China Opens WTO Dispute on Canadian Tariffs on EVs, Steel, Aluminum

China officially requested dispute consultations with Canada at the World Trade Organization Sept. 11 regarding Canada's upcoming tariffs on various Chinese goods (see 2409040007), including electric vehicles and steel and aluminum products, the WTO announced. If consultations have failed to settle the matter within 60 days, China can request a dispute panel.

Last month, Canada announced a 100% tariff on all Chinese-made electric vehicles, effective Oct. 1, along with a 25% duty on steel and aluminum imports from China, effective on Oct. 15 (see 2408260033). The move came around three months after the U.S. also announced a 100% tariff on Chinese EVs.

China claims the measures violate the most favored nation principle in the General Agreement on Tariffs and Trade (GATT) 1994 and Canada's GATT schedule of customs duty concessions and commitments. China has already taken to the WTO to contest restrictive measures on Chinese EVs imposed by the U.S. and the EU (see 2407220031).

The WTO complaint said Canada's measures violate Article I:1 of the GATT 1994 because they "fail to extend immediately and unconditionally to China an 'advantage, favour, privilege or immunity' granted by Canada '[w]ith respect to customs duties and charges of any kind imposed on or in connection with' the importation of products originating in the territory of other Members."

China said it "reserves the right to raise additional measures and claims" on the Chinese trade restrictions in the future.