WTO upholds US tariffs on Chinese tyre imports

The World Trade Organization (WTO) yesterday ruled in favour of the US for imposing extra duties on Chinese tyre imports, in one of the several anti dumping cases filed against China by the US.

The Geneva, Switzerland-based trade panel rejected China's complaint that the 35-per cent levy slapped by the US on Chinese tyres used in cars and light trucks breached WTO rules.

"We find that in imposing the transitional safeguards measure on 26 September 2009 in respect of imports of subject tyres from China, the US did not fail to comply with its obligations," the WTO dispute settlement three-member panel said.

The ruling comes after the WTO in October 2010 had ruled in favour of the US for imposing penalties on Chinese industrial products including steel pipes.

In September 2009, the US slapped a 35-per cent import tariff in the first year, which would decline to 30 per cent in the second and 25 per cent in the third, on passenger vehicle and light-truck tyres from China. (See: US to slap high tariffs on Chinese tyres; China calls it protectionism)

The Chinese government had labelled the move as trade protectionism by the US that violated the rules of the WTO. After a series of failed negotiations, Beijing decided in January 2010 to file a formal complaint with the WTO.