USW Confident WTO Will Uphold China Tariff Decision

The United Steelworkers of America says it has “complete faith” that the World Trade Organization will uphold the US government’s imposition of an added tariff to consumer tyres imported from China. The WTO has acted on an appeal from China to investigate the three-year, tiered added tariffs imposed on China-made consumer tyres last September. The tariffs – 35 per cent for the first year, 30 per cent the second, and 25 per cent for the third – came on top of an existing four per cent standard import tariff.

The WTO will formalise the panel at a meeting on January 19, and the three-judge body will look into whether the US respected WTO rules in the additional tariffs on Chinese tyres. When the China joined the WTO in 2001, it agreed to give trade partners the right to increase tariffs if Chinese imports disrupted domestic factories and put people out of work. The panel is slated to publish a decision in nine months, and the US still has the ability to appeal that decision, meaning this case could outlast the actual tariffs.

“The USW has complete faith that the decision of the president following the extensive investigation by the US International Trade Commission will be found to be consistent with the US rights under the WTO – specifically, the special safeguard that China agreed to as part of its accession process,” said USW president Leo Gerard. “While trading nations have the right to challenge any action of their trading partners, it is unfortunate that China has challenged a matter that flows from a provision in the protocol of accession that was critical to the US’s willingness to accept China’s membership despite the long road China had – and continues to have – to bring its system fully into compliance with WTO requirements and norms.”

“We expect the US will defend its decision vigorously and that U.S. action will be affirmed as fully consistent with US rights and obligations,” Gerard added. (Tire Review)