The United Steelworkers (USW) said that today's decision by the Appeals body of World Trade Organization (WTO) is a slap in the face to U.S. workers and industries that are harmed by China's predatory trade practices. The USW believes this decision will undercut the ability of the U.S. to fully and effectively apply countervailing duty and anti-dumping laws against China.

"Today's decision from the WTO is very troubling," said Leo W. Gerard, International President of the USW. "This is yet another example of the WTO overreaching and undermining the legitimacy of the WTO and the sovereignty of the United States.  

"When China joined the WTO in 2001, it agreed to be treated as a non-market economy in dumping cases and to be subject to countervailing duty laws -- today the Appellate Body appears to have created special carve outs for China that neither the U.S. nor anyone else agreed to ten years ago.

"China is the world's number two economy and number one exporter, and it maintains a massive trade surplus with the U.S. and the world. The WTO needs to make sure China plays by the same rules as everyone else, and ensure all countries can effectively enforce their trade laws when their workers and industries are being injured by predatory dumping and massive, trade-distorting subsidies.

"It will be extremely difficult for workers to have any confidence in the benefits of trade when an international tribunal can override our trade rules and harm our workers and industries. We look forward to working with the Administration and Congress to change this outcome."

The dispute involves antidumping and countervailing duty proceedings on four products from China two of which are made by our members: new pneumatic off-the-road tires, circular welded pipe, light-walled rectangular pipe and tube, and laminated woven sacks.  The USW was involved as a petitioner in two of the four original proceedings on behalf of its members in the tires and steel industries.

 

March 12^th, 2011

Source: Washington Business Journal

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