Why China filed complaints against us at the World Trade Organization

This week, China has officially filed a complaint against the United States at the World Trade Organization (WTO) for the recently imposed rates.

The process is officially referred to as a “consultation request” which officially initiates a dispute between two parties.

According to China, the additional 10 % tariff imposed by the US on Chinese goods is not in accordance with established laws on American tariff agreements.

China has requested WTO litigation consultations with the US on the new fiscal measures on the goods originating in China.

The request was conveyed to the WTO members on February 5.

“China claims that 10 % extra extra ad valuremDuties applied for all the goods originated in China as well as measures regarding the availability of disadvantages and of without taxes minimis The treatment, which applies to all products of Chinese origin, are not in accordance with the most favorable nation obligations under Article I: 1 of the General Agreement on tariffs and trade (GATT) 1994 and US tariff obligations under Article II: 1 letter (a) of GATT 1994, ”said WTO.

Ad valurem Translated directly from Latin, it means “according to the value of something.”

The term is used in taxation to designate taxes charged against property, real or personal, at a certain rate, based on the value of the property.

On the other hand, if it is considered that an action is lacking in significance or importance, the term used to describe it is de minimis.

China’s request for US consultations provide parties to discuss the problem and find a satisfactory solution, without continuing to dispute.

After 60 days, if the consultations fail to resolve the dispute, the applicant may request award by a group.

China’s decision comes after the new rates have become effective.

According to President Donald Trump, his latest rates are intended to press China to do more to stop the flow of opioid fentanel in the US.

Fentanil is a strong synthetic opioid drug approved by the administration of food and drugs for use as analgesic (pain relief) and anesthetic.

China protested on the decision, insisting that it will fight until the end.

While filed the complaint, China responded on Tuesday announcing a 15 % tariff for chicken, wheat, corn and cotton imports.

The tariff commission of the State Council has also imposed a 10 % rate for sorghum, soy, pork, beef, water products, fruits, vegetables and dairy products.

Lin Jian, a spokesman for China’s Foreign Ministry, said on Tuesday: “China will fight until the end. If the US insists on carrying a tariff war, a commercial war or any other type of war.

“I want to reiterate that the Chinese have never been afraid or ghost and we have never tilted ourselves to hegemony or bullying.”

China added that pressure, constraint and threats are not the correct ways to engage with it.

“Trying to exert maximum pressure on China is a mistake and a mistake.”

One of the biggest decisions Trump has made is the tax imposition, Jian said.

Trump also imposed 25 percent fares to America’s neighbors and Canada, saying that his leaders did not do enough to collapse on illegal cross -border drug trade.

In reprisals, Canada has imposed 25 % tariffs for American goods.

Canada Prime Minister Justin Trudeau said on Monday that there is no justification for Trump’s rates.

Mexico is still in discussions with the United States in terms of tax measure.