WASHINGTON — The World Trade Organization today upheld the right of the U.S. to place punitive tariffs on imported goods from China to protect U.S. producers.
The WTO’s dispute-settlement panel found in favor of the U.S. in a case China filed over duties the U.S. imposed on imported Chinese tires last year. China argued that the tariffs amounted to “a serious case of trade protectionism,” when it filed its dispute with the WTO.
The Obama administration invoked a China-specific safeguard mechanism to impose additional duties on imports of specific passenger-vehicle and light-truck tires from China in September 2009. China agreed to the safeguard mechanism when it joined the WTO in 2001.
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“This is a major victory for the United States and particularly for American workers and businesses,” said U.S. Trade Representative Ron Kirk. “We have said all along that our imposition of duties on Chinese tires was fully consistent with our WTO obligations. It is significant that the WTO panel has agreed with us, on all grounds.”
China can appeal the finding within the next 60 days.