More Panels Forming at WTO in Response to Section 232 Tariffs

The World Trade Organization's dispute settlement body agreed to set up two more panels to judge whether the U.S. was justified in levying aluminum and steel tariffs on trading partners under a national security rationale. The decision, made Dec. 4, added Switzerland and India to the list of eight countries and the European Union that will have panels challenge the tariffs (see 1811210029).

The United States continues to argue that the only judgment a panel could make when a member invokes the national security exemption to the limitations on raising tariffs is to say that yes, the country is using a national security exemption. To review whether it's a legitimate national security claim "would undermine the legitimacy of the WTO's dispute settlement system, and even the viability of the WTO as a whole," the U.S. alleged, according to a Geneva trade official's summary.

The U.S., meanwhile, is challenging retaliatory tariffs from China, Canada, Mexico and the European Union, and panels have been established in those cases; Russia blocked a first request by the U.S. for a panel that would challenge its retaliation.