WTO opens way for Chinese sanctions against U.S. tariffs in Obama-era dispute

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WTO opens way for Chinese sanctions against U.S. tariffs in Obama-era dispute
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The United States did not fully comply with a World Trade Organization ruling an...

GENEVA - The United States did not fully comply with a World Trade Organization ruling and could face Chinese sanctions if it does not remove certain tariffs that break WTO rules, the WTO’s appeals judges said in a ruling on Tuesday.

The office of U.S. Trade Representative Robert Lighthizer said the WTO ruling recognized that the United States had proved that China used state-owned enterprises to subsidize and distort its economy. “The WTO appellate report undermines WTO rules, making them less effective to counteract Chinese SOE subsidies that are harming U.S. workers and businesses and distorting markets worldwide,” it added.

The USTR statement said the outcome of its appeal illustrated the concerns it had about the Appellate Body, which it has accused of breaking procedural rules and overstepping its authority. The products concerned were solar panels, wind towers, thermal and coated paper, tow-behind lawn groomers, kitchen shelving, steel sinks, citric acid, magnesia carbon bricks, pressure pipe, line pipe, seamless pipe, steel cylinders, drill pipe, oil country tubular goods, wire strand and aluminum extrusions.

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