UNITED STATES – CERTAIN MEASURES ON STEEL AND ALUMINIUM PRODUCTS REQUEST FOR CONSULTATIONS BY CHINA
Document: REQUEST FOR CONSULTATIONS BY
Date: 9 April 2018
Document codes: WT/DS544/1; G/L/1222; G/SG/D50/1
Complainant: China
Respondent: U.S.
Third parties: Bahrain, Brazil, Canada, 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, UAE, Venezuela
Dispute stage: Panel
Agreements cited: Art. XIX:1, XIX:2  GATT 1994Art. 2.1, 2.2, 4.1, 4.2, 5.1, 7, 11.1(a), 12.1, 12.2, 12.3  SafeguardsArt. II:1(a), II:1(b), I:1, X:3(a)  GATT 1994

UNITED STATES – CERTAIN MEASURES ON STEEL AND ALUMINIUM PRODUCTS
REQUEST FOR CONSULTATIONS BY CHINA
The following communication, dated 5 April 2018, from the delegation of China to the delegation of
the United States and to the Chairperson of the Dispute Settlement Body, is circulated in
accordance with Article 4.4 of the DSU.

My authorities have instructed me to request consultations with the Government of the United
States 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 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 certain steel and aluminum products and exempting ce rtain selected WTO
Members from the measures.

A. Measures at Issue

The United States imposed 25 percent and 10 percent of additional import duty respectively on
certain steel products and aluminum products, from all countries except Canada, Mexico, Australia,
Argentina, South Korea, Brazil and the European Union, which took effect from 23 March 2018. It
is indicated that the president of the United States would consider further adjustments to the
additional import duties, alternative means, or implementation of quota.

The measures at issue in this request include, but not limited to:

 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
Proclamation 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

 Requirements for Submissions Requesting Exc lusions 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 Filing of Objections to Submitted

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
WT/DS544/1 • G/L/1222 • G/SG/D50/1

Exclusion Requests for Steel and Aluminum (U.S. Department of Commerce)5

 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 Protection)6

 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 Investig ation 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 2018)

as well as any amendments, or successor, replacement, or implementing measures.

B. Legal Basis of the Complaint

The measures at issue, operating separately or together, appear to be in consistent with the United
States' obligations under:

 Articles XIX:1(a), XIX:2 of the GATT 1994 and Articles 2.1, 2.2, 4.1, 4.2, 5.1, 7, 11.1(a),
12.1, 12.2 and 12.3 of the Agreement on Safeguards, because with regard to the
measures at issue which consti tute safeguard measures in substance, the United States
has failed to make proper determination and to provide reasoned and adequate
explanation of "unforeseen developments", imports "in such increased quantities" and
"under such conditions", and "cause or threaten to cause serious injury to domestic
producers", and the United States has also failed to follow proper procedural requirements
including, for example, notification and consultation procedures, and has failed to apply
the measures in a proper mann er, for example, application irrespective of source of
supply and only for necessary period of time.

 Article II:1(a) and (b) of the GATT 1994, because the United States has imposed import
duties on certain steel and 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 of China subject to the measures at issue
from ordinary customs duties in exc ess 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 requir ed 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 duties 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 China any "advantage, favor, privilege or
immunity" granted by the United States "[w]ith respect to customs duties an d 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.

5 83 FR 12106-12112, March 19, 2018
6 https://www.cbp.gov/trade/programs-administration/entry-summary/232-tariffs-aluminum-and-steel
WT/DS544/1 • G/L/1222 • G/SG/D50/1

As a result of the foregoing, the measures at issue appear to nullify or impair benefits accruing to
China directly or indirectly under the cited agreements.

China reserves the right to raise additional factual and legal claims and matters regarding the
above mentioned meas ures during the course of the consultations and in any future request for
panel proceedings.

China looks forward to receiving the reply of the United States to the present request and to
setting a mutually convenient date and venue for consultations.