Sino-America Trade Disputes Escalated

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) September 13, 2009 -- A trade dispute erupted last night between the US and China because America imposed heavy duties on imported Chinese tyres and China threatened to take action against imports of US poultry and vehicles.

In his first big test on world trade since taking office in January, Mr Obama sided with America's trade unions, which have complained that a “surge” in imports of Chinese-made tyres had caused 7,000 job losses among US factory workers.

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Sino-America Trade Disputes Escalated

Chen Deming, China's minister of commerce, condemned the decision, saying that it “sends the wrong signal to the world” at a time when Washington and Beijing should be co-operating to deal with the worst economic and financial crisis in decades.

China said it would now investigate imports of US poultry and vehicles, responding to complaints from domestic companies. It said to be a signal that China will also impose heavy tarrifs on imported American goods.

The US warned Beijing against taking retaliatory action. “Retaliation would be inappropriate, as the United States acted entirely within the bounds of trade laws and within the safeguard provision that China itself agreed to upon accession to the World Trade Organisation,” said an official from the Office of the United States Trade Representative.

The official said that enforcing trade agreements and laws was “critical” to maintaining free markets. Another official said the US had “negotiated to the end with the Chinese to come up with something we could all agree to”.

US officials said they were scrutinising the export of poultry and vehicles, but said any action in retaliation by China could result in a complaint by the US to the WTO.

The official said that enforcing trade agreements and laws was “critical” to maintaining free markets. Another official said the US had “negotiated to the end with the Chinese to come up with something we could all agree to”.

US officials said they were scrutinising the export of poultry and vehicles, but said any action in retaliation by China could result in a complaint by the US to the WTO.

Chinese-made tyres     financial crisis