Russia joins EU and China to communicate with the WTO over US aluminium and steel tariffs

After China and European Union who have already corresponded with the World Trade Organisation (WTO) over safeguards from the US aluminium and steel tariffs, now Russia joins the squad too. On April 20, 2018, Russia has approached the WTO arguing that 25 per cent tariff on steel and 10 per cent tariff on aluminium as imposed by the US is nothing but the “safeguard measures”, but without abiding by any of the rules set by the WTO.

According to the WTO, safeguards are when the import of a product is temporarily restricted with the aim to protect a specific domestic industry from an increase in imports, which otherwise threatens to cause irreversible harm to the industry.

The safeguard measures are allowed to be used subject to various conditions. One of them is, the country wishing to put the safeguard measures must notify the WTO and provide an adequate opportunity for consultations with other WTO members, who are perhaps interested in exporting the product.

The WTO also has a “sunset clause” which means the safeguard measures must have a specific time, and the member imposing the safeguard measures must pay compensation should there be any adverse effect on the other members.

But, since the United States has not complied with these rules while imposing the tariffs, according to Russia, the latter wants the WTO to consult the matter with the former and ask them to rectify it.