On June 22, 2023, the United States Trade Representative (USTR) announced that the United States and India reached an agreement to terminate ongoing disputes at the World Trade Organization (WTO). Additionally, India agreed to remove retaliatory tariffs implemented against certain U.S. products in response to the U.S.’s institution of Section 232 tariffs on steel and
WTO Rules that U.S. Section 301 Tariffs on Chinese Imports Violate International Trade Rules
The World Trade Organization (WTO) dispute settlement body ruled that the tariffs imposed by the U.S. on imports from China are inconsistent with the General Agreement on Tariffs and Trade (GATT), and recommended that the U.S. “bring its measures into conformity” with its obligations under the GATT. Beginning in 2018, at the direction of President Trump, the U.S. imposed tariffs on $400 billion worth of imports from China over 4 different lists or tranches. The U.S. and China negotiated a “phase one” trade deal earlier this year, however, most of the tariffs were still left in place.
The WTO panel concluded that the U.S. failed to demonstrate that the tariff measures are justified under Article XX(a) of the GATT 1994. As a result, the panel found the U.S. tariff measures to be inconsistent with Articles I:1, II:1(a) and II:1(b) of GATT 1994. In other words, the WTO found that the U.S. tariffs on China were discriminatory and excessive, and the U.S. failed to present justification for an exemption that could have legally allowed for the tariffs.
July Trade Law Update: Presidential Actions
USTR Proposes New Tariffs on EU Products under Section 301
The Office of the U.S. Trade Representative (USTR) announced on July 1, 2019 a proposed list of tariffs on approximately $4 billion worth of products from the European Union (EU). This is a supplemental list to the April 12, 2019 proposed tariffs with an approximate trade value of $12 billion.
According to USTR, this action is designed to pressure the EU to implement the World Trade Organization’s (WTO) Dispute Settlement Body recommendations in regard to the United States’ WTO dispute against the EU’s subsidies on large civil aircraft.
Interested parties can appear at a public hearing or file comments on the proposed list.
February Trade Law Newsletter
Husch Blackwell announces its February Trade Law Newsletter on key issues and announcements related to International Trade and Supply Chain.
Venezuela Files Complaint Challenging U.S. Sanctions at the WTO
Venezuela recently initiated a World Trade Organization (“WTO”) complaint against U.S. sanctions, claiming that the United States has “imposed certain coercive trade-restrictive measures on the Bolivarian Republic of Venezuela in the context of attempts to isolate Venezuela economically.” The same day, the U.S. imposed additional sanctions on Venezuelan nationals and entities allegedly engaging in