WTO members conclude review of US 10% import surcharge after its termination
WTO members conclude review of US import surcharges following removal of measure
WTO members concluded consultations on the 10% ad valorem import surcharge the United States imposed on goods from all trading partners, subject to certain product exceptions, under Section 122 of the US Trade Act of 1974. The measure was terminated on 24 July, and members adopted the consultation report ad referendum on 12 October; it now goes to the General Council for review. The United States had notified the Committee on Balance of Payments on 20 February, and several members requested consultations, held at a 5 May Committee meeting.
balance of payments
WTO members have concluded the consultations regarding the 10% import surcharge adopted by the United States.
At a meeting on 2 October, the WTO's Committee on Balance of Payments resumed consultations with the United States regarding its 10% import surcharge.
Members noted that the US measure was terminated on 24 July, thereby concluding the consultations. Members then finalized the consultation report, which was adopted ad referendum on 12 October. The report will now be submitted to the General Council for review.
The United States earlier notified the Committee that, on 20 February, an import surcharge of 10% ad valorem was being imposed on imports of goods from all trading partners, subject to certain product exceptions, pursuant to Section 122 of the US Trade Act of 1974. The United States cited fundamental international payment problems as the justification for the import surcharge. The measure was due to be terminated on 24 July unless the US Congress agreed to extend it.
Following the notification of the temporary import surcharge to the Committee, several members requested consultations with the United States. These consultations took place during a 5 May meeting of the Committee, where the discussion centred on the US balance of payment situation, as well as the necessity, design and application of the import surcharge.
More information
WTO members facing balance-of-payment difficulty may apply import restrictions under provisions in the General Agreement on Tariffs and Trade (GATT) 1994 and the General Agreement on Trade in Services (GATS).
The Committee on Balance-of-Payments Restrictions consults with WTO members who maintain import restrictions for balance-of-payments reasons. The International Monetary Fund participates in the consultations by providing a statement on the consulting member's balance-of-payments situation and external reserve position.
More information is available here.
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Source: WTO · Latest News · wto.org