UNITED STATES – CERTAIN MEASURES ON STEEL AND ALUMINIUM PRODUCTS COMMUNICATION FROM THE UNITED STATES
Document: COMMUNICATION FROM
Date: 6 July 2018
Document codes: WT/DS550/10
Complainant: Canada
Respondent: U.S.
Third parties: Bahrain, Brazil, China, Colombia, Egypt, EU, Guatemala, Hong Kong, Iceland, India, Indonesia, Japan, Kazakhstan, Malaysia, Mexico, New Zealand, Norway, Qatar, Russia, Saudi Arabia, Singapore, South Africa, Switzerland, Taiwan, Thailand, Turkey, Ukraine, Venezuela
Dispute stage: Mutually Agreed Solution
Agreements cited: Art. I:1, II:1(a), II:1(b), X:3(a), XIX:1, XIX:2  GATT 1994Art. 2.1, 2.2, 3.1, 4.1, 4.2, 5.1, 7, 8.1, 11.1(a), 11.1(b), 12.1, 12.2, 12.3, 12.5  Safeguards

UNITED STATES – CERTAIN MEASURES ON STEEL AND ALUMINIUM PRODUCTS
COMMUNICATION FROM THE UNITED STATES
The following communication, dated 11 June 2018, was received from the delegation of the United
States with the request that it be circulated to the Dispute Settlement Body (DSB).

On 1 June 2018, the United States received Canada 's letter of the same date requesting
consultations pursuant to Article 4 of the Understanding on Rules 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.

Canada's request concerns tariffs on imports of steel and aluminum articles imposed by the
President of the United States pursuant to Section 232 of the Trade Expansion Act of 1962
("Section 232 "). The President determined that tariffs were necessary to adjust th e imports of
steel and aluminum articles that threaten to impair the national security of the United States.
Issues of national security are political matters not susceptible to review or capable of resolution
by WTO dispute settlement. Every Member of the WTO retains the authority to determine for itself
those matters that it considers necessary to the protection of its essential security interests, as is
reflected in the text of Article XXI of the GATT 1994.
Canada's request purports to be pursuant to Art icle 14 of the Agreement on Safeguards. However,
the tariffs imposed pursuant to Section 232 are not safeguard measures but rather tariffs
on imports of steel and aluminum articles that threaten to impa ir the national security
of the United States. The Uni ted States did not take action pursuant Section 201 of the Trade Act
of 1974, which is the law under which the United States imposes safeguard measures. Therefore,
there is no basis to consult pursuant to the Agreement on Safeguards with respect to tariffs
imposed under Section 232.

Without prejudice to the U.S. view that the tariffs imposed pursuant to Section 232 are issues of
national security not susceptible to review or capable of resolution by WTO dispute settlement,
and that the consultations provis ion in the Agreement on Safeguards is not applicable,
the United States accepts the request of Canada to enter into consultations.

The United States has taken note of Canada 's Department of Finance notice of intent to impose
countermeasures of 31 May 2018, in which Canada has announced its intent to raise duties on
certain U.S. imports.1 Canada has asserted no justification for its measures, and the United States
is aware of none. Therefore, it appears that Canada's actions have no basis under WTO rules.

We stand ready to confer with officials from your mission on a mutually convenient date for thes e
consultations.

States in response to tariffs on Canadian steel and aluminum products (May 31, 2018), available at
https://www.fin.gc.ca/activty/consult/cacsap-cmpcaa-eng.asp.