USW, Industry Groups Support New WTO Case Filed by U.S., EU Against China
06/24/2009 - The United Steelworkers gives strong support for a new World Trade Organization dispute filed by the U.S. and European Union that challenges China's export restrictions on key raw materials and minerals used in manufacturing.
The United Steelworkers (USW) gave strong support for a new World Trade Organization (WTO) dispute that has been filed by the United States and European Union. The dispute challenges China's export restrictions on key raw materials and minerals used in manufacturing.
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Under WTO procedures, the parties have up to 60 days to engage in consultations on how to resolve the dispute.
At that point, the United States would be able to request formation of a dispute settlement panel to hear the dispute.
The WTO process, including a panel report and any Appellate Body ruling, takes approximately one year.
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“China engages in a wide variety of protectionist, predatory and unfair trade practices,” said USW President Leo W. Gerard. "China should have removed these trade barriers years ago as violations of WTO commitments that hurt our workers across a number of manufacturing industries.”
The USW views the US Trade Representative’s action as a commitment to the enforcement of trade laws. “Today's action sends a signal that America is beginning to get serious about enforcing the rules,” said Girard. “But it's only the first step in what must be a comprehensive approach to get China to start playing by the rules.”
The USW views the US Trade Representative’s action as a commitment to the enforcement of trade laws. “Today's action sends a signal that America is beginning to get serious about enforcing the rules,” said Girard. “But it's only the first step in what must be a comprehensive approach to get China to start playing by the rules.”
Although China committed to removing the export restrictions when it joined the WTO in 2001, their existence to this day continues to benefit Chinese manufacturers at the expense of U.S. and EU manufacturers, by prohibiting or significantly increasing the cost of these raw materials.
The USW also joined several steel industry organizations including the Steel Manufacturers’ Association, Specialty Steel Industry of North America, The Committee on Pipe and Tube Imports, and the American Iron and Steel Institute to commend the Obama Administration and the U.S. Trade Representative in particular, for leading the effort to bring the case. In their public statement, the USW and industry groups indicated that they view the situation as a straightforward case of trade barriers that China should have removed years ago.
The industry groups also stressed that the United States is no longer in an economic position to provide unfettered access to its market for trade that is based on foreign government intervention and subsidization.
