The American Iron and Steel Institute (AISI), on behalf of its US member companies, has submitted comments to the Office of the United States Trade Representative's (USTR) to call for “decisive action” against China due to its trade agreement violations.
AISI submitted comments Tuesday to the USTR's Trade Policy Staff Committee (TPSC) documenting China's non-compliance with commitments it made upon its accession to the World Trade Organization (WTO), calling for “decisive action.” AISI points out that China's non-compliance with its WTO obligations remains a severe and growing problem for American steel producers and other US manufacturers.
“In each submission (to the TPSC – 2004-2008), AISI has documented how China has used subsidies and other forms of government support to build an enormous steel industry in violation of market principles and China’s WTO commitments,” reads AISI’s comments.
AISI goes on to point out that:
- China’s massive government-directed steel industry continues to grow;
- Chinese steel exports continue to injure the US steel industry;
- Chinese steel production practices cause environmental damage;
- Decisive action against trade-distorting Chinese steel policies should be taken.
In addition, AISI notes that its submission does not attempt to identify and discuss every outstanding issue with respect to China’s WTO compliance; however, there are several issues of particular importance to US steel producers. These issues include: (1) subsides; (2) state-owned enterprises; (3) government policies distorting the market for raw materials; (4) currency manipulation; (5) China’s continued treatment as a non-market economy; (6) enforcement of the China-specific safeguard provision (Section 421); (7) product safety issues; and, (8) intellectual property rights.
AISI also declares: “Today, China is on pace to produce over 500 million mt of crude steel and has captured 48.5 percent of global market share. These facts show that the United States’ approach has not been effective in bringing China into compliance. Rather, China is continuing to use trade-distorting measures to build a massive steel industry that is injuring the US steel industry, the US economy, and the environment.”
To read AISI's full submission, visit AISI's website at www.steel.org .