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China loses WTO appeal on US tariffs
Source: Bloomberg News |
September 6, 2011, Tuesday
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Print Edition
THE World Trade Organization has rejected China's appeal of a ruling that backed United States duties on Chinese tire imports.
WTO judges found in December that the tariffs on US$1.8 billion of car and light-truck tires from China were legal. US President Barack Obama imposed the duties of as much as 35 percent in September 2009 under a so-called safeguard provision designed to protect US producers from a surge in imports.
The Chinese government said the tariffs broke WTO rules and were a "serious case of trade protectionism." China lodged its complaint at the Geneva-based WTO against the levies just three days after Obama announced them.
Appellate judges upheld the initial panel's finding that the US "did not fail properly to establish that rapidly increasing imports from China were a significant cause of material injury to the domestic industry," according to their decision, posted yesterday on the trade arbiter's website.
The ruling may sour relations even as the two governments cooperate on the global economic crisis and North Korea.
The complaints filed to Obama by the United Steelworkers union, which represents 15,000 employees at 13 tire plants in the US, were the largest safeguard petition to protect US producers from growing imports from China.
China is the US's second-biggest trading partner, with US$457 billion in annual two-way trade last year.
WTO judges found in December that the tariffs on US$1.8 billion of car and light-truck tires from China were legal. US President Barack Obama imposed the duties of as much as 35 percent in September 2009 under a so-called safeguard provision designed to protect US producers from a surge in imports.
The Chinese government said the tariffs broke WTO rules and were a "serious case of trade protectionism." China lodged its complaint at the Geneva-based WTO against the levies just three days after Obama announced them.
Appellate judges upheld the initial panel's finding that the US "did not fail properly to establish that rapidly increasing imports from China were a significant cause of material injury to the domestic industry," according to their decision, posted yesterday on the trade arbiter's website.
The ruling may sour relations even as the two governments cooperate on the global economic crisis and North Korea.
The complaints filed to Obama by the United Steelworkers union, which represents 15,000 employees at 13 tire plants in the US, were the largest safeguard petition to protect US producers from growing imports from China.
China is the US's second-biggest trading partner, with US$457 billion in annual two-way trade last year.
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