The World Trade Organisation has rejected China's complaint against punitive US tariffs on Chinese tyre imports, according to a ruling released today.
'We find that in imposing the transitional safeguards measure on September 26 2009 in respect of imports of subject tyres from China, the United States did not fail to comply with its obligations,' the ruling by the WTO disputes settlement panel said.
US President Barack Obama invoked a safeguard clause in the Asian giant's WTO accession agreement to impose punitive duties of 35% on imports of Chinese tyres. The move was aimed at protecting US workers from a market-disrupting surge in imports. It prompted China to lodge a complaint with the global trade watchdog about the move.
The US government has welcomed the ruling. 'This is a major victory for the US and particularly for American workers and businesses,' US Trade Representative Ron Kirk said in a statement.
The ruling came as Chinese officials were gathering in Washington for high-level trade talks under an annual forum called the US-China Joint Commission on Commerce and Trade.
