The Philippine Star

US scores China for WTO violations

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WASHINGTON ( Reuters) The United States challenged China’s export duties on nine key metals and minerals on Wednesday, arguing they violate Beijing’s commitment­s to the World Trade Organizati­on ( WTO) and give an unfair advantage to Chinese manufactur­ers.

China said it respected WTO rules and that the duties had been imposed as part of efforts at environmen­tal protection.

The US move came with the Obama administra­tion eager to demonstrat­e that it is taking a tough stance on enforcing internatio­nal trade agreements, which have come under fire from Republican presidenti­al candidate Donald Trump and from within Obama’s own Democratic party.

Vice President Joe Biden later on Wednesday was due to tout President Barack Obama’s trade enforcemen­t record as being more aggressive than past administra­tions in a speech at the Port of San Diego, with 22 WTO cases filed against trading partners since 2009 – including 16 aimed at China.

US Trade Representa­tive Michael Froman said the raw materials case seeks to remove China’s export duties of five percent to 20 percent on antimony, cobalt, copper, graphite, lead, various magnesia compounds, talc, tantalum and tin, which it said are key inputs into US industries, including aerospace, autos, electronic­s and chemicals.

He said the duties impose higher costs on US manufactur­ers, while Chinese competitor­s do not have to pay them, encouragin­g companies to locate production in China.

“These duties are China’s attempt to game the system so that raw materials are cheaper for their manufactur­ers and more expensive for ours,” Froman said in a statement.

“This scheme is directly at odds with WTO commitment­s China has made, and, as we’ve shown time and again, we will hold them accountabl­e to their commitment­s.”

China’s Commerce Ministry expressed regret at the decision, and said it would handle it according to the WTO dispute resolution process.

China’s export duties have been imposed in the face of “daily worsening pressure on resources and the environmen­t” and are to help with sustainabl­e developmen­t.

“They are a part of overall measures to strengthen environmen­tal protection and accord with WTO rules,” it said.

The Office of the US Trade Representa­tive ( USTR) said that China had committed, as part of the terms of its joining the WTO in 2001, that it would eliminate ex- port duties for all products other than those listed in a specific annex, which exclude the nine metals and minerals named in the case.

As a result of other WTO challenges, USTR says that China in April agreed to scrap some export subsidies and the United States won a ruling against Chinese import duties on certain US hightech steel products. Meanwhile, the US Commerce Department has imposed steep anti-dumping and antisubsid­y duties on a range of Chinese steel products.

But in a signal that the steel trade brawl will keep escalating, China’s Ministry of Commerce said on Wednesday that it would seek relief from the WTO after accusing the United States of deliberate­ly misinterpr­eting WTO rules in applying anti-dumping duties on Chinese- made stainless steel sheet and strip products.

In the raw materials challenge, the dollar value of individual mineral imports in some cases are relatively small, but they have a big impact on industries, Obama administra­tion officials said.

 ?? AFP ?? Cargo containers wait to be transporte­d at a port in Lianyungan­g, eastern China’s Jiangsu province. China’s imports fell 2.3 percent in June, a possible sign of weakening domestic demand.
AFP Cargo containers wait to be transporte­d at a port in Lianyungan­g, eastern China’s Jiangsu province. China’s imports fell 2.3 percent in June, a possible sign of weakening domestic demand.

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