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Updated: 11:00 a.m. Friday, July 6, 2012 | Posted: 10:17 p.m. Thursday, July 5, 2012

U.S. challenging China’s duties on auto exports

Obama: Trade must be ‘fair.’ Romney campaign vows to protect jobs.

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U.S. challenging China’s duties on auto exports photo
Susan Walsh/STF
U.S. challenging China’s duties on auto exports

By Steve Bennish and Jim Otte

MAUMEE — The Obama administration Thursday announced that the U.S. is challenging China’s tariffs on more than $3 billion in exports of American-made automobiles. 

The U.S. has asked for dispute settlement talks with China at the World Trade Organization to eliminate what it called unfair duties, “which appear to represent yet another abuse of trade remedies by China.”  

The action comes as the president and Republican challenger Mitt Romney are waging a heated battle in Ohio with TV commercials focusing on China policy.

Obama mentioned the administration’s decision Thursday during a campaign stop near Toledo.

Under WTO rules, countries are allowed to impose punitive tariffs to offset damage from both subsidies and dumping — selling products at below market value — but the U.S. contends that in this and other cases, China has used those measures in an unfair and retaliatory way to hurt U.S. exporters.

White House spokesman Jay Carney said Thursday that the Chinese duties cover more than 80 percent of U.S. auto exports to China and fall disproportionately on General Motors and Chrysler because of the actions Obama took for the auto industry during the financial crisis.

Some critics have contended that the administration’s bailout of the auto sector could leave U.S. products vulnerable to countervailing duties by international competitors claiming it amounted to an unfair subsidy.

“Americans aren’t afraid to compete. We believe in competition,” Obama said Thursday. “Americans and American workers build better products than anybody else. So as long as we’re competing on a fair playing field instead of an unfair playing field, we’ll do just fine.”

Romney is on vacation with his family in New Hampshire, but his campaign issued a statement about the administration’s move against China.

“After three and a half years, the manufacturing sector is still hurting and China continues to play by its own set of rules. On Day One, Mitt Romney will stand up to China and fight to protect American businesses and jobs,” said Andrea Saul, a spokesperson for Romney.

Romney has accused Obama of being soft on China. The Obama campaign has accused Romney of outsourcing jobs to China when he ran a private equity firm.

U.S. Sen. Rob Portman, R-Ohio, often mentioned as a Romney running mate, said Obama should go further.

“The president can make the biggest impact by naming China a currency manipulator,” Portman said.

The Chinese Embassy did not comment on Thursday.

In two earlier WTO cases, the U.S. challenged duties China imposed to restrict imports of steel products and chicken products from the U.S. 

In June, a ruling by the WTO said duties China placed on American high-tech steel since 2009 violate trade rules, a decision that could benefit AK Steel here and steel industry exports overall.

The Associated Press contributed to this report.

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