The United States' recent move to impose additional tariffs on fentanyl imports from China aims to protect public health and safety. However, from an international trade law perspective, these tariffs may not hold up under the rules set by the World Trade Organization (WTO).
WTO obligations, such as the most-favored-nation (MFN) treatment and adherence to the schedule of concessions, appear to be overlooked by the U.S. actions. While the U.S. might reference Section 301 of its Trade Act of 1974 or Section 232 of its Trade Expansion Act to justify these measures, domestic legal provisions do not provide exemptions from WTO commitments.
To successfully invoke exceptions under the General Agreement on Tariffs and Trade (GATT 1994), specifically Article XX (General Exception) and Article XXI (Security Exception), the U.S. would need to demonstrate that its tariff measures are both necessary and non-discriminatory. Given existing WTO precedents and rule interpretations, it is unlikely that the U.S. can justify its tariffs under these exceptions.
If the U.S. proceeds with the tariffs, affected WTO members may initiate consultations, request the formation of a dispute panel, or pursue trade retaliation in line with the WTO's Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU). In the current global economic climate, such unilateral actions by the U.S. could further destabilize the multilateral trading system.
Moreover, linking public health issues like the fentanyl crisis with tariff pressures may not effectively control drug flows or enhance transnational law enforcement cooperation. Instead, it could escalate political tensions and hinder collaborative governance. A more effective approach would involve comprehensive measures, including reducing drug demand, enhancing cross-border law enforcement collaboration, and strengthening multilateral cooperation to address global counternarcotics efforts.
China has been proactive in implementing rigorous controls over drug production, trafficking, and abuse. The ongoing China-U.S. counternarcotics cooperation exemplifies a constructive path to resolving the fentanyl problem. In contrast, unilateral measures by the U.S. risk undermining the authority and stability of the multilateral trading system and fail to address the root causes of the fentanyl crisis. Major countries are encouraged to take responsible actions that foster cooperation and yield positive outcomes for global challenges.
Reference(s):
cgtn.com
