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US-Tyres: Upholding a WTO Accession Contract – Imposing Pain for Little Gain

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  • Steve Charnovitz
  • Bernard Hoekman

Abstract

In 2009, the United States imposed additional tariffs for a three-year period on imports of automotive tires from China under a special-safeguard provision included in China's Protocol of Accession to the WTO. China challenged the measure in the WTO. The case marked the first WTO dispute in which a challenged safeguard was upheld by the Appellate Body; the first in which an accession protocol was used successfully as a defense; and the first that China lost as a complaining party. It also was noteworthy in that the safeguard was sought by a labor union, not the domestic industry. This paper reviews the WTO Appellate Body's findings and discusses a number of the legal and policy implications regarding China's Accession Protocol, the Safeguards Agreement, and WTO accession law, as well as economic aspects of the case.

Suggested Citation

  • Steve Charnovitz & Bernard Hoekman, 2013. "US-Tyres: Upholding a WTO Accession Contract – Imposing Pain for Little Gain," Working Papers 2013-12, The George Washington University, Institute for International Economic Policy.
    • Handle: RePEc:gwi:wpaper:2013-12
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    File URL: http://www.gwu.edu/~iiep/assets/docs/papers/CharnovitzIIEPWP201312.pdf
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    References listed on IDEAS

    as
    1. Gary Clyde Hufbauer & Sean Lowry, 2012. "US Tire Tariffs: Saving Few Jobs at High Cost," Policy Briefs PB12-9, Peterson Institute for International Economics.
    2. Horn, Henrik & Mavroidis, Petros C., 2003. "US – Lamb United States – Safeguard Measures on Imports of Fresh, Chilled or Frozen Lamb Meat from New Zealand and Australia: what should be required of a safeguard investigation?," World Trade Review, Cambridge University Press, vol. 2(3), pages 395-430, November.
    3. Sykes, Alan O., 2003. "The safeguards mess: a critique of WTO jurisprudence," World Trade Review, Cambridge University Press, vol. 2(3), pages 261-295, November.
    4. Joonhyung, Lee, 2011. "Who benefited from the US tariffs on the Chinese tires?," MPRA Paper 29705, University Library of Munich, Germany.
    5. Fabio Spadi, 2002. "Discriminatory Safeguards in the Light of the Admission of the People's Republic of China to the World Trade Organization," Journal of International Economic Law, Oxford University Press, vol. 5(2), pages 421-443, July.
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    Cited by:

    1. Bown, Chad, 2019. "The 2018 US-China Trade Conflict After 40 Years of Special Protection," CEPR Discussion Papers 13695, C.E.P.R. Discussion Papers.
    2. Sébastien Jean & Ariell Reshef, 2017. "Why Trade, and What Would Be the Consequences of Protectionism?," CEPII Policy Brief 2017-18, CEPII research center.
    3. Bown, Chad & Crowley, Meredith A., 2016. "The Empirical Landscape of Trade Policy," CEPR Discussion Papers 11216, C.E.P.R. Discussion Papers.

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