BEIJING, China (March 12, 2012)—The China Rubber Industry Association is urging the Chinese government to protest the pending U.S. legislation authorizing the use of countervailing duties against goods from “non-market economy” countries.
The trade group said the law violates World Trade Organization rules.
Congress passed the bill, which amends the Tariff Act of 1930, on March 6 with widespread support. It now awaits President Barack Obama's expected signature to make it law.
The bill was written and passed in direct response to a court case—GPX International Tire Co. vs. U.S.—which challenged the high duties the Commerce Department placed in 2008 on certain OTR tires imported from China. A federal appeals court ruled in December 2011 the Tariff Act didn't give the U.S. the authority to impose countervailing duties in issues involving non-market economies, such as China, that subsidize product manufacturers and exporters.
In a Chinese-language report on its website, CRIA said the Chinese tire industry has become a victim of U.S. trade protection, citing a long list of examples of this allegation. The association said the U.S. doesn't recognized China's market economy status.