2023 Author: Eric Donovan | [email protected]. Last modified: 2023-08-25 09:36
According to a decision by the World Trade Organization, China is no longer allowed to impose punitive tariffs on cars from the USA. The Chinese Ministry of Commerce has expressed reservations.
The US has achieved success in the trade dispute with China over punitive tariffs on cars. According to a decision by the World Trade Organization (WTO), Beijing is no longer allowed to impose punitive tariffs on cars imported from the USA with a cubic capacity of 2.5 liters or more. However, the decision has no direct impact as the tariffs expired in December 2013. Nevertheless, the Chinese Ministry of Commerce announced reservations about the WTO decision on Saturday. The USA, on the other hand, spoke of a deserved victory for their auto workers.
Punitive tariffs of up to 21.5 percent
Beijing had introduced the punitive tariffs between two and 21.5 percent in December 2011 with a term of two years. According to the US, the tariffs affected exports amounting to around five billion dollars. The total car exports to China amounted to 8.5 billion dollars last year.
US Trade Representative Michael Froman saw his argument confirmed that the punitive tariffs on cars from the USA contradicted the WTO rules. Once again, the US won a dispute over China's "unjustified" trade practices. "The message is clear: China has to follow the rules - like any other WTO member," said a written statement.
The Beijing Commerce Department argues that the punitive tariffs were originally imposed because the US government gave massive support to its domestic auto industry. The US automakers could therefore have sold their vehicles at dumping prices on the Chinese market. Beijing and Washington have been accusing each other of dumping for years. The USA had previously imposed punitive tariffs on Chinese tire imports. (dpa)
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