A sign of the WTO on its headquarters in Geneva Photo: VCG
At a time when nations are grappling with rising protectionism and trade tensions, the necessity and urgency of upholding the rules-based framework of the WTO and safeguarding its international authority have reached unprecedented levels.
The WTO said in a statement on Monday that its Dispute Settlement Body (DSB) had agreed to establish expert panels to examine surtax measures imposed by Canada on certain products of Chinese origin, including electric vehicles and steel and aluminum products.
Another panel would be set up to review additional import duties imposed by China on certain Canadian agricultural and fisheries products, it said.
The WTO, as the cornerstone of the multilateral trading system, has long been the bedrock for maintaining a fair global trade order and market stability. However, in recent years, the unilateral and protectionist measures adopted by certain countries have posed a profound challenge to the very foundation of the multilateral trading system.
The decision made by the DSB to establish expert panels to examine trade disputes between China and Canada is not merely a means to provide a resolution path for the two parties involved. More importantly, through the practice of both sides addressing issues within the WTO’s framework, it once again strongly underscores the WTO’s pivotal role in safeguarding the integrity of international trade.
The core of the trade friction between China and Canada stems from Canada’s decision in August 2024, disregarding repeated Chinese objections and without adequate investigation, to impose unilateral restrictions on electric vehicles (EVs) as well as steel and aluminum products imported from China. This move has blatantly violated WTO rules of non-discrimination and fair trade, which not only infringed upon China’s legitimate rights but also eroded the foundations of equitable global competition.
In March, China’s Ministry of Commerce (MOFCOM) said that an investigation into Canada’s unilateral restrictive measures against certain Chinese products, including EVs, found that relevant Canadian measures constituted discriminatory restrictions, affecting the normal trade order and harming the legitimate rights and interests of Chinese enterprises. A MOFCOM spokesperson said that China decided to impose tariffs on certain Canadian products.
Also, China chose to file a formal complaint within the WTO framework to seek a just ruling. In the face of rising protectionism and high uncertainty in the global economy, China’s move demonstrates its unwavering support for the multilateral trading system. It sends a clear signal: Upholding the authority of the WTO is crucial to resolving trade conflicts and stabilizing the global economic and trade order.
As the world’s second-largest economy and a responsible major trading nation, China has always firmly believed that disputes and differences in international trade must be resolved through dialogue, consultation and impartial rulings within the rules-based framework established by the WTO. This rules-based approach not only effectively safeguards the legitimate rights and interests of enterprises from all countries but also serves as the fundamental guarantee for the long-term stability and predictability of the global trading system.
China’s firm stance and practical actions in upholding the authority of the WTO stand in stark contrast to the trade behavior of the US. Washington’s unilateralist policies in recent years have constituted a severe erosion of the multilateral trading system. The US has long paralyzed the WTO’s Appellate Body, incapacitating the dispute settlement mechanism. Moreover, it has frequently abused the concept of “national security” and domestic legal tools, such as Section 301, to impose exorbitant tariffs on trading partners, including China. These actions blatantly defy WTO rules, severely undermining the authority, stability and predictability of the multilateral trading system and undermining the common foundation of global economic and trade cooperation.
It is against such backdrop that it is of great significance for countries to act under the WTO framework to reinforce rules-based multilateralism. China’s adherence to the WTO process exemplifies not only the commitment to rules, multilateralism and open cooperation but also provides invaluable certainty for a turbulent global economy, setting a crucial example for the international community.