In a new chapter of trade tensions, China has filed a formal complaint with the World Trade Organization (WTO) against surcharges and quotas imposed by Canada on imports of steel and aluminum products.
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The consultation request, distributed to members of the WTO Last August 20th marks the beginning of a process of resolving differences between the two nations.
The Asian giant argues that the Canadian measures, which impose duty in the form of tariff rate quotas on the import of certain steel products from countries without a free trade agreement with Canada (including China), as well as additional surcharges on steel and aluminum products of Chinese origin, are inconsistent with several international regulations.
In its complaint, China points out that the actions of Ottawa contravene provisions of the General Agreement on Tariffs and Trade (GATT) 1994, the Agreement on Import Licensing Procedures and the WTO Agreement on Rules of Origin.
This dispute underscores the growing frictions in global trade, as nations seek to protect their domestic industries while navigating the complex web of international agreements and regulations. The filing of this claim opens the door to a negotiation process and, if unresolved, to the formation of a panel of experts to resolve the dispute.
