Beijing accuses Canada of WTO rule violations over tariffs on aluminium, steel and EVs

Beijing has requested talks with Canada at the World Trade Organization, a global trade referee, accusing the latter on the ground of violating WTO rules by imposing 100 per cent tariffs on China-origin electric vehicles and 25 per cent tariffs on aluminium and steel.

The news came on Friday, September 6, after China’s Trade Ministry said, “China lodged a request for consultations with Canada at the WTO regarding Canada’s additional tariffs on electric vehicles and steel and aluminium products.”

The Ministry further said, “Canada has disregarded WTO rules and violated its commitments within the WTO by proposing to impose additional tariffs of 100 per cent and 25 per cent.”

It is the second response from China this week, which has added a new twist to the dispute. On Tuesday, September 3, China’s Ministry of Commerce (MOFCOM) announced some countermeasures against Canada in response to the tariffs. China said it would launch an anti-dumping investigation against Canadian canola to determine if the imports at rate-cut prices are causing harm to China’s domestic canola producers.  

The anti-dumping investigation announced by China is a prelude to retaliatory action plans against Canada. Years ago, China announced a punitive measure of 80.5 per cent tariffs on Australian producers for dumping barley, which lasted more than three years.

The origin of these disputes is the announcement of tariffs by the Canadian government on Chinese aluminium, steel, and electric vehicle imports on August 26, replicating the US moves against China. These tariffs were in response to China’s overproduction of electric vehicles and flooding global markets with them.