European Union submitted a request for consultations with the United States on steel and aluminium tariffs announced by Washington, a first step in the WTO dispute settlement process. A World Trade Organization official said that “The WTO Secretariat has received the EU request for dispute settlement consultations on the US Section 232 measures, adding that the text would only be made public once it was circulated to all WTO member states.”
On 23 March 2018, the United States through these measures introduced additional import duties of 10 per cent ad valorem on aluminium articles imported from countries other than Canada, Mexico, Australia, Argentina, Korea, Brazil and the European Union and defined in the US Harmonized Tariff Schedule (HTS) as: (a) unwrought aluminium (HTS 7601); (b) aluminium bars, rods, and profiles (HTS 7604); (c) aluminium wire (HTS 7605); (d) aluminium plate, sheet, strip, and foil (flat rolled products) (HTS 7606 and 7607); (e) aluminium tubes and pipes and tube and pipe fitting (HTS 7608 and 7609); and (f) aluminium castings and forgings (HTS 7616.99.51.60 and 7616.99.51.70), including any subsequent revisions to these HTS. On 1 May 2018, the United States through these measures introduced additional import duties of 10 per cent ad valorem also on these aluminium articles imported from Korea (Argentina, Australia, Brazil, Canada, Mexico and the European Union remaining exempt). On 1 June 2018, the United States through these measures introduced additional import duties of 10 per cent ad valorem also on these aluminium articles imported from Brazil, Canada, Mexico and the European Union (Australia and Argentina remaining exempt). For Argentina, the United States on 1 June 2018 introduced quotas limiting the quantities of imported aluminium articles by weight per calendar year starting from 2018.
For each of these measures referred to above, this request also covers any further amendments, supplements, replacements, extensions, implementing measures or other related measures, including any adjustments as between tariffs, tariff quotas or quotas.
These measures appear to be inconsistent with the United States' obligations under the covered agreements and, in particular:
- Article I:1 of the GATT 1994, because, with respect to customs duties and charges of any kind imposed on or in connection with importation, and with respect to all rules and formalities in connection with importation, the United States fails to accord any advantage, favour, privilege or immunity granted by the United States to certain other countries immediately and unconditionally to the like product originating in the territories of all other Members;
- Article II:1(a) and (b) of the GATT 1994, because the measures do not accord to the commerce of most other Members, including the European Union, treatment no less favourable than that provided for in the appropriate part of the United States' Schedule. They do not exempt the products at issue imported from most other Members, including the European Union, from ordinary customs duties and all other duties or charges of any kind imposed on or in connection with importation in excess of those provided for in the United States' Schedule and the GATT 1994;
- Article X:3(a) of the GATT 1994, because the United States has failed to administer its laws, regulations, decisions and rulings in relation to the measures at issue in a uniform, impartial and reasonable manner;
- Article XI:1 of the GATT 1994, because the United States has instituted restrictions other than duties, taxes or other charges, made effective through quotas, on the importation of products of the territory of other Members;
- Article XIX:1(a) of the GATT 1994, because the United States has suspended tariff concessions without the products at issue being imported into the territory of the United States in such increased quantities and under such conditions as to cause or to threaten serious injury to domestic producers in the United States of like or directly competitive products, as a result of unforeseen developments and of the effect of the obligations incurred under the GATT 1994;
- Article XIX:2 of the GATT 1994, because the United States has failed to give notice in writing to the WTO as far in advance as may be practicable and has failed to afford the WTO and WTO Members having a substantial interest as exporters of the products concerned an opportunity to consult with it in respect of the proposed action;
- Article 2.1 of the Agreement on Safeguards, because the United States applies safeguard measures to the products in question without first having determined, pursuant to the subsequent provisions of the Agreement on Safeguards, that such products are being imported into its territory in such increased quantities, absolute or relative to domestic production, and under such conditions as to cause or threaten to cause serious injury to the domestic industry that produces like or directly competitive products;
- Article 2.2 of the Agreement on Safeguards, because the United States does not apply the safeguard measures to imported products irrespective of their source;
- Article 3.1 of the Agreement on Safeguards, because the United States applies safeguard measures to the products in question without first properly conducting an investigation and publishing a report that sets forth e findings and reasoned conclusions on all pertinent issues of fact and law;
- Article 4.1 of the Agreement on Safeguards, because the United States has not properly determined that there is serious injury, or threat thereof, to a domestic industry;
- Article 4.2 of the Agreement on Safeguards, because the United States has failed to properly evaluate all relevant factors having a bearing on the situation of the domestic industry; has failed to demonstrate the existence of a causal link between increased imports and serious injury or the threat thereof, including by not attributing injury caused by factors other than increased imports; and has failed to publish a detailed analysis and demonstration of its conclusions;
- Article 5.1 of the Agreement on Safeguards, because the United States is applying safeguard measures beyond the extent necessary to prevent or remedy serious injury and to facilitate adjustment;