US files complaint over China car duties at WTO

GENEVA - The United States filed a complaint to the World Trade Organization (WTO) against China on Thursday over its anti-dumping and countervailing duties over US-made autos.

China's Permanent Mission to WTO confirmed that it has received the consultation request Thursday afternoon and said China will handle it in accordance with the WTO rules.

China's Ministry of Commerce (MOC) started to impose anti-dumping and countervailing duties on imports of US cars and SUVs with an engine capacity of 2.5 liters or larger in December, 2011, following an open investigation in accordance with the WTO rules and upon petitions from domestic enterprises

Investigations into the auto market showed that US auto makers have received government subsidies and dumped their vehicles into the Chinese market, which has substantially harmed China's auto industry, MOC spokesman Shen Danyang said in 2011.

China has since levied anti-dumping tariffs from 2 percent to 21.5 percent, and imposed countervailing duties of up to 12.9 percent according to the level of subsidy US carmakers received from their government, both of which will expire on December 14, 2013.

The US latest move was the third time that the Obama Administration had challenged China's trade remedies, said US Trade Representative Ron Kirk. In two earlier cases, the US challenged duties that China had imposed to restrict imports of certain steel products and chicken products.