USTR Requests WTO Consultations on China's Auto 'Export Base'
The U.S. requested dispute settlement consultations with the government of China at the World Trade Organization on China's auto and auto parts "export base" subsidy program, U.S. Trade Representative Ron Kirk said Sept. 17. The U.S. had earlier challenged China's imposition of antidumping and countervailing duties on more than $3 billion in exports of American-produced automobiles (see ITT's Online Archives [Ref.12070521].
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"The export subsidy program that we are challenging today is implemented through dozens of Chinese legal instruments," Kirk said Sept. 17. He said the Interagency Trade Enforcement Center has provided crucial investigative and analytical resources to support the effort.
Also on Sept. 17, the U.S. asked the WTO to establish a dispute settlement panel to address to address China's imposition of antidumping and countervailing duties on more than $3 billion in exports of American-produced automobiles (see ITT's Online Archives 12042547). The U.S. and China tried to resolve the matter in consultations in June, but they didn't succeed, USTR said, so the U.S. is taking the next step in the WTO dispute settlement process.
"We insist upon having a level playing field on which our world-class manufacturers can compete. Today we are continuing to make it clear to our trading partners that we will fight to support each job here at home that this sector supports," Kirk said.
USTR said the value of subsidies made available to auto and auto parts manufacturers in China between 2009 and 2011 was at least $1 billion. In a fact sheet, it said the export subsidies make it harder for autos and auto parts manufactured in the U.S. to compete with Chinese products in the world market. Under WTO dispute settlement procedures, the U.S. and China would normally consult within 30 days.
WTO report available here.