Subsidies

Insider: Signs Of Unrest Over China Trade

As Washington heads for election season, there are a flurry of signals that industry and labor groups have had enough of the growing U.S. trade deficit with China. Of course, these signals also underscore that these groups are aware of the upcoming elections, and it remains to be seen whether any of their requests will be followed up by the Bush Administration. For example, U.S. steel producers, which have a knack for getting what they want out of Washington, called...

STEEL INDUSTRY CALLS FOR WTO CASE AGAINST CHINA EXPORT SUBSIDIES

U.S. steel industry groups last week called for a WTO dispute settlement case against China's export subsidies as a way of offsetting China's growing steel exports. According to an industry report released on July 13, China is currently engaged in a broad program to subsidize and expand its steel industry in a way that is outpacing global demand, endangering the environment and threatening the U.S. economy and national security. In a July 13 briefing with reporters, industry groups backing the...

U.S. SAYS CHINA COULD FACE STEEL DUTIES IF IMPORTS KEEP RISING

A senior U.S. official said last week that unless China takes steps to reign in its government-supported expansion in steel production capacity, Chinese steel exports to the U.S. could face antidumping duties in the near future. In June 14 testimony before members of the House Steel Caucus, Assistant U.S. Trade Representative for China Tim Stratford said the U.S. is hoping China's interest in avoiding these duties, as well as its stated interest in reducing its subsidies to its domestic industry,...

SOME VIOLATIONS SEEN IN CHINA SUBSIDY LIST, MORE STUDY NEEDED

An initial assessment of China's subsidy notification to the World Trade Organization by U.S. industry sources indicates that a handful of Chinese subsidies probably violate international trade rules because they are contingent on exports or the use of domestic over imported goods. However, sources said additional time would likely be needed to examine the more than 70 others listed in China's submission before determinations could be made on their WTO consistency. One Washington lawyer with expertise in the subsidy area...

CHINA'S SUBSIDIES LIST SEEN AS INCOMPLETE, HARD TO ATTACK IN WTO

A new submission to the World Trade Organization outlining China's domestic subsidies regime is being seen by U.S. industry representatives as an incomplete account of the breaks China gives its companies, according to sources that are still studying China's 88-page submission. In addition, these sources said that many of the subsidies China did notify could prove hard to attack in the WTO, since they could fall outside the WTO definition of actionable subsidies. Several sources also noted that 12 of...

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