Industry News

USTR Seeks Comments on China's WTO Challenge Regarding 421 Duties on Tires

January 8, 2010


Recently, China requested that the World Trade Organization (WTO) establish a dispute settlement panel concerning additional U.S. tariffs on imports of passenger vehicle and light truck tires from China. The tariffs were implemented on September 16, 2009, after President Obama determined that a surge of Chinese-made tires imported to the U.S. led to a decline in employment in the domestic industry, as provided for under Section 421 of the Trade Act.

In its request,China alleges that the additional duties are not justified as emergency action under WTO rules.In addition, China claims that these measures have not been properly justified as China-specific restrictions under China’s WTO Protocol of Accession. China adds that the U.S. statute authorizing these restrictions is inconsistent with Article 16 of the Protocol of Accession because, according to China, the statute impermissibly weakens the standard of “significant cause” by imposing a definition of the term that contradicts Article 16.4 of the Protocol of Accession. Finally, China alleges that the restrictions are inconsistent with Articles 16.1, 16.3, 16.4, and 16.6 of the Protocol of Accession.

The United States Trade Representative (USTR) is accepting public comments on all aspects of China’s request, as it prepares for a possible dispute settlement panel. Should the WTO elect to establish a dispute settlement panel, USTR expects the panel to issue a report on its findings and recommendations within approximately nine months.

To be assured of consideration by USTR, comments must be submitted on or by January 29, 2009. For more information on how to submit comments, please contact a Barnes/Richardson attorney.