Dated: 14 December 2010

World Trade Organisation Rule In Favour of US – China to Appeal

 

Yesterday is was revealed that The World Trade Organisation (WTO) ruled in favour of the USA's decision to impose the extra duty tax – which President Barack Obama put in place last year – on the import of Chinese tyres.

On the BBC website yesterday, US Trade Representative Ron Kirk, was quoted as saying, "this is a major victory for the United States and particularly for American workers and businesses. We have said all along that our imposition of duties on Chinese tyres was fully consistent with our WTO obligations.

"It is significant that the WTO panel has agreed with us, on all grounds."

The main reason behind the US government’s decision to add such a duty was due to the fact – the claimed – that the import of tyres made in China had more than doubled over the previous four years. This came at the same time that US production dropped by a quarter and saw around 15% of people working within the tyre manufacturing industry lose their jobs.

Following the WTO ruling however, representatives from China have already released a statement indicating that they plan to appeal. Once again, the BBC website this morning quoted officials from Beijing as saying they "regretted the ruling" and were "deeply concerned" about the potential impact of the decision.

This comes as a counter claim made by China has estimated that due to the US tariffs, their tyre industry is set to lose over £630 million and cost 100,000 workers their jobs.

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