With Nations Ignoring All Trading

But in a letter to Chinas WTO representative, US Ambassador Dennis Shea said officials "stand ready to fix a mutually convenient date with China to engage in bilateral discussions.WTO allows temporary tariffs on imports -- known as safeguards -- as an emergency move when a flood of goods "threatens to cause serious injury" to domestic industry.The concern among WTO officials is that if a member-state, especially a worlds top economy, justifies protectionist measures based on national security, it would trigger a free-for-all, with nations ignoring all trading rules currently on the books.But the global trade body also allows import restrictions based on national security concerns.Fears of an all-out trade war have intensified in the past month, especially in the wake of this weeks tit-for-tat tariffs announced by each country on USD 50 billion in imports from the other, including Chinas hit list on soy, aircraft and autos."

Consequently, there is no basis under WTO rules for Chinas decision this week to raise tariffs against over USD 3 billion in US exports," USTR said.. is completely baseless" because the US tariffs "address the national security threat posed by imports of steel and aluminium" and are not part of a safeguard action, USTR said."Chinas request for consultations.."Primarily intended to compensate for Chinas overproduction, the US tariffs hit allies as well, prompting the Trump administration to exempt the European Union, Canada, Mexico and four other economies.Washington: hexagonal dowel The United States on Wednesday rejected as "baseless" Chinas retaliatory tariffs and complaint in the World Trade Organization over the US tariffs recently imposed on steel and aluminium imports..President Donald Trump imposed tariffs of 25 per cent on steel and 15 per cent on aluminium early last month, citing national security concerns.

The WTOs Dispute Settlement Body has never arbitrated a case filed under its national security clause.China has said imposing tariffs on national security grounds poses a systemic threat to the rules-based global trading system safeguarded by the 164-member WTO.A request for consultation is the first step in the WTOs dispute settlement process.But China invoked the WTO dispute process under a different rule, which does not apply, meaning Beijings threat of retaliatory tariffs on USD 3 billion in US exports is not justified, the US Trade Representatives office said in a statement.