U.S. Says Hopes Tire Dispute Does Not Spark Trade War
Author(s): Tabassum Zakaria
Original Post: U.S. Says Hopes Tire Dispute Does Not Spark Trade War
Type: Blog Post
Date: 09/24/2009
China and the United States do not want a dispute over tires to spark a broader trade war, U.S. Deputy Secretary of State James Steinberg said on Thursday.
Steinberg will visit China on Monday and Tuesday during a trip to Asia that will also include stops in Vietnam, Malaysia, South Korea, and Japan.
In a speech to the Center for a New American Security, he said the U.S. decision to impose a tariff on tire imports from China had been taken under terms of a World Trade Organization framework accepted by both the United States and China.
Beijing condemned the U.S. decision for a 35-percent additional "safeguard" tariff on tire imports from China as protectionism that could undermine a global economic recovery. It is concerned the safeguard rule could also be used against other products.
Steinberg said both countries wanted to make sure "that this particular disagreement does not spark a trade war."
President Barack Obama sought to ease friction in a meeting with China's President Hu Jintao on the sidelines of the U.N. General Assembly in New York this week, a U.S. official said.
The two will meet again at the G20 economic summit in Pittsburgh this week. Obama plans to visit China in November.
Some economists believe imbalances between export-driven economies like China and consumption-driven economies like the United States helped set the stage for the recent global financial crisis.
Steinberg said that without the United States and China working together, "the prospect of (economic) success would be much dimmer."
Topic(s): U.S. National Security Strategy
Project(s): Asia-Pacific Security
People: Robert Kaplan, Nirav Patel, Dr. Michael Green, Abraham M. Denmark
