WTO Rules Against China on Tire Tariffs, China Currency Manipulation Amendment to Senate Tax Bill Introduced

The WTO has ruled against China and in favor for the United States on Chinese tire import tariffs.


World Trade Organization judges rejected China’s complaint that U.S. tariffs on Chinese car and light-truck tires violate global trade rules, saying the Obama administration “did not fail to comply with its obligations.”

President Barack Obama announced the three-year duties on $1.8 billion of tires from China in September 2009, acting on a complaint by the United Steelworkers union, which represents 15,000 employees at 13 tire plants in the U.S. The union said Chinese tire exports to the U.S. tripled from 2001 to 2004 to 41 million and called for a cap on annual imports of 21 million.

China screamed protectionist, which the WTO rejected. The tariff schedule for Chinese tires was 1st year: 35%, 2nd: 30%, then 25%. This is a huge deal, a major victory because the WTO allowed tariffs as a trade remedy. It's also important that just because someone name calls something protectionist, does not make it illegal under the WTO.

Meanwhile Indian imported steel pipe is being dug up because it's defective and Senators Sherrod Brown and Olympia Snowe have introduced an amendment to put tariffs on China for currency manipulation.

WTO Rules Against Airbus for Illegal Subsidies, while China subsidizes Paper Industry

The WTO has ruled against Airbus for illegal government subsidies.

The World Trade Organization ruled Wednesday that European governments gave planemaker Airbus illegal subsidies in its battle with U.S. competitor Boeing Co., in a first key ruling on a long-running dispute between the European Union and Washington.

Problem is the ruling is over 1000 pages and interpretation, as in will anything happen as a result, is confusing. So now the U.S. and the EU are arguing over what the ruling means.

Take, for example, one key argument in the dispute: did the U.S. prove that Airbus funding was harming Boeing? The U.S. says yes, as the panel recognized the ''serious prejudice'' suffered by the Chicago-based company.

But the EU is happy that American claims of ''material injury'' were rejected.

There were differing views on whether that means European subsidies were responsible for lost American jobs or market share.

Another question is what this means if the U.S. wishes to subsidize and protect key industries and innovation for future economic growth.

Notice this ruling comes years too late to stop Airbus from taking away orders and business from Boeing.

Meanwhile EPI has a new report, which shows China subsidized it's paper industry by $33 billion dollars from 2002-2009 to overtake the global market.

WTO rules against China - Unfairly restricting U.S. imports

Shocks of all shocks the WTO ruled in the United States favor on China restricting U.S. imports, one of many, many unfair trade practices by China.

The World Trade Organization's top arbitrators upheld a ruling that China is illegally restricting imports of U.S. music, films and books, and Washington pushed forward with a new case accusing China of manipulating the prices for key ingredients in steel and aluminum production.

Monday's verdict by the WTO's appellate body knocked down China's objections to an August decision that came down decisively against Beijing's policy of forcing American media producers to route their business through state-owned companies.

If China fails over the next year to bring its practices in line with international trade law, the U.S. can ask the WTO to authorize commercial sanctions against Chinese goods.

SEC ban on Flash Trading might "violate" WTO rules

Remember the good news last week when the SEC banned flash trading?

Well, Public Citizen just put up a new blog post explaining WTO trade rules and how these rules might lead to the WTO trade complaint case against the SEC. The WTO might claim banning high frequency trading (known as HFT) is a barrier to trade.

HFT would almost certainly fall under the definition at Annex’s 5(a)(x): “Trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise.” Even if it didn’t, the list in the Annex is illustrative, not exhaustive.

Some Action on China - US Launches WTO Complaint

Shocks of all shocks, the USTR is filing a complaint, along with the EU, against China for trying to hang onto the raw materials which make steel in order to boost their own production.

We are going to the WTO today to enforce our rights, so we can provide American manufacturers with a fair competitive environment and put more American workers back on the job," Ambassador Kirk said. "China is a leading global producer and exporter of the raw materials in question, and access to these materials is critical for U.S. industrial manufacturers. The United States is very concerned that China appears to be restricting the exports of these materials for the benefit of their domestic industries, despite strong WTO rules designed to discipline export restraints.

New Film - Battle in Seattle - 1999 WTO Protests

Look what's coming out, a star packed movie on the Seattle 1999 WTO protests...just in time for the 2008 election!

Here is the film, Battle in Seattle website which has timeline, interviews, history and request the film be shown in your area.

This is great!

I cannot think of any particular economic area more than trade, where pretty much the entire nation agrees. America and Americans are getting screwed. Blue, Read, Pink and Green, most people want major trade policy reforms. Trade policy has been orphaned by both campaigns (doing anything in workers interests or America's interests about trade that is) as if just describing how the middle class is disappearing and working America is in dire straights is actually enough to get them to vote for (flip a coin now) fill in the blank.

Here's the trailer:

WTO Rules Against China on Auto Parts

WTO Rules Again China:

China violates global trade rules by requiring automakers operating there to buy components from local suppliers or face penalties, the World Trade Organization ruled on Friday.
Skip to next paragraph

The decision, issued in Geneva on a complaint brought by the European Union, the United States and Canada, is the first time China has lost a case since it joined the global trade arbiter in 2001

Note this is the first time China has lost.

Now read the last line in the article:

In April 2005, China began a system of levying tariffs on auto parts based on the amount of imports in the complete vehicle. Automakers must register with Chinese authorities and provide detailed information on the quantity and value of foreign parts used in their vehicles.

WTO - Calls for US, EU to Eliminate Farm Subsidies


Developing countries and food exporters from rich and poor nations called on Sunday for the United States and European Union to open up their farm markets and eliminate trade-distorting subsidies

and love this one:

The various alliances among the WTO's 152 members, from the Cairns group of food exporters to the African, Caribbean and Pacific (ACP) countries met on Sunday to plot their strategy

Guinea Pig