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Legal Analysis to US-China Safeguard Case of Tires

Author: Song
Tutor: DuHao
School: Jilin University
Course: International law
Keywords: Sino - US tire special safeguard Special safeguard measures Market disruption Trade protection
CLC: D996.1
Type: Master's thesis
Year: 2011
Downloads: 281
Quote: 0
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Abstract

Sino-US tire special safeguard case Obama era since the first China special protective case, but also for China's largest special protective case. Case by raising the cost of China's tire export competitiveness in the international market dropped drastically reduced exports, not only brought great pressure on Chinese tire manufacturer and import and export traders, also caused China's foreign the trade chain vicious cycle. How to actively respond to the special safeguard investigation in the United States, ensure stable export rebound is a major issue faced by the Chinese government and foreign trade enterprises. The first chapter focuses on market disruption of that standard to determine whether they can take the key to the special safeguard measures, the implementation of the special safeguard measures against Chinese products, according to section 421 of the Trade Act of 1974 in the United States. The second Chapter 421 of the Trade Act of 1974 in the United States to further discuss the concept of defined lack of clarity, hidden fuzzy space identified low standard, which is reflected in: Section 421 of the Trade Act of 1974 in the United States has not clearly defined the domestic industry ITC Section 421 of the Trade Act of 1974 in the United States does not exclude related parties \the impact of the surge in imports. Section 421 of the Trade Act of 1974 in the United States, the provisions of the increase in imports and China's WTO Accession Protocol 16, according to \products from China \421 of the Trade Act of 1974 in the United States and its legislative history does not specifically define \reference standard. Test in the 2002's \damage \The provisions of Section 421 of the Trade Act of 1974 in the United States, finds that the market disruption to imports of the product concerned to increase its domestic industry suffered material injury or threat of material injury \Under \According to the explanation given by the U.S. Senate Finance Committee, \products imported from China is a threat of injury caused material injury of the domestic industry or substance of an \ITC ruling in accordance with the terms of the tires safeguard the existence of discriminatory and arbitrary: special safeguard measures in case of tire imports from China products, China's exports to the U.S. involved in tire products and tire products in the United States does not exist between the competitive relationship, after all, China's exports to the U.S. involved in tire product sales mainly in the maintenance market, while the U.S. domestic tire products, mainly in the the wife market and the replacement market on sales. U.S. domestic tire manufacturers has always been to compete in the global market through the sale of the flagship brand tires, as early as in 2004, the U.S. domestic tire manufacturers had tire production line abroad a lot of investment and get a lot of profit in the whole examine the period, the U.S. domestic tire manufacturers in foreign investment in the production of tire imports accounted for the lion's share of the imported tire products in China and other countries, therefore, ITC supposed to in the report of its investigation of these 10 tire manufacturers cumulative production \In this case, ITC selected recent as during the investigation, but did not select recent information and data for reference and analysis. Based on the data provided by the Chinese side, the Chinese tire products imports in 2008 compared with the same period in the previous year increased by only 2.2% in the first six months of 2009 decreased by 16% compared with the same period in the first six months of 2008, due to the economic downturn, the U.S. Government to encourage the reduction car driving, resulting in the end of the survey period imports increased trend slowed down significantly. ITC did not provide data sufficient evidence tire products imported from China increase in sufficient time, the recent, sudden enough in enough dramatic extent, sufficiently serious, indeed, the number of Chinese tire products imported absolute increase in 2008 The decline in the growth rate also means that the imports did not increase rapidly. ITC confirmed when \unemployment, but the ITC on the financial information provided by the domestic producers and the allocation of funds program but not a strict review mechanism. The same time, ITC can not only produce evidence that substantial damage, while ignoring evidence show that the domestic industry is not impaired. In fact, even in the largest Chinese tire products imports increased in 2007, the profitability of the U.S. domestic tire manufacturers also performed well, neither attend the ITC hearing requirement also does not propose to take relief measures. \in addition to the imports of the product concerned in China outside of all known factors at the same time is the damage to its domestic industry, such as economic recession, poor management, poor marketing, bad weather or strikes. Chapter III come to the United States to take special safeguard measures on Chinese tire products and the conclusion of the abuse of trade remedy measures, China should actively with the United States to negotiations while taking trade remedy measures, make full use of the WTO dispute settlement mechanism, a timely appeal to the DSB to safeguard the legitimate rights and interests of the Chinese industry.

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