WASHINGTON, Aug 16 (Reuters) - The office of the U.S. Trade Representative on Wednesday said it was pleased with a World Trade Organization panel report that it said recognized the United States' section 232 actions on steel and aluminum are security measures and rejected China's arguments.

"The United States is pleased with the World Trade Organization (WTO) panel report released today, recognizing that the U.S. Section 232 actions on steel and aluminum are security measures, and that the People’s Republic of China (China) illegally retaliated with sham 'safeguard' tariffs," the USTR said in a statement. (Reporting by Susan Heavey)