American Iron & Steel Institute has soundly endorsed key trade and competitiveness related conclusions contained in the 2009 Annual Report to Congress issued by the US China Economic & Security Review Commission.
Mr Thomas J Gibson president & CEO of AISI said that "This report further underscores the severity of harm being caused by China’s protectionist practices, which are undercutting US manufacturing while repeatedly sidestepping its WTO obligations. AISI has been urging action on these issues for many years, now. China’s unfair and injurious trade policies must be challenged before they further hollow out America’s manufacturing base, particularly at a time when the nation’s unemployment rate is at a 26 year high record and 200,000 more manufacturing jobs are being lost every month."
Of particular note, the report addresses China’s detailed industrial policy designed to attract foreign investment and production and to create national champions to compete on a global scale and China’s use of subsidies and other trade distorting measures that are in violation of China’s international commitments. The report specifically states that China continues to use trade distorting measures in violation of its WTO commitments.
Mr Gibson said that "Chinese subsidies, currency manipulation, overcapacity and non market behavior are undermining the US manufacturing base. Thus, there is an urgent need for the US government to take WTO action to deal with Chinese policies that are prohibited by the WTO, immediately take effective steps to counter China’s manipulation of its currency, pursue bilateral and other consultations to demand true rectification of the market-distorting practices by China and ensure strong and effective enforcement of U.S. trade laws, particularly our AD/CVD laws."
He added that "It is time for our government to step up to the plate and require China to abide by WTO and American trade laws. Tighter enforcement of our trade laws is not protectionism; rather it is a strategy to seek leverage against anti competitive practices that are threatening American jobs and the American economy."
