World Trade Organization sides with US in car trade dispute with China over export subsidies

American Motors (AMC) vehicle, 1962 Rambler American. Photo by Christopher Ziemnowicz / Wikimedia Commons.

GENEVA—The world’s main trade body has ruled that China’s anti-dumping duties on imports of American-made cars and sport-utility vehicles violate international trade rules, in what the United States calls a major victory for its manufacturers and workers.

A World Trade Organization dispute panel said Friday it agrees with the United States that China acted “inconsistently” with the anti-dumping requirements, in violation of its WTO commitments.

WTO rules allow countries to raise import duties to offset improper subsidies and dumping, but complaints filed by Washington in 2012 accused Beijing of improperly imposing anti-dumping duties on American-made autos worth $3 billion.

China had defended the duties on U.S.-made vehicles as legal under international rules. The duties affect cars and SUVs with engine capacity of 2.5 litres or larger.