US Wins Case on Trade Disputes on Large Vehicle Exports
The United States recently won a case on trade dispute over duties that China imposed on U.S. exports of large type of vehicles or known as sports utility vehicles. China is one of the second largest market for U.S car exports, as shown in 2011 after the country started imposing punitive duties on these vehicles with 2.5 liters or higher in experts say a move as a retaliation to U.S. trade policies. The duties have already expired and it is not yet known whether when it be renewed.
China joined the World Trade Organization on 2001 was then the second most common target of the United States on disputes just after the European Union. Michael Froman the U.S. Trade Representative said that duties have affected the US$ 1 billion auto exports in 2013 which included several popular SUV models.
As China dropped the duties tht has already reached 21 percent, Froman was worried that the U.S will bring up the three WTO cases that tit won over China against unfair import duties. China argued that those duties were imposed due to the reason that U.S. automakers is already receiving subsidies from the U.S. government and is dumping these vehicles into the Chinese market.