Research On The Origin, Development And Impact Of The Sino-us Tire Special Safeguard Case

On April 20,2009, the United Steelworkers of China's tire exports to the United States to disrupt the U.S. market, citing the U.S. International Trade Commission to submit an application to the Chinese-made passenger car tires to launch special safeguard investigations. On September 11,2009, the President decided to increase the duty to all imports of passenger vehicle and light truck tires from China for a period of three years in order to remedy a market disruption caused by a surge in tire imports. The additional duty to passenger vehicle and light truck tires-complementing the existing 4 percent duty-will be set at 35 percent ad valorem for the first year,30 percent ad valorem the second year, and 25 percent ad valorem the third year. On September 14,2009, the Chinese government launched WTO dispute settlement procedure in response to the special safeguard measures on the Chinese tires.The thesis takes the Sino-US Tire Special Safeguard Case as its object and analyses the origin, development and impact of the case in detail.The "Origin" part analyses the background of the Sino-US Tire Special Safeguard Case from three aspects. They are the global trend of trade protectionism, the status of Sino-US trade friction and the unfair safeguard provision of China. Meanwhile, detailed introduction is paid on the whole story of the case.The "development" part researches the economic trend of tire and its chain of industry at first. At the same time, it remarks and analyzes the countermeasures in the dispute between China and USA. It analyzes the benefit of taking the appealing to Dispute Settlement Body as the methods of the settlement of the dispute.The "impact" part evaluates the effect of the Sino-US Tire Special Safeguard Case from three perspectives of China, the United States and the global economy. The Sino-US tire special safeguard case is the first special safeguard investigations of the U.S. cases against China launched by the Obama administration. According to preliminary estimates, this will affect 100 thousands of workers in employment, loss of about one billion US dollars on export value. Moreover, according to WTO rules, countries can directly invoke the U.S. sanctions programs to set limitation on the Chinese product, its hard to imagine the loss.With the process of economical globalization and the increasingly close world trade relations, various governments much more frequently practice all sorts of trade protection policies characterized with the purpose of protecting related industries and achieving some special effects. The Sino-US Tire Special Safeguard Case tells us:it is the urgency and realistic meaning to use the international trade rule to deal with the Trade Protectionism flexibly. It is necessary to take the positive measure by utilizing the Disputation System of WTO to solve problem.