US launches anti-dumping probe against Chinese tires

Cars await for export at a port in Haikou, Hainan province. [Shi Yan / For China Daily]

WASHINGTON - The US government has initiated anti-dumping duty (AD) and countervailing duty (CVD) investigations against imports of certain passenger vehicle and light truck tires from China, the US Commerce Department said Tuesday.

The investigations are in response to a request from two US labor organizations, United Steelworkers and AFL-CIO-CLC. They alleged that these products from China were sold below the fair value of the products in the US market with dumping margin of 45. 80 to 87.99 percent, and Chinese producers and exporters also received improper government subsidies, the Commerce Department said.

The International Trade Commission (ITC), another US trade authority, is scheduled to make its preliminary inquiry determinations of this case on Aug 1.

The probes will continue if the ITC determines that the import of such products from China materially injure or threaten the domestic industry of the United States. The Commerce Department will then make its preliminary determinations of CVD and AD in September and December respectively.

Imports of these products from China were estimated at about $2. 1 billion last year, according to US official data.

The World Trade Organization (WTO) ruled on Monday in its panel report that United States had acted inconsistently with WTO rules with regard to its countervailing measures against certain products from China. This is the latest victory of China's challenge against United States' abuse of trade remedy measures.

The Chinese Ministry of Commerce has repeatedly urged the United States to abide by its commitment against trade protectionism and work together with China and other members of the international community to maintain a free, open and just international trade environment.