Beijing, 3 September 2024 (TI): China on Tuesday announced a series of countermeasures against Canada in response to its decision to impose additional tariffs on Chinese products, including electric vehicles (EVs), steel, and aluminum.
The Ministry of Commerce’s (MOFCOM) measures include plans to initiate dispute settlement proceedings at the World Trade Organization (WTO) and launch anti-discriminatory investigations.
Chinese officials and experts have criticized Canada’s decision, describing it as a violation of WTO rules and an alignment with similar actions by the United States and the European Union.
They argue that the Canadian move is unfair and discriminatory, prompting a firm response from Beijing in accordance with Chinese laws and international trade regulations.
Among the countermeasures, China has decided to initiate dispute settlement proceedings at the WTO against Canada’s additional tariffs on Chinese EVs and other products to protect the interests of its domestic industries.
Additionally, China will begin an anti-discriminatory investigation into Canada’s tariffs on Chinese imports based on Article 7 and Article 36 of its Foreign Trade Law.
Article 7 of China’s Foreign Trade Law states that China may take countermeasures against any country or region that applies prohibitive, restrictive, or discriminatory measures against Chinese trade.
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Article 36 allows the authority responsible for foreign trade under the State Council to publicly disclose activities that violate the law and impair foreign trade order.
MOFCOM emphasized that it would adopt further measures based on the evolving situation.
Industry insiders noted that the anti-discriminatory probe is unprecedented and aligns with both Chinese laws and WTO rules.
Probe into Canola Seed Imports
In a related move, the MOFCOM also announced the launch of an anti-dumping investigation into canola seed imports from Canada at the request of the domestic industry. The move is aimed at addressing industry concerns and safeguarding the legitimate rights and interests of Chinese enterprises.
In 2023, China imported canola seeds worth $3.47 billion from Canada, marking a 170 percent increase year-on-year despite declining prices.
The ministry highlighted that unfair competition from Canada has led to continued losses for Chinese industries.
Additionally, China plans to initiate an anti-dumping probe into certain chemical products imported from Canada, following a request by domestic industries.
“China’s stance is clear – it will take all necessary measures to defend the legitimate rights and interests of Chinese companies,” MOFCOM asserted while announcing the measures.
