AAM Urges Support for Clean Energy Manufacturing

Posted by scapozzola on 10/13/2010

Alliance for American Manufacturing (AAM) Executive Director Scott Paul has sent a letter to President Obama urging support for clean energy production in the U.S.

Specifically, the letter cites the damaging effect of predatory trade from China:

"In violation of international trade agreements, China’s communist party leaders have imposed more than 80 laws, regulations and practices – including massive subsidies – that set prices undercutting U.S. competitors, restrict access to critical raw materials, block the importation of goods produced by U.S. manufacturers, and force the transfer of green technology from the U.S. to China.

"All of this is detailed in The United Steelworkers (USW) Section 301 petition filed last month with the U.S. Trade Representative. The petition documents how China illegally stimulates and protects its producers of green technology exports – ranging from wind and solar energy products to advanced batteries and energy-efficient vehicles."

Read the full letter from AAM to President Obama.

The petition outlines a multi-faceted approach by China that has adversely affected U.S. efforts in the green technology sector in violation of international trade agreements.  These include:
•         Restrictions on access to critical materials:  China produces more than 90 percent of the world’s supply of critical minerals needed for the manufacture of solar panels, wind turbines, advanced batteries and energy efficient lighting.  In direct violation of its WTO commitments, China uses export quotas, taxes and licensing procedures to reduce exports of these materials to the U.S. and other countries.
•         Prohibited and Trade-Distorting Subsidies:  China also engages in subsidy programs that are prohibited by its agreement with the WTO.  These include subsidies and preferential treatment given to projects using Chinese-produced wind power equipment, illegal export subsidies for wind turbines, and export credits for wind and solar equipment.
•         Discrimination against Foreign Firms and Goods: China routinely discriminates against imported green technology goods and foreign technology companies in violation Article III:4 of the GATT.
•         Requiring Technology Transfer from Foreign Investors:  China routinely requires foreign companies to hand over technology in order to participate in joint ventures or operate in that country – in direct violation of China’s WTO agreement.

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