Monday, September 14, 2009

China is ready to file a complaint with the WTO in connection with the introduction of the U.S. protective duties on tires.

Beijing believes that U.S. protectionist measures against Chinese-made tires are not based on facts and harm Sino-US trade and economic relations. In this regard, the Chinese Government is ready to fully protect the legitimate interests of domestic enterprises and is ready to "exercise their rights, in particular, complain to the WTO," reports Xinhua.

"We urge all countries to truly realize the seriousness of the consequences of protectionism and unanimously opposed it. China will, together with trading partners through dialogues and consultations to solve trade friction, jointly maintain a favorable international trade and economic climate. However, China is ready to further improve the response mechanism, and actively support the industry associations and large-scale enterprises to improve capacity to deal with these trade frictions ", - quotes agency the representative of the Ministry of Commerce, Yao Jian.

Recall that on September 11 the U.S. government announced the imposition of protective duties on imports into the U.S. automobile tires made in China. China has responded rapidly to this demarche and the next day expressed "strong dissatisfaction" about it. However Beijing said that he had repeatedly consulted with the U.S. over the imposition of interception measures for this type of product, but the American side insisted on the application of this serious protectionist measures. In addition, Beijing has initiated an antidumping investigation and protivodotatsionnoe for automotive products and broiler meat imports from the United States.

By insisting on the imposition of protective duties groundless, "Xinhua said that since 2007, halted the growth in exports of Chinese automobile tires in the United States. In 2008, as compared with 2007 growth was only 2,2%. Compared with the first half of 2008 in the first half of 2009, exports actually declined by 16%. In addition, the Chinese tires mainly go to the car repair market, and American-made tires are mainly used to equip new cars, so between them there is no direct competition. In this industry for the production of tires in the United States does not undergo significant changes before and after the arrival of Chinese tires. Even in 2007, when export growth of Chinese tires rose to record highs, profitability in the U.S. was satisfactory. A closure of part of businesses and the suspension of production equipment due to the fact that they move to a higher-level demand and self-regulate. "This is not related to the import of Chinese automotive products. Even if the U.S. would stop the import of Chinese tires, then they would have to import this product from other countries" - said the agency.

"Mouthpiece of the official Beijing" stresses that economic and trade cooperation for China and the U.S. are complementary benefits and any protectionist actions are detrimental to both parties. The agency draws attention to the fact that the United States opened the four companies for the production of tires in China, which produce two thirds of the tire, go to the Chinese market and introduced measures will adversely affect the interests of American businesses. In this case, the measures taken to impose protective duties on Chinese tires will not solve the problem of unemployment in the industry shinoproizvodstva USA. On the contrary, it could greatly exacerbate the problem of employment of thousands of Americans who are engaged in import and sale of tires from China. The best proof of this is the position of the Association of Industry for the production of tire United States and the Liberal Union Trade tire United States, which oppose protectionist measures. In addition, the limitation of imports of tires from China will not reduce competition for American businesses and truly allow the U.S. industry faces the problem because the United States in any case have to go to a third country for importing replacement tires. In addition, control measures would greatly increase the cost of procurement of vehicles from the Americans, that will weaken the effect of the U.S. government to raise the industry. Raising prices would tire even to lay a plan to update the tires in some of the consumers, which may create a potential threat to the security avtodvizheniya in the United States.

Related Posts by Categories



Comments :

0 коммент. to “China is ready to file a complaint with the WTO in connection with the introduction of the U.S. protective duties on tires.”


Post a Comment