Frank Vargo, vice president for international economic affairs at the National Association of Manufacturers, expressed strong support for the Obama administration’s complaints against China in a dispute on export restraints of raw materials.
On Tuesday, U.S. Trade Representative Ron Kirk joined EU Trade Commissioner Catherine Ashton in initiating formal dispute settlement consultations at the World Trade Organization.
“China’s export restriction of nine key raw materials has distorted trade and caused economic injury to NAM members. The NAM has raised this issue repeatedly with U.S. government officials because China’s actions have had the effect of subsidizing Chinese producers by allowing them to pay a lower price for those materials than U.S. companies. In our view, this is a clear violation of commitments China made when joining the WTO,” Vargo said.
Vargo said that it was regrettable that China did not resolve this issue during the extensive bilateral discussions that preceded this filing over a period of two years. “The NAM wants to see a robust, healthy, long-term trade relationship with China,” Vargo added. “That relationship must include adherence to the global trade rules that China committed to follow. We congratulate Ambassador Kirk and his excellent team at USTR for addressing this very complex issue.”
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