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WTO'S Final Decision To Maintain Sino US Tire Trade Dispute

2011/9/6 10:56:00 35

World Trade Organization appeal body 5 released in Geneva about China and the United States

tyre

The result of the trade dispute ruling was that the US imposed punitive tariffs on the Chinese tire exported to the United States in line with WTO rules.

The Chinese delegation to the WTO issued a statement on the same day regretted the result of the ruling, saying that the US move to distort international trade was intended to pass on domestic political pressure.

Duan Xiujie, a Swiss correspondent at China Radio International, Switzerland:

Moderator: first of all, let us give a brief introduction of the Sino US tire trade disputes.

Reporter: all right.

China's tyre protection case is regarded as the first case of Sino US trade friction in the Obama era.

In early 2009, the United Steelworkers union sued the US International Trade Commission for dumping the tires on the US market in the past few years, causing us related industries to collapse and workers to lose their jobs. In June of that year, the United States International Trade Commission put forward a proposal that the special tariff of 55%, 45% and 35% for passenger cars and light truck tires exported to the United States in China for 3 consecutive years. In September, the proposal was approved by President Obama of the United States.

The final punitive tariff rate is 35% in the first year, 30% in second years, and 25% in third years.

The United States insists on unilaterally in spite of China's opposition.

Special safeguard

China has appealed to the world trade organization.

In December 2010, the WTO dispute settlement mechanism released the report of the panel of experts, who concluded that there was no conflict between the US practice and WTO rules.

China expressed its dissatisfaction with this conclusion and appealed to the WTO Appellate Body in June this year for consideration of the report of the expert group.

In September 5th, the Appellate Body released a 123 page ruling report, which still supported the conclusion of the expert group. The United States agreed that the special safeguard measures adopted by the United States to the tire exported to the United States comply with WTO rules.

The Appellate Body of WTO is the supreme authority of the WTO dispute settlement mechanism, and its ruling has legal effect.

Host: OK.

So why does China tire special safeguard case arouse the attention of the outside world?

Is China's export tyres really a threat to the employment of American workers?

Reporter: the Chinese tire special protection case worth US $1 billion 700 million has attracted wide attention since the beginning of the outbreak, not only because it was the first trade launched by China after Obama's administration.

relief

The measure is also due to its unusual and controversial production.

First of all, the union is initiated by the Union Union, rather than the US tire company, a competitor of Chinese tyres.

On the contrary, many tire companies in the United States, especially some small and medium tire wholesalers, are against this lawsuit.

The United States tire industry association, which represents the interests of various sectors of the US tire industry, such as production, sales, maintenance and recycling, will bring four adverse consequences to the United States: first, it will not protect jobs in the US manufacturing industry; second, it will cause the price of the tires to rise, and the American consumers will face fewer choices; third, the United States tire market will be disrupt; fourth, because of the fact that can not afford affordable tire, the American consumers may postpone the necessary replacement of tire behavior, which will bring potential danger to the road safety in the United States.

It should be said that the practitioners of American tire companies are very clear: Chinese tires are the gaps in the low tires of the US market and do not directly impact the tire industry.

Then, in the opposition of the industry, the United States still persisted in the sanctions against China's u. S. tyres, and its purpose seemed to be different.

The statement issued by China's WTO delegation No. 5 clearly pointed out that the purpose of distorting international trade practices in the United States is intended to pass on domestic political pressure.

The statement points out that in the past year, the number of Chinese exports to the United States has decreased, but the total number of imported tyres has not risen.

In 2010, the tires imported from the United States decreased by 23.6% compared with 2009, while the first half of 2011 further decreased by 6%.

However, in 2010, the total number of imported tires in the United States increased by 20.2% compared with 2009, and increased by 9% in the first half of 2011.

These data are sufficient to show that the traditional Chinese tyres did not threaten us related enterprises, but the US Safeguard Measures seriously damaged the interests of Chinese enterprises.

The statement by the Chinese delegation to the WTO asked the United States to immediately correct this practice and provide a fair competitive market environment for Chinese enterprises.