September 16, 2009

Arguments over trade won't keep the US and China from working together on other important issues, the White House said Monday (September 14).

"We have strong relationships throughout the world where you time to time have disagreements about trade actions. It's nothing new with Europe. It's nothing new with other countries," White House spokesman Robert Gibbs said. "I don't see a dispute like this will cause something that causes countries like the United States and China to get off track in things that are very important in terms of global matters."

Late Friday, the Obama administration announced plans to impose tariffs on Chinese car tires for three years, a decision that pleased organized labour, but enraged China and raised questions about the White House' commitment to free trade. In response to the US move, China said it would launch anti-dumping measures against US chicken and auto products, raising fears of a trade war a week before world leaders gather in Pittsburgh for the Group of 20 summit.

The spat over trade also comes as the US and China work together to prevent North Korea from expanding its nuclear weapons program.

Speaking with reporters on Air Force One, Gibbs downplayed worries of a trade war.

"It's important to back up and understand that if we're going to have a framework for global trade that works for everyone, then agreements are going to have to be enforced and rules are going to have to be followed," the spokesman said. "Without following those rules and following those agreements it's going to be hard to make trade work for everyone."

"I think what would be unnecessary is to take punitive or retaliatory actions for something - to create a trade problem that doesn't or didn't exist," he added.

The decision on Chinese tires pleased US labour unions, which are critical allies in the administration's effort to pass health care legislation. President Obama will travel to Ohio Tuesday to discuss the economy with workers at a General Motors plant. Later in the day, he will speak to the AFL-CIO convention in Pittsburgh.

In his speech on the financial crisis earlier Monday, Obama defended the tires decision.

"When, as happened this weekend, we invoke provisions of existing agreements, we do so not to be provocative or to promote self-defeating protectionism, we do so because enforcing trade agreements is part and parcel of maintaining an open and free trading system," Obama said.