Geneva, 27 January 2022 (TDI): The World Trade Organization (WTO) has allowed China to place duties on exports from the United States amidst dumping claims from the former. Those duties amount to $645 million per year.

The WTO published an 87-page decision on the level of countermeasures China could request against the United States. The US is unable to appeal this decision. The country had initially proposed tariffs worth $2.4 billion but then reduced it to $788.75 million.

This dispute stretches all the way back to the Obama Administration in 2012 When the US imposed duties on Chinese products which included paper, pipes, print graphics, steel sinks, and kitchen shelving.

China went to the World Trade Organization and the decision was ultimately made in their favor, which paved the way for the country to retaliate. Washington had a less than stellar response to this outcome.

Adam Hodge, a spokesman for US Trade Representative described this decision as damaging US workers and businesses and that it undermines fair market-oriented competition.

Washington has long claimed unfair treatment by the World Trade Organization. This isn’t the first time the WTO has allowed China to retaliate against US dumping schemes. In 2019 the WTO arbitrator allowed China to add duties on $3.6 billion worth of U.S. imports.

World Trade Organization (WTO)

The World Trade Organization (WTO) is a branch of the United Nations (UN that works on inquiries related to trade. WTO makes standards for trade that countries follow to make trade more efficient.

Aside from that, the WTO also settles trade disputes between entities, such as product dumping, unfair restrictions on trade, and other trade matters. It also encourages member states to reduce tariffs to make the world more efficient and promote economic growth worldwide.