WT/DS551/11  
19 October  2018 
(18-6676) Page: 1/5 
 Original:  Spanish  
 
  
UNITED STATES – CERTAIN MEASURES ON STEEL AND ALUMINIUM PRODUCTS  
REQUEST FOR THE ESTA BLISHMENT OF A PANEL  BY MEXICO  
The following communication, dated 18 October  2018, from the delegation of Mexico to the 
Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.  
 
_______________  
 
 
On 5 June 2018, Me xico requested consultations  with the United States  pursuant to Articles 1 and 4 
of the Understanding on Rules and Procedures Governing the Settle ment of Disputes (DSU), 
Article  XXII:1 of the General Agreement on Tariffs and Trade 1994 (GATT 1994), and Article 14 of 
the Agreement on Safeguards, with respect to certain measures by the Uni ted States to adjust 
imports of steel and aluminium, including but not limited to applying an additional ad valorem  
customs duty on imports of certain steel products, applying an additional ad valorem  customs duty 
on imports of certain aluminium products, and exempting certain selected Members of the 
World  Trade Organization (WTO) from the measures .1 
In a communication  dated  15 June, the United States agreed to enter into consultations  with 
Mexico .2 The consultations between the two countries were held on 2 0 July 2018. Unfortunately, 
these consultations failed to settle the dispute . 
Accordingly, Mexico respectfully requests the establishment of a panel pursuant to Articles 4 and 6 
of the DSU, Article XXIII of the GATT 1994 and Article 14 of the Agreement on Safeguards . 
I. BACKGROUND  
 
On 8 March  2018, the President of the United States of America issued Presidential Proclamations 
9704 and 9705, imposing an additional import tariff  of 10% on certain aluminium products and an 
additional import tariff  of 25 % on certain steel products from all countries except Canada and 
Mexico .3 These measures were effective as from  23 March  2018. On 22 March , the United States 
issued Presidential Proclamations  9710 and  9711, which continued to impose these additional import 
tariffs and, in addition to Can ada and Mexico, exempted  Australia, Argentina, South Korea, Braz il 
and the European Union from the measures . These countries would  remain exempt from the tariffs 
until 1 May 2018.4 
 
On 30 April 2018, the President of the Unit ed States issued Presidential Proclamations 9739 and  
9740. These Proclamations excluded  Argentina, Australia and Brazil from the additional tariffs on 
aluminium and steel products .5 Proclamation  9740 excluded  South Korea , on a long-term basis , from 
the add itional tariffs on steel .6 Pursuant to these Proclamations, Canada, Me xico and the 
European  Union would remain exempt from the additional tariffs  until 1 June.7 
                                                
1 United States - Certain Measures on Steel and Aluminium Products (DS551), Request for Consultations 
by Mexico, WT/DS551/1,  circulated on 7  June 2018.  
2 Communication from the United States, WT/DS551/10, circulated on 6 July 2018.  
3 Proclamation 9704, paragraphs 7 and 9; Proclamation 9705, paragraphs 8 and 10.  
4 Proclamation 9710, paragraphs 4 and 11; Proclamation 9711, paragraphs 4 and 11.  
5 Proclamation 9739, paragraphs 4 -6 (pursuant to clause (1), South Korea would n ot be covered by the 
exemption for aluminium as from 1 May); Proclamation 9740, paragraph 5.  
6 Proclamation 9740, paragraph 4.  
7 Proclamation 9739, paragraph 6; Proclamation 9740, paragraph 7.  WT/DS551/11  
- 2 - 
  Lastly, on  31 May 2018, Presidential Proclamations 9758 and  9759 were issued . Pursuant to these  
Proclamations , as from  1 June 2018, only Argentina and Australia were exempt, on a long -term 
basis, from the additional  tariffs on aluminium products, and only Argentina, Australia and Brazil , 
from the additional tariffs on steel products .8 
 
Therefore , as from 1 June 2018, the United States imposed an additional customs duty of 10 % on 
imports of aluminium products and an additional customs duty of 25 % on imports of certain steel 
products, originating in Mexico . 
 
The establishment of additional import t axes for steel and aluminium products is intended to protect 
the United States industry from the economic effects of imports . At the same time, as a result of the 
Proclamations issued, the additional tariffs are not administered in a uniform manner since, in the 
case of steel, Argentina, Australia, Brazil and South Korea are exempted, while in the case of 
aluminium, Argentina and Australia are exempted . Moreover, pursuant to these Proclamations, 
quotas have been established for Argentina, Brazil and South Korea in the case of imports  of steel 
products , and for Argentina in the case of imports of aluminium products . 
 
II. SPECIFIC MEASURES AT ISSUE 
 
The measures at issue in this request  are those through which the United States has adjusted 
imports of steel a nd aluminium  products . These measures include, but are not limited to : 
 
• Additional tariffs  of 10% and 25% on imports of steel and aluminium products , as well as 
the exclusion of certain WTO Members from these tariffs .9 These measures have been 
established through a series of legal instruments, operating separately or collectively : 
 "Proclamation 9704 of March  8, 2018 Adjusting Imports of Aluminum I nto the 
United  States", Fed . Reg. Vol. 83, No. 51, 11619 -11624, 1 5 March  2018, including 
the Annex thereto ; 
 "Proclamation 9705 of March  8, 2018 Adjusting I mports of Steel Into the 
United  States", Fed . Reg. Vol. 83, No. 51, 11625 -11630, 1 5 March  2018, including 
the Annex thereto ; 
 "Proclamation 9710 of March  22, 2018 Adjusting Imports of Aluminum Into the 
United S tates", Fed . Reg. Vol. 83, No. 60, 13355 -13359, 2 8 March  2018; 
 "Proclamation 9711 of March  22, 2018 Adjusting Imports of Steel Into the 
United  States" , Fed. Reg. Vol. 83, No. 60, 13361 -13365, 2 8 March  2018; 
 "Proclamation 9739 of April 30, 2018 Adjusting Imports of Aluminum Into the 
United  States", Fed . Reg. Vol. 83, No. 88, 20677 -20682, 7 May 2018, including the 
Annex thereto ; 
 "Proclamation 9740 of April 30, 2018 Adjusting I mports of Steel Into the 
United  States", Fed . Reg. Vol. 83, No. 88, 20683 -20705, 7 May 2018, including the 
Annex thereto ; 
 "Proclamation 9758 of May 31, 2018 Adjusting Impo rts of Aluminum Into the 
United  States", Fed . Reg. Vol. 83, No. 108, 25849 -25855, 5 June 2018, including the 
Annex thereto ; 
                                                
8 Proclamation 9758, paragraph 5; Proclamation 9859, paragraphs  4-6. 
9 US Customs and Border Protection, Section 232 Tariffs on Aluminum and Steel Duty on Imports of 
Steel and Aluminum Articles under Section 232 of the Trade Expansion Act of 1962, Update:   Additional Duty 
on Imports of Steel and Aluminum Articles unde r Section 232,  https://www.cbp.gov/trade/programs -
administration/entry -summary/232 -tariffs -aluminum -and-steel (last modified on 14  August  2018.) See also: 
Related CSMS: 18 -000240, 18 -000249, 18 -000257, 18 -000258, 18 -000296, 18 -000317, 18 -000352, 
18-000372,  18-000377, 18 -000378, 000412, 18 -000477, on the same website.  WT/DS551/11  
- 3 - 
   "Proclamation 9759 of May 31, 2018 Adjusting Imports of Steel Into the 
United  States", Fed . Reg. Vol. 83, No. 108, 25857 -25877, 5 June 2018, including the 
Annex thereto ; 
 US Department of Commerce, "The Effect of Imports of Steel on the National 
Security", 1 1 January  201810; 
 US Department of Commerce, "The Effect of Imports of Aluminum on the National 
Security ", 17 January  201811; 
• "Section 232 of Trade Expansion Act of 1962 ", codified in Title 19 , United States Code 
§ 1862;  
• Code of Federal Regulations, Title 15, Section 705, "Effec t of Imported Articles on the 
National Security".  
This consultation request relates to the measures at issue and to any additional measures that 
amend, supersede, update or replace them . 
III. BRIEF SUMMARY OF T HE LEGAL BASIS OF T HE COMPLAINT  
 
Mexico considers that  the measures at issue, in fact  and in substance , constitute safeguard 
measures . These measures, separately or together, appear to be inconsistent with the United States' 
obligations under the following provisions : 
A. Agreement on Safeguards  
 
• Article  2.1, given that the United States failed to determine, pursuant to the provisions of 
the Agreement on Safeguards, that aluminium and steel products are being imported in 
such increased quantities, absolute or relative to domestic production, and u nder such 
conditions as to cause or threaten to cause serious injury to the domestic industry that 
produces like or directly competitive products , when implementing its provisions on 
national security, conducting investigations within the framework thereof , and applying 
measures that, in fact  and in substance , constitute safeguard measures . 
• Article 2.2, inasmuch as  the United States does not apply safeguard measures to steel and 
aluminium products being imported irrespective of their source . 
• Article  3.1, given  that the United States applied  safeguard measures without having 
conducted the relevant investigation pursuant to the established procedure for safeguards,  
and failed to  publish a report setting forth the findings and conclusions reached on 
pertinent  issues of fact and law . 
• Article  4.1, inasmuch as  the United States  failed to determine serious injury or threat 
thereof to the domestic industry, in  accordance with this  provision . 
• Article  4.2, to the extent that in the investigation that gave rise to the  safeguard measures, 
the United States failed to evaluate all factors of an objective and quantifiable nature 
having a bearing on the domestic industry ; failed to determine, on the basis of objective 
evidence, the existence of the causal link between incre ased imports of the product 
concerned and serious injury or threat thereof ; failed to ensure that injury caused by other 
factors was not attributed to imports ; and failed to publish a detailed analysis as well as a 
demonstration of the relevance of the fac tors examined . 
                                                
10https://www.commerce.gov/sites/commerce.gov/files/the_effect_of_imports_of_steel_on_the_nationa
l_security_ -_with_redactions_ -_20180111.pdf  
11https://www.commerce.gov/sites/commerce.gov/files/th e_effect_of_imports_of_aluminum_on_the_na
tional_security_ -_with_redactions_ -_20180117.pdf  WT/DS551/11  
- 4 - 
  • Article  5.1, given that the United States has applied  safeguard measures beyond the 
extent necessary to prevent or remedy serious injury and to facilitate adjustment . 
• Article 7.1 and 7.4 , to the extent that  in applying the safeguard measures, the 
United  States has failed to establish such a period of time for application , not exceeding 
four years,  as may be necessary to prevent or remedy serious injury and to facilitate 
adjustment , or progressive liber alizat ion at regular intervals . 
• Article  8.1, inasmuch as  the United States has applied safeguard measures without having 
endeavoured to maintain a substantially equivalent level of concessions and other 
obligations , as envisaged in this provision . 
• Article  9.1 of the Agreement on Safeguards, given that the United States applies its 
measures to products originating in  developing country Members whose share of imports 
does not exceed 3 %, whereas developing country Members with less than 3 % import 
share collectively account for not more than 9 % of total imports of the product . 
• Article 11.1( a), to the extent that  the United States has adopted safeguard measures that 
are not in conformity with Article XIX of the GATT 1994 and the Agreement on Safeguards . 
• Article 11.1( b), inasmuch as  the United States, through the application of the safeguard 
measures , has sought and taken voluntary export restraints or other similar measures on 
the import side, in violation of this provision . The foregoing is evidenced by the alternative  
measures applied to certain WTO Members, as well as by the objective set out in the 
aforementioned Proclamations . 
• Article 12. 1, 12.2, 12.3 and 12. 5, given that the United States, during the process it 
followed  under Section 232 to apply the safeguard meas ures, failed to make the relevant 
notifications concerning the investigation relating to serious injury or threat thereof , the 
existence of serious injury or threat thereof caused by increased imports, and the decision 
to apply a safeguard measure . It also  failed to provide the Committee on Safeguards with 
pertinent information that was to include evidence of serious injury or threat thereof, 
description of the product and the measure, date of introduction, duration and timetable 
for liberalization . Furthermore, t he United States did not  provide adequate opportunity for 
prior consultations with a view to reaching an understanding on the objective of 
maintaining a substantially equivalent level of concessions and other obligations , nor did 
it notify any  form of compensation . 
B. GATT 1994  
 
• Article I:1 , given that  with respect to customs duties and charges of any kind imposed on 
or in connection with importation, the United States is failing to accord any advantage, 
favour, privilege or immunity granted to certain Members,  immediately and 
unconditionally to the like product originating in the territories of all other Members . The 
United States has selectively applied additional customs duties  to imports of steel and 
aluminium product s and has exempted certa in WTO M embers from these duties . These 
exemptions constitute advantages related to quotas and other alternative measures that 
are applied only to certain WTO Members . 
• Article II:1(a) and (b) , inasmuch as  the United States has made imports of steel and 
aluminium products subject to additional customs duties in excess of those set forth and 
provided in  its Schedule , and consequently, accorded less favourable treatment than that 
provided for in its Schedule of Concessions . 
• Article  XI:1, given  that through the application of selective exemptions on the basis of 
alternative measures, including quotas, the United States has applied restrictions by 
reducing or limiting imports of steel and aluminium products in relation  to prior trade 
levels , or inhibiting  their potential for growth.  
• Article XIX:1(a), inasmuch as the United States applied emergency measures  in respect 
of steel and aluminium products without these products having been imported in such WT/DS551/11  
- 5 - 
  increased qua ntities and under such conditions as to cause or 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 . The United S tates 
has suspended obligations or modified concessions without doing so  to the extent and for 
such time as may be necessary to prevent or remedy the injury . 
• Article  XIX:2, given that  the United States applied emergency measures without giving 
notice in writing to WTO Members as far in advance as may be practicable, and failed to 
afford an opportunity to consult with it in respect of its proposed action . 
The aforementioned violations appear to nullify or impair the benefits accruing to Mexico under the 
WTO provisions cited above . 
For the foregoing reasons , Mexico respectfully requests the establishment of a panel pursuant to 
Articles 4 and 6 of the DSU, Article XXIII of th e GATT 1994 and Article 14 of the Agreement on 
Safeguards , to examine this matter in accordance with  the standard terms of reference se t out in 
Article 7.1 of the DSU . 
Mexico also requests that this matter be placed on the agenda of the next regular DSB meeting, 
which is to be held on 29 October  2018. 
__________