US calls for reforms after WTO rules in favour of China in tariffs case

World Trade Organisation (WTO) has ruled against United States in a case that was taken to intergovernmental body by China over violations of international trading rules by Washington as it imposed tariffs on goods from Beijing. WTO panel found that United States had breached global trading rules because billions of dollars worth of tariffs imposed by Washington only applied to Chinese goods.

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Trump administration in 2018 imposed multibillion-dollar tariffs on China accusing Chinese side of stealing intellectual property rights and forcing American companies to transfer techlogies. panel found duties to be inconsistent because y were applied in excess of rates to which United States bound itself in its Schedule of Concessions. panel in its report furr found that United States has t demonstrated why measures are provisionally justified.  

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US wants reforms

Meanwhile, United States Trade Representative (USTR) Robert Lighthizer criticized World Trade Organization (WTO) panel report that stated actions taken by Washington were inconsistent with global trading rules. "This panel report confirms what Trump Administration has been saying for four years:   WTO is completely inadequate to stop China’s harmful techlogy practices," said Ambassador Lighthizer. United States also called for reforms in international trade body.

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panel in its conclusion furr ted that United States is yet to challenge China's retaliatory measures, which is why it only looked into Washington's measures. "Government of United States has t, up to present time, initiated action under WTO Dispute Settlement Understanding with respect to any measures China has imposed in response to United States' measures at issue in this dispute," panel report said in its concluding comments.

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It is important to te that panel report will have effect on US tariffs on Chinese products. Washington and Beijing reached a historic Phase One Agreement in January this year which includes new, enforceable commitments by China to prevent ft of American techlogy. Phase Two of trade deal between US and China was scheduled to happen this summer but has been postponed by Trump administration until vember 3 presidential election.