By Olivia Le Poidevin
GENEVA (Reuters) -China has formally launched a dispute at the World Trade Organization (WTO) over tariffs imposed by U.S. President Donald Trump on Chinese goods, the Geneva-based body said on Wednesday.
Trump on Saturday ordered tariffs on goods from Mexico, Canada and China, demanding they staunch the flow of fentanyl – and, in the case of Canada and Mexico illegal immigration. He later froze tariffs against the two North American countries but went ahead with those on China.
China, which Trump subjected to a tariff of 10% on goods exports, had vowed to challenge the step at the WTO.
In a statement cited by the WTO, China said the measures appeared to be inconsistent with U.S. obligations under the agreement that led to the creation of the trade body, pointing to the discriminatory nature of the tariffs.
“China reserves the right to raise additional measures and claims regarding the matters identified herein during the course of consultations and in any future request for the establishment of a panel,” the Chinese statement said.
It did not detail what measures those could be.
Since December 2019, the WTO’s dispute settlement system has been effectively paralyzed following the collapse of its Appellate Body which has the final say on disputes.
Trump’s first administration and that of Joe Biden blocked the appointment of new judges to the Appellate Body over what they saw as judicial overreach in disputes. The body is unable to function with less than three judges.
(Reporting by Olivia Le Poidevin and Urvi Dugar; Editing by Dave Graham, Kevin Liffey, Peter Graff)
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