WTO favors U.S. duties on Chinese tires
A World Trade Organization dispute settlement panel on Monday sided with the United States in a dispute brought by China challenging additional duties imposed on Chinese tires imports under the transitional safeguard mechanism included in China's Protocol of Accession to the WTO.
The panel rejected all of China's claims, finding the United States acted consistently with its WTO obligations.
'We have said all along that our imposition of duties on Chinese tires was fully consistent with our WTO obligations,' said U.S. Trade Representative Ron Kirk, in a statement. 'It is significant that the WTO panel has agreed with us, on all grounds.'
On Sept. 11, 2009, President Obama imposed additional duties on imports of certain passenger vehicle and light truck tires from China for three years in order to remedy the market disruption caused by those imports, as determined by the U.S. International Trade Commission.
The duties were imposed in response to a petition filed by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers Union.
Three days later China requested WTO consultations, alleging the additional duties were inconsistent with the GATT 1994, the Agreement on Safeguards, and China's Protocol of Accession. The WTO established a panel in January 2010 to hear this dispute. The panel held meetings with the parties in June and July 2010.
Both sides have the right to appeal the WTO dispute settlement panel's findings to the WTO Appellate Body within 60 days.
' Chris Gillis