TRADE DISPUTE

hktdc research

Tariff Hike Delay on US$200 Billion Worth of Mainland Chinese Products Formalised; Beijing to Lower Import Duties on U.S. Autos

17 December 2018

A planned increase from 10 percent to 25 percent in the Section 301 additional tariff on US$200 billion worth of imports from mainland China is being delayed from 1 January to 2 March. At the same time, Beijing has announced plans to suspend a higher duty on U.S. automobiles and auto parts and to increase purchases of U.S. soybeans and corn. More

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Import Measures Imposed on Mainland Chinese Aluminium Extrusions and Plywood Alleged to Evade AD/CV Duties

07 December 2018

In separate cases, CBP has determined that there is a reasonable suspicion that importers are evading the AD and CV duty orders on aluminium extrusions from mainland China (by not declaring certain door thresholds containing aluminium extrusions as subject to these orders) as well as hardwood plywood from mainland China (by transshipment through Vietnam). More

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Congressional Research Service Examines Aspects of “National Security Exception” under GATT Article XXI

07 December 2018

The non-partisan Congressional Research Service issued a report on 28 November that examines various aspects of the “national security exception” under GATT Article XXI. This analysis is especially relevant in light of the on-going legal challenge by a number of economies at the WTO against the use by the United States of Section 232 of the Trade Expansion Act of 1962 to impose additional tariffs on steel and aluminium imports on the basis of national security considerations. More

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U.S. to Delay Tariff Hike During Trade Talks with Mainland China

04 December 2018

President Trump has agreed to delay a tariff increase from 10 percent to 25 percent on US$200 billion worth of imports from mainland China while the two sides conduct negotiations on long-standing trade irritants. In addition, Beijing has agreed to increase purchases from the United States in an effort to reduce its bi-lateral trade surplus. More

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Tax Foundation Study Projects Significant Economic Losses due to Section 301 Tariffs on Mainland China

04 December 2018

Projections released on 28 November by the Tax Foundation suggest that the Section 301 tariffs that the Trump administration has imposed on some US$250 billion worth of imports from mainland China will have a visibly negative effect on U.S. economic output, incomes and employment. Moreover, the negative impact would more than double if an additional 25 percent tariff is imposed on a third tranche of products worth US$267 billion. More

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Senate Committee Holds Hearing on Multi-lateral Economic Institutions

04 December 2018

The Senate Committee held a hearing on 27 November on multi-lateral economic institutions and how to work with them to achieve U.S. foreign policy and economic goals. The committee examined whether the WTO is ensuring that all countries follow the same rules, a topic of particular interest given that some observers in the Trump administration and elsewhere have argued that mainland China is not in compliance with many WTO principles. More

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Senators Request Study of Section 232 Exclusion Process

29 November 2018

Sens. Doug Jones (Democrat-Alabama), Tom Carper (Democrat-Delaware) and Pat Toomey (Republican-Pennsylvania) on 26 November sent a joint letter to the U.S. Government Accountability Office requesting a study of the Section 232 product exclusion process for steel and aluminium imports. Among other things, the senators observe in their letter that the DOC has received 49,301 exclusion requests and issued decisions in just 34 percent of cases. More

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WTO Disputes over U.S. Actions on Imported Steel and Aluminium, Certain Mainland Chinese IPR Policies Move Forward

27 November 2018

The WTO Dispute Settlement Body agreed at its 21 November meeting to establish a panel to examine allegations by seven economies – mainland China, the EU, Canada, Mexico, Norway, Turkey and Russia – that the Section 232 tariffs the United States imposed earlier this year on imported steel and aluminium contravene U.S. multi-lateral obligations. More

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Senators Request Expansion of Section 301 Product Exclusion Process

23 November 2018

Thirty four of the 100 members of the U.S. Senate sent a letter to USTR Lighthizer on 16 November requesting the establishment of a product exclusion process for the third tranche of mainland Chinese products worth some US$200 billion that have faced additional tariffs under Section 301 since 24 September. The 34 senators consist of both Republicans and Democrats and include members of the Senate Finance Committee, which has jurisdiction over USTR. More

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New Report Claims Mainland China Has Not Altered Practices Targeted by Section 301 Tariffs

23 November 2018

USTR claims in a 20 November report that the mainland Chinese government has not fundamentally altered the unfair, unreasonable and market-distorting practices that have led to the imposition of additional duties on some US$250 billion worth of U.S. imports from mainland China and instead appears to have taken "further unreasonable actions" in recent months. More

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