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Washington administration condemned the WTO’s decision. Stating that the members of the organization do not have the authority to question national security decisions, the Washington administration noted that Trump plans to keep the customs duties in effect.

The World Trade Organization (WTO) ruled that the additional customs duties imposed by former US President Donald Trump on steel and aluminum imports from countries including Turkey violated global trade rules.

The three-person panel of the WTO Dispute Settlement Mechanism announced its decision on Turkey, China, Norway and Switzerland’s objection to Trump’s additional customs duty on steel and aluminum imports.

The panel ruled that Trump’s additional tariffs on steel and aluminum imports violated global trade rules, stating that the US’s measures were inconsistent with WTO rules.

Rejecting Trump’s use of “national security” concerns to justify the additional taxes, the panel stated that these taxes were not imposed “during a war or other emergency.”

Washington administration condemned the WTO’s decision. Stating that the members of the organization do not have the authority to question national security decisions, the Washington administration noted that Trump plans to keep the customs duties in effect.

“The USA will not leave decisions on its national security to WTO panels”

US Trade Representative Adam Hodge, in his written statement, stated that the WTO decision shows the necessity of fundamental reform in the organization’s dispute resolution mechanism and said, “The USA will not leave it to WTO panels to decide on its national security. The WTO has a later opinion on the response of a member country to security threats.” “There is no executive authority.” he said.

The USA has the right to object to the WTO’s decision. However, it is stated that the objection will have no effect.

The US administration has been blocking appointments to the WTO’s appellate body for 3 years, further prolonging the dispute resolution process.

USA’s decision to impose additional taxes on steel imports

In March 2018, US President Donald Trump decided to impose a 25 percent tariff on imported steel on the grounds of protecting national security.

Regarding the application in question, Turkey conveyed its request to the USA for necessary consultations, but did not receive positive results. Turkey filed a complaint against the USA with the WTO, stating that the decision in question was against WTO rules. In addition to Turkey, China, Norway, India, Russia and Switzerland also brought the decision to the WTO. The WTO has not yet made its decision regarding the objections of India and Russia.

Announcing that he doubled the customs duties for steel and aluminum imported from Turkey on August 10, 2018, Trump said, “This rate will now be 20 percent for aluminum and 50 percent for steel. Our relations with Turkey are not good in this period.” He used the following expressions:

After the USA doubled the customs duty on steel products originating from Turkey as of August 13, 2018, Turkey also increased the additional financial liability rates applied to the imports of some US-origin products at the same rate.

On May 21, 2019, the USA reduced the additional taxes it applied on steel products imported from Turkey from 50 percent to 25 percent.

Last year, the US administration reached new agreements with the EU, Japan and the UK to remove these additional taxes.

Post from Hera Trade

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