Japan Eyeing WTO Suit as Option against U.S. Metal Tariffs

June 19, 2018

Tokyo- Japan's trade ministry on Monday signaled its readiness to hold negotiations with the United States over the country's add-on steel and aluminum tariffs while keeping open the possibility of bringing the controversial U.S. measure to the World Trade Organization.

In its annual report on questionable trade practices by major countries, the ministry warned that the U.S. tariffs could disrupt markets and have a large impact on the entire multilateral trade system.

The administration of U.S. President Donald Trump has recently introduced the additional tariffs on steel and aluminum imports from Japan and other countries and regions on the grounds of national security.

The ministry also warned against China's practice of requiring foreign companies doing business in the country to transfer their technologies. China's subsidies to its domestic aluminum producers at a time of heightened concern over a global oversupply were also noted in the report.

In a related report, released the same day, the ministry said that the U.S. and Chinese practices are priority issues for Japan and that Tokyo will aim to resolve these issues through bilateral and multilateral negotiations while keeping open the possibility of using WTO dispute settlement procedures.

The ministry also expressed concern over a plan being studied by the Trump administration to levy additional tariffs on U.S. imports of automobiles and auto parts.

The European Union and China have respectively filed complaints with the WTO against the U.S. metal tariffs and announced retaliatory tariffs targeting U.S. products.

Meanwhile, Japan has so far stated that it reserves the right to take countermeasures under WTO rules while unveiling a plan to join, as a third party, U.S.-EU talks at the Geneva-based organization over the U.S. tariffs. Such third parties can express their opinions but are not covered by any agreement between the conflicting parties. Jiji Press