Proof the system can work if the Administration has the will.
The WTO Appellate Body on Monday ruled in Geneva that safeguard tariffs imposed by President Obama on China two years ago were legal under WTO rules.
We have followed this case since January 2010 Chinese Tire Appeal.
We advised the follow up: WTO rules against China
Here is the link to the WTO page on the dispute, where you can choose various downloads of their findings WTO CHINA TYRES
While there are many ways that this “win” will be presented to us as “news”- the fact that we think will be ignored by all is that it is the continued “do nothing about the Chinese currency undervaluation” that is keeping us disadvantaged economically.
This WTO victory shows us that when the administration has the will to pursue relief from unfair trading practices, the system can result in such relief being recognized as lawful.
So while some pundits will characterize this current WTO decision as a “Victory for Obama,” Victory for America,” or Victory for Unions”- the fact is that the real damage to America’s economy is the ongoing, continued predation caused by the Chinese currency peg to the US Dollar. China devalues the yuan by 40%, making Chinese goods artifically inexpensive, stealing US manufacturing jobs.
We congratulate the Obama Administration for their work on the dumping of cheap Chinese tires. How about getting to work on the dumping of manufactured goods through the use of the undervalued yuan?
Facts for Fairness: Neither the current (Obama) nor prior (Bush) administrations have done anything about the Chinese currency manipulation and its mercantilist consequences except talk. And for the record, the Chinese joined the WTO under the auspices and consent of the Clinton administration.