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Washington [US] November 24 (ANI) The US and European Union have ended a major tripping point with China in steel and aluminium sectors while managing the contentious tariff as well as dumping issue.
According to Policy Research Group's Strategic Insight, the White House asserted that the deal will restrict 'countries like China' in dumping 'dirty steel' in the market. US also indicated that it was working with countries like UK and Japan, for collective action, to 'address the root causes of market distortions and climate impact of state subsidies and over-capacity.' China is responsible for 27 per cent of global carbon emissions, out of which 15 per cent of the country's total emissions come from the steel industry making it a controversial issue. China has come under fire as it also disregards global trade norms by manipulating the system. Though China became a member of the WTO in 2001 it has been persisting with its opaque policies in face of an open-market-oriented international trading system. According to PRG's Strategic Insight, most countries accuse that China has opted to manipulate the system rather than being a responsible stakeholder. Earlier in 2020, the World Trade Organization trade has criticized China for its aggressive trade policy. Even China's trading partners such as South Korea have questioned Beijing's aggressive posture. A European Council of Foreign Relations policy brief mentions how China is willing to use the economy as a way to 'punish' the EU into changing its policies. Similar fears have been echoed in Australia and Canada as well, wherein China has utilized tariff barriers in retaliation of the COVID-19 critique and the Huawei issue respectively. Further, India has, similarly, argued regarding restriction of access into Chinese agricultural markets while the United Kingdom has raised concerns regarding the Uyghurs in China. On the other hand, the new metals alliance has become one in the emerging line of counter-measures against what has been described as trade practices by China. Further as per, the pact any Chinese steel that may be 'trans-shipped or get utilized in any of the European products that are imported by the US. While this will certainly not end the problem, the hint of promise that other countries may join in the pact might imply that China may have out of reach major markets for its steel or aluminium products. (ANI)
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