WTO may start research on Trump tariffs in China

Tensions between the U.S. and China are becoming more complex as the World Trade Organization is poised to launch an investigation into President Donald Trump's $ 250 billion tariffs on Chinese goods.

On Monday, the Geneva-based trade dispute arbiter is likely to launch an investigation into whether US duties run counter to the requirement that all WTO members grant each other the same tariff regime, as China claims.

The investigation takes place at a delicate moment between the world's two largest economies. A new round of trade talks is slated to begin on January 30, and if a deal is not reached by March 1, the Trump administration has threatened to raise the tariff rate on Chinese goods by $ 200 billion to 25 percent from 10 percent.

“This case is especially important for the WTO because it addresses a central international legal issue in the US’s trade war with China - whether the US can impose trade restrictions on China in response to alleged WTO violations in China without first attempting to resolve the dispute in China. WTO, ”said James Bacchus, a former Democratic congressman and former head of the WTO appellate body, in an email. "I believe that these tariffs in the US are not in line with WTO obligations, but my successors in the WTO appellate body will decide."

The WTO is already facing an existential threat as the US is imposing new appellate judges. In the absence of any reforms, the decision-making wing of the organization will have too few judges to decide cases before the end of the year. This new investigation could further anger the United States, which believes the WTO is moving beyond its authority.

This is China's second request for an investigation into the matter, the first of which was denied by the United States last month. The investigation is likely to continue on Monday, as WTO rules prevent members from blocking a second investigation of the dispute.

But China will not wait for a resolution of the investigation anytime soon due to the backlog in the WTO dispute settlement system. To date, 23 disputes have been initiated against the current US administration, including an EU investigation of tariffs imposed on imports of aluminum and steel.

“These trade tensions are not only a threat to the system, but also a threat to the entire international community,” WTO Director General Roberto Azevedo said January 24 in Davos. quite real, and it will have economic consequences. "

Intellectual Property

It touches on the heart of the U.S.-China trade conflict because Trump says tariffs are necessary to counter prejudice.