Source:
UK Financial TimesThe US notched up a win in a trade dispute with China over tyre imports as senior officials gathered in Washington for a round of high-level economic talks.
On Monday, a panel of the World Trade Organisation ruled that the US last year acted consistently with its obligations under global trade rules when it slapped levies of as high as 35 per cent on Chinese tyres used in cars and light trucks. The ruling on tyres, which can still be appealed, marks the second time the US has prevailed over China in a trade dispute in as many months, after a favourable October ruling on penalties the US imposed on Chinese industrial products including steel pipes.
“This is a major victory for the United States and particularly for American workers and businesses,” Mr Kirk said. “We have said all along that our imposition of duties on Chinese tyres was fully consistent with our WTO obligations. It is significant that the WTO panel has agreed with us, on all grounds.”
The Obama administration’s decision to press ahead with the tyre tariffs in 2009, after being petitioned by a number of domestic groups including the United Steelworkers union, was considered groundbreaking and controversial because it invoked a special safeguard mechanism from China’s 2001 WTO accession agreement designed to protect American workers against market disruptions and import surges.
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