US To File WTO Suit Against China For Trade Law Violations

Update II (11:00 am ET): A Chinese envoy has reportedly complained to the WTO about the US threatening to bring a case against it when the US had clearly ignored the rules, the envoy claimed.

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Update (10:30 am ET): US Trade Representative Robert Lighthizer said late Thursday morning that he sees Brazil, Argentina and the EU to be added to the list of exemptions to steel and aluminum tariffs.

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Yesterday, a flurry of media reports pertaining to the size of anti-China tariffs, and the timing of their announcement, suggested that the Trump team was still working to iron out the details. But with less than five hours to go until Trump's 12:30 ET announcement, the Wall Street Journal quietly reported Thursday morning that the US is also expected to announce a lawsuit against China at the World Trade Organization for trade law violations. The tariffs would be assessed separately without going to the WTO.

Trump

The aggressive move comes a day after the WTO said on Wednesday that the US "did not fully comply with a 2014 ruling against its anti-subsidy tariffs on a range of Chinese products." Indeed, the WTO has ruled against the US and US companies several times in recent years. That was the perceived advantage of pursuing actions under Section 301 of the US Trade Act: It would allow the Trump administration to effectively circumvent the WTO.

The U.S. is also expected to announce it would sue China at the World Trade Organization for trade law violations. The tariffs would be assessed separately without going to the WTO.

Trump officials had earlier said that the tariffs would apply to about $30 billion in Chinese imports. An accompanying report on Chinese trade practices is expected to estimate that the harm to the U.S. from improper technology transfer to Chinese firms is $30 billion annually. Beijing improperly forces U.S. firms to transfer their technology to Chinese joint venture partners as a requirement to do business in that nation, the U.S. trade officials allege.

It’s not clear why the administration appears to have settled on a larger number. On Wednesday, U.S. Trade Representative Robert Lighthizer said the U.S. was using a computer algorithm it developed to decide which products to target. The U.S. is looking to restrict imports of goods that would harm Beijing, but cause relatively little harm to U.S. consumers and companies.

Trump has said that the tariffs would apply to a list of 100 products, primarily technology exports.

Meanwhile, reports surfaced Thursday that the US would be seeking a dialogue with the European Union about tariffs as Trump insists that the US would never again tolerate unfair trade practices.

For years, China has demanded US companies turn over invaluable source code and other intellectual property as a price of admission to the Chinese market. China has also vowed to retaliate.

Thursday's announcement will be the culmination of an investigation that Trump ordered in August.

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Commerce Secretary Wilbur Ross revealed Thursday morning that the US is "processing" between 100 and 200 applications for exemptions to the aluminum and steel tariffs recently adopted by the US. Already, Canada, Mexico and Australia have been granted exemptions.

At this rate, it looks like the US could grant exemptions to everybody but China. Which, of course, is the whole point: To harden the rest of the world against China as the US struggles to defend its hegemonic dominance of global markets against the challenger that poses the greatest threat.

 

Comments

gdpetti ne-tiger Thu, 03/22/2018 - 10:48 Permalink

Same computer used to determine our drone strikes? Trumpy hasn't any experience in this game, and that's what makes him perfect for the part of repeating the same script for 'endgame'... same with the entire OWO as he helps out it.. not part of the establishment, but a player all the same, trained in the arts of exploitation. Trumpy was never taught this bigger game play, so expect him to back down as he already has with Mexico/Canada/Japan etc.

OR... he continues to assuage his oversized ego and play his losing hand... but Xi knows how this game goes unlike Trumpy... and he's been prepping for it at the recent Party meetup... to prep for their first real economic hit as all nations go through... expansion/contraction....

Trumpy's only real choice point approaching is whether he allows the war to go nuc or not.. he can stand in the way.. but will he? Won't matter by the time Mother Nature swings in, but until then, it does.

In reply to by ne-tiger

Justin Case ne-tiger Thu, 03/22/2018 - 11:15 Permalink

Murica the thief is calling the police b/c they are getting robbed. Hypocrites.

Murica like Israel, thumbs their noses up at international law, human rights organization, WTO, but OMG!, if others do what they do, they start yelling and screaming like little children when Mommy takes the video game controller away.

I guess the threat of ending US hegemony is real. China and Russia don't listen to the world police and all the demonizing of the two countries is very ineffective with the internet. The monopoly on propaganda has ended for the Empire and all the effort only shows the world how lawless murica operates. The gangsters and all their fairy tales have been exposed. Vassal states are also aware of this Empires motives and operations.   

In reply to by ne-tiger

Ecclesia Militans egerman Thu, 03/22/2018 - 10:23 Permalink

Steel and aluminum tariffs are not about jobs - they're about building new automated plants that can be 300%+ more productive than a similar plant staffed by labor. This is what this is all about: new growth in old school industries that still underpin modern infrastructure. 

I am betting that the Chinese know this and are concerned about the impact that automated fully-consolidated (from ore to finished product) production will have on their ability to keep millions of inner-country peasants fully employed.  

In reply to by egerman

Justin Case Peacefulwarrior Thu, 03/22/2018 - 11:22 Permalink

The Chinese are great business predators and even better "Professional" Liars

Murica has competition now. With all aspects America is the epicenter of world public and private corruption and gangsterism - a kleptocracy run by criminals complicit with corporate crooks, headquartered on Wall Street, profiting at the public’s expense.

Monied interests transformed the nation into an unprecedented money making racket, scamming ordinary people of their savings, jobs, homes and futures so privileged elites can get richer and more powerful.

From inception, the business of America has always been business - meaning license to pillage, defraud and benefit extralegally, including tax avoidance more than anywhere else worldwide, encouraging high-net-worth foreign individuals to shift funds to the US free from taxation.

Government of, by, and for its privileged few allows grand theft on an unprecedented scale. Markets are manipulated up or down for profit, scamming the unwary.America’s dark legacy is largely concealed from view. Enormous wealth is hidden in tax havens or investments at home and abroad, free from taxation.

Wall Street banks and other giant US financial institutions are at the center of unprecedented criminality, aided by government co-conspirators.

In reply to by Peacefulwarrior

richsob Thu, 03/22/2018 - 10:14 Permalink

This trade war may hurt but not doing anything for 20 years was killing us.  The Chinese have benefited handsomely from a trade imbalance which has made them rich.  At the same time we've decimated our industrial base.  If the stuff I buy that's imported gets a little more expensive no big deal.  I'll live with it.

Herdee Thu, 03/22/2018 - 10:14 Permalink

The American government is very hard up for hard currency now. This is just a temporary way to raise money in a failing system. Over 100 million people don't participate in paying taxes. They suck money out of Washington DC.

Neochrome Thu, 03/22/2018 - 10:25 Permalink

The current population of China is 1,413,508,315 as of Thursday, March 22, 2018

vs.

The current population of the United States of America is 326,122,404

As of 1 January 2017, the population of the EU is about 511.5 million people.

The current population of Australia is 24,681,719 as of Thursday, March 22, 2018, 

The current population of Canada is 36,861,507 as of Thursday, March 22, 2018, 

 

Still about the whole EU short...

Neochrome Peacefulwarrior Thu, 03/22/2018 - 10:30 Permalink

Lol, really? You wanna dig into it?

https://www.bostonglobe.com/metro/2017/12/11/that-was-typo-the-median-n…

The $8 detail in the Globe’s Spotlight series on race in Boston is not a typo.

The median net worth for non-immigrant African-American households in the Greater Boston region is $8, according to “The Color of Wealth in Boston,” a 2015 report by the Federal Reserve Bank of Boston, Duke University, and the New School.

 

In reply to by Peacefulwarrior

BanksterMind Thu, 03/22/2018 - 10:49 Permalink

"War is simply the continuation of political intercourse with the addition of other means."
- Carl von Clausewitz

translation:  You're screwed, you f$$king peasant.

All the stuff they won't teach at school:   Entrepreneurship for kids.  (age 8 to 88)
http://bootcamplive.online/start/entrepreneurship-for-kids-join/

 

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Zuptas Bekants Thu, 03/22/2018 - 10:52 Permalink

So the USA gets to buy the raw materials at less than it's competitors cost and still cannot manufacture competitively. I suspect tariffs may not be the solution.