U.S. says China put unfair duty on autos
Spokesman says most placed on GM, Chrysler
WASHINGTON – The United States launched a trade complaint Thursday against China at the World Trade Organization, accusing Beijing of unfairly imposing duties on more than $3 billion in exports of American-produced automobiles.
The announcement came as President Barack Obama hit the campaign trail in the battleground state of Ohio, where automakers have been affected by the tariffs imposed in December.
Under WTO rules, countries are allowed to impose punitive tariffs to offset damage from both subsidies and dumping – selling products at below market value – but the U.S. contends that in this and other cases, China has used those remedy measures in an unfair and retaliatory way to hurt American exporters.
White House spokesman Jay Carney told reporters Thursday that the Chinese duties cover more than 80 percent of U.S. auto exports to China and fall disproportionately on General Motors and Chrysler because of the actions Obama took to support the auto industry during the financial crisis.
Some critics have contended that the administration’s bailout of the auto sector could leave U.S. products vulnerable to countervailing duties by international competitors claiming it amounted to an unfair subsidy.
China’s anti-dumping and countervailing duties, imposed on autos for two years and ranging from 2 percent to 21.5 percent, affect cars and SUVs with engine capacity of 2.5 liters or larger.
U.S. Trade Representative Ron Kirk said the U.S. has requested consultations on the issue at the WTO, the first step in raising a dispute at the international trade body. If the two sides fail to resolve the issue through consultation within 60 days, the U.S. could request a WTO trade dispute panel. A ruling in such a case could take between 18 months and two years.