China Initiates WTO Dispute Over Canadian Tariffs on Steel and Aluminum Products
Geneva, Switzerland – The World Trade Organization (WTO) announced today, August 20, 2025, that the People’s Republic of China has formally initiated dispute settlement proceedings against Canada concerning Canada’s surtaxes and quotas applied to certain steel and aluminum products originating from China.
This development marks a significant step in the ongoing trade discussions between the two nations, with China seeking to address its concerns through the established multilateral framework of the WTO. The dispute, formally registered as DS641, signifies China’s view that Canada’s trade measures may be inconsistent with its obligations under various WTO agreements.
While specific details of China’s initial submission are not yet publicly available, such disputes typically arise when a member government believes another member’s trade policies or practices are creating barriers to trade or are otherwise violating WTO rules. In this instance, China is likely to be focusing on the justification and scope of the surtaxes and quotas imposed by Canada on its steel and aluminum exports.
The WTO’s dispute settlement system provides a structured process for resolving trade disagreements among its 164 member economies. It aims to ensure that trade rules are interpreted and applied consistently and that disputes are settled in a fair and predictable manner. The initiation of proceedings by China means that Canada will now have the opportunity to respond to these allegations.
Following China’s request for consultations, Canada will have a period to consider the concerns raised. If consultations do not lead to a mutually satisfactory resolution, China may then request the establishment of a WTO panel to further examine the matter. A panel would review the arguments and evidence presented by both parties and issue a ruling on whether Canada’s measures are in compliance with WTO agreements.
This action underscores the importance of the WTO as a forum for addressing international trade disputes and for maintaining a rules-based global trading system. As the process unfolds, stakeholders will be keenly observing the discussions and potential outcomes, which could have implications for the broader trade relationship between China and Canada, as well as for the global steel and aluminum markets. Further information is expected to be released as the dispute progresses through the WTO’s dispute settlement procedures.
China initiates WTO dispute regarding Canadian surtaxes, quotas on steel, aluminium goods
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