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China files WTO case on US tire-import tariffs

Ally Liu From Gasgoo.com| September 15 , 2009 13:15 BJT
Shanghai, September 15 (Gasgoo.com) Beijing has launched a case Monday against new U.S. tariffs on Chinese tires, while President Barack Obama defended the duties, saying trading agreements must be enforced in order for trading systems to work.

In its complaint to the WTO, China accused Washington of breaking world trade rules. "The United States has adopted protective measures against Chinese tires shipped to the United States," said Chinese commerce ministry spokesman Yao Jian.

China's commerce minister, Chen Deming, called Obama's action an "abuse" of trade provisions and said it "sends the wrong signal to the world." China said it would look into punitive measures against U.S. exports of auto and poultry parts.

The conflict comes as the two world powerhouses prepare for next week's G20 summit.

President Barack Obama warned Monday he would fight tenaciously for America's trade rights, reports AFP. But the president dismissed fears of a trade war and aides rejected the idea that the spat, over US duties of 35 percent on Chinese tire imports, could harm wider diplomatic relations that both sides appear keen to improve.

Obama said that the tariffs, which were announced late Friday night, were necessary to maintain the "credibility" of trade agreements.

"I'm not surprised that China is upset about it, but keep in mind, we have a huge economic relationship with China," he said.

"Make no mistake, this administration is committed to pursuing expanded trade and new trade agreements," Obama said at historic Federal Hall on Wall Street. "It is absolutely essential to our economic future."

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