WTO to probe US tyre tariffs
14/01/2010 12:00
The World Trade Organisation plans to launch an investigation into import tariffs imposed by the US on Chinese tyres – among the more contentious of a string of recent trade disputes between the economic giants.
China, which is poised to take the title of world’s biggest exporter for 2009, filed a complaint to the WTO against the new duty of 35 per cent on tyre imports, imposed on top of a pre-existing 4 per cent tariff, saying that the taxes are in excess of the rates permitted under US international obligations.
In December, Beijing requested the establishment of a WTO panel to consider its complaint. The panel is to be launched on January 19, with work to begin once China and the US can agree on three people to form it. They will then have up to nine months to study the issue.
The tyre tariffs, levied in September last year, come amid tit-for-tat actions on products ranging from poultry to chemical fibres.
Last week, the US slapped anti-dumping duties of 43 to 289 per cent on imports of Chinese-made wire decking. The taxes are on top of earlier tariffs imposed in November after the US found Chinese manufacturers benefited from government subsidies.
The tyre tariffs followed a petition by the United Steelworkers union, which represents workers at many US tyre factories. Trade unions complained that a surge in imports of Chinese-made tyres had caused 7,000 job losses among US factory workers.
The union said on Monday that it was confident that the WTO would uphold the US decision.
”The USW has complete faith that the decision of the president following the extensive investigation by the US International Trade Commission will be found to be consistent with the US rights under the WTO – specifically, the special safeguard that China agreed to as part of its accession process,” said Leo Gerard, international president.
US figures show that the value of tyre imports from China increased from $453.3m in 2004 to $1.8bn in 2008.
China, which is poised to take the title of world’s biggest exporter for 2009, filed a complaint to the WTO against the new duty of 35 per cent on tyre imports, imposed on top of a pre-existing 4 per cent tariff, saying that the taxes are in excess of the rates permitted under US international obligations.
In December, Beijing requested the establishment of a WTO panel to consider its complaint. The panel is to be launched on January 19, with work to begin once China and the US can agree on three people to form it. They will then have up to nine months to study the issue.
The tyre tariffs, levied in September last year, come amid tit-for-tat actions on products ranging from poultry to chemical fibres.
Last week, the US slapped anti-dumping duties of 43 to 289 per cent on imports of Chinese-made wire decking. The taxes are on top of earlier tariffs imposed in November after the US found Chinese manufacturers benefited from government subsidies.
The tyre tariffs followed a petition by the United Steelworkers union, which represents workers at many US tyre factories. Trade unions complained that a surge in imports of Chinese-made tyres had caused 7,000 job losses among US factory workers.
The union said on Monday that it was confident that the WTO would uphold the US decision.
”The USW has complete faith that the decision of the president following the extensive investigation by the US International Trade Commission will be found to be consistent with the US rights under the WTO – specifically, the special safeguard that China agreed to as part of its accession process,” said Leo Gerard, international president.
US figures show that the value of tyre imports from China increased from $453.3m in 2004 to $1.8bn in 2008.
By Justine Lau in Hong Kong
Published: January 12 2010 03:59 | Last updated: January 12 2010 10:22
Source: www.ft.com
Published: January 12 2010 03:59 | Last updated: January 12 2010 10:22
Source: www.ft.com
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