Mexico has filed a dispute consultation with the World Trade Organization (WTO) against the US decision to impose duties on certain imported steel products, WTO said on Thursday.
In the WTO document filing, Mexico argued, among other things, the steel tariff “appears to be inconsistent” with several US obligations under certain provisions, including WTO’s General Agreement on Tariffs and Trade.
“The United States has failed to meet the substantive requirements for the imposition of safeguard measures, which include a recent and adequate explanation of ‘unforeseen developments’ and of the effect of the obligations incurred; of the increase in imports in absolute or relative terms, the existence of serious injury or threat thereof to the domestic industry of the United States, and the causal link between the two,” the Mexican document filing said.
Mexico said the US also “failed” to meet certain procedural requirements for applying a such a measure.
A request for consultation is the first step for a country to file a dispute, according to the WTO. Consultations give the parties involved a chance to discuss the matter and find a satisfactory solution “without proceeding further with litigation.”
Mexico may request to file a panel in 60 days if consultations fail to solve the dispute.