The Chinese government on the 21st asked the World Trade Organization to set up an expert group to investigate the special safeguard measures taken by the United States against Chinese tires exported to the United States.
At the meeting held on the same day by the WTO Dispute Settlement Body, the Chinese delegation stated that the U.S. government announced on September 11 the implementation of a three-year punitive tariff on passenger cars and light truck tires imported from China. The special safeguard measure was adopted after succumbing to the pressure of domestic trade protectionism. This approach deviated from the international consensus of avoiding protectionist measures in the context of the financial and economic crisis and caused damage to the interests of both countries. In addition, the U.S. government made the above-mentioned tariff increase decision without a factual basis, and therefore it is in violation of relevant regulations in the WTO.
The Chinese delegation also said that China firmly believes that in order to respond to the financial crisis, it is of the utmost importance that all countries conduct full consultations and cooperation. Any unfair and unreasonable protectionist measures will damage the interests of the country and its trading partners. As a major trading nation, the United States should shoulder the responsibility of ensuring a fair and free global trading environment.
The Chinese government launched the WTO dispute settlement procedure on the US Tire Special Safeguard Measures on September 14. In accordance with relevant procedures, the two sides held consultations on the case in Geneva in November but failed to find a solution that satisfies both parties.
Although at the meeting of the day, China proposed to the WTO to set up an expert group, but the United States blocked the establishment of the expert group in accordance with relevant procedures. At the next meeting of the WTO Dispute Settlement Body to be held on January 19, the Chinese side can again request the establishment of an expert group. By then, the United States will not have the right to stop again. Therefore, the expert group will be established automatically.
It generally takes at least six months for the WTO panel to decide on a dispute.