UNITED STATES – CERTAIN MEASURES ON STEEL AND ALUMINIUM PRODUCTS COMMUNICATION FROM THE UNITED STATES
Document: COMMUNICATION FROM
Date: 17 April 2018
Document codes: WT/DS544/2
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
COMMUNICATION FROM THE UNITED STATES
The following communication, dated 13 April 2018 , was received from the delegation of the
United States with the request that it be circulated to the Dispute Settlement Body (DSB).

On 5 April 2018, the United States received China '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.

China'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 the 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 o f its essential security interests, as is
reflected in the text of Article XXI of the GATT 1994.
China's request purports to be pursuant to Article 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 impair the national security of the United
States. The United States did not take action pursuant Section 201 of the Trade Act of 1974,
which is the law under which th e 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 US 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 provision in the Agreement on Safeguards is not applicable, the
United States accepts the request of China to enter into consultations.

The United States has taken note of China 's notification of 29 March 2018, in which China stated
its intent to suspend concessions and other obligations, purportedly under Article 8.2 of the
Agreement on Safeguards. We note further that China put these measures into effect on
2 April 2018. Because the tariffs imposed pursuant to Section 232 are not safeguard measures,
the United States considers that Article 8.2 of the Agreement on Safeguards does not justify
China's suspension of concessions or other obligations. China has asserted no other justification
for its measures, and the United States is aware of none. Therefore, it appears that China 's
actions have no basis under WTO rules.

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