Trade remedies are the heavy artillery in a trade war. But will Britain have them in place by the time it leaves Europe?by George Peretz / August 13, 2018 / Leave a comment
One effect of the threat of war is that the issue of whether a country’s armed forces are in a fit state to fight climbs up the political agenda. Similarly, the threat of a trade war resulting from the Trump administration’s policies and from concerns as to the effects of China’s industrial strategy has made the question of trade remedies vitally important: in a trade war, trade remedies are the heavy artillery.
For the UK, the renewed focus on trade remedies comes just as the UK is leaving the European Union and taking steps to set up its own trade remedies regime.
Trade remedies are exceptions, permitted under World Trade Organisation rules, to the general principle of non-discrimination that tariffs should be applied uniformly no matter where the imported product comes from. A trade remedy is a permitted additional tariff—often a very large one—applied to products coming from a particular country or countries.