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  • Jan 20th, 2010
  • Comments Off on WTO sets panel to rule on US duties on China tyres
The World Trade Organisation agreed on Tuesday to set up a panel at China's request to rule whether US safeguard duties on Chinese tyres are legal. The tyre case is one of a growing number of disputes between the two nations, ranging from climate change to currency levels, but Washington and Beijing are resolving it within the WTO's rules-based system.

China argues that the 35-percent additional duty imposed last September by President Barack Obama is unjustified protectionism. "Since the US decision itself runs short of a factual basis and breached US obligations under the WTO, China once again urges the US to promptly withdraw its measures," China told the WTO's dispute settlement body.

The White House argues that the tariff is permitted under the terms of China's agreement to join the WTO in 2001, which allows other members to counter a potentially destabilising flood of imports from China with temporary restraints. US tyre imports from China more than tripled in volume over four years, while US production shrunk more than 25 percent and 14 percent of US workers in the industry lost their jobs, the United States told the meeting.

Copyright Reuters, 2010


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