The Obama administration intends to file an unfair trade complaint by the end of the week against China's new duties on cars built in the U.S., which include SUVs and Toledo, Ohio made Jeep Wrangler.
According to a senior administrative official, the U.S. will file the case with the World Trade Organization in Geneva, accusing China of putting illegal duties on $3.3 billion worth of U.S. made auto imports.
The senior official also said that President Obama is set to take up the topic and refers to the WTO in his speech scheduled for Thursday in suburban Toledo. The action was taken after China placed disproportionately high duties on General Motors and Chrysler LLC imports because of the 2008 bailout.
Since both Chrysler and General Motors came out of bankruptcy in June 2009, the U.S. auto industry has added 233,700 jobs the Obama administration.
"As we have made clear, the Obama administration will continue to fight to ensure that China does not misuse its trade laws and violate its international trade commitments to block exports of American-made products," U.S Trade Representative Ron Kirk in an offical press release. "American auto workers and manufacturers deserve a level playing field and we are taking every step necessary to stand up for them. This is the third time the Obama Administration has challenged China's misuse of trade remedies."
According to the press release, the United States is addressing its concerns that China's duties on imports of American-made vehicles appear to be inconsistent with WTO rules. Consultations are the first step in a WTO dispute. Under WTO rules, if parties do not resolve a matter through consultations within 60 days, complainants may request the establishment of a WTO dispute settlement panel.
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