A World Trade Organization (WTO) logo is pictured on their headquarters in Geneva, Switzerland, June 3, 2016. REUTERS/Denis Balibouse Acquire Licensing Rights
GENEVA, Dec 9 (Reuters) - The World Trade Organization ruled on Friday that U.S. tariffs imposed on steel and aluminium imports by then President Donald Trump contravened global trading rules in a judgment immediately criticised by Washington. Aluminium Acp Sheet Price
In one of the most high-profile and potentially explosive cases to come to the WTO, the three-person adjudicating panel said the U.S. measures were inconsistent with WTO rules and recommended the United States bring them into conformity.
The United States said it strongly rejected the "flawed" interpretation and conclusions of the panel.
It could appeal the ruling, which would send it into a legal void because Washington has blocked appointments to the WTO Appellate Body, rendering it incapable of giving a judgment.
China said it hoped the United States would respect the panel ruling and "correct its wrongful conducts as soon as possible".
The office of the U.S. Trade Representative said in a statement that the United States would not "stand idly by" while Chinese overcapacity posed a threat to its steel and aluminium sectors and its national security.
"We do not intend to remove the Section 232 duties as a result of these disputes," it said, adding the panel report reinforced the need for WTO reform.
The U.S. steel sector also criticised the WTO panel, the Steel Manufacturers Association saying it supported the government's refusal to accept its conclusions.
Trump imposed 25% tariffs on steel imports and 10% on aluminium in 2018, using Section 232 of a 1962 act that allows the president to restrict imports if they are threatening national security. Free trade partners Canada and Mexico were later exempted.
The tariffs prompted several WTO members China to challenge the measure and on Friday, a three-person WTO panel issued its findings in the cases brought by China, Norway, Switzerland and Turkey. Cases brought by India and Russia are still pending.
Washington last year agreed to remove tariffs on EU imports, prompting Brussels to suspend the EU case.
The administration of President Joe Biden has otherwise kept in place the metals tariffs that were one of the centrepieces of Trump's America First strategy.
The case hinged on the exemption from global trade rules the WTO allows in cases of national security.
The central U.S. argument was that national security is for countries themselves to judge and certainly not something to be assessed by three WTO adjudicators sitting in Geneva.
Complainant Switzerland said the finding did not call into question the right of WTO members to take measures to protect security with broad discretion, but they did have to meet certain minimum requirements that could be examined at the WTO.
Reporting by Philip Blenkinsop; Editing by Emma Farge and Josie Kao
Our Standards: The Thomson Reuters Trust Principles.
European Union foreign ministers on Monday consider possible next steps in response to the Middle East crisis, including a crackdown on Hamas’s finances and travel bans for Israeli settlers responsible for violence in the West Bank.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
Brushed Silver Aluminum Composite Panel All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.