WTO rejects China's tires claim that the US is a major victory

The World Trade Organization dismissed China's complaint on December 13, 2010, stating that the United States imposed punitive tariffs on tires imported from China and did not violate relevant regulations. US Trade Representative Kirk said on December 13 that this was a major victory for the United States.

The tire dispute between the United States and China was the first trade dispute between the two countries after President Barack Obama took office. Obama announced in September 2009 that the United States will impose a punitive tariff of US$1.8 billion on tires imported from China for three years. The United States stated that China’s imports of tires from the United States quickly tripled between 2001 and 2904 and threatened the United States with 15,000 job opportunities. As a result, the protection clauses for China’s accession to the WTO agreement were initiated. Up to 35% of punitive tariffs. China immediately urged the United States to withdraw this punitive tariff and appealed to the WTO for arbitration. The WTO Arbitration Panel stated in its 128-page ruling on December 13 that the United States has adopted transitional protection measures for Chinese imported tires, which are in conformity with WTO regulations, and therefore rejected China’s complaints.

U.S. Trade Representative Kirk issued a statement on December 13 stating that this ruling is a major victory for the United States, especially for American workers and businesses. He said that the US levy tariffs on Chinese tires is in full compliance with U.S. obligations in the WTO. The WTO team fully agrees with the U.S. position and it is of great significance.

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