ON RETALIATION AND JUSTIFICATION  

"[T]he European Union has concocted a groundless legal theory to justify immediate tariffs on U.S. exports.  Other WTO members, including China, have adopted a similar approach" 

 

Ambassador Robert Lighthizer 

June 26, 2018 

President Trump has taken actions on trade in steel and aluminum to protect our national security interests.  These actions are wholly legitimate and fully justified, both as a matter of U.S. law and WTO rules.  By contrast, the European Union has concocted a groundless legal theory to justify immediate tariffs on U.S. exports.  Other WTO Members, including China, have adopted a similar approach.

These retaliatory tariffs underscore the complete hypocrisy that governs so much of the global trading system.  For months, the EU, China, and others have criticized the trade policy of the United States, while claiming to champion the WTO.  But their recent tariffs prove that they simply ignore WTO rules whenever doing so is convenient.

We confess we cannot keep up with the pace of events where tariffs are concerned - 232, 301, steel, aluminum, autos.  This entry is, of course, about the 232 tariffs and we'll make two observations-more quotes really.  MetalBulletin published an article last Thursday, June 21, which caught our attention for a couple of reasons.  First there was the irony of this:

The Chinese steel markets have not been affected too much by the US section 232 tariffs, largely due to the fact that the US is a not a key export destination for China.

Of course, that says nothing about the global effects of China's tremendous overcapacity in steel, but it is eye-catching.   And then there was this from Hiroshige Seko, Japan's Minister for Economy, Trade and Industry on the retaliatory tariffs:

Retaliating with unilateral, non-WTO compliant measures would not benefit any country in the world.

That is not to say that Japan itself might not resort to such measures, but if it does, it will be an action taken in full knowledge of the dilemma posed by the retaliation route as well as the challenges of dealing with the U.S. national security tariffs.

Friday, June 29, 2018 at the National Press Club, the Global Business Dialogue will host a public discussion on the topic:

The title link will take you to the announcement for this event, including the line-up of speakers and registration options.  If you care about these issues, you should be there.

Lighthizer on the Retaliatory Tariffs is  link to the statement issued yesterday by U.S. Trade Representative Robert Lighthizer denouncing the retaliatory measures instituted by the European Union and others.  This was the source for today's featured quote.

 

From MetalBulletin is a link to the article from this publication quoted in the Comment Section above.