Trade Associations Opposing China's Claims to WTO Market Economy Status
11/05/2015 - Nine steel associations in North America, South America and Europe are jointly opposing China’s attempts to gain World Trade Organization market economy status.
In a statement, the associations said the Chinese government continues to have a significant hand in the country’s economy and therefore remains a non-market economy.
“Given the enormous economic and social impacts that will result from the premature recognition of China as a market economy, we urge governments around the world to undertake a comprehensive assessment of the continuing role of the state in the
Chinese economy and industry, as well as an assessment of the impact on industries around the world, if China were to be treated as a market economy before it made the necessary reforms to ensure that market forces were in fact allowed to operate fully in the Chinese economy,” they wrote.
The associations include the American Iron and Steel Institute, the Canadian Steel Producers Association, CANACERO (the Mexican Steel Association), Alacero (the Latin American Steel Association), EUROFER (the European Steel Association,) and Instituto Aço Brasil (the Brazilian Steel Institute).
There’s likely to be a growing debate over whether China should be granted WTO market economy status – a provision in its WTO accession agreement allowing other countries to treat it as a non-market economy expires in December 2016, as the Financial Times newspaper explains.
According to the newspaper, the China argues that it should automatically be given the status in 2016, under the terms of its WTO accession agreement. However, some trade experts argue that the agreement instead requires Chinese exporters to prove first that they do not benefit from government subsidies and currency policy, the newspaper said.
Granting the country market economy status would make it easier for Chinese companies targeted in WTO anti-dumping cases to defend themselves, the newspaper added.
Separately, the United Steelworkers union said it has joined with 17 other steel-producing unions in calling for government action against the "industrial destruction" that is eroding jobs, working conditions, bargaining rights and environmental conditions.
In their declaration, the unions specifically cited what they say is China’s unfair and illegal trading practices.
The declaration was sponsored by IndustriALL, a worldwide labor federation established in 2012 that represents more than 50 million workers in 600 unions from 140 countries around the world. The USW is a founding member.
"China's overcapacity is affecting steelworkers across the globe," said USW International Vice President Tom Conway in a statement.
"We can't continue to ignore the problems that China is causing. They have the potential to doom the global steel industry."
“Given the enormous economic and social impacts that will result from the premature recognition of China as a market economy, we urge governments around the world to undertake a comprehensive assessment of the continuing role of the state in the
Chinese economy and industry, as well as an assessment of the impact on industries around the world, if China were to be treated as a market economy before it made the necessary reforms to ensure that market forces were in fact allowed to operate fully in the Chinese economy,” they wrote.
The associations include the American Iron and Steel Institute, the Canadian Steel Producers Association, CANACERO (the Mexican Steel Association), Alacero (the Latin American Steel Association), EUROFER (the European Steel Association,) and Instituto Aço Brasil (the Brazilian Steel Institute).
There’s likely to be a growing debate over whether China should be granted WTO market economy status – a provision in its WTO accession agreement allowing other countries to treat it as a non-market economy expires in December 2016, as the Financial Times newspaper explains.
According to the newspaper, the China argues that it should automatically be given the status in 2016, under the terms of its WTO accession agreement. However, some trade experts argue that the agreement instead requires Chinese exporters to prove first that they do not benefit from government subsidies and currency policy, the newspaper said.
Granting the country market economy status would make it easier for Chinese companies targeted in WTO anti-dumping cases to defend themselves, the newspaper added.
Separately, the United Steelworkers union said it has joined with 17 other steel-producing unions in calling for government action against the "industrial destruction" that is eroding jobs, working conditions, bargaining rights and environmental conditions.
In their declaration, the unions specifically cited what they say is China’s unfair and illegal trading practices.
The declaration was sponsored by IndustriALL, a worldwide labor federation established in 2012 that represents more than 50 million workers in 600 unions from 140 countries around the world. The USW is a founding member.
"China's overcapacity is affecting steelworkers across the globe," said USW International Vice President Tom Conway in a statement.
"We can't continue to ignore the problems that China is causing. They have the potential to doom the global steel industry."
