The World Trade Organisation (WTO) recently allowed China to impose $3.6 billion in sanctions against the United States in a case that predates the tariff war now. The damages awarded are the third highest in WTO’s history, according to a WTO document. The amount is about half of that requested by China, which argued some US anti-dumping rules were illegal.
The case began before the 18-month-old trade war between the two nations. China now can ask the WTO’s settlement body to officially authorise retaliatory tariffs on US goods.
While the ruling does not deal with matters included in the current negotiations to conclude phase one of a comprehensive trade deal, it reportedly offers Beijing a new legal weapon to wield against the US government.
The next US steps include amending its ‘illegal’ anti-dumping restrictions on the Chinese products in question, or resolving the dispute directly with China, according to a news agency report.
The point of contention was the methodology that the United States uses to calculate anti-dumping tariffs.