06 September 2011 20:14 [Source: ICIS news]
A WTO appellate panel on Monday denied a
“We have said all along that President Obama’s decision to impose duties on Chinese tyres was fully consistent with our WTO obligations,” Kirk said, adding: “A WTO panel agreed with us and now the appellate body has confirmed it.”
The tariffs, which run through September 2012, were for 35% in the first year, 30% in the second year and 25% in the third.
Gary Hubbard, a spokesman for the United Steel Workers (USW), also hailed the WTO appellate decision, saying that the tariff was in part responsible for reviving
The USW, which also represents rubber workers at US tyre plants, noted that since the tariff went into force in 2009, the
The union cited a recent decision by Bridgestone-Firestone to put $135m (€95.9m) into a plant expansion and earlier investments by Cooper Tire and Continental Tire on expansions and a new green-field production facility.
Hubbard said the tariff and the WTO affirmation of it was crucial in helping to protect the
“The way this works is that an exporter will start to flood the low end of a product market, wipe out that low end and then move the trade battle into the higher end market,” said, noting that turning back the surge of entry-level Chinese tyre imports also served to protect higher market
Tyres are a key end market for styrene-butadiene-rubber (SBR).
($1 = €0.71)
Paul Hodges studies key influences shaping the chemical industry in Chemicals and the Economy
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