US to Appeal Section 232 Dispute Rulings to Defunct Appellate Body

The U.S. filed appeals against four World Trade Organization dispute panel rulings that found the U.S. Section 232 national security tariffs on steel and aluminum violated global trade rules. The U.S. said during the Jan. 27 meeting of the dispute settlement body it will take the case to the Appellate Body -- the next tier of the WTO's dispute settlement system that stands defunct due to U.S. refusal to seat members on the body over reform concerns.

"While there may be those who will criticize the U.S. decision to appeal -- or perhaps any U.S. response -- the United States will continue taking necessary if unpopular actions when it is the right thing to do," the U.S. said in its remarks. "The U.S. decision to appeal should not be misinterpreted as asking the WTO to reevaluate our national security decisions. The responsibility is on us -- the Members -- to tackle this issue head on."

In December, the WTO issued a series of rulings in four disputes brought by China, Norway, Switzerland and Turkey over the Section 232 duties, finding that the tariffs violated Articles I, II, XI and XXI of the General Agreement on Tariffs and Trade (see 2212090060). The dispute panel said the tariffs, which the Trump administration said were needed to maintain U.S. national security, were not "taken in time of war or other emergency in international relations," as mandated by Article XXI(b)(iii) of national security protections, so the duties violate the GATT.

In its remarks over the decisions at the DSB meeting, the U.S. said that it "will not cede decision-making over its essential security to WTO panels," reiterating its claim that issues of national security cannot be subject to WTO dispute settlement proceedings. The American remarks further offered harsh words for the panel reports. The U.S. criticized what it said were the panel's findings that it could only take action to protect its national security interests after irreparable damage is done or the situation between it and other countries has led to a breakdown or near-breakdown in the relations between the states.

The U.S. also rebuked China's role in the proceedings. The remarks said that despite the U.S.'s insistence that the WTO isn't the place to adjudicate national security claims, "China persisted, while simultaneously imposing illegal unilateral retaliatory measures on U.S. exports." The U.S. said it has previously seen how China has tried to use WTO settlement proceedings to "undermine tools that were meant to address unfair trade," including applications of antidumping and countervailing duties. "Likewise, China should not now be able to use the WTO to interfere with Members' responses to national security issues related to those policies and practices," the U.S. said.