Possible decision on auto parts trade case looms ahead for Obama Administration, according to Reuters

Posted by scapozzola on 09/11/2012

Auto assembly plants in the U.S. have been booming of late.  But what about America's auto parts maufacturers?

Since 2001, according to an Alliance for American Manufacturing (AAM) investigation, $62 billion worth of Chinese auto parts have been imported into the U.S., causing the auto parts trade deficit between the U.S. and China to increase by more than 850%.

Simply put, the U.S. auto parts supply chain is under attack from subsidized Chinese competition.  More than 400,000 jobs in the U.S. auto supply chain have been lost since 2000, and another 1.6 million U.S. jobs are at risk unless China's illegal trading practices are curtailed.

Reuters correspondent Doug Palmer reports that this wave of imports has driven several industrial unions to pressure the Obama Administration to investigate China's massive auto parts subsidies.

Palmer quotes AAM Executive Director Scott Paul on the urgency of such a case:

"It's been basically seven full months. That's plenty of time to evaluate the merits of the case, and I do think the time to make a decision is now, absolutely," said Scott Paul, executive director of the Alliance for American Manufacturing, which works with the United Steelworkers union.

"This is an issue that's critical to Ohio, and to Michigan and to Pennsylvania and even to states like Virginia and Wisconsin, which have a lot of auto parts jobs," Paul said.

Beijing has pumped $27 billion of subsidies into its auto parts sector, with an additional $10 billion planned. China also blocks U.S. exports of autos and auto parts while favoring its own industry, in direct violation of the commitments it made to free markets when it joined the World Trade Organization.

AAM's Paul believes this subsidized attack on the U.S. auto parts sector needs to be investigated thoroughly by the Obama Administration.

CLICK HERE to read the full Reuters article


And click here to read more about the struggle for America's auto parts sector.

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