Taiwan files WTO complaint over Canadian steel tariffs

Taipei, Dec. 19 (CNA) Taiwan has filed a complaint with the World Trade Organization (WTO) over Canadian trade measures, which include a 50 percent surtax on certain steel products and a 25 percent global tariff on some steel-derivative goods, Taiwan's Office of Trade Negotiation confirmed Friday.

According to AFP, Taiwan submitted a request Monday to initiate dispute consultations with Canada, arguing that Canada violated international trade rules by imposing tariff-rate quotas (TRQs), a 50 percent surtax on certain steel imports, and a 25 percent global tariff on selected steel-derivative products in June.

The request was circulated to WTO members on Thursday, AFP reported.

Taiwan's trade office told reporters Friday that the steel industry is vital to the country's defense sector and a key source of export revenue.

The office said that Canada, Mexico and the European Union have recently adopted protective measures on steel imports to prevent low-priced Chinese steel from flooding the market, moves that have severely affected Taiwan's steel exports.

According to the office, Canada's TRQs could cost Taiwan's steel industry more than NT$1.7 billion (US$54 million) annually.

For steel-derivative products such as screws and nuts, Taiwanese firms could face tariffs totaling more than NT$1.3 billion if exports remain at previous levels, the office said.

Taiwan has repeatedly raised concerns with Canada through bilateral and multilateral channels, emphasizing that Canada's import protections violate its WTO obligations, the office said.

The complaint followed an appeal by the Taiwan Steel & Iron Industries Association to pursue negotiations aimed at reaching a mutually beneficial solution with Canada, it said.

The office also noted that the case could proceed to formal WTO dispute settlement if consultations fail.

Canada has said it respects Taiwan's rights under WTO rules, according to the office.

Under WTO procedures, consultations give both sides a chance to resolve the dispute before formal litigation. If the issue remains unresolved after 60 days, Taiwan can request a panel to hear the case.