The USW says it has “complete faith” that the World Trade Organization will uphold the Obama Administration’s imposition of an added tariff to consumer tires imported to the U.S. from China.
Over the weekend, the WTO acted on an appeal from China to investigate the three-year, tiered added tariffs imposed on China-made consumer tires last September. The tariffs – 35% for the first year, 30% the second, and 25% for the third – came on top of an existing 4% standard import tariff.
The WTO will formalize the panel at a meeting on Jan. 19, and the three-judge body will look into whether the U.S. respected WTO rules in the additional tariffs on Chinese tires. When 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 U.S. 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 U.S. International Trade Commission will be found to be consistent with the U.S. 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 U.S.’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,” he said.
"We expect the U.S. will defend its decision vigorously and that U.S. action will be affirmed as fully consistent with US rights and obligations."
