Just as it was reported, the US won a dispute against China, with the World Trade Organization ruling that the Asian country passed illegal duties on autos and auto parts that were imported from the States.
Actually, the victory is one of political importance, as Obama administration’s fight with China on trade rules is escalating lately, and with the WTO imposing no financial penalty on the accused.
“Once again, the United States has prevailed in a dispute concerning China’s unjustified use of trade remedies, this time on exports of US-made cars and SUVs,” said Michael Froman, a US 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.”
“Today’s ruling is further proof that China has repeatedly violated the rules of world trade,” said Scott Paul, president of the Alliance for American Manufacturing. “Not content to simply manipulate its currency and massively subsidize exports, Beijing has also acted to protect its market with illegal tariffs on US products. ”
According to Froman, the import tariffs affected $5.1 billion of the total $8.6 billion exports to China in 2013 in the form of cars and auto parts, with the 2.5 liters or larger engined models charged, including cars like the Jeep Grand Cherokee, Buick Enclave and Cadillac Escalade. China imposed duties that could go up to 21.5% for the auto imports from the US, the world’s second largest automotive market, behind only the Asian country.