US wins over China in luxury car case

China has been found to have broken World Trade Organisation by imposing tariffs in 2011 over alleged US dumping and subsidies.

cars sit at the Port of Long Beach in Long Beach, California

The WTO has rejected Chinese tariffs on US-made luxury cars, handing Washington a victory. (AAP)

The WTO has rejected Chinese tariffs on US-made luxury cars, handing Washington a victory on one of the growing number of disputes between the world's two largest economies.

A World Trade Organization panel, responding to a US complaint, found that China was inconsistent with the global body's rules when it imposed tariffs in December 2011 over alleged US dumping and subsidies.

China, the largest foreign market for US carmakers after Canada, ended the tariffs in December 2013 as the WTO case progressed.

But a US official said that Washington insisted that the WTO formally rule against the measures to ensure that they stay off the books.

"The message is clear - China must follow the rules, just like other WTO members," US Trade Representative Michael Froman told reporters, echoing a common message from President Barack Obama's administration when responding to concerns about Beijing.

China imposed the tariffs over what it said were unfair US practices amid a raft of trade disputes.

But Froman noted that the United States had won in all three cases that had come to WTO resolution, the others concerning steel products and broiled chickens.

China in 2011 had imposed tariffs for alleged dumping - selling in a foreign market at below home-market prices - that ranged from 2.0 to 21.5 per cent.

It also slapped tariffs of up to 12.9 per cent for what it said were US subsidies.

In 2013, the United States sold $US8.5 billion ($A9.2 billion) in cars to China, about 13 per cent of global US auto exports.

The tariffs applied to cars from Detroit's Big Three - General Motors, Chrysler and Ford Motor - and also to vehicles from BMW, Mercedes-Benz and Honda that were manufactured in the United States.


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Source: AAP


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