On its face, today's panel report finding that U.S. tariffs on Chinese tires do not violate WTO rules could be seen as a victory for protectionism. But looking at the larger picture, will allowing these tariffs help to promote free trade? This is from the FT:
The WTO victory on tyres could increase the odds of smooth congressional passage of a pending free trade agreement with South Korea, following revised terms recently reached by Seoul and Washington. This is because the Obama administration will be able to point to its success in enforcing existing trade deals, particularly in talks with recalcitrant Democrats sceptical of the benefits of such deals.
