W.T.O. Upholds Tariffs on Tires From China

Last year the Obama administration imposed tariffs of up to 35% on tires from China, arguing that the surge in imports had threatened domestic manufacturing.  China's ascession agreement into the WTO included a special safeguard section that allows the U.S. to make this argument, and this case marks the first time the U.S. has invoked this section of the WTO agreement.  Unlike traditional antidumping case, the U.S. only had to demonstrate that U.S. companies suffered "market disruption" from imports.  This week, a WTO dispute resolution panel ruled that the U.S. tire tariffs were legitimate and legal.  China vows to appeal the ruling.


W.T.O. Upholds Tariffs on Tires From China - NYTimes.com

Japan’s Farmers Oppose Pacific Free-Trade Talks

Japan maintains a 777% tariff on imported rice, as well 252% on wheat, 360% on butter, 320% on sugar, and 38.5% on beef.  As a result, Japanese consumers have to pay some of the highest prices in the world for basic foods.  Now, Japanese industry groups are urging the government to reduce tariffs in return for greater market access to big economies such as the U.S.  Japanese farmers, however, are terrified that dismantling the tariffs will lead them to ruin.

Japan’s Farmers Oppose Pacific Free-Trade Talks - NYTimes.com

Free-Trade Pact With South Korea Still Not Finished

At the G20 summit meeting in Seoul, President Obama failed to reach an agreement with South Korea over the last two sticking points in a proposed US-Korea Free Trade Agreement.  The sticking points are autos and beef, both of which face a tough time in the Korean market.  Both sides have set themselves a deadline of weeks (not months) to finalize a deal that may mean better market access for Ford to the South Korean market.

Free-Trade Pact With South Korea Still Not Finished - NYTimes.com

EU Ordered to Remove High-Tech Tariffs

The 1996 Information Technology Agreement required 70+ countries to reduce tariffs on high tech goods to 0%. The European Union refused to drop tariffs on three HTS categories: cable television boxes that also deliver Internet content, flat panel computer screens, and printers that can also scan, fax or copy. These products were subject to a tariff of 6-14%, leading to higher prices in the E.U. for imported products in these categories. In 2008, the U.S., Japan and Taiwan filed suit against the E.U. in the WTO arguing these tariffs were illegal, and this week the WTO handed the three countries a victory, ordering the EU to bring their tariffs into line with the agreement. The EU now has 60 days to appeal.


EU Ordered to Remove High-Tech Tariffs - WSJ.com

U.S. Farmers Suffer From Ban On Mexican Trucks

In spite of legal promises made under the decade-old NAFTA to open U.S. highways to Mexican trucks, the U.S. continues to insist that Mexican trucks and drivers are too unsafe to allow into the country. This has led Mexico to (legally) impose tariffs on over $2 billion worth of U.S. exports to Mexico.


U.S. Farmers Suffer From Ban On Mexican Trucks : NPR

U.S. Consumers Paying Record Prices for Sugar

Sugar is a key ingredient in an awful lot of foodstuffs Americans consume, which may be a reason why there is an import quota on sugar of 1.3 million metric tons. Over 85% of the sugar consumed in the U.S. is grown domestically, and the rest is subject to an import quota.The quota was imposed in the 1970's and hasn't really been updated since then -- they're so outdated that some countries that don't even produce sugar anymore (such as Jamaica and Haiti) continue to have sugar quotas allocated to them. As a result, the price difference between sugar sold on the world market and U.S. prices is at a record level. That may change with the imposition of new sugar quotas on April 1.

Source: WSJ