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May 24, 2017

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US wins WTO case against China on luxury cars

WASHINGTON -- The WTO on Friday rejected Chinese tariffs on U.S.-made luxury cars, handing Washington a victory on one of the growing number of disputes between the world's two largest economies.

A World Trade Organization panel, responding to a U.S. complaint, found that China was inconsistent with the global body's rules when it imposed tariffs in December 2011 over alleged U.S. dumping and subsidies.

China, the largest foreign market for U.S. automakers after Canada, ended the tariffs in December 2013 as the WTO case progressed. But a U.S. official said Washington insisted that the WTO formally rule against the measures to ensure they stay off the books.

"The message is clear — China must follow the rules, just like other WTO members," U.S. Trade Representative Michael Froman told reporters, echoing a common message from President Barack Obama's administration when responding to concerns about Beijing.

"Americans deserve to compete on a fair and level playing field, and we will never stop fighting to ensure that our trading partners live up to the commitments they made in our international trade agreements," Froman said.

China imposed the tariffs over what it said were unfair U.S. practices amid a raft of trade disputes. But Froman noted that the United States had won in all three cases that had come to WTO resolution, the others concerning steel products and broiled chickens.

The WTO decision came at the end of an especially tense week between the two powers, with the United States on Monday for the first time indicting Chinese military officers for allegedly stealing trade secrets through hacking.

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