US-China Tire Tariff Dispute: Labor Union Wins, China Loses.
The US imposed extra taxes on Chinese tires in 2009, which China challenged in the WTO. The Appellate Body upheld the tariffs, marking the first time a safeguard was upheld in a WTO dispute. This was also the first time an accession protocol was used successfully as a defense, and the first time China lost as a complaining party. The safeguard was requested by a labor union, not the industry. The case has legal, policy, and economic implications regarding China's Accession Protocol, the Safeguards Agreement, and WTO accession law.