China reserves the right to protest against United States steel tariffs at the World Trade Organisation, Minister for Foreign Trade and Economic Co-operation Shi Guangsheng (above) said yesterday. On March 6, US President George W. Bush, citing the need to protect the domestic industry, imposed 30 per cent tariffs on steel imports except from Canada and Mexico, raising a storm of protest from exporters. 'This is trade protectionism and against the regulations of the WTO. The difficulties of the US steel industry are not caused by imports but by the restructuring of the industry,' Mr Shi said on the sidelines of the National People's Congress session in Beijing. 'This decision undermines global steel trade, hurts the consumers and will not solve the problems of the US steel industry. We will follow the matter closely and reserve the right to take further action, including taking a complaint to the WTO dispute settlement procedure.' Diplomats said Beijing was unlikely to go to the WTO only four months after becoming a member because steel did not account for a major part of its total exports. Mr Shi said China would play an active role in a new round of WTO trade negotiations. 'The new rules must balance the rights and obligations of developed and developing countries, with special attention for the very poor countries, to create a new international economic and trade order that is fair and just. Developed and developing countries must have equal footing,' he said. Shi upbeat on foreign investment - Page 3
