USTR Announces Win in China Wind Power Equipment WTO Dispute
U.S. Trade Representative Ron Kirk has announced that China has ended certain wind power equipment subsidies. The U.S. had challenged the Special Fund for Wind Power Equipment Manufacturing subsidies at the World Trade Organization following an investigation initiated in response to a petition filed by the United Steelworkers (USW).
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The subsidies took the form of grants to Chinese wind turbine manufacturers that agreed to use key parts and components made in China rather than purchasing imports. The U.S. estimated that the grants provided to Chinese companies since 2008 could have totaled several million dollars. The size of the individual grants ranged between $6.7 million and $22.5 million.
USTR notes that this is the third successful WTO challenge that the U.S. has brought against Chinese government subsidies. In each of these cases, following formal consultations at the WTO, China agreed to eliminate the subsidies that the U.S. had challenged.
(See ITT's Online Archives or 12/29/10 news, 10122910, for BP summary announcing that USTR was seeking comments on its December 22, 2010 request for WTO consultations with China regarding certain subsidies provided by the China on wind power equipment.)