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United States files WTO case against China over prohibited subsidies

07
Feb '07
U.S. Trade Representative Susan C. Schwab announced that the United States has requested World Trade Organization (WTO) dispute settlement consultations with the People's Republic of China (China) regarding its provision of subsidies that appear to be prohibited by WTO rules.

“We are committed to challenging China's WTO-inconsistent practices that harm American workers and businesses,” said Ambassador Schwab. “China's use of market-distorting subsidies creates an uneven playing field and subverts China's own efforts to foster consumption-led growth.”

“We recognize that China has taken significant steps to open its market and reform its trade practices since becoming a Member of the WTO, and both countries are benefiting from a deeper and stronger trade relationship,” Ambassador Schwab added. “However, where China has failed to meet its commitments, we will use the full array of tools available to secure compliance. Our decision to bring this case to the WTO comes after our efforts at dialogue failed.”

The Commerce Department works with USTR related to subsidies in multilateral fora such as the WTO. Secretary of Commerce Carlos Gutierrez stated, “China is using prohibited subsidies to compete unfairly. American workers, consumers, farmers and businesses benefit greatly from being able to buy and sell in the world marketplace, but others must follow the rules. China has not. The Bush Administration will continue to use every tool at our disposal toenforce U.S. trade law and to make sure others compete fairly.”


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