U.S. Trade Representative Michael Froman announced today the United States has launched a trade enforcement action with China at the World Trade Organization over an export subsidy program that harms American workers and businesses. The “Demonstration Bases-Common Service Platform” program gives prohibited export subsidies to Chinese companies across seven economic sectors.
Commented Alliance for American Manufacturing President Scott Paul
“I applaud the Obama administration’s enforcement efforts to hold our trading partners, namely China, accountable. This is an important action, but is only the tip of the iceberg among China’s predatory trade practices. This administration needs to more aggressively confront China’s currency manipulation, which represents a massive export subsidy that undermines American manufacturers and workers.”
In April, the Treasury Department has the opportunity to initiate action against China’s currency practices in its Semiannual Report on International Economic and Exchange Rate Policies. The Obama administration has declined 12 opportunities to name China a currency manipulator since 2009.
Today’s trade enforcement action stems, in part, from a WTO trade case initiated in 2012 against China on its auto parts exports, which increased more than 900 percent from 2000 to 2010 as a result of illegal export subsidies and other predatory practices. Research produced by AAM and others, backed by a bipartisan, bicameral letter from 188 members of Congress, outlined the need for action by the administration.
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