China files WTO complaint against Canada over steel tariffs

China has formally lodged a complaint with the World Trade Organisation (WTO) against Canada’s tariff quotas and what it described as discriminatory duties on steel products and goods containing Chinese steel.

The announcement was made on August 15 by a representative of the Chinese Ministry of Commerce, according to Xinhua.

The ministry argued that Canada’s measures disregard WTO regulations, breach the principles of free trade, and create barriers for Chinese exporters. It said these steps amount to trade protectionism and unilateralism, harming the stability of global supply chains in the steel sector.

“These restrictive measures violate China’s legitimate rights and interests and undermine the foundations of the international trading system,” the ministry’s representative stated. The ministry expressed “serious dissatisfaction” and vowed to safeguard the interests of Chinese companies through international legal channels.

Beijing urged Ottawa to reconsider its policies, adhere to multilateral trade rules, and support the growth of mutually beneficial economic and trade relations.

The dispute comes in the wake of Canada’s recent measures to protect its steel industry. In July, Canadian officials justified the tariffs by arguing that some foreign competitors were “unduly benefiting” from non-market practices, including dumping—selling products abroad at lower prices than those set in domestic markets.

Tensions escalated further this week. On August 14, China imposed a nearly 76 per cent tariff on Canadian canola seeds, widely seen as retaliation for Ottawa’s earlier move to introduce 100 per cent tariffs on Chinese-made electric vehicles.

According to Beijing, the duties on canola followed an anti-dumping investigation into Canadian exports. Ottawa has rejected those claims, denying that Canada is engaged in dumping practices.

By Tamilla Hasanova