WT/DS544/8  
 
19 October 2018  
(18-6677) Page: 1/4 
  Original: English  
 
 
UNITED STATES – CERTA IN MEASURES ON STEEL  AND ALUMINIUM PRODU CTS 
REQUEST FOR THE ESTA BLISHMENT OF A PANEL  BY CHINA  
The following communication, dated 18 October 2018, from the delegation of China  to the 
Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.  
 
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On 5 April 2018, China requested consultations with the Government of the United States pursuant 
to Article 4 of the Understanding on R ules and Procedures Governing the Settlement of Disputes  
(DSU), Article XXII 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 United States to adjust 
imports of steel into the United States and to adjust imports of aluminum into the United States, 
including but not limited to, imposing additional ad valorem rate of duty on imports of certa in steel 
and aluminum products and exempting certain selected WTO Members from the measures.  
 
China held consultations with United States on 19 July 2018. These consultations failed to resolve 
the dispute.  
 
As a result, in order to resolve the dispute, Ch ina 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.  
 
A. Measures at Issue  
 
On 23  March 2018, the United States  imposed 25 percent and 10 percent of ad ditional import duty 
respectively on certain steel products and aluminum products , from all countries except Canada , 
Mexico, Australia , Argentina, Korea, Brazil and the European Union.   
 
Subsequently, a series of revisions were made by the United States to  the measures originally 
imposed, includ ing but not limited to:  
 
- On 1 May 2018, the United States introduced quota on imports of steel products from Korea, 
and removed the exemption from the additional import duty on imported aluminum products 
from Korea;   
- On 1 June 2018, the United States removed the exemption from the additional import duty on 
imported steel products from Canada, Mexico and European Union, and removed the exemption 
from the additional import duty on imported aluminum products from Brazil , Canada, Mexico, 
and European Union. The United States also introduced quota on imports of steel products from 
Argentina and Brazil, and quota on imports of aluminum products from Argentina.   
- In addition, the United States has also provided for and implemented the exclusion of certain 
products from certain sources, upon applications, from the additional import duties.  
 
The measures at  issue include, but are not limited to, the following instrumen ts of the United States 
in relation to the above -referenced actions on the importation of certain steel products and aluminum 
products:  
 WT/DS544/8  
 
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   Adjusting Imports of Steel Into the United States , including the Annex, To Modify Chapter 99 
of the Harmonized Tariff Schedule of the United States  (Presidential Proclamation 9705, issued 
on 8 March 2018)1  
 
 Adjusting Imports of Aluminum Into the United States , including the Annex, To Modify Chapter 
99 of the Harmonized Tariff Schedule of the United States  (Presidential P roclamation 9704, 
issued on 8  March 2018)2 
 
 Adjusting Imports of Steel into the United States  (Presidential Proclamation  9711, issued on 22  
March 2018)3 
 
 Adjusting Imports of Aluminum into the United States  (Presidential Proclamation  9710, issued 
on 22  March 2018)4  
 
 Adjusting Imports of Steel Into the United States , including the Annex, To Modify Certain 
Provisions of Chapter 99 of the Harmonized Tariff Schedule of the United States  (Presidential 
Proclamation 9740, issued on 30 April 2018)5  
 
 Adjusting Imports of Aluminum Into the United States, including the Annex, To Modify Certain 
Provisions of Chapter 99 of the Harmonized Tariff Schedule of the United States  (Presidential 
Proclamation 9739, issued on 30 April 2018)6 
 
 Adjusting Imports of Steel Into t he United States , including the Annex (Presidential 
Proclamation 9759, issued on 31 May 2018)7 
 
 Adjusting Imports of Aluminum Into the United States , including the Annex, To Modify Certain 
Provisions of Chapter 99 of the Harmonized Tariff Schedule of the U nited States  (Presidential 
Proclamation 9758, issued on 31 May 2018)8 
 
 Adjusting Imports of Steel Into the United States , including the Annex, To Modify Certain 
Provisions of Chapter 99 of the Harmonized Tariff Schedule of the United States  (Presidential 
Proclamation 9772, issued on August 10 2018)9 
 
 Adjusting Imports of Steel Into the United States , including the Annex, To Modify Certain 
Provisions of Chapter 99 of the Harmonized Tariff Schedule of the United States  (Presidential 
Proclamation 9777, issued on August 29 2018)10 
 
 Adjusting Imports of Aluminum  Into the United States , including the Annex, To Modify Certain 
Provisions of Chapter 99 of the Harmonized Tariff Schedule of the United States  (Presidential 
Proclamation 9776, issued on August 29 2018)11 
 
 Interim Final Rule regarding  Requirements for Submissions Requesting Exclusions From the 
Remedies Instituted in Presidential Proclamations Adjusting Imports of Steel Into the United 
States and Adjusting Imports of Aluminum Into the United States; and the F iling of Objections 
to Submitted Exclusion Requests for Steel and Aluminum  (U.S. Department of Commerce)12 
 
 Interim Final Rule regarding  Submissions of Exclusion Requests and Objections to Submitted 
Requests for Steel and Aluminum (the Bureau of Industry an d Security, U.S. Department of 
Commerce)13 
 
                                                
1 83 FR 11625 -11630, March 15, 2018  
2 83 FR 11619 -11624, March 15, 2018  
3 83 FR 13361 -13365 , March 28, 2018  
4 83 FR 13355 -13359, March 28, 2018  
5 83 FR 20683 -20705, May 7, 2018  
6 83 FR  20677 -20682, May 7, 2018  
7 83 FR 25857 -25877, June 5, 2018  
8 83 FR 25849 -25855, June 5, 2018  
9 83 FR 40429 -40432, August 15, 2018  
10 83 FR 45025 -45030, September 4, 2018  
11 83 FR 45019 -45023, September 4, 2018  
12 83 FR 12106 -12112, March 19, 2018  
13 83 FR 460 26-46065, September 11, 2018  WT/DS544/8  
 
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   Multiple BIS Decision Document – Steel Duty Exclusion Request  and BIS Decision Document – 
Aluminum Duty Exclusion Request  in response to various exclusion requests submitted to the 
Bureau of Industry and Security (the Bureau of Industry and Security, U.S. Department of 
Commerce)14 
 
 Section 232 Tariffs on Aluminum and Steel, Additional Duty on Imports of Steel and Aluminum 
Articles under Section 232 of the Trade Expansion Act of 1962  (U.S. Customs and Border 
Protecti on)15  
 
 Section 232 of the Trade Expansion Act of 1962 , as amended  (19 U.S.C.  §1862), cited in the 
Presidential Proclamations above for vesting authorities in the President of the United States to 
take the actions therein  
 
 The Effect of Imports of Steel On the National Security, An Investigation Conducted Under 
Section 232 of the  Trade Expansion Act of 1962, As Amended (U.S. Department of Commerce, 
11 January 2018)  
 
 The Effect of Imports of Aluminum On the National Security,  An Investigation Conducted Under 
Section 232 of the Trade Expansion Act of 1962, As Amended  (U.S. Department of Commerce, 
17 January 201 8)  
 
In addition to the measures cited above, this request also covers any  amendments, supplements, 
extensions, replacement measures, renewal measures, r elated  measures, or implementing 
measures.  
 
B. Legal Basis For the Complaint  
 
The measures at issue of the United States were purportedly taken because of national security 
reasons. I t appears to China that the measures  at issue , in their content and substanc e, were taken 
because the imports of steel products and aluminum products were deemed to be in such increased 
quantities and under such conditions as to cause or threaten injury to domestic producers of the 
products. And the  suspension of the obligation s or withdrawal or modification of the concession s by 
the measures at issue w as to relieve such injury or threat to ensure that the relevant domestic 
industries are economically viable.  
 
China considers the measures at issue , operating separate ly or together, a re inconsistent with the 
United States' obligations under:   
 
 Article XIX:1(a) of the GATT 1994, because the United States has suspended tariff concessions 
without the products at issue being imported into the territory of the United States in such 
increased quantities and under such conditions as to cause or to thre aten 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 under the GATT 1994;  
 
 Article XIX:2 of the GATT 1994, because the  United States has failed , before taking the action, 
to give notice in writing to the WTO as far in advance as may be practicable and has failed to 
afford the WTO and WTO Members having a substantial interest as exporters of the products 
concerned an oppor tunity to consult with it in respect of the proposed action;  
 
 Article 2.1 of the Agreement on Safeguard, because the U nited States applies  safeguard 
measures to the products in question without first having determined, pursuant to the 
subsequent provision s of the Agreement on Safeguards, that such products are being imported 
into its territory in such increased quantities, absolute or relative to domestic production, and 
under such conditions as to cause or threaten to cause serious injury to the domestic industry 
that produces like or directly competitive products;  
 
 Article 2.2 of the Agreement on Safeguards, because the United States does not apply the 
safeguard measures to imported products irrespective of their source s;  
                                                
14 https://www.regulations.gov/docket?D=BIS -2018-0006 and 
https://www.regulations.gov/docket?D =BIS-2018-0002 
15 https://www.cbp.gov/trade/programs -administration/entry -summary/232 -tariffs -aluminum -and-steel  WT/DS544/8  
 
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 Article 4.1 of the Agreement o n Safeguards, because the United States has not properly 
determined that there is serious injury, or threat thereof, to a domestic industry;  
 
 Article 4.2 of the Agreement on Safeguards, because the United States has failed to properly 
evaluate all relevant  factors having a bearing on the situation of the domestic industry; has 
failed to demonstrate the existence of a causal link between increased imports and serious 
injury or the threat thereof, including by not attributing injury caused by factors other th an 
increased imports; and has failed to publish a detailed analysis and demonstration of its 
conclusions;  
 
 Article 5.1 of the Agreement on Safeguards, because the United States is applying safeguard 
measures beyond the extent necessary to prevent or remed y serious injury and to facilitate 
adjustment;  
 
 Article 7 of the Agreement on Safeguards, because the United States is applying safeguard 
measures without making provision for their application only for the period necessary to prevent 
or remedy serious in jury and to facilitate adjustment, without limitation to four years, and 
without making provision for progressive liberalization at regular intervals;  
 
 Article 11.1(a) of the Agreement on Safeguards, because the United States has taken 
emergency action on imports of particular products as set forth in Articles XIX of the GATT 
1994, without such action conforming with the provisions of that Article applied in accordance 
with the Agreement on Safeguards;  
 
 Article 12.1, 12.2 and 12.3 of the Agreement on Safeg uards, because the United States has 
failed to comply with any of the notification and consultation obligations set out in these 
provisions;  
 
 Article II:1(a) and (b) of the GATT 1994, because  the United States  has imposed import duties 
on certain steel an d aluminum products  in excess of the duties set forth and provided in the 
United States' Schedule of Concessions and Commitments annexed to the GATT 1994,  and has 
failed to exempt products originating in China subject to the measures at issue from ordinary  
customs duties in excess of those set forth and provided in the United States' Schedule of 
Concessions and Commitments annexed to the GATT 1994, and from all other duties or charges 
in excess of those imposed on the date of the GATT 1994 or those directly  and mandatorily 
required to be imposed thereafter by legislation in force in the United States on that date;  
 
 Article I:1 of the GATT 1994, because the selective application by the United States  of the 
additional import dut ies on certain  steel and aluminum products  originating in different 
Members , including providing exemption or applying alternative means, has failed to extend 
immediately and unconditionally to products originating in China any "advantage, favor, 
privilege or immunity"  granted by the United States "[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, as well as with respect to "the method of levying such duties 
and charges " and the "rules and formalities in connection with importation ".  
 
 Article X:3(a) of the GATT 1994, because the United States has failed to administer its laws, 
regulations, decisions and rulings in relation to the measures at issue in a  uniform, impartial 
and reasonable manner.  
 
China considers  the measures at issue individually and/or collectively, nullify or impair benefits 
accruing to China directly or indirectly under the cited agreements . 
 
Accordingly, China requests the Dispute Se ttlement Body to establish a Panel with the standard 
terms of reference set out in Article 7.1 of the DSU.  
 
 
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