Proof the system can work if the Administration has the will.

A welcome victory for Washington.

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.

WTO Summary and findings

PDF Just the conclusions


 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.