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China, EU denounce US for protectionist trade policies, miring WTO in crisis

Employees look at a cargo ship at a port in Qingdao, east China's Shandong province, on November 8, 2018. (Photo by AFP)

China and the European Union (EU) have lambasted the United States for its dogged pursuit of protectionist measures and bringing the World Trade Organization (WTO) to its knees.

China’s Zhang Xiangchen told delegates at the Geneva-based trade body on Monday that the US Section 301 measures had substantially increased tariffs, and that the controversial move was “bringing back to life the ghost of unilateralism that has been dormant for decades”, violating WTO rules. 

He also urged Washington to work on reforming the WTO by means of “consultations on equal grounds.”

Beijing and Washington have been engaged in a trade war since US President Donald Trump announced in June that $50 billion worth Chinese goods would be subject to 25 percent tariffs in an attempt to “fix” the US-Chinese trade deficit. Since then, the two countries have exchanged several rounds of trade tariffs.

Back in March, Xiangchen also said that unilateral investigations under Section 301 were basically against WTO rules, adding that Washington had given a commitment, after a previous WTO ruling, not to levy such duties unless it won the right to do so in a WTO dispute.

China's trade envoy also stated on Monday that the US steel and aluminum duties “allow protectionism to be at large under pretext of national security.”

Meanwhile, EU ambassador to the WTO, Mark Vanheukelen, also bitterly criticized Washington for the measures it has already taken towards protectionism, saying “The multilateral trading system is in a deep crisis and the United States is at its epicenter.”

Envoys of Japan, Switzerland and Canada to the WTO also lambasted Washington on Monday for its trade policies.

However, US ambassador to the international trade body, Dennis Shea, accused China that it had conducted “unfair competitive practices” which were allegedly harming foreign companies and workers in violation of WTO rules, vowing to lead reform efforts at the watchdog.

"The United States is committed to working with like-minded members to address our concerns with the functioning of the WTO. Reforms are necessary for the continued viability of the institution," Shea said.

Washington says the WTO is dysfunctional since it has “failed” to hold China to account for not opening up its economy as envisaged when Beijing became a member state in 2001.

The comments exchanged on Monday following the publication of final declaration of the G20 summit in Argentina on December 1 highlighting that the leaders of the G20 states have reached an agreement on the necessity to reform the WTO, stressing that they would review the progress on the matter at the next summit.


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