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Tariff on tire imports lacks fact, legal ground: official

(Xinhua)
Updated: 2009-08-12 11:24

China's Ministry of Commerce affirmed Wednesday its stance on the United States' proposed imposition of tariffs on Chinese tire imports, saying the move was neither supported by "legitimacy nor objective foundation".

The slowdown in the US tire industry was a result of the global financial crisis, and not China's increasing tire exports to the United States, Vice Minister of Commerce Fu Ziying said.

He said the move breached World Trade Organization rules and was trade protectionism.

Related readings:  Move toward US tire duty going flat  Producers 'expect fair ruling' on proposed US tire sanction  Tire lobby in US to stymie anti-dumping proposal  China urges US to reconsider tire protectionism

Fu said China's tire exports to the United States trebled between 2004 and 2007 while, during the same period, US tire manufacturers doubled profits. "This means the increase of China's tire exports did not cause any substantial harm to the US tire industry," he said.

The US International Trade Commission issued a statement on June 29, recommending imposing descending tariffs of 55 percent, 45 percent and 35 percent over the next three years respectively on motor vehicle and light truck tires from China.

The US Trade Representative must submit a policy recommendation to the White House by September 2 on whether or not to impose the tariff. US President Barak Obama has 15 days after that to give a final ruling.