Interviews
Soda ash exporter ANSAC asks govt to address China's SOEs
16 Apr '12
2 min read
On April 2, 2012, John M. Andrews, the President and CEO of American Natural Soda Ash Corporation (ANSAC), the world's largest soda ash exporter, wrote to U.S. Trade Representative Ron Kirk in support of his recent testimony before the House Ways and Means Committee and Senate Finance Committee in which trade policy enforcement, particularly with China, was highlighted as a centerpiece of the Administration's trade policy agenda.
Mr. Andrews emphasized to Ambassador Kirk the need for the Obama Administration to continue to focus on China's industrial policies that "rely on trade-distorting government actions to promote or protect China's state-owned enterprises (SOEs)."
Mr. Andrews noted that "nearly 50 percent of China's soda ash capacity comes from producers that are either fully or partially state-owned, including two of its four producers."
These producers allow China to overcome the comparative advantage U.S. soda ash producers have "with serious implications in third-country markets." Among the documented policies that benefit Chinese producers are the differential VAT rebates "which encourage the overproduction and export of soda ash."
China's VAT rebates offered to its local producers have for several years been a priority to the United States Congress and been the subject of discussions on numerous bilateral government-to-government agendas, including the Joint Commission on Commerce and Trade (JCCT).
ANSAC is the international marking arm for three soda ash manufacturers in the United States: FMC Corporation, Tata Chemicals North America, and OCI Chemicals Corporation. Since ANSAC's formation in 1984, American soda ash exports have tripled. Mr. Andrews pointed out in his April 2 letter to Ambassador Kirk that "Since 2010, the United States has exported over 50% of its total soda ash production." ANSAC's soda ash exports are sourced from the Green River Basin of Wyoming, which has reserves that can supply the entire world for more than 1,000 years.
Mr. Andrews emphasized to Ambassador Kirk the need for the Obama Administration to continue to focus on China's industrial policies that "rely on trade-distorting government actions to promote or protect China's state-owned enterprises (SOEs)."
Mr. Andrews noted that "nearly 50 percent of China's soda ash capacity comes from producers that are either fully or partially state-owned, including two of its four producers."
These producers allow China to overcome the comparative advantage U.S. soda ash producers have "with serious implications in third-country markets." Among the documented policies that benefit Chinese producers are the differential VAT rebates "which encourage the overproduction and export of soda ash."
China's VAT rebates offered to its local producers have for several years been a priority to the United States Congress and been the subject of discussions on numerous bilateral government-to-government agendas, including the Joint Commission on Commerce and Trade (JCCT).
ANSAC is the international marking arm for three soda ash manufacturers in the United States: FMC Corporation, Tata Chemicals North America, and OCI Chemicals Corporation. Since ANSAC's formation in 1984, American soda ash exports have tripled. Mr. Andrews pointed out in his April 2 letter to Ambassador Kirk that "Since 2010, the United States has exported over 50% of its total soda ash production." ANSAC's soda ash exports are sourced from the Green River Basin of Wyoming, which has reserves that can supply the entire world for more than 1,000 years.
American Natural Soda Ash Corporation (ANSAC)
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