US President Donald Trump with Chinese President Xi Jinping at a past meeting. /XINHUAThis week, China officially filed a complaint against the United States at the World Trade Organization (WTO) over newly imposed Tariffs.
The process is formally referred to as ‘Request for consultation’ which formally initiates a dispute between two parties.
According to China, the additional 10 per cent tariff imposed by the US on Chinese goods is inconsistent with set laws on US Tariff agreements.
China has requested WTO dispute consultations with the US in regard to the new tax measures on goods originating from China.
The request was circulated to WTO members on February 5.
"China claims that the 10 per cent additional ad valorem duties applied on all goods originating in China, as well as measures with respect to the availability of drawback and duty-free de minimis treatment, which apply to all products of Chinese origin, are inconsistent with US most-favoured-nation obligations under Article I:1 of the General Agreement on Tariffs and Trade (GATT) 1994 and US tariff obligations under Article II:1(a) of GATT 1994,” the WTO said.
Ad valorem translated directly from Latin, means "according to the value of something.”
The term is used in taxation to designate taxes levied against property, real or personal, at a certain rate based upon the property's value.
On the other hand, if an action is deemed to be lacking significance or importance, the term used to describe it is de minimis.
China's request for consultations with the US gives the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation.
After 60 days, if consultations fail to resolve the dispute, the complainant may request adjudication by a panel.
The decision by China comes after the new Tariffs became effective.
According to President Donald Trump, his most recent tariffs are aimed at pressuring China to do more to stop the flow of the opioid fentanyl to the US.
Fentanyl is a potent synthetic opioid drug approved by the Food and Drug Administration for use as an analgesic (pain relief) and anesthetic.
China has protested the decision, insisting that it will fight to the end.
While it has filed the complaint, China on Tuesday retaliated by announcing 15 per cent tariff on chicken, wheat, corn, and cotton imports from the US.
The State Council Tariff Commission also imposed a 10 per cent tariff on sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products.
Lin Jian, a spokesperson for China’s Foreign Ministry, on Tuesday said, “China will fight till the end. If the US insists on waging a tariff war, trade war or any other kind of war.
“I want to reiterate that the Chinese people have never feared evil or ghosts, nor have we ever bowed to hegemony or bullying.”
China added that pressure, coercion and threats are not the right ways to engage with it.
“Trying to exert maximum pressure on China is a miscalculation and a mistake.”
One of the biggest decisions Trump has made is imposing Tariff, Jian said.
Trump also imposed 25 per cent tariff on America's neighbours Mexico and Canada, saying its leaders were not doing enough to crack down on the cross-border illegal drug trade.
In retaliation, Canada imposed 25 per cent tariff on US goods.
Canada Prime Minister Justin Trudeau on Monday said that there is no justification for Trump’s tariffs.
Mexico is still in talks with the United States over the tax measure.
