By Denna Bowman
The United Steelworkers (USW) union is confident the US will be able to defend its decision to impose double-digit tariffs on tyres imported from China.
The World Trade Organisation (WTO) is set to investigate the legality of the Obama administrations ruling to slap heavy quotas on tyres which are made in China.
The USW kicked off the trade controversy by calling for action to limit the quotas of Chinese tyres imported into the US in a bid to protect the domestic industry.
Leo Gerard, president of the powerful union, said: “We expect the US will defend its decision vigorously, and that US action will be affirmed as fully consistent with US rights and obligations.”
The tariffs on Chinese car and light truck tyres will be enforced for three years, starting at 39 percent for the year ending in late September 2010.
“While trading nations have the right to challenge any action of their trading partners,” Mr. Gerard said, “it is unfortunate that China has challenged a matter that flows from a provision in the protocol of accession that was critical to the US’s willingness to accept China’s membership despite the long road China had—and continues to have—to bring its system fully into compliance with WTO requirements and norms.”