UK faces wave of accusations for breaching WTO rules with its US trade deal

The post UK faces wave of accusations for breaching WTO rules with its US trade deal appeared on BitcoinEthereumNews.com. The UK’s recent trade agreement with the US has sparked concerns among European Union officials and UK parliamentarians over its compatibility with World Trade Organization (WTO) rules. WTO analysts are also concerned about the trade deal, which was also hailed as a landmark “Economic Prosperity Deal.” According to reports, by granting preferential access for American autos, steel and agricultural goods without a comprehensive free-trade framework, London risks breaching the WTO’s Most Favoured Nation (MFN) principle, which mandates equal treatment of all trading partners unless an exemption applies. UK trade deal with the US may discriminate against other suppliers Unlike full-scale free-trade agreements that qualify for WTO waivers, the UK–US pact is limited in scope, covering tariff reductions on British car and steel exports in exchange for expanded US access for beef and ethanol. Under WTO law, however, any tariff cut offered to one member must automatically extend to all MFN signatories. By allowing 13,000 tonnes of American beef into the UK market tariff-free, and converting a 19% ethanol duty into a zero-tariff quota for 1.4 billion liters, Britain has carved out preferential quotas that may discriminate against other suppliers. EU trade officials worry these concessions undermine the non-discrimination cornerstone of multilateral trade rules, and could force London to extend identical benefits to other WTO members or face legal challenge. The matter was discussed in Westminster this week, with professionals before a House of Lords committee warning of a “serious error” in potentially WTO-incompatible provisions. Professor Michael Gasiorek of Sussex University noted that although similar breaches have occurred in past US deals, the outlined tariff and quota adjustments risk deeper conflicts with WTO commitments. “There are elements [of the deal] which are clearly WTO incompatible, such as the announced changes in tariffs — although not much has been announced with regard…

May 22, 2025 - 20:00
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UK faces wave of accusations for breaching WTO rules with its US trade deal

The post UK faces wave of accusations for breaching WTO rules with its US trade deal appeared on BitcoinEthereumNews.com.

The UK’s recent trade agreement with the US has sparked concerns among European Union officials and UK parliamentarians over its compatibility with World Trade Organization (WTO) rules. WTO analysts are also concerned about the trade deal, which was also hailed as a landmark “Economic Prosperity Deal.” According to reports, by granting preferential access for American autos, steel and agricultural goods without a comprehensive free-trade framework, London risks breaching the WTO’s Most Favoured Nation (MFN) principle, which mandates equal treatment of all trading partners unless an exemption applies. UK trade deal with the US may discriminate against other suppliers Unlike full-scale free-trade agreements that qualify for WTO waivers, the UK–US pact is limited in scope, covering tariff reductions on British car and steel exports in exchange for expanded US access for beef and ethanol. Under WTO law, however, any tariff cut offered to one member must automatically extend to all MFN signatories. By allowing 13,000 tonnes of American beef into the UK market tariff-free, and converting a 19% ethanol duty into a zero-tariff quota for 1.4 billion liters, Britain has carved out preferential quotas that may discriminate against other suppliers. EU trade officials worry these concessions undermine the non-discrimination cornerstone of multilateral trade rules, and could force London to extend identical benefits to other WTO members or face legal challenge. The matter was discussed in Westminster this week, with professionals before a House of Lords committee warning of a “serious error” in potentially WTO-incompatible provisions. Professor Michael Gasiorek of Sussex University noted that although similar breaches have occurred in past US deals, the outlined tariff and quota adjustments risk deeper conflicts with WTO commitments. “There are elements [of the deal] which are clearly WTO incompatible, such as the announced changes in tariffs — although not much has been announced with regard…

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