WTO Rules Against China in Tire Dispute

 News to China: Fair Trade means Trade Fair.

WTO Decision: Chinese Tires Dumped!

 Our original post on this subject: Chinese tire dumping .

 A ruling announced yesterday by the World Trade Organization (WTO)  upheld U.S. tariffs levied on China-made tires entering the U.S.

 Moments after the WTO ruling the Chinese said they would appeal the decision.

Here is a summary of findings and conclusions.

The WTO’s dispute settlement panel rejected China’s position  that U.S. tariffs imposed last September on all Chinese tires violated global trade rules.  

China  retaliated  against the U.S. tariffs by slapping duties on a variety of American-made products, including chicken and nylon. 

So much for a commitment to trade fair under WTO by China.

So much for mature behavior from our “global trading partner” and “manufacturer to the world.”

The decision to impose the tariffs came last September after a complaint brought by the United Steelworkers union was confirmed by the U.S. International Trade Commission and subsequently recommended by the ITC.  The tariffs levied are 35% in the first year, 30% in the second year and drop to 25% in the third year. 

 According to the initial complaint, China has more than tripled its low cost tire exports to the U.S. between 2004 and 2008, costing the U.S. tire industry more than 5,100 jobs.

Maybe that’s why its called Dumping.

 The ITC ruled June 19th that Chinese tire manufacturers were dumping their products on the U.S. market, hurting domestic tire manufacturers and causing increased unemployment in the domestic tire industry. 

And now the WTO agrees.

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