WTO rules against US tariff on Chinese, Indian goods

US had imposed a cess on steel imported from India and on various China-made goods saying their selling prices were too low due to unfair subsidies given by these countries

By Aditya Misra
Published: Thursday 17 July 2014

The World Trade Organization (WTO) has ruled against the US decision of imposing a tariff on goods imported from China and India. According to the US, subsidies provided by India and China bring down the selling price of the goods manufactured in these countries and give them an unfair advantage.

The tariffs were imposed on steel products from India and on various goods from China, including renewable energy equipment such as solar panels and wind towers. The US defence for its tariff was based on the argument that they were necessary to protect domestic businesses.   

According to the World Trade Organization (WTO), such tariffs can be imposed only on products manufactured by “public bodies”. The WTO decisions on India and China came in different rulings.

Inexpensive solar panels made in China have also faced controversy in the European Union (EU). The EU Commission has allowed the sale of Chinese products only if they are sold above the minimum price.     


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