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Like the EU, Mexico to go to WTO over US tariffs

Tuesday, 05 June 2018 1:19 AM [ Last Update: Tuesday, 05 June 2018 2:08 AM ]

Mexico has threatened to file an official complaint with the World Trade Organization over the Trump administrations new tariffs on metal imports from Mexico and a host of other countries.

Mexico’s economy ministry announced the decision to initiate a dispute settlement process under the umbrella of the WTO.

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“In response to the measures the US has applied to Mexican exports of steel and aluminum, Mexico announces that it will begin a dispute resolution process under the World Trade Organization,” the economy ministry said in a statement.

“Mexico considers that the measures imposed by the US under Section 232 of its legislation, arguing national security violations, violate the WTO’s agreement on safeguards by not having been adopted in accordance with the procedures set out there , and that they also violate the General Agreement on Tariffs and Trade of 1994.”

The US raised import duties on steel from foreign countries to 25 percent and on aluminum to ten percent on Friday. The move has prompted furious reactions from Washington’s global partners warning to set out tit-for-tat tariffs on the US.

Mexico will retaliate

Although the White House insisted on Monday that strong relationships with Mexico will continue despite the new tariffs, Mexican Foreign Minister Luis Videgaray emphasized that Mexico would take retaliatory measures against Washington echoing a similar stance taken by other US trade partners.

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“The government of Mexico responds, responds with equivalent measures for diverse products, such as flat steel, lamps, legs and pork trowels, sausages and food preparations, apples, grapes, cranberries, and various cheeses among others, up to a comparable amount to the level of disruption,” Videgaray said explaining Mexico’s response to the tariffs.

Canada and the EU have taken similar actions, also pledging new tariffs on a range of products.

The EU on Friday also submitted a request for consultations with the US on steel and aluminum tariffs, a first step in the WTO dispute settlement process, Reuters reported a WTO official as saying.

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