Importance of WTO highlighted

With the United States carrying out its threat to levy an additional 15 percent tariffs on the first batch of another $300 billion of Chinese goods on Sunday, the Ministry of Commerce filed a complaint with the World Trade Organization against the US on Monday for violating WTO rules.

The US has imposed punitive tariffs on Chinese goods based on an investigation under Section 301 of the US Trade Act of 1974, which empowers the US to take unilateral action against any country deemed threatening its national interests.

Back in 1998, while settling the "banana trade war" between the US and Europe, the WTO dispute settlement mechanism ruled that the use of Section 301 is a breach of WTO rules, and the US later promised to strictly abide by it. But in its trade dispute with China, the US has yet again cited Section 301 as a "legal basis" to justify its long-arm jurisdiction and trade imperialism.