US challenges Russian response to unusual American tariffs at WTO

The United States has filed a complaint against Russia with the World Trade Organization (WTO) over what is Moscow’s response to unconventional trade practices initiated by Washington itself.

The US administration argued in the complaint on Wednesday that Moscow’s decision to increase tariffs on American goods in retaliation for US tariff increases was “inconsistent” with several international trade rules and that Russia had not imposed similar tariffs on other WTO members.

On July 6, Russia announced that it had increased duties on some American goods from 25 to 40 percent. But that increase came in retaliation for a move by the US to suddenly increase tariffs on imports of aluminum and steel from Russia to unprecedented levels.

Additionally, the measure adopted by the Russian government was a limited response to the US tariffs, aiming to compensate for just $87.6 million of the $537.6 million Moscow expects the hike to cost its companies.

PressTV-Russia hits back at US, raises import duties

Russia’s Prime Minister Dmitry Medvedev has ordered to raise import tariffs on US goods in retaliation for Washington’s decision to impose tariffs on foreign steel and aluminium.

The US administration has also filed similar complaints against the European Union (EU), Canada, China, Mexico, and Turkey — all of them also being countries targeted by controversial US tariffs first and resorting to reciprocation only later.

Wasting ammo in a trade war?

Under WTO rules, Russia now has 60 days to settle the dispute, and after that, the US could ask the global trade body to set up a panel to adjudicate, triggering a long and likely costly legal battle.

Russia’s Economy Ministry said in a statement, “The United States has incorrectly interpreted the nature of the measures taken by Russia.”

“We are acting within the framework of the WTO agreement on special protective measures, which allows countries to compensate for damages incurred as a result of ‘special protective measures’ taken by another country (in this case, the United States),” the Russian ministry added.

Kremlin spokesman Dmitry Peskov told reporters on a conference call that it was Washington’s right to file a case with the WTO but that “in this instance, Russia will of course use its full range of counter-arguments.”

Russia filed its own challenge with the WTO in June, accusing Washington of multiple violations of international trade rules in connection with the metal tariffs.

Back in March, the US started to levy 25-percent border taxes on foreign steel and 10-percent taxes on foreign aluminum.

The EU, Canada, and Mexico were initially exempted from the measures after negotiations with Washington, but that reprieve ended in June.

The Trump administration is also conducting a “national security” study that could lead to tariffs on imports of vehicles and auto parts. Europe is particularly concerned about the prospect of such tariffs.

The administration of US President Donald Trump has launched what is effectively a trade war on many world countries. Trump believes “trade wars are good, and easy to win” because, he thinks, America has been taken advantage of in trade.

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