Obama wants action on Chinese auto parts subsidies

Published: September 18, 2012 6:00 am ET

Related to this story

Topics Public Policy, Automotive

WASHINGTON (Sept. 18, 8:30 a.m. ET) — The Obama administration has requested dispute settlement consultations with China at the World Trade Organization over China’s subsidies for its auto and auto parts exporters.

In addition, the administration asked WTO to establish a dispute settlement panel to address China’s imposition of antidumping and countervailing duties against $3 billion worth of U.S.-produced autos exported to China.

The Alliance for American Manufacturing, a coalition of various U.S. manufacturers and the United Steelworkers union, praised the administration’s actions.

“President Obama is delivering a major boost to our nation’s automotive sector workers and businesses today by holding China accountable for its cheating,” said AAM Executive Director Scott Paul.

Under its “export base” subsidy program, China provides massive subsidies to auto and auto parts producers in designated regions that meet export performance requirements, according to a press release from the Office of the U.S. Trade Representative.

Based on public documents, USTR said, China paid at least $1 billion to auto and auto parts makers in export bases between 2009 and 2011.

Ron Kirk, U.S. trade representative, credited the Obama administration’s newly created Interagency Trade Enforcement Center for providing crucial investigative and analytical resources to help uncover the facts about export base subsidies.

Export subsidies, according to Kirk, are strictly forbidden under WTO rules because they severely distort international trade.

“The Obama administration is committed to protecting the rights of nearly 800,000 American workers in our $350 billion auto and auto parts manufacturing sector,” Kirk said. “We insist upon having a level playing field on which our world-class manufacturers can compete.”

As for the Chinese duties on U.S. cars, the Obama administration first requested formal dispute settlement consultations with China in June, USTR said. Those talks failed, so the U.S. is taking the further step of requesting a WTO dispute settlement panel.

“The facts in the case are indisputable,” the AAM’s Paul said. “China is subsidizing its auto parts sector, blocking our exports, and causing significant harm to workers and businesses in our nation.”

Later this month, three years’ worth of high tariffs against Chinese passenger and light truck tires imported to the U.S. are scheduled to end. The Obama administration imposed the tariffs in September 2009 under Section 421 of the Trade Act, after a petition filed in April 2009 by the USW.


Comments

Obama wants action on Chinese auto parts subsidies

Published: September 18, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

SPI hopes to build on EPS recycling

November 26, 2014 6:00 am ET

Successfully recycling expanded polystyrene can be a challenge, there's no doubt about that. EPS, however, has value, is in demand and deserves to be ...    More

Image

Visteon in talks to sell its stake in Halla Visteon Climate Control JV

November 26, 2014 9:07 am ET

Visteon Corp. confirmed this morning that it is in discussions with a private equity firm to sell its stake in South Korean joint venture Halla...    More

Image

Canada's Papp Plastics is eyeing big opportunities with JV in Mexico

November 24, 2014 4:11 pm ET

Canadian injection molder and turnkey solution provider Papp Plastics & Distributing Ltd. will open an $11 million to $12 million joint venture...    More

Image

Indiana injection molder PRD expands

November 24, 2014 1:56 pm ET

Automotive supplier PRD Inc. is expanding its manufacturing facility in Springville, Ind.    More

Image

Indian plastics group targets waste

November 24, 2014 12:46 pm ET

An Indian plastics environmental group and the country's largest brand for packaged water, Bisleri International Pvt. Ltd., have launched a trial prog...    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events