The chinese embassy in Ottawa said the tariffs violate WTO rules

The Chinese Embassy in Ottawa has criticized Canada’s new protective measures on steel imports, saying they violate World Trade Organization (WTO) rules and the global trading order, Reuters reports.

The embassy’s statement was made in response to a question from the agency, as in June this year, the countries agreed to improve bilateral relations and take the first steps to restore tense trade relations. Last year, China was Canada’s second-largest trading partner, with bilateral trade totaling 120 billion Canadian dollars ($87.48 billion), but relations have deteriorated.

Canada’s approach has no fundamental justification, no legal basis, and will prove ineffective. It will seriously undermine normal economic and trade cooperation between China and Canada,» the embassy said.

On July 18, the Chinese Ministry of Commerce called on Canada to correct its “incorrect practice” of restricting steel imports and said it would take necessary measures to protect the legitimate rights and interests of Chinese companies.

At the same time, the Canadian Steel Producers Association (CSPA) last week supported the government’s moves to strengthen protective measures on steel, as well as to prioritize local steel products in federal projects and increase assistance to the industry.

“The CSPA will continue to work with the government to monitor the rapidly changing situation so that Canada can continue to protect the integrity of its domestic market,” the statement said.

Canada is tightening its tariff quota system for steel imports to soften the blow from US tariffs on its metallurgical industry. In particular, a 25% additional tariff will be applied to imports from all countries except the US that contain steel smelted and rolled in China – this measure will be implemented by the end of July.