U.S. automakers win big trade victory over China

[RobStark]

In a big win for U.S. automakers, the World Trade Organization ruled Friday that China's duties cars imported from the U.S. violate global trade rules.

China added the duties in 2011 after the U.S. government bailed out the automakers during the global financial crisis, Bloomberg News reports.

"This is a significant victory," U.S. Trade Representative Michael Froman is quoted as saying. "It's time for China to change the practices that have led the United States and our trading partners to bring these kinds of cases."


U.S. automakers win big trade victory over China

 

[TD1]

what kind of power has the WTO in practice?
Does China has to drop the importtax?
What if China ignores the WTO ruling?

Other cases where the WTO ruled against China? what happend then?

 

[RobStark]

what kind of power has the WTO in practice?
Does China has to drop the importtax?
What if China ignores the WTO ruling?

Other cases where the WTO ruled against China? what happend then?

If China ignores WTO ruling the WTO can authorize WTO members injured by the illegal tariffs to impose compensatory Tariffs on Chinese goods.

My guess is the White House would look at high value targets like business to business goods imported from China and maybe TVs made and sold by Chinese companies to slap tariffs on if China does not reduce tariffs to global standards.


In the past there is usually a lot of saber rattling and then they negotiate a settlement usually pretty close to WTO ruling but enough to save face.

 

[Cornelia Owens]

I'm confused about this 2.5-liter reference: "U.S. officials said the Chinese duties affected vehicles manufactured in California and nine other states. The duties were applied to cars and SUVs with an engine capacity greater than 2.5 liters." Tesla has 0.0 liters!

Read more here: U.S. wins trade case against Chinese duties on American autos - Wire Lifestyle - The Sacramento Bee
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[evme]

what kind of power has the WTO in practice?
Does China has to drop the importtax?
What if China ignores the WTO ruling?

Other cases where the WTO ruled against China? what happend then?

China will most likely honor the ruling. A while ago China tried to raise the prices of rare earth metals and the WTO stuck them down and they caved. So this is a big win for Tesla.