WASHINGTON (March 14, 2011)—The decision of the World Trade Organization Appellate Body siding with China in a case involving antidumping and countervailing duties on off-the-road tires is “very troubling,” according to Leo W. Gerard, international president of the United Steelworkers union.
“When China joined the WTO in 2001, it agreed to be treated as a non-market economy in dumping cases and to be subject to countervailing duty laws,” Gerard said in a press release. “Today the Appellate Body appears to have created special carve-outs for China that neither the U.S. nor anyone else agreed to 10 years ago.”
Along with Titan Tire Corp., the USW petitioned the International Trade Commission in June 2007, requesting antidumping and countervailing duties against Chinese OTR tires. The ITC found in favor of Titan and the USW in August 2008, and the Commerce Department levied duties as high as 210.48 percent against some Chinese OTR tire manufacturers.
China appealed to the WTO, claiming that double duties violated WTO rules. A WTO dispute settlement panel rejected China's arguments in October 2010, but the Appellate Body reversed the panel and ruled the duties unfair. The WTO Dispute Settlement Body is expected to adopt the Appellate Body report shortly.