WTO upholds US tariffs on China tyre imports

ERJ staff report (TB)

Geneva, Switzerland (Sept. 5, 2011) - The World Trade Organisation (WTO) has upheld the US government's right to impose elevated tariffs on imports of Chinese passenger and light truck tyres by denying China's appeal of an earlier WTO ruling that found no problems with the US's actions in 2009.

The decision by the appellate body of the WTO's Dispute Settlement Body, announced today, refers to China's petitioning the WTO on May 24 for an appeal of its ruling in December 2010 that the Obama administration did not violate international trade and tariff rules when it levied steep tariffs on passenger and light truck tyre imports from China in September 2009.

The tariffs China questioned amounted to 39 percent for the year beginning September 2009 and 34 percent beginning September 2010. In September 2011 the tariffs will be reduced further to 29 percent, and in September 2012 they will revert to their traditional level of 4 percent.

The appellate body's decision upheld the earlier decision on all points questioned by China. The key points related to the proper evaluation of whether imports were “increasingly rapidly” and, having established that, whether the rising imports were having a material impact on the US tyre industry.

The Obama administration, acting on a petition from the United Steelworkers union, decided to impose the elevated tariffs on Sept. 11, 2009. The tariffs were issued under provisions of Section 421 of the Trade Act, which is designed to help US industries that suffer market disruption because of increased Chinese imports.

The WTO's decision on this matter originally was due out in late July, but on July 22 the appellate body notified the Dispute Settlement Body that it needed extra time to complete the report.

From Tire Business (A Crain publication)

Ruling from WTO

China voices 'regret' over WTO tire-export ruling China government via MarketWatch

USW Cites WTO Labor Day Order Against China Tire Imports press release from USW

Statement on CRIA website (Chinese language)

Statement on CRIA website (Auto-translated from Chinese)