Friday, July 6th 2012 - 07:16 UTC

US trade complaint at WTO against China for imposing duties on car exports

United States launched a trade complaint Thursday against China at the World Trade Organization, accusing Beijing of unfairly imposing duties on more than 3 billion dollars in exports of US-manufactured automobiles.

The announcement was made when Obama started campaigning in Ohio

The announcement came as President Barack Obama hit the “Betting on America” campaign trail in the highly industrialized states of Pennsylvania and Ohio where automakers have been affected by the tariffs imposed in December. It underscored how the US trade relations with rising economic power China could color the political debate ahead of the November presidential election.

WTO rules, countries are allowed to impose punitive tariffs to offset damage from both subsidies and dumping — selling products at below market value — but the US contends that in this and other cases, China has used those remedy measures in an unfair and retaliatory way to hurt US exporters.

Last month, the US successfully challenged Chinese tariffs imposed on high-technology steel products and has also disputed tariffs levied on chicken products.

White House spokesman Jay Carney told reporters Thursday that the Chinese duties cover more than 80% of US auto exports to China and fall disproportionately on General Motors and Chrysler because of the actions Obama took to support the auto industry during the financial crisis.

Some critics have contended that the administration’s bailout of the auto sector — which has seen it return to profitability even as the wider economic recovery has stuttered — could leave US products vulnerable to countervailing duties by international competitors claiming it amounted to an unfair subsidy.

Polls show that linking the Republican candidate Mitt Romney to the outsourcing of US jobs when he was at Boston-based Bain Capital LLC, which he co-founded, is an effective approach with voters in the swing states of Ohio and Pennsylvania.
 

12 comments Feed

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1 Max (#) Jul 06th, 2012 - 01:34 pm Report abuse
US doesn't export vehicles

US produces 8 millions units vehicles /year (2.8 millions cars)

China produces 18 millions vehicles /year.(14 millions cars )
2 Condorito (#) Jul 06th, 2012 - 04:38 pm Report abuse
Max I can assure you the US exports vehicles. I have a US made Ford.

More importantly, is this the run up to the Opium Wars III?
3 Conor (#) Jul 06th, 2012 - 06:02 pm Report abuse
The US is complaining about tariffs imposed on their vehicles when their constantly changing vehicle safety regulations are specifically designed to keep as many foreign made vehicles out of the us markets. Rather hypocritical coming from Barry Obama isn't it?
4 AmericanLight (#) Jul 06th, 2012 - 06:26 pm Report abuse
The US exports all kinds of vehicles...The Chinese buy US manufactured Cadillacs, Chevys and more
Havent you seen the Chevy Camaro outside the US? Last time I heard, people in SA were paying luxury prices for Ford Mustangs and Camaros....what a rip off...
5 Guzz (#) Jul 06th, 2012 - 06:34 pm Report abuse
Rip off? For your ears only, mayhap :) nobody in their right state of mind would buy a heavy petrol consuming OLD vehicle if not for a collection :)
6 AmericanLight (#) Jul 06th, 2012 - 06:51 pm Report abuse
I am talking about new ones....Brasil and Chile sell 2012 Camaros for several times the US price (20K starting) ....Australians also pay fortunes for them (like 70K USD for a 25 K Mustang GT)
I had both of them. New Mustangs are not as bad in gas....I had a 2012 V6 4.0 and it would give out 30 mpg...also a 2011 Camaro V6 and it would give 28 mpg...also V6.... Not bad considering that my family sedan is giving me 31/31 mpg with half the horsepower.....(190).
***Buy American***
7 MistyThink (#) Jul 06th, 2012 - 06:56 pm Report abuse
USA export cars ?
Where do you live .. in Cuba ?..in Venezuela ?
8 Condorito (#) Jul 06th, 2012 - 10:46 pm Report abuse
@7 Misty if you are unaware that the US exports cars, where do you live.

@AmericanLight
You are correct. Those camaros are sold down here at rip off prices.
9 Fido Dido (#) Jul 07th, 2012 - 01:02 am Report abuse
“Max I can assure you the US exports vehicles. I have a US made Ford.”

Wrong! Ford who received “indirectly” a bailout, produce majority of it's cars for the US consumers in Mexico.

A made in US ford? From what year huh?
10 AmericanLight (#) Jul 07th, 2012 - 03:20 am Report abuse
Assembly plants by model ( just a few)

2012 F150 : Kansas and Michigan
2012 Ford Taurus: Illionois
2012 Ford Mustang: Flat Rock Michigan
2012 Ford Focus: Michigan
11 Max (#) Jul 07th, 2012 - 09:41 am Report abuse
Fido is right ,Ford produces in Mexico to export US ( ~ 400.000/year)

& 10
Ford's US units domestic production level is rare ( ~ 80.000/year)
but they produce ~ 300.000 /year under the other brands.

& 2
You may find least number of all brands sporadically in every country
we talk about permanent high volume markets..
12 AmericanLight (#) Jul 07th, 2012 - 06:54 pm Report abuse
I had a Ford Focus in 2005 which was made in Mexico. I am aware of imports from Mexico, is part of the NAFTA.
Almost every Ford, Lincoln or Mercury you can buy from a dealership in the US is manufactured in North America. A few (Fusion/Milan/MKZ) in Hermosillo, Mexico; a few (Edge/MKX) in Oakville, Ontario, Canada; a few (Crown Vic/Grand Marquis/Town Car) in St Thomas, Ontario, Canada; and the rest in the US, including Kansas City (F-150/Escape/Mariner/Tribute), Lousiville (Explorer/SportTrac/SuperDuty), Dearborn (F-150/MarkLT), Wayne (Focus/Expedition/Navigator), Chicago (Taurus/TaurusX/Sable), Ohio (Econoline), Flat Rock (Mustang/Mazda6), Twin Cities (Ranger).
Just some figures from 2011: Units sold for 10 best vehicles in the US

1. Ford F-150

Numbers of units sold: 390,661 (This number only goes over the 80,000 mentioned before and we are talking about the F Series only and goes above the 300,000)

Production:Kansas, Kentucky and Michigan United States

2. Chevrolet Silverado 1500

Numbers of units sold: 319,539
Assembly Oshawa, Ontario, Canada
Flint, Michigan, United States
Fort Wayne, Indiana, United States
Pontiac, Michigan, United States
Silao, Mexico

3. Toyota Camry Assembled in Texas

Numbers of units sold: 308,510

4. Nissan Altima

Numbers of units sold: 268,981

ssembly Smyrna, Tennessee, USA
Canton, Mississippi, USA
Aguascalientes, Mexico

5. Ford Escape

Numbers of units sold: 254,293

Assembly Claycomo, Missouri, United States

6. Ford Fusion

Numbers of units sold: 248,067

Production Hermosillo, Sonora, Mexico

7. Toyota Corolla

Numbers of units sold: 240,259

Production United States

8. Honda Accord

Numbers of units sold: 235,625

Production: Ohio, United States

9. Chevrolet Cruze

Numbers of units sold: 231,732

Production Lordstown, Ohio United States

10. Hyundai Sonata

Numbers of units sold: 225,961

Production Montgomery Alabama

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