US, EU protectionists stuck in wrong gear
By turning to the World Trade Organization (WTO) to settle a row about China's new auto-parts tariffs, the United States and the European Union have made a slightly better move than other protectionist measures they have recently saber-rattled. Yet, it is still regrettable. Instead of challenging escalating protectionism at home, policy makers from these developed economies have wrongfully and unyieldingly directed their fire at China. As a first step towards filing a formal WTO complaint, the EU and the US both requested to engage in formal talks with China about its upcoming import tariffs on car parts. Starting July 1, China will place a higher tariff on imported auto parts valued at 60 per cent or more of the complete vehicle's total price.
This is the first time the EU has taken China to the global trading body since it joined in 2001, and it is the second time the US has made such a move. Undoubtedly, the filing comes at a time of rising trade tensions between China and rich countries on both sides of the Atlantic. A soaring deficit with China has driven some US politicians to urge actions, fair or not, against Chinese exports. The EU's recent endorsement of anti-dumping duties on Chinese shoes merely betrayed a lack of resolve among EU trade officials to resist protectionist pressure.
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