In Indiana, ongoing concerns about subsidized auto parts from China and Japan
As the Alliance for American Manufacturing (AAM) has pointed out, America's auto parts sector is a key pillar of U.S. industry. Unfortunately, more than 400,000 jobs in the U.S. auto supply chain have been lost since 2000. One major problem is China's persistent violations of World Trade Organization (WTO) rules, and another 1.6 million U.S. jobs are at risk unless China's illegal trading practices are curtailed.
Complicating the issue is Japan's recent move to devalue its currency in an effort to boost exports.
In Indiana, the auto parts sector constitutes nearly 5% of all employment. And so, the issue of subsidized auto parts imports matters a great deal.
AAM President Scott Paul published a letter to the editor in today's Ft. Wayne Journal Gazette to underscore the urgency of addressing these subsidized imports:
Beijing, Tokyo undercut U.S. auto parts market
During last fall’s presidential campaign, President Obama pledged action on a trade case against China’s automotive and auto parts subsidies.
Auto parts accounts for 4.8 percent of total Indiana employment, and concerns about China’s subsidies are well justified. Beijing has dumped more than $30 billion into its auto parts sector to increase market share artificially. And Japan has jumped into the game, too, with a policy of currency devaluation that hurts America’s carmakers.
Obama’s trade case announcement came at a crucial time. The most recent data show auto parts imports from China surged nearly 50 percent in 2012 from 2010 levels. Unfortunately, the administration has been virtually silent on the trade case since the election.
The president must fully pursue the auto parts case against Beijing. And Washington must offer an ultimatum to Beijing and Tokyo: Halt your currency manipulation or lose access to the U.S. market.
SCOTT PAUL President Alliance for American Manufacturing Washington, D.C.
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