The National Trade Estimate: China, part 1
Posted by scapozzola on 04/05/2010
The Office of the United States Trade Representative (USTR) has issued its 2010 National Trade Estimate Report on Foreign Trade Barriers (NTE). Some interesting findings on China's export subsidies, page 74:
A general lack of transparency makes it difficult to identify and quantify possible export subsidies provided by the Chinese government. China’s subsidy programs are often the result of internal administrative measures and are not publicized. U.S. industry has alleged that subsidization is a key reason that Chinese exports are undercutting prices in the United States and gaining market share. Of particular concern are China’s practices in the steel, petrochemical, high technology, forestry and paper products, textiles, hardwood, plywood, machinery, and copper and other nonferrous metals industries. In its Protocol of Accession to the WTO, China committed to eliminate all subsidies prohibited under Article 3 of the WTO Subsidies Agreement, including all forms of export subsidies on industrial and agricultural goods, upon its accession to the WTO in December 2001. China finally submitted its long overdue subsidies notification to the WTO’s Subsidies Committee in April 2006. Although the notification is lengthy, with over 70 subsidy programs reported, it is also notably incomplete, as it failed to notify any subsidies provided by state-owned banks or by provincial and local government authorities. In addition, while China notified several subsidies that appeared to be prohibited under WTO rules, it did so without making any commitment to withdraw them, and it failed to notify other subsidies that appeared to be prohibited.Read the full report.
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