AISI Calls for China to Uphold Its World Trade Organization Obligations

 

 

 

 

 

 

FOR IMMEDIATE RELEASE                                                    CONTACT: NANCY GRAVATT

October 5, 2011                                                                                 202.452.7115 / ngravatt@steel.org  
    

Currency manipulation and massive government subsidies continue to place U.S. manufacturers at disadvantage

Washington, D.C. – The American Iron and Steel Institute (AISI) called for China to end its trade-distorting policies and practices and to finally comply with all of its World Trade Organization (WTO) obligations, according to oral and written testimony presented today at the Office of the U.S. Trade Representative (USTR) to the interagency Trade Policy Staff Committee (TPSC). 
 “Despite clear evidence that China has repeatedly violated its WTO obligations, it continues to practice WTO-illegal and market-distorting behavior, and its state-owned and supported steel industry continues to grow dramatically—to the point where it is now roughly seven time the size of our privately-owned, market-based, highly efficient steel industry here in the United States,” Barry Solarz, AISI senior vice president of trade and economic policy, emphasized in his oral testimony.  It was the Institute’s eighth written submission to the USTR on this critical issue. 
China’s failure to uphold its WTO commitment continues to harm U.S. manufacturers.  “According to one recent estimate, over the past decade since China joined the WTO, 2.8 million U.S. jobs have been lost or displaced, including 1.9 million in manufacturing,” Solarz noted.  Meanwhile, “The U.S. trade deficit with China has soared from $83 billion in 2000 to over $273 billion in 2010 — and so far this year, it is running about 12% higher than last year.” 

Practices of particular importance to steel, as highlighted in the AISI testimony, include: massive government subsidies to, and continued control of China’s state-owned enterprises (SOEs); China’s restrictive measures to secure access to raw materials; undervaluation of its currency; and the protection of intellectual property rights. 

On the 10-year anniversary of China’s accession to the WTO, “it is well past time for the U.S. government to adjust its strategy and send a much clearer signal to China that it needs to comply now – and fully – with all of its WTO obligations,” the testimony states. 

Click here to read Mr. Solarz’s oral testimony at the Trade Policy Staff Committee Hearing.


Click here to read AISI’s filed comments to USTR. 

AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice.  AISI also plays a lead role in the development and application of new steels and steelmaking technology.  AISI is comprised of 25 member companies, including integrated and electric furnace steelmakers, and 118 associate and affiliate members who are suppliers to or customers of the steel industry.  AISI's member companies represent approximately 80 percent of both U.S. and North American steel capacity.  For more news about steel and its applications, view AISI’s Web site at www.steel.org.

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