15 September 2009
China yesterday upped the ante in its trade dispute with the US after it filed a formal complaint to the World Trade Organization over "steep" tariffs the US plans to impose on Chinese tyre imports.
According to state media website Xinhua, the two countries will have 60 days to resolve the dispute under the WTO's settlement system. If negotiations fail, the Chinese government will ask a WTO panel to investigate further.
The US is to introduce tariffs of 35 per cent on Chinese-made tyres in the first year of the measures, and 30 per cent and then 25 per cent in the subsequent two years. The action is designed to counter the "harmful surge" of Chinese tyre imports for passenger cars and light trucks (Web news, 14 September). The first tariff will come into effect on 26 September.
"China believes that the above-mentioned measure by the US, which runs counter to relevant WTO rules, is a wrong practice, abusing trade remedies," the Chinese government said in a statement.
"All sides will understand its determination to firmly fight against trade protectionism so as to commonly safeguard the multilateral trading system by respecting WTO rules."
Meanwhile, Xinhua also reported that the Chinese government had started its investigation into the alleged "dumping" of automotive and chicken products from the US.