China Talks with US, Calls for Exemption of Safeguard Tariffs

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Last updated at: (Beijing Time) Monday, March 25, 2002

China Talks with US, Calls for Exemption of Safeguard Tariffs

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China held key talks with the United States on the controversial US safeguard tariffs on steel imports in Washington over the weekend, demanding exemption or compensation in accordance with World Trade Organization (WTO) rules.

This is the first time that China has executed its rights as a WTO member after joining it in December.

Exemption demanded

The Chinese delegation claimed the US action flouted WTO rules and asked the US side to exempt China from the tariffs as it did to many other developing countries.

It demanded compensation for losses incurred on Chinese iron and steel companies by the US steel tariffs while reiterating that China retains the right to take further action within the WTO framework.

The Chinese delegation was headed by Shang Ming, commissioner-general of the Fair Trade Bureau of Imports and Exports under the Ministry of Foreign Trade and Economic Co-operation (MOFTEC).

A MOFTEC spokesman said China asked on Friday to join the European Union and the US panel under the WTO dispute resolution mechanism.

US President George W. Bush slapped safeguard tariffs of 8 per cent to 30 per cent on several types of imported steel on March 5 in an effort to help the ailing US industry. The tariffs took effect on Wednesday.

The tariffs exempted countries that have signed free trade agreements with the United States -- Canada, Israel, Jordan and Mexico -- and developing countries with only limited steel exports to the United States.

Australia has negotiated an exemption to most of the tariffs, with Prime Minister John Howard saying on March 11 that 85 per cent of Australian steel exports to the US would not be affected by the new tariffs.

Angry attacks from other countries

The US protectionism measures have triggered angry attacks from major trading partners.

Japan and South Korea lodged a protest at the WTO on the day the measures took effect.

The European Union has already launched a similar bid for the WTO to rule on the legality of the US move.

It also drew up on Friday a list of US products to be hit with punitive import taxes in retaliation for the duties.

Source: China Daily

US raises tariffs on several imported steel

The United States was at loggerheads with its key war allies Tuesday, May 5, after imposing tariffs of up to 30 per cent on steel imports, threatening a damaging trade dispute.

The Bush Administration said that it was justified in acting to protect the ailing US steel industry. Thirty-one American steel firms have gone bankrupt in the past four years. The industry blames the decline on the unchecked influx of cheap foreign steel.

European Union leaders vowed swift retaliation and gave warning that the global economy would suffer. Romano Prodi, President of the European Commission, told President Bush before the announcement Tuesday that steps would have to be taken in response.>>details

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