US claims win in car trade dispute with China

[Omaha Steve]

Source: AP-EXCITE

GENEVA (AP) — The United States claimed victory in a trade dispute Friday after a key panel ruled that China's anti-dumping duties on imports of American-made cars and sport-utility vehicles violate international trade rules.

The World Trade Organization dispute panel sided with the United States in its ruling, saying that China acted "inconsistently" with the anti-dumping requirements, in violation of its WTO commitments.

The Geneva-based international trade body allows countries to raise import duties to offset improper subsidies and dumping. But complaints filed by Washington in 2012 accused Beijing of improperly imposing anti-dumping duties on American-made autos worth $3 billion.

China had defended the duties on U.S.-made vehicles as legal under international rules. The duties affect cars and SUVs with engine capacity of 2.5 liters or larger.

FULL story at link.


Read more: http://apnews.excite.com/article/20140523/us-china-auto_trade-6099e043c0.html

[okaawhatever]

1. Awesome. Good news for American auto workers. nt

[pampango]

2. U.S. wins trade ruling that China imposed illegal duties on American imports

The World Trade Organization ruled China has imposed illegal tariffs on autos and auto parts imported from the U.S., a victory for the Obama administration’s escalating fight against China’s protectionist trade practices.

“Once again, the United States has prevailed in a dispute concerning China’s unjustified use of trade remedies, this time on exports of U.S.-made cars and SUVs,” said Michael Froman, U.S. Trade Representative. “This is the third time that the United States has prevailed in a WTO dispute challenging China’s unjustified use of trade remedies.”

President Barack Obama’s administration in 2012 lodged a complaint with the Geneva-based WTO challenging Chinese duties of up to 21.5% on auto imports from the U.S. A separate U.S. complaint that year said China, the world’s second-largest economy, unfairly subsidized its auto and auto parts manufacturers.

The Beijing government charged that U.S. automakers gained an unfair advantage by using government subsidies and selling vehicles in China below their value, a practice known as dumping. The WTO rejected that argument.

http://www.freep.com/article/20140523/BUSINESS0104/305230094/trade-ruling-u-s-china-michael-froman

Thanks for this OP, Omaha Steve.