BCN-06-07-Mexico to file WTO complaint over US tariffs: ministry

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BCN-06

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Mexico to file WTO complaint over US tariffs: ministry

MEXICO CITY, June 5, 2018 (BSS/AFP) – Mexico said on Monday it will file a
complaint with the World Trade Organization over US tariffs on its steel and
aluminum.

The economy ministry said it will “initiate a dispute settlement process
under the umbrella” of the WTO, and that its actions will “continue to follow
the state of international commercial law and will be proportional to the
damage that Mexico regrettably received.”

Both the European Union and Canada have already opened legal challenges to
the United States at the WTO, the Geneva-based arbitrator of international
trade disputes that is loathed by President Donald Trump who on Friday
imposed duties of 25 percent for steel and 10 percent for aluminum against
his allies.

Mexico submits that the tariffs, imposed on the grounds of national
security, were not adopted in accordance with relevant WTO procedures and
also violate the 1994 General Agreement on Tariffs and Trade.

Immediately following the move by Trump, Mexico said it would impose
retaliatory duties on a variety of US goods, including steel and a host of
agricultural products including apples, cheeses and pork.

Those penalties will remain in place “until the United States government
eliminates tariffs imposed,” Mexico’s government said.

Other US allies have also reacted with fury and retaliation, with fears
building of a global trade war.

Ottawa hit back with proportional Can$16.6 billion ($12.8 billion US) in
tariffs on US steel and aluminum as well as consumer goods.

The tariff dispute comes as Canada, Mexico and the US try to reach an
agreement to update the North American Free Trade Agreement in talks
triggered last year by Trump’s discontent with that deal.

Canadian Finance Minister Bill Morneau said Washington’s decision to impose
the tariffs had lessened the chances for a successful outcome of the NAFTA
talks.

MORE/MR/ 1040 hrs

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Mexican President Enrique Pena Nieto and his Canadian counterpart, Justin
Trudeau, spoke as soon as Washington announced the new duties.

– Rising tensions –

“These unilateral tariffs, imposed under a false pretext of safeguarding US
national security, are inconsistent with the United States’ international
trade obligations and WTO rules,” Canada’s Foreign Minister Chrystia Freeland
said Friday after her country filed its WTO complaint.

Mexico has received backing in the dispute from its domestic business
sector.

“We support the position of the Mexican government to impose the equivalent
measure on diverse products,” Mexico’s Business Coordinating Council said of
the retaliatory tariffs.

The group rejected “the protectionist measures of the United States
government.”

Mexican Finance Minister Jose Antonio Gonzalez Anaya said the US tariffs —
along with Trump’s tweets against Mexico — further raise tensions over the
NAFTA review.

“It is very difficult to reach a negotiation when measures of this nature
are suddenly taken,” the minister said.

Ties between Washington and Mexico City have also been strained over
immigration.

US media reported in February that the two sides shelved tentative plans
for a visit to Washington by Pena Nieto as tensions persisted over a proposed
border wall.

Pena Nieto had previously scrapped a visit in January last year because of
Trump’s insistence that Mexico pay for the wall, which he wants as part of
his efforts to curb immigration.

The US is Mexico’s largest trading partner, receiving about 80 percent of
the country’s exports.

BSS/AFP/MR/ 1040 hrs