Chinese Government Files WTO Suit Against Canadian Steel Trade Restrictions
According to The Canadian Press, the Chinese government has filed a complaint with the World Trade Organization (WTO) in response to Canadian restrictions on imports that contain steel melted or poured in China. Chinese officials argued the restrictions are “discriminatory” and reflect “unilateralism and protectionism, which damages China’s legal rights and disrupts the global stability of steel product supply chains.”
As Connecting the Dots reported at the time, Prime Minister Mark Carney announced last month that he would impose a 25 per cent surtax on products containing Chinese steel to protect the domestic industry in the face of steep U.S. tariffs. Under the heading of restricting and reducing foreign steel imports, in that announcement Prime Minister Carney pledged to:
- Implement additional tariffs of 25 percent on steel imports from all non-U.S. countries containing steel melted and poured in China;
- Review tariff rate quotas (TRQs) for non-free trade agreement (FTA) partners within 30 days;
- Tighten the TRQ levels for steel products from non-FTA countries from 100 percent to 50 percent of 2024 volumes and apply a 50 percent tariff above those levels;
- For non-U.S. partners with which Canada has an FTA, introduce a TRQ level for steel products at 100 percent of 2024 volumes and apply a 50 percent tariff on steel imports above those levels;
- Retain existing arrangements with the United States and Mexico;
- Review the country’s remission framework to favor the use of Canadian steel and aluminum in Canadian-made products; and
- Reassess existing trade arrangements with respect to steel.