Introduction
The Ministry of Commerce of China has recently responded to the World Trade Organization (WTO) lawsuit filed by China against Canada over its tariffs on Chinese electric vehicles and steel and aluminum products. The Chinese government has expressed its strong opposition to the measures, which it considers to be a violation of WTO rules and a move towards unilateralism and trade protectionism.
Background
In response to the growing trade tensions between China and Canada, the Canadian government has imposed additional tariffs on Chinese electric vehicles, steel, and aluminum products. These tariffs, which amount to 100% and 25% respectively, are seen as a retaliatory measure against China’s earlier tariffs on Canadian canola and pork products.
China has responded by filing a lawsuit against Canada at the WTO, arguing that the additional tariffs violate WTO rules and undermine the multilateral trading system. The Chinese government has also expressed its concerns about the negative impact of these tariffs on the global supply chains of electric vehicles and steel and aluminum products.
Chinese Ministry of Commerce’s Statement
In a press briefing on September 6, 2024, a spokesperson for the Ministry of Commerce of China addressed the issue. The spokesperson emphasized that China strongly opposes the Canadian tariffs and considers them to be a typical example of unilateralism and trade protectionism. The spokesperson also highlighted the following points:
- The Canadian tariffs are a violation of WTO rules and Canada’s commitments to the multilateral trading system.
- The tariffs will severely harm the multilateral trading system based on rules and disrupt global supply chains of electric vehicles and steel and aluminum products.
- China is a firm supporter of the multilateral trading system and has made significant contributions to it.
- China urges Canada to comply with WTO rules and immediately correct its wrong actions.
Implications of the WTO Lawsuit
The lawsuit filed by China against Canada at the WTO is likely to have significant implications for the ongoing trade tensions between the two countries. The WTO will now conduct an investigation into the case and make a ruling on whether the Canadian tariffs are in violation of WTO rules.
If the WTO rules in favor of China, it could lead to Canada being required to withdraw its tariffs or face penalties. This could further escalate trade tensions between China and Canada and potentially have broader implications for the global trading system.
Conclusion
The lawsuit filed by China against Canada at the WTO over the latter’s tariffs on Chinese goods is a significant development in the ongoing trade tensions between the two countries. The Chinese government’s strong opposition to the tariffs and its determination to take action at the WTO indicate its commitment to upholding the multilateral trading system and fighting against unilateralism and trade protectionism. The outcome of the WTO investigation will likely have a significant impact on the future of trade relations between China and Canada.
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