China to ap­peal WTO rul­ing on tyre ex­ports to US

The Pak Banker - - International3 -

BEI­JING: China said Tues­day it re­gret­ted the World Trade Or­gan­i­sa­tion's re­jec­tion of its com­plaint against puni­tive US tar­iffs on Chi­nese tyres and would ap­peal "at an ap­pro­pri­ate time".

The com­merce min­istry said in a state­ment that it "re­gret­ted the rul­ing" and was "deeply concerned about the po­ten­tial neg­a­tive im­pact" of the de­ci­sion.

It added that China would "care­fully re­search the dis­pute set­tle­ment panel's re­port and ap­peal at an ap­pro­pri­ate time to pro­tect the Chi­nese in­dus­tries' le­gal rights and in­ter­ests".

In 2009, US Pres­i­dent Barack Obama in­voked a safe­guard clause in China's WTO ac­ces­sion agree­ment to im­pose puni­tive du­ties on im­ports of Chi­nese tyres over three years.

That prompted China to lodge a com­plaint with the global trade watchdog.

How­ever, the WTO's panel of ar­bi­tra­tors re­jected all of China's ar­gu­ments in its 128page rul­ing on Mon­day, say­ing "the United States did not fail to com­ply with its obli­ga­tions" in im­pos­ing the mea­sure.

The tyre dis­pute ig­nited the first trade spat of Obama's pres­i­dency be­tween the United States and China, with com­plaints from the US side that the Chi­nese tyre in­dus­try had cost more than 5,000 US jobs.

The two eco­nomic pow­er­houses have since sparred over a range of prod­ucts from chicken meat to steel pipes to the dis­tri­bu­tion of US films, books and movies. The Chi­nese min­istry said Tues­day the US move was "a trade pro­tec­tion­ist mea­sure aimed at re­duc­ing do­mes­tic po­lit­i­cal pres­sures," in­sist­ing it was not in line with WTO rules, ac­cord­ing to the state­ment.

"The safe­guard mea­sure is not in China's in­ter­ests, nor is it in the in­ter­ests of the United States," it said.

"The em­ploy­ment rate in the US tyre in­dus­try slumped rather than in­creased ever since the im­ple­men­ta­tion of the safe­guard mea­sure," it said.

The num­ber of jobs in the US tyre man­u­fac­tur­ing in­dus­try fell by 10 per­cent in the first five months of the year from the same pe­riod last year, it added, cit­ing US fig­ures. -Afp

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