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Ministry of Commerce: The decision in favor of Turkey is an achievement for all members

The Ministry of Commerce stated that the decision of the World Trade Organization (WTO) in favor of Turkey in the lawsuit filed against the additional customs duties imposed by the USA on steel and aluminum products is a gain not only for Turkey but also for all members currently subject to measures.

The Ministry of Commerce evaluated the World Trade Organization’s (WTO) decision on Turkish steel. According to the statement made by the Ministry, the Panel, which was established in Turkey’s lawsuit against the additional taxes imposed by the USA on steel and aluminum imports in 2018, supported Turkey’s arguments. The panel ruled that the additional taxes imposed by the United States were against international trade rules and demanded that the United States remove the additional taxes.

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The panel decision was shared with all WTO members on 9 December. Panel decisions regarding the lawsuits filed by China, Norway and Switzerland against the additional taxes applied by the USA on steel and aluminum imports were announced to the WTO members on the same day as the decision in favor of Turkey.

In the case in question, the US defended the additional tax regulation on the grounds of national security.

Turkey revealed that the General Agreement on Customs Duty and Trade (GATT 1994), which was pointed out, is an article applied in extraordinary situations such as war, and explained that the additional taxes imposed by the USA are actually an application to protect domestic production from the increase in imports, and the Safeguards Agreement. associated with.

With its final report, the Panel revealed that the additional duties imposed by the US on various steel and aluminum products cannot be defended under the national security exemption, contrary to what the US claims.

 

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The decision, which is the basic principle of GATT 1994 and to prevent discrimination between member states, is the Most Favored Country (MFN) decision, which is the basic principle of the USA, in the process, to exempt Australia, South Korea, Brazil, Argentina, Canada and Mexico from the application in some way. ) was also found to be contrary to the principle.

The panel accepted Turkey’s claims and registered that the US’s additional tax application is an unlawful practice. With this decision, it was ensured that countries were prevented from taking protective measures by broadly interpreting the national security claim. While the results of the case are a gain not only for Turkey but also for all members who are currently subject to preventive measures, after this decision, Turkey proved its rightfulness by staying within the mechanisms of the WTO, of which it is a founding member, at a time when practices against protectionist and international rules increased, and contributed to the formation of a case-law. found.

“The US approach harms the multilateral system”

In the statement made by the USA, it was stated that the application would not be abandoned, and the following evaluation was made:

“In this context, it is thought that the Panel Report will be brought to the WTO’s appeal process by the USA and that the USA will prevent the approval of the decision. As it will be remembered, the membership elections for the appeal body are also blocked by the USA. At this stage, it is thought that the USA also harms the multilateral system with this approach. In particular, appealing the won cases to a kind of void, on the other hand, condemning the appeal body to indefinite dysfunction damages the reliability of the system.In the next stage, necessary follow-up will be made before the WTO and within the framework of our bilateral relations with the USA for the complete implementation of the Panel decision, emphasizing the importance of the issue for the system. It is thought that countries such as India, China, Switzerland and Norway will adopt a similar attitude in this regard.

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