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U.S. wins WTO ruling against China in luxury car tariffs dispute

U.S. wins WTO ruling against China in luxury car tariffs dispute

PanARMENIAN.Net - The U.S. has won a World Trade Organization (WTO) ruling against China in a dispute over tariffs on U.S. luxury cars.

A WTO panel found no basis for duties that China imposed between 2011 and 2013. The U.S. described it as a "significant victory".

China began tariffs on saloons and off-road vehicles with an engine capacity of 2.5 liters or more in retaliation for U.S. trade policies.

China argued when it introduced the charges that U.S. carmakers, such as General Motors and Chrysler, had received government subsidies and flooded the Chinese market with the cars, which harmed China's own car industry.

The U.S. said China had imposed the duties without following the rules and filed the case with the WTO. The rate was as high as 21.5%.

U.S. Trade Representative Michael Froman said $5bn of exports in 2013 had been taxed. "The message is clear. China must follow the rules, just like other WTO members," he said.

U.S. vehicle exports to China were worth $8.6bn in 2013, 48% more than a year earlier. It is the largest foreign market for U.S. automakers after Canada.

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