United States launches WTO challenge against Canada claiming retaliatory tariffs are 'illegal'

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Freeland has insisted that Canada introduced stronger safeguards on steel well before the US imposed the tariffs.

Washington imposed an additional 25 per cent tariff on $34 billion of Chinese goods on July 6.

Then there's the brewing trade battle with the U.S. Economists estimate the fight could shave 0.2 to 0.5 percentage point off China's GDP growth in the coming 12 months if the U.S. goes ahead and escalates, as it promised to do last week, by imposing tariffs on $200 billion in Chinese products. Countries that join commit in principle to apply their lowest tariff rate on goods from other member countries, called most-favored nation treatment. -European divide seen recently at the North Atlantic Treaty Organization summit in Brussels by wooing European leaders, trying to persuade them to adopt a joint approach to maximize pressure on the Trump administration to abandon a trade war. He said Monday's move "indicates that we value the role of the WTO rules".

Brent crude recovered in Asian trade Tuesday after plunging more than 4 percent to three-month lows on concerns over increased production and reports the USA could tap into strategic reserves.

Its lopsided trade balance with the USA means it has only $80 billion of annual imports of American goods left for retaliation following its earlier measures.

Both sides agreed that faced with the current complicated global situation, especially the rise of unilateralism and protectionism, China and the European Union, as two major forces and economies of the world, have the joint responsibility to safeguard the rules-based worldwide order, advocate multilateralism, and support free trade so as to promote world peace, stability and development. On July 10, the USA released the list of the products covered by this.

This was as the European Council president Donald Tusk called on China, the U.S. and Russian Federation to work together to prevent the descent of trade tensions into "conflict and chaos" amid an escalating trade war between China and the US. The new list included industries related to auto parts, food processing and construction.

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The current global structure is undergoing major changes which will affect world peace and development, they said. At times, the disputes simply fizzle as participants lose the ambition to resolve them. The US exports only $130 billion or so of goods to China, while its imports exceed $500 billion.

Traders work on the floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., March 2, 2018. There are substantial constraints on Chinese power and influence.

China joined the WTO in 2001, integrating deeply into the global economy, a process some hoped would lead to the country becoming more open and democratic.

But what has caused alarm has been China's drive to achieve technological dominance?

Imposing antidumping and countervailing duties, both of which Canadians are very familiar with because of softwood lumber, requires that there be a determination of material injury to a USA firm given either selling below fair market value or benefiting from unfair subsidy overseas, Busch said.

Both main contracts tumbled more than four percent Monday, though they saw some minor increases in Asia.

European leaders also criticize Chinese trade practices, which include massive state support for certain companies; restrictions on foreign companies doing business in China, and a requirement that many high-tech firms share their technical innovations with Chinese partners, in return for access to China's vast market.

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