US steel tariff fight stirs up a swarm of WTO litigation

GENEVA: The US urged European Union (EU) governments on Monday to reflect on whether it was really in their interest to go ahead with a trade dispute over US metals tariffs, and said it was hopeful of settling the issue with Mexico and Canada.

The US tariffs attracted an unprecedented seven requests for the World Trade Organization (WTO) adjudication, as well as a slew of criticism, at a fractious WTO dispute settlement meeting, while the US hit back with legal actions against its critics.

US Ambassador Dennis Shea said he was not surprised by China’s opposition, since it had massive overcapacity in metals production and was a nonmarket economy, but that Washington was “deeply disappointed” with the EU’s stance.

“We would encourage the European countries to consider carefully their broader economic, political, and security interests,” Shea told the meeting.

“We will not allow China’s party-state to fatally undermine the US steel and aluminum industries, on which the US military, and by extension global security, rely.”

China’s representative responded by saying the US was shifting its arguments to disguise its protectionism.