China Thursday applied to the World Trade Organization (WTO) to
arrange talks with the United States on US tariffs on steel
imports, according to the
Ministry of
Foreign Trade and Economic Co-operation (MOFTEC).
This is the first Chinese complaint to the WTO since becoming a
member of the world trade body last December.
"China demands that the US fix the place and the date of the talks
as soon as possible," said MOFTEC in a statement.
China's steel exports to the US make up too small a proportion of
the country's total imports of this product to damage US
industries, it said.
MOFTEC demanded that the US take this fact into full account when
tackling the issue.
"China and the US are important trading partners and China hopes
the issue will be properly and quickly resolved through bilateral
talks so as to avoid damage to Sino-US trade ties," it said.
MOFTEC also urged the US Government to be responsible and take into
consideration the great harm its action would do to international
trade order.
US
President George W. Bush slapped tariffs of up to 30 percent on
several types of imported steel in an effort to help the ailing US
industry on March 5.
The nations hardest hit by the tariffs include Japan, the European
Union, the Republic of Korea, China, Ukraine, Brazil and
Russia.
The Chinese Government immediately voiced its "strong displeasure"
with the US decision after the US president's announcement of the
tariffs.
"The US decision flouts WTO rules and will incur great losses on
Chinese steel exporters," said MOFTEC on March 6.
"We retain all of our rights within the WTO framework," it
said.
China is not alone in its pronounced anger against US steel tariffs
and threats to take the dispute to the WTO.
Other US trade partners also reacted angrily to the US decision,
with the European Union, Japan and the Republic of Korea warning it
could trigger a new round of global trade protectionism while
threatening possible lawsuits at the WTO.
The EU announced Thursday that it is to talk with the US in Geneva
next Tuesday on the establishment of a WTO disputes panel to
consider the US tariffs.
The EU Commission said it is considering its own duties on steel to
protect it from a surge of imports of steel that cannot get into
the US market.
Katsusada Hirose, Japanese vice-minister of economy, trade and
industry, said Tuesday that Japan reserves "every possible option,
including a petition to the WTO and retaliatory measures."
Japan has secured a chance to hold talks with the US in Washington
late Thursday over the US action which will take effect next
Wednesday.
Tokyo is looking at compensation under the first step of a
procedure laid down in the WTO's agreement on safeguards.
If
the talks fail, Japan could be allowed to withdraw concessions
granted to the US.
Hirose said the Japanese side might ask for compensation in the
form of lower US tariffs on other imported goods from Japan if it
finds the US explanation of its decision unconvincing.
The tariffs exempt countries that have signed free trade agreements
with the US - Canada, Israel, Jordan and Mexico - and developing
countries with only limited steel exports to the US.
Australia has negotiated an exemption to most of the tariffs, with
Prime Minister John Howard saying on Monday that 85 percent of
Australian steel exports to the United States would not be affected
by the new tariffs.
(China
Daily March 15, 2002)