News to China: Fair Trade means Trade Fair.

WTO Decision: Chinese Tires Dumped!

 Our original post on this subject: Chinese tire dumping .
 A ruling announced yesterday by the World Trade Organization (WTO)  upheld U.S. tariffs levied on China-made tires entering the U.S.
 Moments after the WTO ruling the Chinese said they would appeal the decision.
Here is a summary of findings and conclusions.
The WTO’s dispute settlement panel rejected China’s position  that U.S. tariffs imposed last September on all Chinese tires violated global trade rules.  
China  retaliated  against the U.S. tariffs by slapping duties on a variety of American-made products, including chicken and nylon. 
So much for a commitment to trade fair under WTO by China.
So much for mature behavior from our “global trading partner” and “manufacturer to the world.”
The decision to impose the tariffs came last September after a complaint brought by the United Steelworkers union was confirmed by the U.S. International Trade Commission and subsequently recommended by the ITC.  The tariffs levied are 35% in the first year, 30% in the second year and drop to 25% in the third year. 
 According to the initial complaint, China has more than tripled its low cost tire exports to the U.S. between 2004 and 2008, costing the U.S. tire industry more than 5,100 jobs.
Maybe that’s why its called Dumping.
 The ITC ruled June 19th that Chinese tire manufacturers were dumping their products on the U.S. market, hurting domestic tire manufacturers and causing increased unemployment in the domestic tire industry. 
And now the WTO agrees.
 Photocredit
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A tentative agreement reached between the U.S. and Canada would provide Canadian suppliers access to state and local public works projects under the American Recovery and Reinvestment Act of 2009. At the same time, US suppliers will now have access to provincial, territorial, and municipal supply contracts in Canada.

Reciprocal rights to sell in US and Canada means win win.

Originally, the  Buy American provisions of the ARRA had mandated that all steel and manufactured goods purchased with the stimulus funds be made in the United States or in countries with U.S. agreements on government procurement. Local-level projects were also mostly confined to U.S.-made goods.
 Canadian Officials contested these provisions, despite Canada’s exclusion of US suppliers from bidding on provincial and territorial  supply contracts.
Guaranteed Reciprocal Access
According to the  february 5, 2010 agreement, Ottawa will also provide U.S. suppliers with access to construction contracts across its provinces and territories, as well in as a number of municipalities – a breakthrough according to US officials.
This administration made clear to Canada from the outset that any agreement to provide Canada with expanded access to U.S. procurement absolutely must provide guaranteed reciprocal access for US exporters to supply goods and services to Canada through provincial and territorial procurement contracts,” USTR Ron Kirk, the top U.S. trade official, said. “USTR has won that access for American firms, and I look forward to signing the agreement soon,” he said. “The value of new job-supporting contracts open to US firms will be tens of billions of dollars.”
Nice to see that win-win based on mutual respect and mutual opportunity can be the basis of trade. Trade  doesn’t just have to be beggar thy neighbor.
Ooops, wrong Kirk.

Hey Kirk, how about taking that line  of reasoning to Beijing?
Kirk Comments.
US Canada Joint Statement.
Infrastructure Photo Credit.
Capt. Kirk Photo credit.
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