U.S. welcomes China move to cut auto parts tariffs

[rickaren]

U.S. welcomes China move to cut auto parts tariffs

Posted Monday, Aug 31, 2009, 11:58 am in Employee News

The United States on Friday welcomed Beijing’s decision to eliminate additional charges on imported auto parts in a landmark case that ended a grace period for China after it joined the World Trade Organization, Reuters reported.

“We are pleased that China has informed us that it is eliminating the additional charges on imported auto parts in response to the WTO ruling. We look forward to carefully reviewing the changes announced by China,” U.S. Trade Representative Ron Kirk said in a statement. “Ending these charges will help ensure a level playing field for the high quality auto parts made in America, and is an important example of the importance of enforcing our international trade agreement rights.”

China has overtaken the United States as the world’s largest auto market, but U.S. exports of auto parts to China remain relatively small at less than $900 million last year, the news service noted. That compares with more than $26 billion in U.S. exports to Canada and more than $13 billion to Mexico in 2008, the story said.

China’s move to comply with the WTO ruling in the auto parts case came weeks before President Barack Obama is required to decide by Sept. 17 whether to restrict imports of Chinese-made tires in a case brought by union workers. If the Obama administration imposes restrictions, that could set the stage for China to bring its own complaint at the WTO, the story said. (Reuters)