese products that the United States says are or were sold below market value.

However, the WTO arbitrator refined the award to base it on some 25 Chinese products, including diamond saw blades, furniture, shrimp, solar panels, car tires and a series of steel products that were affected by the measures. United States anti-dumping. That explains why the prize was less than the sum China I had searched.

The decision comes when the United States has just received a high-profile WTO award against the European Union on subsidies granted to the European aircraft manufacturer Airbus, which has allowed Washington to impose tariffs on EU products worth $ 7.5 billion, including Italian cheese, Scotch whiskey and olives from Spain.

That was a record award from a WTO arbitrator in the Commerce the history of the body of almost a quarter of a century. The prize announced on Friday ranks as the third largest.

In the Chinese anti-dumping ruling, the WTO criticized two techniques that the United States uses to establish penalties for dumping. His so-called zeroing methodology was always a problem for the Commerce The body involves offenders who choose cherry and neglects law-abiding producers in a way that allows US officials to artificially inflate the penalties imposed.

The other technique involves treating several Chinese companies of a product as a single entity, essentially penalizing some producers who do not violate the anti-dumping rules along with those that do.

While these tariffs are allowed by the WTO under international standards Commerce law, the Trump administration has in its disputes with China and other trading partners exchanged tariffs unilaterally, without any green light from the WTO.

The United States and China They have submitted a series of complaints to the WTO against the tariffs of others, but the resolution of disputes can take years.