China sues Canada at WTO over import curbs on Chinese steel

China filed a lawsuit against Canada at the WTO over Canada's import restrictions on steel and other products, according to the Ministry of Commerce (MOFCOM) on Friday. 

In response to a question regarding the lawsuit, a MOFCOM spokesperson on Friday said that ignoring WTO rules, Canada has implemented steel tariff rate quotas and imposed discriminatory tariffs on products containing so-called "Chinese steel components." These actions constitute typical unilateral and protectionist measures that harm China's legitimate rights and interests and disrupt the stability of global steel and related supply chains.

China expresses strong dissatisfaction and firm opposition to these actions. We urge Canada to take immediate steps to correct its erroneous practices, uphold the rules-based multilateral trading system, and promote the continuous improvement of China-Canada economic and trade relations, the spokesperson said.

Canada's Department of Finance recently announced that in response to US tariffs on steel and global steel overproduction, it will implement tariff rate quotas on a larger scale of imports while tightening the existing quotas starting August 1, with surtaxes levied on imports beyond the quota limit. Additionally, a 25 percent surtax will be imposed on imports from all countries other than the US that contain steel melted and poured in China.

Previously, a MOFCOM spokesperson said that China is strongly dissatisfied with and firmly opposes the Canadian government's recent restrictive measures on steel imports.

The spokesperson said these measures violate WTO rules, disrupt the international trade order and undermine China's interests, adding that they are a typical act of unilateralism and protectionism.

"I believe Canada has not followed the normal procedures set by the WTO to conduct investigations and collect evidence, but has instead arbitrarily and unilaterally imposed tariff rate quotas on certain products, which lacks a legal basis," Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Friday, noting that as a WTO member, these actions by Canada are unreasonable.

"If the Canadian side truly believes that Chinese steel products have issues, it should, in accordance with WTO rules, carry out a thorough and complete investigation and communicate with the relevant Chinese enterprises and government departments before making any determinations," Zhou said, adding that this is the proper procedure to follow. "However, we have not seen Canada take such steps."

Following up on China's move to sue Canada at the WTO over import restrictions on steel and other products, Zhou said that China's approach respects the basic demands of enterprises and the market, initiating relevant investigations in accordance with due procedures based on anti-dumping applications submitted by enterprises, and continuing to communicate with all parties throughout the process. "This is a basic obligation conferred on every WTO member," he added.

Since last year, Canada has followed the US in rolling out a series of trade protectionist and restrictive measures against China — drawing strong dissatisfaction and firm opposition from China.

(Global Times)