China wants WTO talks on US tariffs

By Lu Haoting (China Daily)
Updated: 2009-09-15 06:52

China has termed the US move on tire imports as a serious act of trade protectionism. [China Daily]

The government Monday filed a formal request for consultations with the United States under the World Trade Organization dispute settlement mechanism over steep US tariffs imposed on Chinese tires.

The two countries will have 60 days to try to resolve the dispute through consultations, according to the WTO's dispute settlement system. If consultations fail, China can request a WTO panel to investigate and rule on the case.

"China believes that the measure by the US, which runs counter to relevant WTO rules, is a wrong practice abusing trade remedies," the Chinese mission to the Geneva-based body said in a statement.

"China's request with the US for consultations is based on the normal practice of WTO members under the dispute settlement mechanism and concrete action by China to protect its own interests," the statement said.

US President Barack Obama on Friday approved to apply an increased duty to all imports of passenger vehicles and light truck tires from China for three years.

Besides the existing 4-percent duties, tariffs will increase a further 35 percent in the first year, 30 percent in the second and 25 percent in the third. The decision will take effect before Sept 26.

China quickly denounced the US move as a serious act of trade protectionism that violates WTO regulations.

Chinese Ministry of Commerce spokesman Yao Jian on Monday said that China hopes all sides will understand its determination to firmly fight against trade protectionism in a bid to safeguard the multilateral trading system and its intention to jointly seek global economic recovery.

"The Chinese government has taken a wise decision to resort to the WTO dispute settlement system. As a WTO member, China is trying to protect the interest of its own tire industry while playing by the rules of WTO," said Zhang Yuqing, WTO dispute settlement body panelist.

But Zhang said he saw little possibility for the two sides to resolve the dispute during the 60-day consultations.

"It is impossible for the US to withdraw its decision so quickly. Neither would China accept the current situation. It would ultimately be up to the ruling of a WTO dispute settlement panel," Zhang said.

The Chinese government on Sunday launched an anti-dumping and anti-subsidies investigation into automotive and chicken imports from the US.

The commerce ministry said it acted in response to domestic concerns and the move is not retaliation against the tire dispute.