The tussle continues between the United States and the European Union, along with other members of the World Trade Organization (WTO), with the creation of panels responsible for examining American sanctions - and counter-sanctions from its trading partners - on steel and aluminium (see EUROPE 12128) at a meeting in Geneva on Wednesday 21 November.
The WTO Dispute Settlement Body (DSB) has accepted the request made by seven WTO members - the European Union, China, Canada, Mexico, Norway, Russia and Turkey - to establish panels to examine the conformity of the tariffs imposed by the United States on its imports of steel (25%) and aluminium (10%) with WTO rules (DS 548). India and Switzerland launched a similar procedure against US duties at this meeting.
Washington invokes Article XXI of the GATT, under which security exceptions are made for a WTO member if they are necessary for "the protection of its essential security interests,” a European Commission spokesman told EUROPE. “It does not represent an escalation. This is a WTO-consistent, legitimate and expected action," he added.
The United States has succeeded in obtaining the establishment of panels to rule on the tariffs imposed by the European Union, Canada, China and Mexico on certain American imports, instituted in order to rebalance the American sanctions on aluminium and steel.
Status quo on the Appellate Body
At the same meeting, 71 WTO members were again refused by the United States when requesting a relaunch of the selection procedure to appoint new members to the Appellate Body.
"The considerable number of members supporting the proposal reflects a common concern with the current situation in the Appellate Body that is seriously affecting its workings and the overall dispute settlement system against the best interests of the members," stressed the Mexican representative who made the request. (Original version in French by Hermine Donceel)