WTO Agrees to Hear China Tyre Tariff Complaint

News reports from Geneva say that the World Trade Organization will now launch a formal investigation into the Obama Administration’s imposition of a three-year added tariff on imported China-made consumer tyres. The first meeting in the investigation is supposed to occur on January 19, according to reports. Reports say that it could take as long as a year for the case to be resolved.

The US was able to deflect China’s original investigation request last month, but can no longer delay the investigation, and will evaluate whether the US tariffs violate WTO trade rules.

Last September, the Obama Administration ordered a three-year tiered additional tariff – 35 per cent for the first year, 30 per cent the second and 25 per cent for the third – supposedly to protect American tyre jobs. The tariff, which kicked in on September 26, has left numerous US tyre marketers scrambling for supply but has not delivered any new tyre production jobs. Even before the tariff started, China called the move an act of protectionism and called for the WTO to investigate.  (Tire Review)